Xylose Market

Xylose – A Sweet Solution to Achieve Sugar Reduction

Xylose is one of the most versatile sugars with a wide range of applications as an ingredient in diverse food products to enhance their palatability and organoleptic properties. A paradigm shift in the consumer preference for healthier and natural products has significantly fueled the traction for xylose, particularly in the thriving food and beverage industry, over the recent years. The surging food and beverage industry, coupled with increasing consumer health consciousness, has been pacing up the sales of natural food ingredients, such as plant-derived xylose. This is further indicating a subtle boom in the growth of the xylose market, wherein, companies are exploring product applications in broader industries to gain a stronger hold in the industry.

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Xylose Market - The Evolution Map

Xylose was first isolated from woods such as birch in 1881, and has been among the rarer sugars due to its difficult and high-cost preparation. However, in 1930, the United States Bureau of Standards, in a cooperative investigation, found a simple xylose preparation method from cottonseed hull bran, which is a very cheap raw material. This made xylose a sugar obtainable at a price comparable to that of sucrose.

Xylose is now widely found in a large span of woody materials, including straw, corncobs, and pecan shells, and is also known to be found in berries, broccoli, and spinach. Over the years, the use of xylose has grown significantly in food & beverages and pharmaceuticals, to name a few. As per TMR’s analysis, the traction for xylose has grown at a steady pace, with its market anticipated to be valued at ~ US$ 1.5 Bn in 2018. The TMR study indicates a ~ 6% Y-o-Y growth of the xylose market in 2019 over 2018.

Impact of Undercurrents on the Xylose Market

Quest for Sugar Alternatives to Help Fight Diabetes, Uplifting Sales

Growing incidences of type-2 diabetes have led to a notable shift in consumer preference for diabetic sweeteners over conventional sugar, which, in turn, has opened a window of opportunities for market players. Diabetic sweeteners such as xylose aid in maintaining low glycemic index and cholesterol levels, and prevent heart diseases. While white sugar can increase insulin levels in the body, xylitol, a derivative of xylose, has garnered traction as a crystalline aldose sugar that doesn’t impact the same way, and is witnessing wide adoption as a sweetener for tea and coffee.

Natural Approach to Cavity Prevention – A Fast-Growing Trend

Dental hygiene products have emerged as a hotbed of opportunities for xylose manufacturers, in line with the shifting focus of companies towards leveraging natural ingredients in products to appeal a wide pool of health-conscious consumers. Increasing awareness about xylitol’s role in inhibiting the growth of plaque-forming bacteria by preventing tooth decay and oral cavities is creating fresh growth avenues for market players. The adoption of D-xylose-derived xylitol in dental health products is growing substantially, in line with its promising role in preventing the demineralization of enamel and stimulating salivary flow. The growing contribution of xylitol in improving oral health, and curing gum, teeth, and mouth issues, is bolstering its usage in products that combat tooth decay, including mouthwash, toothpaste, and even sugar-free gum.

Adoption in Pet Food Upholding Growth 

The sales of pet food are growing year-on-year, with pet owners increasingly spending more on their furry family members. Given the fact that pets are often considered as an equal part of the family, consumers have started making similar choices for pet food and animal feed as they do for themselves. This has further led to an increased traction for food with natural, ethically-derived ingredients that come with free-from claims and boast of high nutritional profile. For that matter, xylose is witnessing increased traction as palatability enhancers in altering pet food formats. Although the adoption opportunities for xylose are increasing in the animal feed segment, it is pertinent to note that, there are several concerns around the toxicity and health impact of xylose on some animals. However, there is no substantial scientific literature to prove this impact.

High Traction for Diet-based Foods Underpinning Gains

A large number of consumers have shifted their consumption preferences to healthier products, while creating a significant market for diet-based food products. Responding to this rapidly growing trend, manufacturers in the food and beverage industry have started leveraging healthy ingredients, such as D-xylose derived xylitol that has no carbohydrates, which further makes it a viable choice for diet-based foods. With high fiber content, xylose is likely to garner significant traction as a powerful ingredient that reduces the number of calories, and aids weight loss and digestive health in individuals.

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Winning Imperatives

Exploring Applications in the Food & Beverage Industry

In view of the wide range of applications of xylose in the proliferating food and beverage industry, market players are eying long-term collaborations with multinational food processing companies to strengthen sales’ security. The rapidly growing trend of packaged food products, coupled with increased consumer health-consciousness, has been creating substantial demand for flavored ingredients. Anticipating the lucrativeness of the seeming shift in consumer preference for mouth savoring food products, manufactures are eying stronger tie-ups with end users to capitalize on the potential increase in the demand for plant-derived and synthetic xylose. This falls in line with the considerable uplift in the adoption of non-caloric sweetener D-xylose to sweeten products that are intended for use by obese and diabetic customers.

Tapping the Health and Wellness Trend

The rapidly-growing health and wellness trend has made a large number of consumers opt for plant-derived ingredients. However, the purchasing decisions of consumers are still primarily affected by product cost, taste, and convenience. For that matter, several companies in the xylose market are finding ways to provide novel-flavored offerings to increasingly growing health-conscious and taste-driven consumers, while at the same time not compromising on low-in calorie and convenience factors.

Competition Landscape

Companies looking to consolidate their position in the market are focusing on launching competitive offerings in the diabetic-food, pet-food, and dental hygiene category. Considering the advantages of xylose over conventional sugars, manufacturers are also focusing on promoting xylose as a super ingredient. Another key strategy for manufacturers is to promote xylose as an environmentally-sustainable alternative to wheat/corn for the manufacturing of isobutene. As government and regulatory authorities are encouraging the optimum utilization of waste, manufacturers are keen to leverage the opportunities in this landscape.

Anyang Yuxin Xylitol Technology, a China-based xylitol manufacturing firm, has placed its focus on extracting xylose and xylitol from the by-products of wood, as it looks forward to strengthen the sustainability credentials of its products. Several xylose processing companies are also aligning with key regional distributors and suppliers to expand their customer base and simultaneously generate higher sales. In addition, market players are exploring the use of D-xylose in cosmetics and personal care products, and as a raw material for myriad applications that span from bio-degradable detergents to agricultural products.

Future growth and opportunities in the xylose market are likely to remain concentrated in the diabetic and pet food categories, and it won’t be surprising to see new product launches at competitive pricing in cost-sensitive markets of Asia Pacific. Manufacturers are well aware of the growing sales in Asia Pacific, and are looking to exploit the opportunities in this region.

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Analysts’ Viewpoint

Authors of the report maintain a bullish outlook on the xylose market, estimating global revenue to grow at a ~ 6% CAGR through to 2029. The adoption of xylose is likely to be pushed by the broader health and wellness trend, and a general focus on reducing sugar intake, not only in diabetic individuals, but also in the general population. Companies need to understand the unique requirements of customers, especially in high-growth regions, and offer products at competitive price points, which is a strategy that is most likely to help them gain a competitive edge in the xylose market.