Dextrose Market

According to MarketsandMarkets, the Dextrose Market size is projected to reach USD 8.6 billion by 2027 from USD 5.9 billion in 2022, at a CAGR of 7.8% during the forecast. With rising demand from the food and beverage industries as a sweetener and source of energy, the dextrose market is on the rise. Growing processed food consumption and an increasingly thriving beverage industry are boosting the market further. Furthermore, dextrose finds key applications in the fields of pharmaceuticals and sports nutrition in which it is used in intravenous solutions and energy supplements, respectively. Growth in developing areas continues to spur industrial applications, while technological advances in production improve supply chain efficiency and the quality of product.

In September 2022, Cargill  (US) opened a corn wet mill in Pandaan to support the surge in demand from its customers within the entire Asian and Indonesian markets for starches, sweeteners, and feed. This new facility, slotted under a price tag of USD 100 million, further aims to grow the country's food and beverage industry while helping pump up local economies. The facility can support the supply chain into more than 40 countries in Asia and Africa including Japan, the Philippines, India, South Africa, Australia, Vietnam, and Egypt.

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Market Dynamics

Driver: Health-conscious consumers reducing sugar content in their diets

The market for dextrose is driven by the increasing demand from consumers for low-sugar and healthy food. Health-related concerns such as obesity and diabetes have consumers reaching out more and more to limit sugar intake. A report by FMCG Gurus (2021) stated that 40% of all global consumers actively limit sugary foods, while 66% cut down on sugar to improve immune health. Innovations in dextrose-based syrups have made the reduction of sugar content possible in confectionery through Ingredion's Versasweet, and in dairy and bakery products as well, according to the consumer demand for low-sugar variations that are not compromised on taste or texture. This is a huge windfall to the dextrose market.

Restraint: Growth in demand for gums as alternative to dextrose

Growing interest in natural gums, such as guar gum, acacia gum, and xanthan gum, has been at the expense of the dextrose market, as they are perceived to have superior thickening, stabilizing, and emulsifying properties compared to starch-derived products. Guar gum is used with a thickening property nearly 8 times that of cornstarch. This preference toward gums comes in the food and beverage industries due to consumer demand for natural and non-GMO ingredients that are biodegradable. This dependency on corn-based raw materials reduces the levels of starch derivatives such as dextrose, hence hindering the market growth. Other than this, the price of gum also varies as it is linked to the price of crude oil, and the demand for dextrose is affected due to this factor.

Opportunity: Potential alternative sources of dextrose

Opportunities in the dextrose market are impelled by the need to diversify starch sources due to the impact of ethanol policies on corn and wheat supplies. Too much of the crop is wasted in countries where cassava, rice, yam, and other tubers are abundant in regions such as South America, Asia, and Africa and remain untapped. For example, cassava glucose syrup not only milled the economy at the native level but also improves dextrose production. The substitution focus on starch sources is likely to ensure stable supplies and build up rapidly to meet rising demand in food, beverage, and industrial applications.

Challenge: Alternatives uses of corn in ethanol industry

The competition for corn presents a big challenge in the dextrose market as it represents the primary raw material. Dextrose manufacturers are under supply pressure and face rising costs because the larger portion of corn production is steered toward the ethanol and livestock-feed industries. In 2019, 13.66 billion bushels of corn were produced. Out of that, 5.38 billion bushels were used for ethanol production. In addition, corn supply forecasts are lowered, thereby consolidating further the corn supply for dextrose; great demands for corn in substitute industries mean that the quantity will not be there for dextrose, thereby limiting its market growth.

DEXTROSE MARKET ECOSYSTEM

Key players within this market consist of reputable and financially robust dextrose manufacturers. These entities boast extensive industry tenure, offering diversified product portfolios, cutting-edge technologies, and robust global sales and marketing networks. Prominent dextrose manufacturers are Cargill Incorporated (US), ADM (US), Ingredion (US), Agrana (Austria), Tate & Lyle (UK), Roquette Frères (France), Avebe Group (Netherlands), Tereos (France), Gulshan Polyols Ltd (India), Belgosuc Nv (Belgium), Fooding Group Limited (China), Foodchem International Corporation (China), Grain Processing Corporation (Us), Uniglad, Ingredients UK Ltd (UK), and Now Foods (US).

Food and Beverage segment by application of dextrose market is estimated to dominate market share during the forecast period.

The food and beverage segment accounts for the highest dextrose market share, owing to its importance as a versatile sweetener and source of energy. Dextrose finds massive usage in a wide array of products—from soft drinks to baked goods, candies, and dairy products—because it enhances flavour, texture, and improves shelf life. On the other hand, rising demand for processed and convenience foods and an increasing consumer preference towards low-calorie sweeteners further fuel its consumption. Moreover, the easy digestibility of dextrose has made it quite popular among the ingredients used in sports drinks and energy bars.

In the form segment, solid dextrose is estimated to dominate market share during the forecast period.

The solid segment accounts for the largest share of the dextrose market, since it has a large number of uses in many industries, particularly in food and beverages, pharmaceuticals, and confectionery. In comparison with liquid forms, solid dextrose, either in powder or granule form, offers more stability, extended shelf life, and better handling properties. It is applied in a broad sense as a sweetener, bulking agent, and energy source in baked goods, snacks, and supplements. The versatility and ease associated with solid dextrose bestow on it the choice in multiple applications, driving market domination.

The dextrose market, in the Asia Pacific region is expected to grow at the highest CAGR during the forecast period.

Several key factors keep the CAGR of the dextrose market in the Asia-Pacific region very high. Rapid urbanization, population growth, and change in eating habits toward processed foods and beverages in countries like China and India raise the demand for dextrose as one of its main ingredients. The growing pharmaceutical and healthcare industries in the region also contribute to this since dextrose finds wide applications in medicinal uses such as IV solutions and oral rehydration therapies. Additionally, increase in disposable income and rising health awareness created demand for energy supplements and sports nutrition products, thereby boosting the dextrose market growth in Asia-Pacific.

Key Market Players

The key players in the dextrose market include Cargill Incorporated (US), ADM (US), Ingredion (US), Agrana (Austria), Tate & Lyle (UK), Roquette Frères (France), Avebe Group (Netherlands), Tereos (France), Gulshan Polyols Ltd (India) and Belgosuc Nv (Belgium). These market participants are emphasizing the expansion of their footprint via Product launch and acquisitions. They maintain a robust presence in North America, Asia Pacific, South America, RoW, and Europe, and they are supported by manufacturing facilities and well-established distribution networks spanning these regions.

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Scope of the Report

Target Audience

• Dextrose traders, retailers, and distributors.
• Dextrose manufacturers & suppliers.
• Related government authorities, commercial research & development (R&D) institutions. 
• Regulatory bodies, including government agencies and NGOs.
• Commercial research & development (R&D) institutions and financial institutions.
• Government and research organizations.
• Venture capitalists and investors.   
• Technology providers to Dextrose companies.
• Associations and industry bodies.   

Dextrose Market:

• By Type
  • Monohydrate
  • Anhydrous
• By Application
  • Food & Beverages
  • Pharmaceuticals
  • Personal Care Products
  • Paper & Pulp Products
  • Agricultural Products
  • Other Applications
• By Form
  • Syrup
  • Solid
• By Functionality
  • Sweetener And Source of Energy
  • Preservative
  • Anti-Caking Agent
  • Humectant
  • Filler/Binder
  • Others
• By Region:
  • North America
  • Europe
  • Asia Pacific
  • South America
  • Rest of the World (RoW)

Recent Developments

• In April 2022, Cargill (US) built its “Global Animal Nutrition Innovation Center” for nutrient research and development in support of the agriculture and food industry customer base. This center can host more than 2,000 visitors yearly. Also, new viewing corridors would offer an opportunity for the visitors to easily view the animal R&D facilities. This move seems to bring Cargill closer to its customers.
• In May 2022, Tate & Lyle (UK) launched the Tate & Lyle Nutrition Center, a digital hub focused on ingredient science to tackle public health issues. This advanced the company's research program and helped food and beverage companies spread across the UK, US, Brazil, and Singapore. Its establishment enhanced the growth of the dextrose market by fostering innovation and meeting nutritional needs in a wide array of applications.
• In April 2021, Avebe Group (Netherlands) collaborated with hybrid potato breeding firm Solynta (Netherlands) to develop new potato varieties for sustainable starch more rapidly than by conventional breeding. This paved the way to more production and possibly higher revenues. Hence, with heightened supplies of high-quality starch coming from these improved varieties, the growth of the dextrose market was now supported by a more stable and reliable source of raw material inputs.

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