Sorbitol Market Analysis
Spend growth of this market has the potential to touch a value of over USD 300 million with spend momentum that will accelerate at a CAGR of more than 3% between 2019-2024. The growing affinity towards low-sugar food products will drive demand in the sorbitol market. This is evident in about a 25% increase in the launch of low-sugar foods by players in the food and beverage industry. Sorbitol is a cheaper alternative to xylitol which will further contribute to the demand growth of the former during the forecast period.
Top Spending Regions in the Sorbitol Market
In terms of regional spend, APAC will dominate the market share, accounting for over 60% of the total spend in the sorbitol market.
APAC
Factors such as an increase in the FDI flow and rapid growth observed in the pharmaceutical industry in emerging economies will drive investments in the sorbitol market in APAC. India and China together account for nearly 80% of the global drug supply. Their share in global drug production is expected to increase during the forecast period. This will result in the steady increase in APAC's market share during the forecast period.
North America
Despite predictions of an initial dip in the sorbitol market share in North America, the increase in low-sugar dietary supplements by consumers will continue to drive spend growth in this market. For instance, in 2019, nearly 43% of the population in the US used sugar substitutes in their diets, and this trend is expected to continue during the forecast period. This will drive the demand for sugar substitutes and favor the sorbitol market spend growth in the US during the forecast period.
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What are the Key Price Trends in this Industry?
- Adverse weather conditions and declining planting levels in the US will result in a supply shortage of corn on a global scale. This will propel the price of corn syrup which is used as an essential ingredient to produce sorbitol. This increase in the price of corn syrup will impact the sorbitol market price during the forecast period.
- The increasing shortage of skilled labor will result in a sharp rise in employee expenses borne by sorbitol suppliers. A significant part of this expense will be compensated by buyers in the form of an excess procurement spend in the sorbitol market.
- The rise in the price of fuel will increase the transportation cost incurred by suppliers, which will impact the overall OPEX of suppliers in the sorbitol market.
Download the free sample of this report to know what the key sorbitol procurement best practices that you must adopt to address price dynamism in this market.
Insights Offered in this Sorbitol Market Report
- Global and regional spend potential for the sorbitol market for the period of 2019-2024
- Supplier relationship management practices in the sorbitol market
- Supplier margins and selection criteria in the sorbitol market
- Top sorbitol suppliers and their cost structures
- Top sorbitol suppliers in the US and their cost structures
- Sorbitol market spend analysis in the US
- Sorbitol price trends, and forecasts
- Cost drivers influencing the sorbitol prices
Insights into Sorbitol Supply Market
- APAC is the largest producer of sorbitol globally owing to the high production in China. country accounted for nearly 50% of the global production of sorbitol in 2019. Hence, APAC is expected to maintain its dominance in terms of supply during the forecast period.
- Suppliers that offer sorbitol also offer other agro-based products. Therefore, buyers from the food and beverage and personal care industries can consolidate their purchases from different suppliers and adopt a single sourcing strategy. This can help suppliers reduce their transportation cost and achieve up to 25% cost savings on the total transportation cost.
- Buyers are advised to capitalize on the supply market competition as there are a large number of players in the sorbitol market. Buyers can adopt eProcurement to identify the best sorbitol suppliers that provide competitive prices. This helps them reduce their efforts in identifying suppliers and save considerable time.
Insights into Some of the Leading Sorbitol Suppliers
This sorbitol market procurement intelligence report has enlisted the top suppliers and their cost structures, SLA terms, best selection criteria, and negotiation strategies for the top sorbitol suppliers. The top suppliers highlighted in this report include:
- Roquette Frères SA
- Cargill Inc.
- Tereos SCA
- Archer Daniels Midland Co.
- Ingredion Inc.
- Merck & Co. Inc.
Criteria to select suppliers in this dynamic sorbitol market is subject to change based on the day-to-day industry outlook. Get a free demo of our procurement platform to gain immediate access into real-time insights to the changing suppliers selection criteria.
