Sorbitol Prices Explained

Increased production demand from food and beverage manufacturers and elevated shipping costs due to shipment issues fueled the surging sorbitol prices across global markets. 

The North American market (particularly the U.S.) experienced soaring prices due to the rising demand from domestic and international markets. Increased production costs, supply challenges from major exporting regions (maintenance shutdowns), and low inventory levels further exacerbated uptrends. On the manufacturing side, the rising crude oil prices because of political instability in the Middle East contribute to its supply chain expenses. 

Production disruptions in key producing regions due to adverse weather translated to increased sorbitol prices in the Asia Pacific region (an average quarterly incline of 2.49%). This is supported by the strong demand from its end-user industries and the strengthening Yuan against the U.S. dollar, boosting exports as traders capitalized on the stronger currency by selling higher prices in global markets.

Rising production costs and increased shipment fees dominated in Europe. The region scrambled to cover steady inquiries from its local and major import markets. Additionally, ocean carriers operating in larger headhauls implemented increased freight rates due to limited vessel space availability. These all compound to sorbitol tailwinds.

Why are sorbitol prices fluctuating?

1. Rising Demand from Confectionery Manufacturers

The enhanced knowledge of consumers about how high sugar content in their food affects their health prompted food manufacturers to revamp their formulation. 

Sorbitol has only 50% of the relative sweetness of sugar and despite its ability to sweeten it does not contain calories. However, it provides a similar quality of sweetness to sugar, making the commodity appeal to calorie-conscious consumers diagnosed with diabetes. 

Additionally, sorbitol’s non-crystalline textures in confectionery products make it easier to maintain moisture, extending product shelf life without additional chemicals. Thus, this gives the marketability of sorbitol.

2. Natural Sources

The global push toward green living gives an international market for natural ingredients. As a result, food products made from plants, like corn, wheat, and fruits receive favorable patronage because of their health and eco-friendly properties. 

Sorbitol is considered better than other sweeteners because it has a low glycemic index and will not promote tooth decay, making the commodity suitable to market in low-sugar or sugar-free diets. 

Thus, the sorbitol market benefits from the increasing practice of sustainable buying of customers.

3. Rising Diabetic Population

The rising diabetic population drives the demand for low-calorie sweeteners like sorbitol. The dietetic food and beverage segment contributes 39.1% of the sorbitol market share. The industry’s growth comes from the increasing health consciousness and the need for sugar alternatives that do not compromise taste. 

As a result, Cargill and Nestlé revolutionized their product lines to cater to this demographic by incorporating sorbitol and other sugar substitutes into their food offerings. For instance, Nestlé developed reduced-sugar and sugar-free variants of its food and drink beverages. 

Which variables impact the price of sorbitol?

• Rising Demand from Confectionery Manufacturers
• Natural Sources
• Rising Diabetic Population
• Clean Consumption Approach

Where does sorbitol come from?

French chemist Jean-Baptist Boussingault discovered sorbitol as a sugar alcohol in 1872. It occurs naturally in apples, pears, peaches, and prunes. It is produced industrially through the hydrogenation of glucose, typically derived from cornstarch. 

This process involves adding hydrogen to glucose in the presence of a metal catalyst, converting the aldehyde group in glucose to a primary alcohol group in sorbitol. The hydrogenation process is done under high pressure and elevated temperatures to ensure high yield and purity of the sorbitol produced.

Sorbitol production evolved over the years, with high-pressure catalytic hydrogenation being today’s most used technique. This method ensures high sorbitol yield and is economically viable for large-scale production. 

Additionally, sorbitol is favored in various industries because it is non-carcinogenic and does not contribute to tooth decay, making it a preferred ingredient in sugar-free and dental care products.

What are the uses of sorbitol?

Here are the top 5 applications of sorbitol and their extensive uses:

1. Food Industry – It provides sweetness without causing significant blood sugar spikes, making it a popular choice for sugar-free and reduced-sugar products. Nestlé and Cargill incorporated sorbitol into their food products to cater to health-conscious consumers.

2. Pharmaceuticals – In the pharmaceutical industry, it is used as an excipient (a substance that helps deliver the active ingredient in medications). Also, it is used in vitamin C production and as a stabilizer in liquid medication.

3. Cosmetics and Personal Care – Lotions, shampoos, and toothpaste need sorbitol as it acts as a humectant, preventing moisture loss and keeping the skin hydrated. Also, it provides a smooth texture and enhances the feel of the product on the skin.

4. Pulp and Paper Industry – This sector uses sorbitol as a sizing agent as it helps control water absorption by the paper. Additionally, it improves the strength and printability of paper, making it suitable for high-quality printing and writing purposes.

5. Agriculture and Animal Feed – Sorbitol is used as an energy source in animal feed and as a preservative in agricultural products. It maintains the freshness and nutritional value of feed, ensuring the health and productivity of livestock.

What is the future price of sorbitol?

The demand for sustainable and healthy consumption largely influenced the sorbitol market. Denmark, Finland, Iceland, Norway, and Sweden pioneered the promotion of sustainable consumption patterns. These countries updated their dietary guidelines to encourage healthier and more environmentally friendly eating habits. 

This shift towards sustainability drives the food and beverage industry to seek natural and healthy alternatives. For instance, the growing demand for functional, low-calorie, and sugar-free beverages in the U.S. led manufacturers to incorporate sorbitol into sports nutrition and energy drinks.

Moreover, the rising prevalence of diabetes spurred the demand for diabetic-friendly food products. Food and beverage industries responded by reformulating their products to cater to glucose-sensitive customers. 

Nestlé and Danone introduced sugar-free and low-calorie versions of their products, using sorbitol as a key ingredient to maintain taste and texture while reducing sugar content. 

The trend towards sustainable and natural manufacturing impacted sorbitol demand in the pharmaceutical sector. Major pharmaceutical companies, such as Pfizer and Novartis opted to use more natural sources in their medicine formulations, aligning with consumer preferences for natural and sustainable products. 

Overall, its market is expected to achieve $3,380.3 million in revenue in 2034, with a tag of $734 per ton.