Plant-derived Sugar and Synthetic Sugar Market Trends [2031]

Report Description

Plant-derived Sugar and Synthetic Sugar Market Outlook 2031

The global plant-derived sugar and synthetic sugar market size was USD 61.48 Bn in 2022 and is likely to reach USD 82.345 Bn by 2031, expanding at a CAGR of 3.3% during 2023–2031. The market growth is attributed to the growing food & beverage industry and increasing consumer focus on health & wellness.

Increasing number of product launches is anticipated to significantly boost the plant-derived sugar and synthetic sugar market. Rising incidence of health conditions leads to increasing demand for plant-derived and synthetic sugars, as they provide viable alternatives to traditional sugar for those looking to manage their sugar consumption.

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Plant-derived sugar, commonly known as natural sugar, is a prevalent sweetening agent used across various industries such as animal feed, beverages, biofuels, food, cosmetics, and pharmaceuticals. Synthetic sugar is chemically manufactured in laboratory or industrial settings and is commonly used as an artificial sweetener in various food & beverage products. Both plant-derived and synthetic sugars are used to enhance the taste and palatability of products, and they serve as a source of quick energy.

The market report finds that the COVID-19 pandemic hampered the plant-derived sugar and synthetic sugar market. The pandemic led to disruptions in supply chains across various industries, including agriculture and chemical production. This affected the availability and pricing of both plant-derived and synthetic sugars.

During and post-pandemic, consumers became conscious of their sugar intake and required alternatives, including natural sweeteners such as plant-derived sugars, as they were perceived as healthier options as compared to synthetic sugars.

Impact of Artificial Intelligence (AI) on the Plant-derived Sugar and Synthetic Sugar Market

Artificial Intelligence (AI) is expected to boost the revenue of the market players present in the plant-derived sugar and synthetic sugar market. This technology plays a pivotal role in the market, as it helps streamline the supply chain for plant-derived and synthetic sugars. It analyzes data related to raw material availability, transportation logistics, and demand forecasting to optimize inventory levels and distribution schedules.

AI-powered systems automate quality control processes and identify variations in sugar quality, such as impurities, moisture levels, and granule size, while ensuring that the final product meets industry standards and consumer expectations.

Plant-derived Sugar and Synthetic Sugar Market Dynamics

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Major Drivers

Growing demand for natural and healthy ingredients in food & beverages is driving the market. Consumers and producers are prioritizing natural components in their products, which increases the need for plant-derived sugars. Individuals are actively seeking healthier alternatives to traditional sugar, leading to a surge in the popularity of options such as stevia, yacon syrup, xylitol, erythritol, coconut sugar, and maple syrup. This healthy alternative is an excellent choice for diabetics seeking zero-calorie sugar substitutes with no adverse health effects. For instance,

• As per the recent data published, the global market value of stevia was projected around USD 490.08 million in November 2021.

Existing Restraints

High cost of plant-derived sugar and synthetic sugar hampers the market. The production of plant-derived and synthetic sugars involves the use of specific raw materials, which are more costly than those used in the production of regular sugar. The manufacturing processes for these sugars are intricate, leading to high production costs.

Emerging Opportunities

Technological advancements create lucrative opportunities in the market. Advancements in technology generate cost-effective methods for producing both plant-derived and synthetic sugars. This leads to high yields, low production costs, and ultimately, competitive pricing for these sweeteners. Additionally, advancements in flavor science and food technology allow for the formulation of sweeteners that mimic the taste of sugar closely by ensuring consumer acceptance and satisfaction.

Scope of the Plant-derived Sugar and Synthetic Sugar Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Plant-derived Sugar and Synthetic Sugar Market Segment Insights

Sugar Type Segment Analysis

Based on sugar type, the plant-derived sugar and synthetic sugar market is divided into xylose, fucose, arabinose, galactose, mannose, glucose, fructose, and rhamnose. The glucose segment is expected to hold a dominant share of the market during the projection period, as it serves as an energy source and is widely used in various industries.

Glucose serves as a crucial energy source, which makes it a preferred ingredient in sports drinks, energy bars, and other nutritional products. Glucose is commonly used in the medical field for intravenous treatments and in pharmaceutical formulations. Its role in healthcare applications and increasing demand for energy-boosting products are boosting the market.

The fructose segment is projected to expand at a significant pace in the coming years, as they are naturally occurring and provide a high sweetness level in products. Fructose is naturally present in various fruits, honey, and some vegetables, making it a popular choice among consumers seeking a natural sweetening option. It is sweeter than sucrose, which means that a small amount of fructose achieves the same level of sweetness as sucrose. This characteristic helps reduce the overall sugar content in products, which holds significance for health-conscious consumers.

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Form Segment Analysis

On the basis of form, the global market is segregated into liquid, powder, and crystals. The powder segment is projected to expand at a high CAGR during the forecast period, as it provides ease of dissolution and results in uniform sweetening.

Powdered sugar, also known as confectioner’s sugar or icing sugar, is finely ground, which results in a fine texture that readily dissolves in liquids. This makes it highly convenient for a wide range of applications where quick and even dispersion of sweetness is desired. The fine consistency of powdered sugar ensures an even distribution of sweetness throughout a product, making it a preferred choice for frosting, glazes, and dessert toppings.

Application Segment Analysis

On the basis of application, the plant-derived sugar and synthetic sugar market is segmented into dietary supplements, food & beverages, personal care, pharmaceutical, animal feed industry, and biofuel industry. The food & beverages segment is anticipated to register robust growth during the forecast period, due to the growing consumer demand for sweetened products and its wide used in food preparation.

Plant-derived and synthetic sugars are used in a wide range of food products, including baked goods, confectionery, sauces, dressings, beverages, and processed foods. Their role in enhancing flavor, texture, and sweetness makes them essential in food preparation. Additionally, consumers have a strong preference for sweetened food & beverages, which increases the demand for natural and synthetic sugar to achieve the desired level of sweetness in various products.

The biofuel industry segment is anticipated to gain a significant revenue share, as it serves as a feedstock for biofuel production and facilitates an efficient conversion process. Plant-derived sugars, particularly from feedstocks such as sugarcane and corn, are essential raw materials for the production of biofuels. These sugars are readily convertible into biofuels through efficient fermentation processes. This allows for the cost-effective transformation of sugars into ethanol and other biofuel products.

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Regional Outlook

In terms of region, the global plant-derived sugar and synthetic sugar market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the market during the projection period, due to the growing food & beverage industry and rising prevalence of diabetes and obesity.

Asia Pacific is registering rapid industrialization and urbanization, which is leading to the expansion of the food & beverage industry. This industry is a major consumer of plant-derived and synthetic sugars, as they are essential ingredients in a wide range of food products.  Increase in lifestyle-related health issues, such as diabetes and obesity, which increased the consumer focus on low-calorie and low-glycemic sweeteners, boosts the popularity of sugar alternatives and, in turn, the market. For instance,

• As per the recent data published in April 2023, the diabetic population in India is expected to reach around 79.44 million in 2030.

The market in Europe is projected to grow rapidly during the forecast period, owing to the growing consumer focus on health & wellness and increasing demand for organic products in the region. Europe is at the forefront of health and wellness, with consumers placing a strong emphasis on natural, organic, and healthy food choices.

Plant-derived sugars are adopted as natural and wholesome alternatives to synthetic sugars, which aligns with consumer preferences. Growing awareness of health issues among individuals is boosting the use of natural sweeteners among these individuals.

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