Erythritol Market Size, Share Report, Analysis, Trends, Growth, 2030

Erythritol Industry Prospective:

The global erythritol market size was worth around USD 241 million in 2022 and is predicted to grow to around USD 398 million by 2030 with a compound annual growth rate (CAGR) of roughly 6.5% between 2023 and 2030.  

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Erythritol Market: Overview

Erythritol is a sugar alcohol that is also used in the food and beverage sector as a sweetener to improve the flavor of food instead of sugar. Erythritol, a substance that is frequently used in the food processing equipment business, is a good substitute for sugar due to its low-calorie content. Fermentation of carbohydrates or hydrogen-assisted sugar reduction are two methods for obtaining erythritol. The low-calorie content of erythritol and the health advantages of using sweeteners are factors that have been propelling the market throughout the year and are anticipated to do so throughout the projected period. Erythritol market expansion is expected to be fueled primarily by the increasing prevalence of obesity and chronic disorders like diabetes.

Key Insights

• As per the analysis shared by our research analyst, the global Erythritol market is estimated to grow annually at a CAGR of around 6.5% over the forecast period (2023-2030).
• In terms of revenue, the global Erythritol market size was valued at around USD 241 million in 2022 and is projected to reach USD 398 billion, by 2030.
• The growing prevalence of obesity and chronic diseases like diabetes are expected to propel the erythritol market growth during the forecast period.
• Based on the form, the powder segment is expected to dominate the market over the forecast period.
• Based on the application, the confectionery & dairy products segment is expected to grow significantly over the projected period.
• Based on region, North America is expected to dominate the market over the forecast period.

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Erythritol Market: Growth Drivers

Growing consumer awareness drives market growth

Erythritol sales are being driven by growing consumer awareness of the possible harmful effects of table sugar as well as increased disposable income. Because of its low-calorie content per serving and ability to blend well with other natural components, it's also utilized to create sweeteners, which may have an impact on worldwide industry trends. Consumer awareness of the value of including organic foods and drinks in diets has grown in recent years, which has contributed to the urban market's increase in artificial sugar and sweetening goods. There is a growing market for low-sugar energy drinks and health drinks as a result of the growing demand for healthy sweetening ingredients like erythritol, which is available in both powder and granular form. Thus, the growing consumer awareness is expected to drive global erythritol market growth over the forecast period.

Erythritol Market: Restraints

High production cost of erythritol impedes market growth

Some applications that are sensitive to cost may find it difficult to include erythritol due to its higher production costs when compared to other sweeteners. Yeast fermentation of glucose is a resource-intensive process that may necessitate infrastructure expenditures during the production process. Thus, the high cost of erythritol is expected to hamper the erythritol industry growth over the forecast period.

Erythritol Market: Opportunities

Increasing partnerships offers a lucrative opportunity for market growth

The increasing partnership is expected to offer a lucrative opportunity for erythritol market growth during the forecast period. For instance, in November 2022, Tate & Lyle PLC introduced ERYTESSETM Erythritol as a new sweetener to its lineup. This addition strengthens Tate & Lyle's position as the global leader in ingredient solutions for healthier food and beverages and increases the company's ability to assist customers in meeting consumer demand for healthier, lower-sugar, and lower-calorie products. The partnership distribution agreement with a major supplier of erythritol makes this possible. STYLESSETM Erythritol has no calories and is 70% sweeter than sucrose with a comparable temporal profile. It may be utilized in a variety of contexts, such as dairy, confections, drinks, and baking. Erythritol is a great addition to their current product line and works well with both high-potency sweeteners like sucralose and natural sweeteners like stevia and monk fruit. It allows consumers to create sugar-reduced meals and beverages at a reasonable cost while providing a fully sugar-like flavor experience. Additionally, when sucrose is lowered or eliminated, it can be utilized to provide sweetening solutions for manufactured food products, such as bulking and mouthfeel.

Erythritol Market: Challenges

Availability of substitutes poses a major challenge for the market growth

Considering its market share and calorie content per unit, Stevia poses a significant threat to Erythritol. Due to its low-calorie nature, stevia is more favored by obese patients despite occasionally having a higher price. Therefore, throughout the projected period, it is expected to hinder market growth.

Erythritol Market: Segmentation

The global Erythritol industry is segmented based on the form, application, sales channel, and region.

Based on the form, the global market is bifurcated into powder and granular. The powder segment is expected to dominate the market over the forecast period because the granulated form keeps getting granular unless it dissolves in water, the powder is better for most applications. A few natural sugars are combined and fermented to create powdered erythritol sweeteners, which taste virtually exactly like sugar. When it comes to artificial sweeteners, erythritol in powder form has consequently emerged as a top option, and the market for this product has grown significantly in recent years.

Based on the application, the global erythritol market is bifurcated into beverage, bakery, confectionery & dairy products, personal care, and pharmaceutical. The confectionery & dairy products segment is expected to grow significantly over the projected period. Erythritol is a useful ingredient for makers of dairy products and confections because of its clean label appeal and ability to sweeten without dramatically raising blood sugar levels. It satisfies the increasing need of consumers for healthier, less-sugar solutions without sacrificing the flavor or texture of conventional goods. Erythritol may need to be carefully balanced with other sweeteners and bulking agents by manufacturers to give these goods the required sensory qualities. On the other hand, the pharmaceutical segment is expected to grow at the highest CAGR over the forecast period. In medicine formulations, erythritol can be employed as a pharmaceutical filler or as an excipient. It can be used in solid dosage forms, including tablets and capsules, as a bulking agent, diluent, or carrier for active pharmaceutical ingredients (APIs). Because of its inertness and high compressibility, erythritol is a favorable choice for pharmaceutical manufacture.

Based on the sales channel, the global Erythritol industry is bifurcated into direct channel and distribution channel.

Erythritol Market: Report Scope

Erythritol Market: Regional Analysis

North America is expected to dominate the market over the forecast period

North America is expected to dominate the global erythritol market over the forecast period. the health and wellness trend is a major driver of the erythritol market in North America. Consumers are increasingly seeking out low-calorie and sugar-free alternatives to traditional sweeteners due to concerns about obesity, diabetes, and other health issues. According to the CDC, nearly 11% of Americans, or over 34 million people, suffer from diabetes. Moreover, in 2022, 22 states had an adult obesity rate of over 35 percent, up from 19 states the year before, according to TFAH's analysis of the most recent data from the Behavioral Risk Factor Surveillance System of the Centers for Disease Control and Prevention (CDC). Ten years ago, not a single state had an adult obesity rate of 35 percent or more.

The states with the highest percentages of adult obesity are West Virginia (41%), Louisiana (40.1%), Oklahoma (40%) and Mississippi (39.5%). The states with the lowest rates of adult obesity are Hawaii (25.9%), Colorado (25.0%), and the District of Columbia (24.3%). Furthermore, the food and beverage industry in North America has adopted erythritol in a variety of applications, including sugar-free candies, sugar-free beverages, dairy products, baked goods, and more. Major brands and manufacturers are reformulating their products to include erythritol. Besides, the Asia Pacific is expected to grow at the fastest rate over the forecast period since more and more people are becoming health-conscious and due to an increasing number of people choosing to eat low-calorie food and drink products.

Erythritol Market: Competitive Analysis

The global Erythritol market is dominated by players like:

• Foodchem International Corporation
• Futaste
• Cerestar Holding B.V
• Tate & Lyle
• Baolingbao Biology
• Shandong Sanyuan Biotechnology
• JUNGBUNZLAUER SUISSE AG
• Cargill
• Unterhofer& Partner KG/ZeroCal
• Nikken-Chemical
• ZhuchengDongxiao Biotechnology.

The global Erythritol market is segmented as follows:

By Form

• Powder
• Granular

By Application

• Beverage
• Bakery
• Confectionery & Dairy Products
• Personal Care
• Pharmaceutical

By Sales Channel

• Direct Channel
• Distribution Channel

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa