Sorbitol  

*Millions of pounds per year, 70 percent solution basis. Commercial production is by high-pressure catalytic hydrogenation of glucose sugar derived from cornstarch. Sorbitol can be produced as a coproduct with mannitol if invert sugar (50 percent glucose, 50 percent fructose) is used as raw material.

Hoffmann-La Roche uses its sorbitol capacity captively in the production of ascorbic acid. ADM bought Pfizer Inc.'s sorbitol business in 1994. SPI Polyols Inc., bought the US-based polyols business of ICI Americas in 1994, and purchased Ethichem Corporation's sorbitol business in June 1998. Ethichem's 30-million-pound plant at Easton, Pa., was dismantled and some of the equipment moved to SPI's New Castle site. Roquette America brought on a new liquid sorbitol plant in Keokuk, Iowa, in 1996. In October, 1999, UK-based Associated British Foods purchased SPI Polyols, including all of its assets and facilities.

Last year, Lonza sold its polyols business and associated assets at its Mapleton, IL production site to SPI.

Profile last published 6/29/98; this revision 10/1/01.

DEMAND
1999: 563 million pounds; 2000: 571 million pounds; 2004: 606 million pounds, projected. Demand equals production plus imports (1999: 10 million pounds; 2000: 8 million pounds) less exports (1999: 53 million pounds; 2000: 53 million pounds).

GROWTH
Historical (1995 - 2000): 2.1 percent per year; future: 1.5 percent per year through 2004.

PRICE
Historical (1995 - 2000): High, $0.365 per pound, list, USP, reg., 70 percent aqueous, dms., c.l., f.o.b. shipping point; low, $0.27, same basis. Current: $0.395, same basis.

USES
Toothpaste, toiletries and cosmetics, 35 percent; confections and food, 30 percent; ascorbic acid, 15 percent; industrial surfactants, 10 percent; pharmaceuticals, 7 percent; miscellaneous, including polyethers for polyurethanes, 3 percent.

STRENGTH
A newly developing outlet for sorbitol is its use in producing clarifying agents for polypropylene. Clarifying agents enable polypropylene to substitute for higher cost polymers in food packaging, drinking cups, and housewares. This sector is growing at more than 7 percent annually, however, it is still small by comparison to other applications.

WEAKNESS
Sorbitol's largest single application, toothpaste formulation, is mature and expected to grow only with population. Minimal growth is predicted for sorbitol in the production of surfactants and polyethers. Sorbitol's application in the domestic production of vitamin C has been hurt by imports of the vitamin, primarily from China. Crystalline sorbitol has benefited from the rise in consumption of "sugarless" gums, which are now estimated to account for more than half the chewing gum market. This segment’s growth has stalled in recent years because of a slowdown in gum sales, due to competition from other products. Another factor contributing to the decrease in market growth is due to substitution of glycerin for sorbitol, as glycerin’s price has been in decline in recent years due to a chronic oversupply situation. In a number of outlets, sorbitol faces competition from other commercial polyols, including glycerine, propylene glycol, mannitol and xylitol.

OUTLOOK
Continued consolidation in the sorbitol industry has improved the supply-demand balance after a wave of expansions and a new grassroots plant in the early 1990’s. The current decrease in glycerine pricing is cutting into substitutable sorbitol applications, especially in the personal care products category. This could put downward pressure on sorbitol prices. The US sorbitol market is projected to slow to about 1.5 percent annual growth, paralleling population growth, after a run of 3.8 percent annual growth throughout the previous decade.