Plant Derived and Synthetic Sugar: Market Introduction

Sugar is a product used for sweetening. It is derived from sugar crops, cereals, fruits, milk, and seaweeds. Sugar can be extracted from plant sources or synthesized in laboratories. Sugar, which is extracted directly from a plant source and is available for commercialization without any value addition is defined as plant derived sugar. In our study, we have included 8 plant derived and synthetic sugar types excluding sucrose, which has major market share in the global sugar market.

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We have included glucose, fructose, arabinose, xylose, fucose, galactose, mannose, and rhamnose in the overall plant derived and synthetic sugar market. Out of all plant derived and synthetic sugar products, sucrose, glucose, and fructose are being extensively used in the food industry, but increasing health consciousness among people has significantly escalated the demand for mannose, rhamnose, and xylose due to their health benefits.

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Plant derived and synthetic sugars are the most common and one of the important ingredients in the global food and beverage industry as they change the taste and enhance the palatability of end products. The demand for few sugars such as glucose and fructose, has significantly increased over the years owing to their instant energy enrichment to the body.

plant derived and synthetic sugar market

Plant Derived and Synthetic Sugar: Market Outlook

Lucrative growth of the global food and beverage industry over the years has had a remarkable impact on the growth of the plant derived and synthetic sugar industry. Increasing health consciousness has significantly fuelled the demand for natural food ingredients, hence, there has been a subtle boom in the growth of plant derived sugar over the last few years. Naturally-derived sweeteners are preferred over synthetic sweeteners since they don’t have any adverse impact on health. On the other hand, sugar types, which are produced indirectly from a different source are called synthetic sugars.

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The increasing demand for healthy food ingredients in the food and beverage industry has led to a decrease in consumption of plant derived and synthetic sugar. The main factor expected to hamper the plant derived and synthetic sugar market is synthetic sugar. There is a subsequent decrease in the consumption of food and beverages containing more plant derived and synthetic sugar. It is due to their adverse health consequences such as diabetes and obesity. Even though there is reduction in plant derived and synthetic sugar consumption at present, there is still great market demand for plant derived and synthetic sugar as it is an irreplaceable food ingredient.

Rising Population and Per Capita Food Consumption to Result in the Growth of the Plant Derived and Synthetic Sugar Market

As per the report published by the UN Department of Economic and Social Affairs (population division), world population reached nearly 7.6 billion in mid-2017. It is expected to reach 8.6 billion by 2030, and increase further to 9.8 billion by 2050. It has been observed that more than the actual increase in number, the per capita consumption of people will increase substantially. This factor is expected to create growth opportunities for the plant derived and synthetic sugar market.

Lifestyle and Demographic Changes to Induce Drinking Habits and Provide Impetus to Plant Derived and Synthetic Sugar Market Growth

Modernization and urbanization in emerging economy countries have bolstered the food and beverage industry. There is a remarkable change in the eating and drinking habits of consumers. Changing lifestyles have induced drinking habits among millennials. Improvements in economic conditions of various countries have led to increased disposable incomes and a higher standard of living, which has contributed to the rising trend of premiumization and consumption of convenient and ready-to-eat food and beverages, which has significantly increased the consumption of plant derived and synthetic sugar. With the increasing number of working women, the consumption of ready-to-eat food products has significantly increased over the last decade. The increasing demand for these products has escalated the sugar consumption and this, in turn, will increase the demand for plant derived and synthetic sugar products in the upcoming years.

Increasing Applications of Plant Derived and Synthetic Sugar in Biofuel Production

Plant derived and synthetic sugar has immense potential to be used as a biofuel, but challenges with extraction and constant decline in global crude oil prices have meant that widespread commercialization has been beset with challenges. Organizations involved in mass production of plant derived and synthetic sugar biofuel continue to face bottlenecks with scaling up, and a number of them have forayed into more pragmatic productions such as feed, pharmaceuticals, and industrial chemicals. During the early years of plant derived and synthetic sugar biofuel production, it was projected that technological innovations will mitigate some of the challenges; however, in spite of many advances, the cost of production has not gone down substantially to make plant derived and synthetic sugar an alternative for fossil fuel-based oils.