Sugar Alcohol Market expected to reach USD 13.578 billion by 2030

Sugar Alcohol Market Trends & Forecast

According to a research study published by Knowledge Sourcing Intelligence (KSI), the sugar alcohol market will expand from USD 10.613 billion in 2025 to USD 13.578 billion in 2030 at a CAGR of 5.05% during the forecast period.

The increased prevalence of health issues such as diabetes and obesity across the globe leads to an increase in the demand for sugar alcohol due to its attributes. Sugar alcohol provides decreased calorie content with minimal blood sugar impacts, which are ideal for these lifestyle-related diseases, as they do not exacerbate the issue.

Moreover, the growing government initiatives to promote clean-label products also include reduced sugar foods, among food products like confectionery, soft drinks, bakery, and dairy, which will grow the demand for sugar alcohols worldwide. For instance, UNESDA announced commitments for a decrease in sugar in soft drinks by another 10 percent between 2019 and 2025 after a reduction of 14.6 percent from 2015-2019 and about 13.3 percent in 2020-2015 across the UK and EU-27. These initiatives will offer an opportunity for the sugar alcohol market to increase across diverse industries.

Sugar Alcohol Market Report Highlights

• The sorbitol segment is estimated to attain a greater market share by 2030 in the type segment. The segment is predicted to grow due to its properties, low-calorie value, along with low glycemic index, and wider application as a sugar alternative in diverse industries like beverages, foods, and pharmaceuticals. They are increasingly used as a super substitute in diet food products and as flavor makers or bulking agents in pharmaceuticals. The growth in consumer awareness of low-calorie alternatives is also promoting the segment demand in sugar alcohol.
• The syrup segment is the fastest-growing segment in the sugar alcohol market in the form segment, driven by the increasing application of this in liquid formulation used in beverages, pharmaceuticals, and hot drinks, along with personal care due to its liquid form, which offers increased water solubility compared to other forms.
• The food & beverages segment in the application is the largest in the market because of the rise in the demand for reduced sugar, sugar-free, and low-calorie food products among consumers. Additionally, the rise in health concerns related to increased sugar intake, such as diabetes and obesity, is also promoting the sugar alcohols in the segment products, such as baked goods, dairy, confectionery, and beverages.
• Europe dominates the sugar alcohol market due to the region’s increased consumption of processed food and confectionery, especially in well-developed regions such as France, the United Kingdom, and Germany. The increase in health-conscious consumers, followed by the increase working population, leading to a busy lifestyle, is promoting demand for sugar-free products like sugar alcohol across the region. Further, the strong pharmaceutical industry, along with health awareness initiatives for the reduction of sugar from food and beverages in the region during the coming years.

Report Coverage:

Report Metric	Details
Sugar Alcohol Market Size in 2025	US$10.613 billion
Sugar Alcohol Market Size in 2030	US$13.578 billion
Growth Rate	CAGR of 5.05%
Drivers	Rise in the Prevalence of Diabetes and Obesity Growth in Health Consciousness and Demand for No Sugar Products
Restraints	High Cost of Manufacturing Dependence on Raw Material Availability and Supply Chain Disruptions
Segmentation	Type Form Application Geography
List of Major Companies in Sugar Alcohol Market	Roquette Gulshan Polyols Santa Cruz Biotechnology AVANSCHEM Sasma

Sugar Alcohol Market Growth Drivers and Restraints

Growth Drivers:

• Rise in the Prevalence of Diabetes and Obesity: The increase in lifestyle-related health diseases such as obesity and diabetes, which are accelerated due to consumption of high sugar diets, is boosting the consumers’ demand for low-glycemic and low-calorie sugar substitutes, in turn fuelling the market globally.
• Growth in Health Consciousness and Demand for No Sugar Products: The shift among consumers towards healthier food alternatives is witnessed globally for better health, which includes no sugar substitutes across products such as bakery, dairy, confectioners, and beverages, which offer texture, sweetness, and moisture without providing excessive calories, promoting its adoption in a healthy diet.

Restraints:

• High Cost of Manufacturing: The production of sugar alcohol, which involves complex processes such as catalytic hydrogenation and high purification costs which is costly and low productivity with time time-consuming, could hamper the market.
• Dependence on Raw Material Availability and Supply Chain Disruptions: The production of sugar alcohol demand natural sources like starches and fruits required which are limited in supply and can be disrupted in the supply chain due to geopolitical events and other global import/ export tariff issues.

Sugar Alcohol Market Key Development

• Production Line Launch: In January 2025, Modarres Pharmaceutical introduced the production line for sorbitol in the Chemical and Food Industries Complex and was allied with Iran’s Academic Center for Education, Culture, and Research. The facility has the capacity to produce between 8,000 tons and 8,500 tons annually and has a presence in West Asia and Iran.

Sugar Alcohol Market Segmentation

Knowledge Sourcing Intelligence has segmented the sugar alcohol market based on the type, form, application, and region:

Sugar Alcohol Market, By Type

• Mannitol
• Sorbitol
• Xylitol
• Lactitol
• Isomalt
• Maltitol
• Hydrogenated Starch Hydrolysates (HSH)
• Others

Sugar Alcohol Market, By Form

• Syrup
• Powder
• Crystal

Sugar Alcohol Market, By Application

• Chemicals
• Pharmaceuticals
• Food & Beverages
• Others

Sugar Alcohol Market, By Region

• North America
  • USA
  • Canada
  • Mexico
• South America
  • Brazil
  • Argentina
  • Others
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Others
• Middle East and Africa
  • Saudi Arabia
  • Israel
  • UAE
  • Others
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Taiwan
  • Thailand
  • Indonesia
  • Others

Sugar Alcohol Market Key Players

• ADM
• Cargill Incorporated
• Ingredion Incorporated
• Tate & Lyle
• DuPont
• Associated British Foods Plc
• Mitsubishi Corporation
• Roquette
• Gulshan Polyols
• Santa Cruz Biotechnology
• AVANSCHEM
• Sasma
• Suzhou Minghua sugar alcohol Co
• Shouguang Hua Li Sugar Alcohol Co., Ltd
• Spectrum Chemical Manufacturing Corp.