Sugar alcohol Market Set to Double by 2027, Reaching $4.8 Billion | Growing at a CAGR of 5.9%

Increase in demand for polyols in the food industry and rise in demand for polyols in pharmaceutical applications drive the growth of the sugar alcohol market.

WILMINGTON, DE, UNITED STATES, August 29, 2025 /EINPresswire.com/ -- Sugar alcohol market size was generated $3.36 billion in 2019, and is projected to generate $4.80 billion by 2027, growing with a CAGR of 5.9% from 2021 to 2027.

Increase in demand for polyols in the food industry, surge in prevalence of obesity and diabetes, and rise in demand for polyols in pharmaceutical applications drive the growth of the global sugar alcohol market. However, high production costs hamper the market growth. On the contrary, increase in demand in the Asia-Pacific region and product development and innovations are expected to open lucrative opportunities for the market players in the future.

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Growth in adoption of low-calorie and sugar-free food products, owing to rise in consumer health consciousness is one of the crucial factors that drive growth of the global sugar alcohol market. In addition, rise in prevalence of health-related issues caused due to consumption of sugar has created demand for low- and reduced-calorie sweeteners.

The market is expected to exhibit an incremental revenue opportunity of $1.3 billion from 2021 to 2027. Rise in demand for health consciousness and low-calorie food & beverage products propel the market growth. Moreover, rise in demand for sugar substitutes or alternatives due to consumer preferences shifting toward a healthier lifestyle is expected to drive growth of the global sugar alcohol market.

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Rise in consumption of nutraceuticals among consumers in the form of functional foods, dietary supplements, and functional beverages fuel the sugar alcohol market growth. This is attributed to the fact that polyols are used in numerous pharmaceutical and nutraceutical products, owing to their coating, sweetening, emollient, bulking, anti-crystallizing, and stabilizing properties. Furthermore, sugar alcohols combine synergistically with other low-calorie sweeteners to provide a more balanced sweetness, which is comparable to sugars. Hence, owing to these unique properties, polyols are used in a number of food applications. However, high cost of production as compared to sugar is anticipated to hinder the growth of sugar alcohol market.

By region, the global sugar alcohol industry across Europe, followed by North America, held the lion's share in 2019, accounting for nearly two-fifths of the market, due to tremendous popularity and substantial consumption of low-calorie food & beverages in the region. However, the Asia-Pacific is projected to portray the highest CAGR of 6.8% during the forecast period, owing to rise in purchasing power parity and consumption of sugar-free and sugar-reduced pharmaceutical products and nutritional supplements.

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Major market players

Cargill Incorporated
Ingredion Incorporated
Spectrum Chemical Manufacturing Corp.
Roquette Freres SA
Archer Daniels Midland Company
Tate & Lyle PLC
Mitsubishi Shoji Foodtech Co. Ltd
Associated British Foods plc (SPI Pharma)
Atlantic Chemicals Trading GmbH
DuPont

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David Correa
Allied Market Research
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