Invert Sugar Market Size, Share & Industry Analysis, By Type (Fully Inverted Sugar and Partially Inverted Sugar), By Application (Food & Beverages {Bakery & Confectionery, Dairy, Beverages, and Others}, Pharmaceutical, and Personal Care), and Regional Forecast, 2024-2032

The global invert sugar market size was valued at USD 2,315.81 million in 2023 and is projected to grow from USD 2,410.93 million in 2024 to USD 3,459.63 million by 2032, exhibiting a CAGR of 4.62% during the forecast period. Asia Pacific dominated the invert sugar market with a market share of 42.16% in 2023. Moreover, the invert sugar market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 392.45 million by 2032, driven by the increasing use of inverted sugar for various applications, such as food & beverage, pharmaceuticals, and others.

Inverted sugar or sugar syrup is a liquid sweetener made from granulated table sugar and water. It is widely used in food products such as bakery & confectionary items, frozen desserts, and honey processing. Inverted sugar syrups have been widely used in the food & beverage industry owing to their unique properties such as extra sweetness, better texture, and others. These characteristics have provided an advantage for inverted sugar syrups over other natural sugars. To state an example, inverted sugar improves the smoothness of pastry fillings such as ganache.

The COVID-19 pandemic significantly impacted the sugarcane industry. At the same time, farmers were affected due to unavailability and lack of access to labor and raw materials. Sugar mills countered numerous issues due to reduced demand for sugar in domestic & international markets, labor shortages, and lack of other materials, such as sulfur & gunny bags for the crushing and distribution operations. In addition, inverted sugar is widely used to prepare various alcoholic and non-alcoholic beverages. Limitations in the transportation of these products and bottlenecks in logistics resulted in a decline in the sales of these beverages.

For instance, the sales of Coca-Cola, an American multinational behemoth that manufactures non-alcoholic beverages, declined by 5% in the final quarter of 2020.

Invert Sugar Market Trends

Emerging Invert Sugar Applications in Non-Food Industry to Promote Market Growth 

Invert sugar, a commonly used sweetener in the food & beverage industry, is now being explored for potential applications beyond the food sector. Utilizing inverted sugar in non-food applications, such as cosmetics, oral care, and pharmaceuticals is rapidly gaining momentum. The unique properties of inverted sugar, such as its natural humectant and antimicrobial characteristics make it an attractive ingredient for moisturizers, lotions, toothpastes, and mouthwashes. Moreover, this type of sugar has the potential to serve as a drug carrier, improving drug stability and solubility, thereby opening up new opportunities for its use in the pharmaceutical industry.

The growing demand for sustainable and natural ingredients in these industries is driving the trend of inverting sugar in non-food applications. This emerging trend presents significant growth potential and new business opportunities for invert sugar manufacturers and companies seeking natural and sustainable ingredients.

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Invert Sugar Market Growth Factors

Increasing Utilization in Processed Foods and Beverages to Boost the Market Growth

Sugar is essential in various foods and beverages for its taste, thereby contributing to texture, aroma, and color. Invert sugar is sweeter than sucrose by about 20-25%, making it economical. Furthermore, it is popular in soft drinks, energy drinks, squashes, lemonades, instant energy drinks, and other beverages due to the presence of glucose and fructose, thus providing instant energy and better taste.

In addition, the growing demand for confectioneries in countries, such as China, Japan, and Singapore, is boosting the market growth as several varieties of confectioneries are growing in popularity among millennials and children. Premium confections are regarded as high-quality gifts for different functions. As a result, there is now a greater demand for unique confectioneries. It is anticipated that manufacturers' increased focus on creating innovative candies and chocolate bars to appeal to a broader consumer base will further fuel the market expansion in the coming years.

Considerable Investments in Research and Development to Fuel Market Growth

The escalating consumer demand for organic or brown sugar has created numerous opportunities for manufacturers to increase their focus on natural and sustainably sourced ingredients that enhance the product's overall value and address the modern flavors and tastes.

Companies are exploring various next-generation techniques and equipment to enhance their production capabilities, ability to deliver sustainable products, and cost-effective solutions for the food & beverage industry. Prominent manufacturers, such as Nordzucker AG and Invert Sugar India Ltd., are adopting unique technologies to manufacture inverted sugar.

To state an example, Invert Sugar India Ltd. uses Combined Cycle Technology (CCT) for its inverted sugar production. CCT uses enzymes for the production and inversion of inverted sugar syrup. Therefore, the inverted sugar produced is of superior quality as compared to other traditional product processes that use harmful acids that are unfit for human consumption.

Thus, such technological advancements will provide numerous opportunities for the development of the inverted sugar industry.

RESTRAINING FACTORS

Adverse Health Effects of High Sugar Consumption to Hinder Product Demand

The health problems associated with excessive sugar consumption across the world are anticipated to hinder the market growth and development. Excess intake of added sugars, especially sugar-sweetened beverages, can lead to high obesity in children and adolescents.

According to the International Diabetes Federation (IDF), in 2021, approximately 537 million adults aged between 20-79 years were living with diabetes. This number is anticipated to rise to 643 million by 2030; by 2045, it will touch 783 million.

Furthermore, the growing prevalence of diabetes has also increased the average healthcare expenditure. According to the IDF, diabetes incurred at least USD 966 million in healthcare expenditure in 2021 – 9% of the total spending on adults. Thus, the number of adults with diabetes will increase in the forthcoming years.

Invert Sugar Market Segmentation Analysis

By Type Analysis

Fully Inverted Sugar to Drive Market Growth due to its Usage in Various Applications

On the basis of type, the market is segmented into fully inverted sugar and partially inverted sugar. The fully inverted sugar segment is anticipated to hold a dominant invert sugar market share during the forecast period. Several countries have used fully inverted sugar in foods and beverages, pharmaceuticals, and cosmetics. It is a sweetener and bulking agent in ice creams, frozen desserts, and sorbets. In ice cream applications, for example, fully inverted sugar plays a crucial functional role by decreasing the freezing point of the product and ensuring a soft and scoopable texture. Therefore, the demand for fully inverted sugar is high in the market.

Along with other sweeteners available in the market, partially inverted sugar is gaining notable popularity. It has lower water content than straight sucrose. As a result, this ingredient is gaining traction among soft drink manufacturers as its high sweetness value offers better flavor than artificial sweeteners.

By Application Analysis

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Invert Sugar to Find Robust Application in Food & Beverage Industry due to Increased Utilization in Bakery Products

Based on application, the market is divided into food & beverages, pharmaceutical, and personal care. The food & beverages segment is predicted to hold the largest market share during the forecast timeframe. Demand for inverted sugar syrup has grown tremendously in the food & beverages industry owing to its unique features, ready-to-use nature, and quality enhancement properties. The primary function of this product is to sweeten foods and beverages but it also has several functional benefits. It helps baked goods preserve moisture and improves their texture by preventing crystallization, which can occur when using regular table sugar.

This type of sugar is added to cough syrup, providing flavor enhancement and smoothness to the solution. It is also known for increasing the shelf life of the product it is mixed in. Hence, it is an ideal mixing solution to neutralize the bitter flavor of medical drugs.

REGIONAL INSIGHTS

Regionally, the market is studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

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Asia Pacific is significantly contributing to the global invert sugar market growth as the production of this product is dominated by countries, such as China and Indonesia, due to high raw material availability. India is anticipated to continue its growth trend in the candy and pharma industries, which is increasing the product demand. Companies, such as Bacardi, Parle, and other confectionery & pharmaceutical manufacturers use inverted sugar for its properties and benefits.

The rapidly growing food processing industry in highly populated and emerging economies, such as China and India, are predicted to offer immense opportunities for the usage of inverted sugar ingredients. The growing number of food & beverage companies further fuels the demand for a new variety of chocolate drinks that require inverted sugar as sweeteners. Therefore, the product demand will increase in the regional market.

Europe is one of the major producers and top exporters of inverted sugar syrups, owing to the presence of many international companies. Some of these include Nordzucker AG, Sudzucker, Tereos, Euro Sweet Gmbh, and others. These manufacturers are focusing on innovation and investments to increase their market presence.

In Europe, the trend toward sweeteners is increasing in the Russia market due to high demand for bakery and confectionery products. The food manufacturing sector represents a key component of Russia's economy. Therefore, as inverted sugar syrup has a unique flavor and texturizing properties, it is suitable for producing novel confectionery products, which will help the market's steady growth.

Rising consumption of inverted sugar-based products will drive the North America sugar market. In this region, emerging key market players provide inverted sugar for various applications, such as food & beverage, pharmaceuticals, and others. Moreover, these companies are implementing corporate strategies, such as joint ventures, partnerships, collaborations, and base expansions, to increase their product lineup and strengthen their presence.

New and well-established companies are working on identifying and developing new technologies to improve their product offerings for the growing market. For example, CSC Sugar is committed to bringing innovation to the sugar industry by producing the highest quality inverted syrup products. CSC Sugar’s processes and products claim to meet the evolving needs of today's industrial sugar consumers.

The demand for foods and beverages is rising among individuals living in urban cities across Brazil, Argentina, Chile, and Peru. This factor is driving the South America market progress. Millennials in urban areas perceive bakery products as an indulgence. Moreover, individuals prefer food products as a treat on special occasions and celebrations. Therefore, such a shift in consumption trends in South America might push the demand for inverted sugar-based products. Furthermore, governments and non-profit organizations are collaborating with small-scale producers to develop new flavors and enhance product quality. Such assistance will aid the producers in meeting their consumers' requirements. It will also support the local players while competing with international firms.

The Middle East & Africa region has experienced good economic growth recently. The African continent is home to a few of the fastest-growing economies globally such as Ethiopia, Rwanda, Ivory Coast, and Tanzania. At the same time, the Middle East region includes popular tourist destinations, such as the UAE, Saudi Arabia, Qatar, and Egypt.

UAE is a major economy in the Middle East region for the food and food processing industry, where inverted sugar finds its application. More than 550 food and beverage manufacturers and processors are in the UAE. These processors are mainly reliant on imported raw materials and processed agricultural products due to the low domestic production of commodities. Primary suppliers of ingredients to UAE are India, the European Union, Brazil, the U.S., and Saudi Arabia. The GULF market is extremely competitive, but there is boundless potential for the international invert sugar exporters to grow their consumer base in this region. 

Apart from UAE, exporters can also focus on capitalizing on market entry opportunities in other GULF countries such as Qatar, Saudi Arabia, Kuwait, and Bahrain.

Busy schedules owing to lifestyle changes, rising disposable income, increasing urbanization, and a growing working-class population are pushing consumers to buy baked goods, confectioneries, and beverages, which will support the steady growth of the regional market.

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List of Key Companies in Invert Sugar Market

Key Players Are Focusing on New Product Development to Attract New Consumers and Increase Product Sales

The market exhibits a moderately consolidated structure due to the establishment of several companies. A few prominent players in this industry hold significant shares owing to their huge clientele, strong brand loyalty, and vast distribution network. The global market holds tremendous potential to grow in the coming years owing to the increasing application of this product in several processed foods. Furthermore, collaborations among the invert sugar manufacturers will help them better serve the customers over the coming years.

Industry giants, such as Cargill Incorporated, Archer Daniels Midland Company, Ragus Sugars Manufacturing Limited, and Nordzucker AG are focusing on product portfolio expansions and product innovations to increase their footprint in the global marketplace.

LIST OF KEY COMPANIES PROFILED:

• Archer Daniels Midland Company (U.S.)


• AP Multi Products Pvt. Ltd (India)


• Cargill, Incorporated (U.S.)


• Eurosweet Gmbh (Germany)


• Galam (Israel)


• International Molasses Corporation (U.S.)


• Nordzucker AG (Germany)


• Ragus Sugars Manufacturing Limited (U.K.)


• Sudzucker AG (Germany)


• Tereos (France)

KEY INDUSTRY DEVELOPMENTS:

• June 2021: ASTARTA, a Ukrainian agricultural and industrial holding company, expanded its product range and launched a pilot project on inverted sugar syrup production. Invert sugar syrup is in demand in the confectionery industry. Therefore, with the successful implementation of its pilot project, the firm planned to increase the production of inverted syrup and expand its marketing capabilities.


• October 2020: DouxMatok and Lantic, both North American sugar manufacturers, collaborated to provide a unique cane-based sugar reduction solution for food processing firms in North America.


• July 2019: Dalmia Bharat Sugar and Industries announced to invest USD 3-4 billion to accelerate the organization's sugar production capacity. This investment would enable the firm to increase its inverted sugar production.


• March 2019: Nordzucker invested USD 112 million in Swedish sugar production. The investment was primarily done to build a warehouse and add a new liquid & syrup facility.


• February 2019: Nordzucker acquired 70% stake in Mackay Sugar Limited, an Australian sugar producer. The acquisition was done to improve sugar production in factories with an annual production capacity of 700,000 metric tons.

REPORT COVERAGE

The report includes quantitative and qualitative insights into the global market. It also offers a detailed analysis of the market share, size, and growth rate for all possible segments in the market. The report presents key insights, such as an overview of related markets, competitive landscape, recent industry developments, such as mergers & acquisitions, the regulatory scenario in critical countries, and key industry trends.

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