Erythritol is a four-carbon sugar alcohol that naturally exists in a variety of foods (grapes, pears, watermelons, etc.). It can be prepared by two methods: microbial fermentation and chemical synthesis. At present, all of them are used in commercial production, microbial fermentation methods. As a natural sweetener, erythritol has excellent properties such as zero calories, zero sugar, high tolerance, good physical properties, and anti-caries. Erythritol is a white crystalline, odorless raw material that can be quickly dissolved in water to form a transparent, low-viscosity, colorless solution. At the same time, erythritol is low in calories because it has almost no changes in the human body and does not participate in the metabolism of sugar after entering the human body. From 2020 to 2024, the global market demand for erythritol will continue to grow, with an average annual growth rate of 22.12%. However, this growth has also led to a very tight supply of sugar substitutes such as erythritol and allulose. At present, the two kinds of raw materials are currently in short supply, with longer delivery periods and higher prices. Manufacturers that mainly produce erythritol are working hard to increase production capacity and support market supply-demand.
The early market popularity of erythritol is not very high, and it often appears as a raw material for stevia. At present, it can be used alone or compounded with high-intensity sweeteners such as stevia and Luo Han Guo and has been widely used in many end-product formulations.
The overall market environment is relatively complicated. The global demand for erythritol continues to grow, and there is a very shortage in North America. The main reasons are as follows:
1. Consumers' demand for natural, sugar-free products has increased. The report shows that 41% of Chinese consumers want snacks with less sugar. Low-sugar/no-sugar has become a new way for ordinary consumers to deliver a healthy lifestyle. The popularity of meal replacements, light meals, nutrition bars， and other categories in the domestic market has also verified this.
2. The impact of the global epidemic on the supply chain.
3. There is a shortage of raw materials in the upstream industrial chain of erythritol. The market shortage of erythritol is related to the supply of corn glucose in the market and mainly lies in the supply and demand of corn in the upstream industry.
4. The Chinese erythritol market is out of stock. At present, erythritol in the domestic market has become the standard raw material for low-sugar/no-sugar beverages.
Among the many sugar substitute raw materials, stevia, Lou Han Guo, and erythritol are the most widely used raw materials at present. Among them, Luo Han Guo is a sugar substitute raw material that deserves attention. It has a long history of eating in China. In recent years, the cultivation of raw materials has also been expanding, which can complement the shortage of raw materials in the market. The price of erythritol is still at a high level compared with previous years. With the arrival of the off-season for beverages in the second half of the year, its supply and demand will reach a balance. However, healthy consumption of sugar-free and reduced sugar will become a long-term trend.
