Isomalt Market Size, Share, and Industry Analysis by Nature (Organic and Conventional), By Form (Syrup and Powder), By Application (Bakery Products, Beverages, Confectioneries, Pharmaceuticals, and Others), and Regional Forecast till 2032

The global isomalt market is expected to show significant growth over the upcoming years owing to the increasing consumer demand for healthy food products with rising awareness regarding healthy lifestyle. The growing consumption of isomalt in pharmaceutical industry and rising utilization in skincare and cosmetic products is further expected to expand the market in the next few years.

Government organizations and health associations are involved in educating users about the impact of consuming excess sugar in their daily diet. These associations are trying to limit or restrict the excess usage of sugar. For instance, the 2020-2025 Dietary Guidelines for U.S. recommend limiting added sugar to less than 10% of total daily calories. Such regulatory guidelines will positively push the demand for sugar substitutes, including isomalt. Furthermore, increasing R&D activities to expand the product usage in various applications apart from food and beverages is likely to shape the industry over the coming years. According to the National Library of Medicine (National Center for Biotechnology Information), the use of isomalt as a sugar substitute is recommended in drug and medication production.

Commonly referred to as palatinose and palatinit, isomalt is a white powder or aqueous solution which is used as a substitute for sugar. It is low in calorie which makes it suitable for use as a sugar alternative sweetener in numerous food products and beverages. Increasing low-calorie and sugar-free food demand drives the popularity of the product in a range of applications in confectionery, bakery products, beverages, dairy products, pharmaceuticals, and others.

Isomalt Market Driver

Increasing Demand for Healthier Sugar Alternatives to Drive the Market

The demand for food items with no added sugar or less sugar is significantly increasing in Western countries owing to the rising prevalence of diabetes and obesity. Furthermore, the growing number of cases related to the heart disease is further expected to proliferate the market during the forecast period. Increasing product innovation and R&D activities to develop low-sugar and low-calorie confectioneries and beverage products to meet health-conscious consumers demand is likely to drive the product demand over the forecast period.

Isomalt Market Restraint

Availability of Counterfeit Products May Hamper the Market Growth

The market is expected to face growth restrictions during the forecast period due to the proliferation of sugar substitutes with comparable costs in the market. Isomalt is a sugar alcohol, which is made from beetroot sugar, and its production cost is moderately high due to the scarcity of raw material and technical complexity in production.  However, the increasing use of non-calorie sugar substitutes such as erythritol, stevia, and sucralose is anticipated to hamper the market growth. High production cost, availability of natural sugar substitutes, and scarcity of raw material supply are the factors affecting the expansion of the market.

Isomalt Market Opportunity

Rising Adoption of the Product in Multiple Applications to Drive the Market Growth

The global isomalt market is expected to have multiple growth opportunities over the upcoming years owing to the increasing demand from various end-use industries such as food & beverages, pharmaceuticals, and others. The market is driven by growing popularity of sugar free products owing to the increasing adoption of healthy diet regimes. Moreover, manufacturers are focusing on the development of innovative products that are low in calorie and taste as sugar to meet the consumer demand in the market.

Key Insights

The report covers the following key insights:

• Overview of Parent/Related Market


• Industry SWOT Analysis


• Regulatory Analysis


• Supply Chain Analysis


• Key Industry Developments (Merger, Acquisition, Partnership, and New Product Launches)


• Impact of COVID-19 on the Market 

Segmentation

By Nature	By Form	By Application	By Geography
Organic Conventional	Syrup Powder	Bakery Products Beverages Confectioneries Pharmaceuticals Others	North America (U.S., Canada, and Mexico) Europe (U.K., Germany, France, Spain, Italy, and the Rest of Europe) Asia Pacific (Japan, China, India, Australia, and the Rest of Asia Pacific) South America (Brazil, Argentina, and the Rest of South America) Middle East & Africa (South Africa, UAE, and the Rest of the Middle East & Africa)

Analysis By Nature

Based on nature, the market is divided into organic and conventional.

The conventional segment holds the largest market share owing to the availability of products at lower prices and ease in accessibility. As compared to organic isomalt, the conventional product requires low cost for manufacturing. Therefore, the growth of the conventional segment is attributed to the rising demand for synthetic sweeteners in beverages, food products, and health & personal care products.

The organic segment is expected to show the fastest growth over the upcoming years. This is owing to the rising demand for organic food ingredients and growing development of organically labeled confectioneries in the market.

Analysis By Form

On the basis of form, the market is segmented into syrup and powder.

The powder segment is expected to hold the largest market share. Key players operating in the confectionery sectors largely utilize the powder form of isomalt as a sugar alternative owing to its flexibility and convenience. Therefore, the powder segment is expected to grow at the fastest rate during the forecast period. Moreover, the powdered isomalt is often recommended for applications in food products as it dissolves rapidly and uniformly in the batter, resulting in a fine texture and thereby increasing its consumption in thin baked goods preparation to enhance the visual appeal.

The syrup segment is anticipated to grow significantly over the next few years owing to its versatility and a wide range of commercial applications. The syrup form offers high resistance to crystallization and is  used for sugar casting to prepare sugar sculptures and decorative pieces. It is easy to pour and mold due to its low viscosity. Furthermore, the high resistance to humidity of the syrup ensures the longer shelf life of the product.

Analysis By Application

Based on application, the market is fragmented into bakery products, beverages, confectioneries, pharmaceuticals, and others.

The confectioneries segment holds the largest market share due to the increasing production of hard candies, toffees, and chewing gums among the young population group. The wide range of products in confectioneries such as chewing gum, chocolate, sweets, toffees, cookies, ice cream, and others are produced using sweeteners with low sugar contents. The rising demand for confectioneries with low calories and increasing investments from manufactures to produce premium products offering health benefits to attract consumers are some of the factors to propel the segmental growth during the forecast period.

The beverages segment is anticipated to show significant CAGR during the forecast period due to the increasing demand for sugar substitutes in carbonated drinks. Consumers are increasingly preferring beverages with zero-calorie and sugar-free formula owing to the growing health consciousness across the globe. Increasing globalization, rising disposable income in developing nations, and growing demand for innovative and health beneficial food & beverages are the factors supporting the segmental expansion.

Regional Analysis

By region, the market is divided into Europe, North America, Asia Pacific, South America, and the Middle East & Africa.

The Europe market is expected to hold the largest market share owing to the growing demand for premium quality chocolate confectionery products in the market. The market is majorly driven by the rising consumer preference for products highlighting value-added natural and organic ingredients. Furthermore, the increasing health awareness across the region in line with changing consumer lifestyle and eating habits are the factors set to accelerate the market growth.

The North America market is anticipated to depict significant growth during the forecast period due to rising popularity of chocolate products and sweets as comfort food. Consumers are increasingly opting for snacks and cereal bars with low calorie sugar and nutritive ingredients, which is further expected to flourish the isomalt market in the region. Additionally, manufacturers in the region are implementing new technologies in the food industry to meet the consumer demand, positively influencing industry expansion.   

Key Players Covered

The report includes the profiles of the following key players:

• Special Ingredients (U.K.)


• BENEO (Germany)


• Evonik Industries AG (Germany)


• Advance Inorganics. (India)


• Merck KGaA (Germany)


• S. A. Pharmachem Pvt. Ltd. (India)


• Wilmar Sugar Pty Ltd. (Australia)


• Cargill, Incorporated (U.S.)


• Shanghai Bichain Industrial Chemical (China)

Key Industry Developments

• In January 2023, Holololly announced the launch of its new product line of candy called as holographic lollipops. The holographic candies are tooth friendly, produced using isomalt, and created using cutting-edge laser etching technology.


• In April 2021, Beneo launched a new product namely galenIQ 721, an agglomerated form of its Isomalt product, which is derived from pure sugar beet. The product is tooth friendly and offers the taste of sugar. It provides a pleasant mouthfeel and enhances the palatability of oral powder applications.