Report Overview
The global fructose market size was valued at USD 4.34 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 4.1% from 2020 to 2027. Growing demand for low-sugar, low-fat, and processed low-calorie food products is expected to drive industry growth. Fructose is a monosaccharide with a chemical formula similar to glucose but different molecular structure. It is naturally available in fruits, vegetables, honey, and some plants. Fructose is used in food & beverages for enhancing their quality, taste, and texture. Furthermore, the low Glycemic Index (GI) associated with the product as compared to table sugar is likely to propel its demand. The U.S. is expected to exhibit significant growth on account of rising consumer awareness about following a healthy diet.
The consumers are looking for a replacement for white sugar in their daily diet to achieve fitness, which will help the growth of the fructose industry over the projected period. However, the consumers are opting the organic products, which will impact the market growth to some extent. Fructose is derived from various raw materials, such as sugarcane, beet, and maize. The use of the product has been prevalent in the food & beverage industry on account of its low cost and high relative sweetness.
Factors like fluctuation in raw material prices and an increase in production costs are likely to be key challenges for the industry players. An increase in the manufacturing cost can directly impact the price of the final product. For instance, in September 2019, Tate & Lyle announced a price increase for its products falling under the North American food and beverage solutions business owing to the rise in manufacturing costs.
Furthermore, Cargill, Inc. reported in its 2019 annual report that the revenue for its starch & sweeteners products decreased on account of the increase in energy and raw material costs in Europe. As per the research, high fructose corn syrup can increase the risk of high blood pressure, diabetes, heart disease, weight gain, cancer, fatty liver & liver stress, increased cholesterol levels, leaky gut syndrome, and higher mercury intake. Therefore, the consumers are shifting their preference towards alternatives, such as coconut sugar, raw honey, and stevia, which is expected to hamper the industry growth.
Product Insights
High fructose corn syrup dominated the market in 2019 with a revenue share of 62.0%. These products gained popularity on account of their versatility and ability to enhance texture, color, quality, and flavor of various foods and beverages. Also, manufacturers prefer high fructose corn syrup considering its liquid state, which provides ease in the manufacturing process and costs lesser than other caloric sweeteners. For instance, the usage of sugar instead of high fructose corn syrup in soft drinks increases the sweetener cost two times.
The fructose syrups segment is estimated to register the fastest CAGR of 5.4% from 2020 to 2027. The high growth rate is backed by the ability of fructose syrups to blend with other ingredients. Fructose solids are primarily derived from corn starch and are used in dry-mix beverages, flavored water, low-calorie products, carbonated products, energy drinks, baked goods, chocolate milk, fruit packs, and breakfast cereals. Fructose solids help in maintaining the desired moistness and tender textures of bakery products for a longer time.
Application Insights
Beverage application dominated the market and accounted for more than a 69% share of the overall market revenue in 2019. The product is used as a caloric sweetener in beverages, such as soda, soft drinks, juices, coffee creamer, and energy & sports drinks. The growing consumption of soft drinks in developing countries is positively influencing the market growth.
Some of the companies using fructose are PepsiCo. The Coca-Cola Company, Tropicana Products, Inc., Jones Soda Co., Darigold, A&W Concentrate Company, Kraft Foods, Inc., etc. The food processing application segment is estimated to register the fastest CAGR from 2020 to 2027 on account of the rising technological advancements and innovations along with the high demand for processed food products. The rising popularity of packaged meals, snacks, and desserts is expected to propel the fructose demand in the food and beverage applications.
Regional Insights
North America led the global market in 2019 with a revenue share of over 44%. The popularity of packaged beverages in the region, such as juices, sports drinks, and carbonated soft drinks, has supported industry growth. However, consumers in this region are gradually shifting towards organic products, which is likely to have a negative impact on product demand.
The demand for the product in Europe is expected to grow at the lowest rate on account of the rising geriatric population, which is susceptible to chronic diseases. Moreover, the consumers in the region are becoming health conscious, which limits the consumption of sweet foods and beverages, thus affecting the growth of the market.
Asia Pacific is expected to be the fastest-growing regional market from 2020 to 2027 due to the rapidly expanding beverage industry in China and India. In addition, the rising population coupled with a shift in consumer lifestyle, which demands food products, such as packaged juices, candies, and chocolates, is likely to drive industry growth.
Key Companies & Market Share Insights
The industry is highly fragmented and competitive with the presence of a significant number of large- and medium-sized companies that offer similar products. Key players are vertically integrated into the value chain. Industry players are now targeting small- and medium-scale end users to tap the local markets. They are also trying to establish themselves in the developing markets wherein the food & beverage, dairy, and bakery industries are witnessing significant growth. These strategies are aiding the companies to gain access to local markets and present them with new growth opportunities. Some prominent players in the global fructose market include:
ADM
Cargill, Incorporated
DuPont
Galam
Ingredion, Inc.
Shijiazhuang Huaxu Pharmaceutical Co., Ltd
Tate & Lyle