Global Sugar Cube Market - 2022-2029

Global Sugar Cube Market - 2022-2029

Market Overview

A sugar cube is a small cube of compacted sugar used especially for sweetening hot beverages. Due to the cube shape of the sugar, it is considered precise and sophisticated. The sugar cube has firm edges, is easily soluble, and is a lifestyle statement that reflects good taste. Furthermore, sugar cubes are extensively utilized in bakery goods, confectionery items, carbonated drinks, and dairy products. The increasing demand for these food items on account of rapid urbanization and the rising influence of western culture represents one of the key factors positively influencing the market for sugar cubes across the globe.

The global sugar cube market was valued at USD YY million in 2021. It is forecasted to reach USD YY million by 2029, growing at a CAGR of 5.32% during the forecast period (2022-2029).

Market Dynamics: Growing sugar cube market with increased usage across the food and beverage industry

The recent expansion of the food and beverage industry in metropolitan areas has been a key factor driving the global sugar cube market. Urban regions' expanding demand, where sweetened beverages are becoming increasingly popular, has boosted the demand for beverages. This demand will likely continue to be a major driver for the sugar cube market. Since sugar cubes contain molasses and there is increased demand for energy drinks and beverages with a fruit foundation or flavor, this trend is expected to continue. According to the Centers for Disease Control and Prevention, the prevalence of Americans who drink sugary drinks at least once per day differs geographically. For example, 68% of adults living in the Northeast, 67% of adults living in the South, 61% of adults living in the West, and 59% of adults living in the Midwest reported drinking sugar-sweetened beverages one or more times per day. Americans drink 52% of their sugar-sweetened beverages at home and 48% away from home.

Furthermore, the growing bakery industry and increased consumer purchasing power further increase the demand for market growth. Sugar cubes' hygroscopic properties and molasses content also make them preferable to regular sugar cubes in the bakery business because the latter mixes better with unprocessed molasses, which is expected to increase demand for sugar cubes within the forecasted period.

However, the market for sugar cube is projected to have growth restraints due to consumers' growing preference for sugar-free products and their growing concern over health issues like obesity, diabetes, and heart disease. Additionally, the World Health Organization (WHO) advises adults and children to limit their sugar intake to 10% of their total calorie intake, which further restrains the global demand for sugar cube.

Market Segmentation: The brown sugar cubes type segment had the highest share in the global sugar cube market

Brown sugar cube has a stronger, more natural sweetness than white sugar. These brown sugar cubes are made with pure cane sugar and make an exquisite condiment for coffee and tea service. Brown sugar cubes can be dissolved in hot liquids until the appropriate sweetness level is reached, then removed with a teaspoon. Brown sugar cube has witnessed considerable global demand and is estimated to continue to do so over the forecast period. The Food and Agriculture Organization (FAO) projected that global sugar production would rise by 24 percent to 13.6 metric tons by 2022. Sugar beet and sugarcane yields account for the majority of this rise. Brown sugar cubes have become a diet staple in many economies, including China, India, Australia, and others. It has made it simple for the local food and beverage sector to incorporate brown sugar cubes into its products, which is projected to aid market growth.

Geographical Penetration: Europe the dominating region during the forecast period.

Europe is the market leader in sugar cubes and will likely maintain its position during the projection period. Europe has the most coffee drinkers globally, accounting for around YY% of the coffee market. Coffee consumption per capita in Europe is 3.3 kilograms per year, the highest of any area. Coffee consumption in Europe is anticipated to rise shortly. Because the number of health-conscious consumers in Europe is growing, many choose sugar cubes with their coffee. The high consumption of coffee in Europe benefits the sugar cubes business. Furthermore, traditional bakery practices, innovation in bakery products, and a greater rate of bakery product consumption in European countries are all key factors driving demand for brown sugar in the region. According to the World Population Review, Germany is the world's largest sugar consumer. According to the Washington Post, an average German citizen consumes 102.9 grams of sugar daily. Like in the U.S., a significant percentage of this sugar is contained in processed foods like sweets, desserts, cakes, cookies, and beverages. The National Library Of Medicine indicates that about ¾ of the sugar in the country is utilized in production firms, especially those dealing with sweets and beverages.

Asia-Pacific is expected to grow significantly from 202-2029 due to a large millennial population, an increase in disposable income resulting in high demand for premium alcohol, and the availability of various flavor-based alcohols in the region, such as in China and Japan. Due to the popularity of bakery products and beverages, the Asia-Pacific brown sugar market is expected to grow at the highest CAGR of YY% over the forecast period. Also one of the largest regions in terms of turnover, value-added, and employment; in addition, the food and drink industry is a diversified sector characterized by a wide range of company sizes, with SMEs accounting for a large share of the activity.

Competitive Landscape:

Several key competitors focus on strategic acquisitions, mergers, and joint ventures to boost manufacturing capacity and expand product portfolios. They also emphasize the availability of unique versions via organized online shopping channels. It is encouraging market expansion with the proliferation of online shopping platforms that offer doorstep delivery, safe payment options, special deals and discounts, and huge product catalogs. Domino Sugar, Teaspressa, Storied Goods, CSR, Chelsea, Redpath Sugar, La Perruche, Taikoo, Huatang Food, and Blanch International are among the leading participants in the sugar cube market. For instance, in January 2021, Nutrition Innovation, a Singapore-based food technology company, announced that it was expanding to Malaysia in collaboration with the country's largest sugar producer, CSR, to introduce its sugar reduction technology, Nucane Life, and provide local food.

Imperial Sugar Company, a port refiner in Georgia and Kentucky, announced in March 2021 that it has agreed to sell its business and assets to U.S. Sugar and Louis Dreyfus Company. This move will cut costs while improving output.

COVID-19 Impact: Positive impact on the global sugar cube market

The pandemic had little effect on food and beverage operations, but its worldwide supply chain was severely affected, preventing further growth. The shutdown of the industrial and commercial sectors impacted the global market for sugar cubes. The COVID-19 outbreak slowed the supply chain, manufacturing, and production. According to a Sugar Asia magazine article, sugar consumption has dropped from the 26 million tonnes predicted earlier in 2020 to 25 million tonnes. Furthermore, it stated that sugar output declined by 22% during the first half of the sugar season, from October 2019 to March 2020, compared to the previous year.

The global sugar cube market report would provide access to approximately 69 market data tables, 71 figures and 170 pages