Hydrogenated Starch Hydrolysate Market Trends

Growth Drivers

• Functional versatility in food & beverage applications: HSH has desirable properties such as solubility, neutral taste, humectant character, and texture improvement properties, which make it a great fit for use in baked goods, confections, beverages, dairy products, and ready-to-eat products. According to the USDA's October Crop Production Report, the National Agricultural Statistics Service (NASS) indicated that maize production in 2023-2024 was a total of 15.06 billion bushels, a decrease of 69.5 million bushels from the previous month. With this flexibility, HSH can help manufacturers reduce sugar while maintaining the same properties of form, moisture, mouthfeel, and shelf life. As the demand for clean-label functional products increases, the multifunctionality of HSH will increase its application in the food industry.
•  Expansion in pharmaceutical and personal care applications: In pharmaceuticals, HSH can be used as a binder, filler, stabilizer, and excipient, enhancing the palatability and effectiveness of dosage forms. Ingredion STABILITE SD30 is a spray-dried polyglycitol powder with low sweetness, higher molecular weight, and reduced hygroscopicity, dissolving in water to form clear, non-crystallizing syrups up to 75% concentration, serving as a binder, stabilizing aid, and viscosity agent in food formulations. HSH is non-carcinogenic, which is helpful in chewable vitamins or when included in oral formulations. Similarly, personal care products such as moisturizers and cosmetic applications can also take advantage of HSH's humectant and texture improvement properties. These applications further increase the demand for HSH beyond food and beverage applications.
• Rising demand for low-calorie sweeteners: Consumers are becoming more inclined towards reduced-calorie and reduced sugar options because of increased health awareness and obesity awareness. HSH is a polyol-based sugar substitute that yields sweetness with fewer calories than regular sugar, making it a great solution for confectionery, beverages, and baked goods. HSH can be partnered with a diabetic formulation, which further increases its use. According to a WHO report, there were 830 million diabetics in 2022, up from 200 million in 1990. More than 2 million people died from diabetes-related kidney disease in 2021. Additionally, elevated blood glucose was responsible for about 11% of cardiovascular fatalities. Food manufacturers are looking to meet a regulatory and consumer need for healthier options by using HSH, which has resulted in a constant growth in the HSH market.

Emerging Trade Dynamics in Sugar Alcohol

Top Exporting Countries of Mannitol in 2023

Source: WITS

Top Exporting and Importing Countries of Sorbitol in 2023

Source: OEC

Challenges

• Price volatility of raw materials: The HSH market is affected by raw material price volatility (for example, corn starch). In 2021, US corn prices rose 31.2% (USDA ERS), affecting the prices of starch derivatives. These price fluctuations create wild swings in production costs and profit margins for HSH manufacturers, which significantly affect manufacturers in Asia and North America. Rising prices for feedstocks, like corn and sugar, also discourage small industrial stakeholders from committing any capacity CG allocation, slowing any further HSH market expansion despite growing demand in confectionery and pharmaceutical applications.
• Availability of low-calorie sweetener alternatives: The market is faced with restraints from increasing competition as consumers are becoming aware of alternative low-calorie sweeteners (stevia, sucralose, and monk fruit extract). Steviol glycosides, which are about 250-300 times sweeter than sucrose, are the primary source of stevia's sweetness. Stevia's presence in global food and beverage formulations has increased, as per the International Food Information Council, so consumer preference for natural-source zero-calorie sweeteners limits the adoption of sugar alcohol based HSH products, specifically for North American and European functional food applications.