Global Sugar Powder Market - 2022-2029

Global Sugar Powder Market - 2022-2029

Market Overview

Sugar powder is used to flavor several bakery items and confectioneries and is therefore available in different forms depending on the icing sugar application. The sugar has to be used compulsively within a short time as the possibility of it becoming caked persists even if anti-caking agents are present. The starch source often varies with the form of sugar powder manufactured. Yet cane sugar is the primary source of sugar in every type of sugar powder.

Increasing consumption of confectionery and bakery food products is the key factor in market growth. Further, rising demand for milk and milk-based beverages on account of increased awareness about the benefits of protein consumption is also expected to boost the sugar powder market growth.

The global sugar powder market was valued at USD YY million in 2021. It is forecasted to reach USD YY million by 2029, growing at a CAGR of 4.56% during the forecast period (2022-2029).

Market Dynamics: Growing sugar powder market with rising demand for chocolate and other confectionery products

Using sugar powder in chocolate and confectionery products expands the sugar powder market. The increasing consumer expenditure on decadent chocolate confectionaries and the expanding trend of gifting chocolate on various occasions make trends. Creative product introductions can also be a key factor in the rising demand for chocolate and confectionery items. For instance, Ferrero Rocher India launched a new product called Ferrero Rocher Moments in 2020, intended to be used for luxury gifting. Sugar powder is a sweetener to enhance items' flavor, aroma, and quality. Confectionery consumption is higher in urban areas compared to rural areas. According to the United Nations, 68% of the world's population is expected to reside in cities by 2050, boosting the sugar powder market.

However, sugar powder is packed with calories. People are becoming more conscious of their health as conditions such as diabetes and obesity have become epidemics in most parts of the globe. This growing negative health effect is expected to restrict the future sugar powder market's growth.

Market Segmentation: The bakery segment had the highest share in the global sugar powder market

The growing consumption of bakery food items among consumers drives the growth of the global sugar powder market. There are various sugar powder applications in bakery items such as pound cakes, brownies, cookies, muffins, and donuts. Sugar powder is also widely used as an anti-caking agent as it helps to obtain a fine texture and structure and maintains the viscosity in food products. Moreover, the product is used in preparing frosting and icing for desserts, fruit-flavored sweets, and baked items. All these multiple usages of sugar powder are expected to drive demand for the product in the global market over the forecast period. In addition, various innovations in the packaging of confectionaries and chocolates are expected to drive further demand for the product in the global sugar powder market over the forecast period. The widespread use of sugar powder in bakeries impacts global sugar consumption, increasing global sugar consumption. According to World Sugar Economy, global consumption reached 168.479 million tonnes in 2021, following three years of decline, an increase of 0.155 million tonnes. India, the EU-27, China, the United States, Brazil, Indonesia, Russia, Pakistan, Mexico, and Egypt are all major sugar consumers.

Geographical Penetration: North America the dominating region during the forecast period

North America was the largest regional market in 2021 and will expand further at a steady CAGR from 2022-2029. Although the sugar market in industrialized economies remains saturated, rising disposable incomes, urbanization, and changing culinary preferences drive demand for sugar powder in developing markets, such as U.S. and Mexico. Further, North American people consume bakery items in their homes daily, and this habitual trend has favored the growth of the sugar powder market in these parts of the globe. Sugar powder market revenue growth is also directly dependent on seasonal demand. The market normally witnesses a surge during christmas when the production of cookies, cakes and other confectionery items grows around the globe. Government policies and frameworks in the U.S. have positively affected the sugar powder industry. According to the North American Free Trade Agreement, Mexico was favored with an unlimited quantity of export of sugar powder to the U.S. For instance, on 1st June 2021, International Molasses introduced CaneRite Panela, an all-natural, unrefined, non-centrifuged powder sweetener made from the freshly squeezed juice of the entire sugar cane plant. It offers mellow notes of toffee and caramel with a sweet-but-not-too-sweet taste. The whole cane plant's nutritional profile includes magnesium, phosphorus, potassium, calcium, manganese, iron, and zinc. It has five times the vitamins and minerals of raw sugar and is rich in antioxidants.

Asia Pacific is estimated to be the fastest-growing market during the forecast years. Some of the largest sugar powder-producing countries, such as India and China, are in the region. Furthermore, increased consumption of bakery and dairy foods has increased the product demand.

Competitive Landscape:

The market is highly fragmented due to the presence of various regional as well as large producers competing on price and quality. The market is highly competitive, making it difficult for small businesses to participate. Some of the market's most prominent players include Sudzucker AG, Tate & Lyle PLC, Cargill Corporation, Louis Dreyfus Company B.V. (Imperial Sugars), Nordzucker AG (Nordic Sugar A/S), American Crystal Sugar Company, American Sugar Refining, Inc. (Domino Foods, Inc.), Swire Pacific Ltd. (Taikoo Sugar Limited), COFCO Corporation and Nanning Sugar Industry Co., Ltd. For instance, U.S. Sugar Corp., a Florida marketing partner in United Sugars Corp. of Edina, Minn., announced in March 2021 that it will purchase the Imperial Sugar Co., including its large port refinery outside Savannah, Ga. This will promote market stability for Red River Valley partner beet cooperatives.

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

Consumer health concerns influenced the sugar industry during the COVID-19 epidemic. Furthermore, nationwide lockdowns and restrictions on ingredient supply to food processing firms had a considerable impact on sugar consumption in 2020. Because of lesser demand, the price of industrial sugar dropped significantly, lowering the market value. However, when the restrictions loosened during the epidemic, the eateries reopened, and the sector's supply chain was also back on track, continuing market growth. Product sales are predicted to rise steadily over the forecasted period due to rising demand for processed foods and beverages and rising out-of-home consumption. According to International Sugar Organization, the volume of sugar traded internationally in 2021 declined, by 4.790 mln tonnes from the previous year’s record level, of 63.149 mln tonnes. A 3.381 mln tonne decline in Brazil exports is at the base of this change, while a smaller crop in Thailand saw shipments fall by 2.162 mln tonnes. Indian exports rose for the fourth year to 8.133 mln tonnes, up 1.083 mln tonnes on the 2020 level.

The global sugar powder market report would provide access to approximately 61 market data tables, 53figures and 170 pages