Increasing Growth and Business Opportunities in Sorbitol Market
Sorbitol is a natural substance found in many fruits including apples and prunes. However, extracting sorbitol directly from fruits is not very cost-effective and the companies prefer to extract it from corn syrup. It is also used in various industries such as cosmetics, oil and gas, and cigarettes.
The chemical compound is highly stable and some of the other popular end products of sorbitol are solid rocket fuel, humectants and thickening agent in cosmetics, and food preservatives. Sorbitol is also used in manufacturing specific drugs.
Due to its laxative properties, sorbitol is used as a key ingredient in constipation-relief medicines. In addition, sorbitol has a high refractive index and therefore, many transparent gels are manufactured with it. The uses of sorbitol do not end here as it is also used for producing several types of fuels that are derived from biomass resources.
The use of sorbitol in numerous industries makes it a global product that affects several industries. Sorbitol is a polyol that constitutes 59 percent of the total global polyol production of 3,301 MMT per year.
The European region is considered a highly mature market due to the presence of industry leaders that dominate both regional and global markets. Germany, France, and the UK are major end-users of sorbitol. Global players such as Roquette Freres, Cargill, and Benzo are adding capacities which have pushed the UK sorbitol industry to grow steadily at a Compound Annual Growth Rate (CAGR) of 5 percent.
Global-level players such as Roquette Freres produce high volumes of sorbitol each year i.e. approximately 0.59 MMT.
However, the capacity additions are also likely to reduce the sorbitol market price approximately 2-4 percent by 2020.
Growth Opportunities in the Sorbitol Market:
The global sorbitol market can be segmented into solid and liquid sorbitol and both have their significance in respective industries.Sorbitol is known by its chemical name ‘Glucitol’ in the pharmaceutical industry where it is generally used in cough syrups, ascorbic acid tablets, and constipation relievers. Hectic lifestyle and changing climate patterns have greatly affected the general health of people across the world and increasing gastrointestinal diseases and lifestyle disorders are proof of that.
People have become more health conscious and they avoid consuming excess calories. Therefore, sorbitol sweeteners have emerged as a big solution which ultimately boosts the overall demand for sorbitol. The APAC region also has a vast number of diabetic patients that use artificial sweeteners. This is another reason for the high demand for sorbitol.
The case is the same in the food industry where sorbitol’s low sugar-releasing properties make it an apt solution to be used as a replacement for standard sugar in confectioneries. Such diverse use of sorbitol has significantly added to its demand.
These trends suggest a huge potential in the upcoming sorbitol market and its ever-increasing demand reflects that.
Business Opportunities in the Sorbitol Market:
Sorbitol is just one product but it has numerous applications in many big industries.Therefore, entrepreneurs have to consider numerous factors and develop their business model accordingly. The business model will require to include thorough market research and competitive analysis initially whereas the elements of a business plan can be considered in the latter part.
The entrepreneurs have to first understand the current market conditions on all the possible levels along with the study of their competitors. The analysis will include understanding market trends such as global supply-demand, industry leaders, production capacity, etc. In addition, the use of technological innovations in manufacturing and logistics can play a decisive role in the near future.
New players have to understand the global supply-demand scenario in a way that aids their capability in their niche. Also, they have to determine whether they are doing exactly what it takes to cater to their potential/existing client-base or not.
This is because every industry is different and it has its own methods of production, supply, delivery, and prioritizing processes.
Suppliers have to streamline their processes accordingly and their flexibility and adaptability determine the ultimate efficiency. In addition, a niche as diverse as sorbitol will require catering to clients from other industries for better growth prospects at some point in time.
In such a situation, entrepreneurs have to make tough decisions that will help them expand their business across different industries. This is a highly competitive global market and the businesses have to expand at one point of time or the other to make the most out of it.
A widely used polyol such as sorbitol is diverse and its end-user industries along with it. The product is being used in many industries as a key ingredient which encourages its demand from all across the globe.
In terms of growth opportunities, the market has significant potential and if the entrepreneurs implement new technologies that can add efficiency in the overall processes, it can be a game-changer for them.
