Sorbitol is a sugar alcohol that is used for both internal consumption and external use. Sorbitol is naturally found in apples, peaches, prunes, and pear but it is majorly extracted from corn syrup. Sorbitol is widely used in specific medicines, artificial sweeteners, toothpaste, mouthwash, and cosmetics. Sorbitol is a natural laxative that eases up constipation in intestines and therefore, it is widely used in medicines. Sorbitol also has a high refractive index and that is the reason for it being used in mouthwash, gels, and toothpaste. The reason for it being used in cosmetics is its thickening and water absorbing properties. For industrial uses, sorbitol is a potential fuel if combined with certain chemicals. It is actively used in manufacturing fuels that use raw materials from biomass resources.
The global sorbitol market is huge due to being used in a variety of industries. Sorbitol is a widely used sugar alcohol and it accounts for 59 percent of the total polyol production across the globe which is approximately 3.301 MMT. France, Germany, and the UK are major end-user regions of sorbitol in the European region. The current sorbitol production in the European market is growing steadily at 5 percent. This is due to the added capacity of the major sorbitol manufacturers such as Roquette, Cargill, and Benzo. French Roquette Freres has multiple sorbitol manufacturing facilities across the globe and it is the largest manufacturer in the field. Its sorbitol manufacturing capacity is 0.59 MMT/year. Due to the added capacities by the big regional players, the prices of sorbitol are expected to witness a slight downfall of about 2-4 percent by 2020. The price drivers of sorbitol in the food industry are confectionery and chewing gums while the growing personal care sector is also responsible for high sorbitol demands.
How to Start a Business in the Sorbitol Market?
Sorbitol is a type of polyol that is used in manufacturing a variety of end-use products. Its slow glucose releasing properties make it a suitable compound for being used in nutrition products, artificial sweeteners, cosmetics, medical, and industrial applications. The industry is growing rapidly due to the growth in the consumer products market and increased use of biomass in fuel manufacturing. Therefore, entrepreneurs are looking for sustainable future opportunities in the industry.
The best way to go about starting a business in the sorbitol industry is to determine the niche that the business would be catering to. This is because the end-user industry will dictate numerous important factors for the business such as the requirement of raw materials, the method of processing/manufacturing, supply style, delivery priorities, and delivery methods.
Here is an explanation of how a business model for sorbitol manufacturing can work in the global market.
Sorbitol Business Model: Starting a business in a niche market such as sorbitol requires a thorough understanding of a number of factors such as market research for understanding local, regional and global market scenario, and detailed competitive analysis. The market research includes the study of current market trends such as global annual sorbitol production, industry leaders, and information about their production capacities, manufacturing and supply facilities, and supply-demand trends.
The latter part of the research includes gathering information about capacity addition or reduction trends on a global level, popular manufacturing and delivery practices for different end-user industries, factors responsible for market growth, price analysis, and more. Studying all these aspects provides a good understanding of the changing market conditions and how industry leaders influence and deal with those.
Sorbitol Market Competitive Analysis:
It is imperative to study the global sorbitol market from a broad perspective due to being a key ingredient in numerous consumer and industrial products. The competitive analysis includes an in-depth study of tactics and strategies used by the players that dominate local, regional, and global markets. Entrepreneurs have to figure out precisely the right time and appropriate strategy while entering the market. Entrepreneurs must understand the supply network of their competitors for designing and developing their own networks more efficiently.
In addition, studying the big players allows entrepreneurs to learn business strategies and ways to implement tactics in a more logical way. In addition, starting a business in a niche that is being used in diverse industries is not easy. In the initial phases, the business may choose to develop expertise in manufacturing and/or supplying one or two variants of the product but this strategy is only beneficial in the initial stages. The business has to expand its capacity and widen its client-base to grow and sustain in such a highly competitive market.
Sorbitol is a polyol with diverse uses in many industries. It is used in manufacturing everyday products such as toothpaste or mouthwash and it is also used for manufacturing rocket fuel. The chemical compound has such diverse uses that starting a sorbitol business means that the entrepreneurs should be ready for jumping into any possible niche gradually. Therefore, working with a mature approach and keeping up with market dynamics is the only way to achieve success.