Xylitol Market Size Forecast to Reach $1.1 Billion by 2025

Xylitol Market size is forecast to reach $1.1 billion by 2025, after growing at a CAGR of 2.9% during 2020-2025. Xylitol is a five-carbon Sugar Alcohol derived primarily from agricultural activties and is used in sugar free products along with sorbitol and mannitol. Xylitol is naturally found in low concentrations in the fibers of fruit and vegetables such as mushrooms, oats and berries. It is considered as the natural sweetener and has experienced a steady growth rate during the forecast period.

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By Source - Segment Analysis

Corn Cobs segment held a significant share in xylitol market in 2019. Xylitol is a naturally occurring polyol extracted from vegetables and fruits. Generally, various berries, mushrooms, corncobs and birch trees are used as source material for the production of Xylitol. Among all sources, corncobs are mostly preferred for industrial production of Xylitol. During production, Xylan is extracted from the sources and then hydrolyzed to yield xylose, which on further catalytic hydrogenation results in the production of Xylitol.

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By Type - Segment Analysis

Birch Xylitol segment held a significant share in xylitol market in 2019. Xylitol, a zero-calorie sweetener derived from birch trees, is ideal for use in cooking and baking. Unlike other artificial sweeteners, xylitol pours and tastes exactly like sugar with no chemical aftertaste. It is non-GMO and contains no corn ingredients or corn by-product. Unlike any other sweetener, xylitol also fights plaque and inhibits the growth of bacteria that cause tooth decay and cavities. The pharmaceutical industry uses xylitol as a sweetener in its products, as well as a nutritional enhancer to functional foods.

By Application - Segment Analysis

Chewing Gum segment held a significant share in xylitol market in 2019 growing at a CAGR of XX% during the forecast period. The rising demand for sugar-free chewing gum and confectionery in both developed and developing markets is driving the market for non-calorie sweeteners, like xylitol. Hence, it is a common ingredient in sugar-free chewing gums, candies, mints, diabetes-friendly foods, and oral-care products. Rising concern about sugar intake has led to the collapse of sugared chewing gum consumption. In 2000, sales of gum with and without sugar were fairly close in the United States. But since then, that gap has ballooned. In 2017, sugar-free gum sales saw higher growth in sales, when compared to sugared chewing gum. Increasing health awareness has led to change in consumer buying behavior, exhibiting growing preference for sugar-free chewing gum. Major chewing gum manufacturers focused on the introduction of sugar-free product portfolio, which in turn influenced the market growth.
Growing cases of COVID-19 have forced the government to implement lockdowns which have affected the transport industry. Xylitol is widely used in various products in order to produce pure products for application such as food, confectionary and chewing gums. Strict regulations for transport and deteriorating supply chain for various products makes it difficult to source raw material for these food products. Furthermore, blockage of conveyance routes for fresh food supply chain may hamper the food industry, which a huge loss to the industry growth.

By End-User Industry - Segment Analysis

Humans segment held a significant share in xylitol market in 2019. As a medicine, xylitol is used to avert middle ear infections in young children and acts as a sugar substitute for people with diabetes. According to American Heart Association, over 40% of deaths in U.S. in 2018 were attributed to coronary heart disease which is shifting consumer viewpoint on low calorie and normal diets. Changing user insights towards healthy diets and growing consciousness on probable aids of naturally derived sugar substitutes should boost product demand. Increasing cases of oral health problems within children and adults owing to poor eating habits and consumption of more junk food products may stimulate xylitol demand. The product is used for teeth whitening which also promotes the remineralization process on enamel and lessens the demineralization of tooth surface.

Geography- Segment Analysis

North America dominated the xylitol market with a share of more than XX%, followed by Europe and Asia Pacific. The United States is one of the major consumers of xylitol in the global market. The demand is high, due to multiple health benefits, like low calorific value, tooth decay defying properties, and low carbohydrate content which has encouraged the application among the health-conscious consumers in the United States. The US FDA has approved the use of xylitol in foods for special dietary purposes, as a direct food additive, which further extends to all the other sugar-free and no-sugar-added products and has also classified it as ‘generally recognized as safe’ (GRAS). The US based global suppliers use wood as feedstock for the production of commercial xylitol. Xylitol has also been extensively approved for usage in pharmaceuticals, oral hygiene products, toiletries and cosmetics.

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Drivers – Xylitol Market

Rising number of diabetic populations

Rising number of diabetic populations is a major factor driving the demand for xylitol. Further, dental problems due to cavities and gum infection across the globe are also responsible for the rising demand for xylitol. Xylitol is considered as a substitute of sugar and it expands the choices of consumption of food and beverages products among the consumers also ensuring the control of calorie intake. It is considered as food additive that has almost the same taste of sugar but do not contain the same number of calories as compared to sugar. Xylitol provides a sweet flavor and are thus beneficial for the patients suffering from diabetes. Prevention of health-related problems associated with diabetes, obesity, high cholesterol has become a global phenomenon among the population thus triggering the growth of the xylitol market. Xylitol also plays a major role in weight control, thus the same has shown significant rise and has resulted in the rise in consumption of xylitol infused products in recent years.

Challenges – Xylitol Market

Stringent regulations

Stringent government rules and regulations on xylitol as sweeteners are restraining the global xylitol market. There are several regulatory bodies such as Food and Drug association that have their own regulations regarding the usages of xylitol. Thus, this results to delays towards introduction of new xylitol infused products. Moreover, changing climatic conditions are expected to impact the availability of sources, which in turn is expected to impact overall xylitol production. Also, for xylitol production, pure xylose is required, which is expensive and its supply is relatively inadequate. Owing to this, price of xylitol has become higher, which will have an effect on the growth of xylitol market. Xylitol supply variation and availability of substitute polyols such as sorbitol, maltol and mannitol among others are expected to act as restraint for this market.

Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the xylitol market. In 2019, the market of xylitol has been consolidated by the top five players accounting for xx% of the share. Major players in the xylitol market Cargill, Incorporated, DuPont, CSPC Shengxue Glucose Co., Ltd., Mitsubishi Shoji Foodtech Co., Ltd., Novagreen Inc., Shandong Futaste Co., Ltd., zuChem Inc., Zhejiang Huakang Pharmaceutical Co., Ltd and Roquette group among others.

Product Launch/ Acquisition

In December 2018, Fazer Group produced xylitol using hull as a raw material. The company utilized its state-of-the-art technology along with the side stream of the oat milling process for the product. Xylitol production from oat hulls is an innovation in product manufacturing with completely new technology. The production process is unique due to the raw material which is used mainly for catering market needs for food, cosmetic and pharmaceutical industries.

Key Takeaways

In 2019, the Affective Computing market was dominated by North America owing to increasing adoption of artificial intelligence and key players such as Apple Inc, Google and so on. Also, the presence of research organization such as MIT in the US that is mainly concentrating on the projects related to affective computing are enhancing the growth of this market in North America.

The increasing adoption of gesture recognition technology for gaming and the need for emotion AI are by media and advertising industry are highly fueling the growth of the market.

The rising demand for human-computer interaction devices in order to detect and provide response as per the user emotions has enhanced the growth of the market.

The presence of sensor-based cameras and other critical components in the wearble computing devices are leading to high power consumption which is hampering the growth of the market.

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