Global Sugar Market Report and Forecast 2024-2032

Global Sugar Market Outlook

The global sugar market size attained a consumption volume of about 180.31 million tons in 2023. The market is projected to grow at a CAGR of 1% between 2024 and 2032, reaching a volume of 197.19 million tons by 2032.

Key Takeaways

• Sugarcane is the world’s largest source of sugar, producing about 80% of the global supply.

• Major producers of sugar include Brazil, China, India, Thailand, and the United States.

• There is a growing focus on integrating ethical and sustainable practices into the manufacturing process due to rising social and environmental concerns.

Sugar is a sweet, crystalline food supplement mainly extracted from sugar beet and sugar cane and is used in various kinds of drinks and food. Sugar is sweet, soluble in water, provides nutrition and energy, and enhances the colour and texture of food. It can also be used to extend the shelf life of food products such as jams and jellies by inhibiting the growth of microorganisms.

The increasing demand for confectionery products is one of the major factors driving the sugar market growth. The household consumption of sugar remains high due to increased popularity of homemade pastries, cakes, sweet rolls, and pies, among other dessert or bakery products. Rising standards of living and increasing purchasing power in emerging economies, which usually lead to higher consumption of processed foods containing high sugar content, such as dairy and soft drinks, are expanding the market share. Additionally, favourable government policies and agreements regarding the export, import and trade of sugar favour the market expansion.

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Key Trends and Developments

Adoption of sustainable practices; rising consumption of sugar-based products, including processed foods; and technological improvements in the manufacturing process are the major trends impacting the sugar market expansion

Sugar Market Trends

One of the prominent market trends is the growing demand for sustainably sourced sugar which involves practices such as no pesticide usage and reduced water consumption. Sustainably sourced sugar also involves the certification of Fairtrade which ensures that the farmers and labourers are compensated fairly for their work. Moreover, due to the health and wellness trend, consumers are readily seeking out organic sugar, which is produced without any synthetic pesticides and fertilisers.

Sugar producers are readily establishing new refineries and sugar mills to meet the growing demand for sugar. In January 2024, SucroCan Sourcing announced that is it investing USD 135 million for the establishment of a refinery in Hamilton, Canada. The rising demand for sugar as well as the low sugar production rate in Ontario, Canada presents a lucrative opportunity for the company.

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Market Segmentation

“Sugar Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

White sugar accounts for a major sugar market share due to its neutral profile which makes it compatible with a wide range of food products

White sugar, a common type of refined sugar, occupies the major market share as it is the preferred sweetener for various foods and beverages. The food and beverage sector which includes sectors like confectionery, bakery, and dairy heavily relies on white sugar for its neutral flavour, colour, and preservative qualities. Moreover, the affordability of white sugar makes it a popular choice in both developed and developing countries. White sugar also possesses a long shelf life and does not require refrigeration to preserve its quality, which makes it a favourable choice.

Brown sugar is increasingly being demanded by health-conscious consumers as it is a healthier alternative compared to white sugar. It is rich in antioxidants, vitamins, and minerals, and supports overall human health. It also contains polyphenols, a compound which has been scientifically researched to have multiple health benefits, further boosting its popularity.

The food and beverage sector maintains its dominance in the market due to the rising use of sugar in processed foods

The food and beverages sector holds the majority share in the sugar market as granulated sugar is widely used in various food and beverage products like baked goods, confectionery, soft drinks, and other processed foods. For example, in baked goods and confectionery, sugar can enhance the texture, volume, and colour of the product, whereas in bread and alcohol production, it can be used for fermentation.

The pharma and personal care sectors are also witnessing rise in sugar consumption for various purposes. Sugar can improve the taste of medicines and make them more palatable, which drives their demand in pharmaceuticals. Sugar coatings are used on medicines to improve their taste and make them easier to consume. Moreover, in the personal care sector, sugar is incorporated into exfoliating products such as scrubs to remove dead skin cells and improve the natural glow of skin.

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Competitive Landscape

The market players are establishing new sugar refineries and are increasingly investing in sugar production plants to lower their carbon footprint, promoting sustainability

Other major players in the sugar market include AB Sugar, Südzucker AG, Nordzucker AG, COFCO International, Tereos Group, Mitr Phol Group., Dalmia Bharat Sugar and Industries Limited, Louis Dreyfus Company, E.I.D. – Parry (India) Limited, Rusagro Group, and Thai Roong Ruang Sugar Group, among others.

Sugar Market Analysis by Region

The market growth in the Asia Pacific can be largely attributed to the dominance of domestic food manufacturers and increased consumption of packaged food products in the region. The food sector is the largest consumer of sugar in the Asia Pacific as there is a high demand for sweeteners and sugar-based ingredients in various food and beverage products, including baked goods, confectionery, soft drinks, and other processed foods.

Beyond food and beverages, the pharmaceutical and personal care sector in the region also contributes to the growth of the market. Sugar is used in the production of medicines and cosmetic products, as a result of which the industrial sugar market in the Asia Pacific has been experiencing steady growth.

The North America sugar market is anticipated to witness robust growth due to the growing consumption of convenient and processed food products which possess high volumes of sugar. Moreover, the high popularity of beverages such as coffee also favours the sugar demand in the region.

Key Highlights of the Report