Brazil Cane Sugar Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Brazil Cane Sugar Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Brazil cane sugar market is anticipated to register a CAGR of 5.1% during the forecast period (2022-2027).

The Brazilian sugar industry, a significant player in the national economy, has faced numerous challenges. The COVID-19 threat has impacted sugar industry stakeholders and its integrated industries in Brazil and worldwide. The spillover effects have harmed the entire value chain of the Brazilian sugar industry, including sugarcane, sugar, molasses, ethanol, and their subsequent marketing and export. Covid-19 led to a lockdown and disrupted the industry's supply chain, affecting the inbound logistics, i.e., the inputs like packaging material, lime, etc. The pandemic also led to a shortage of labor. These factors led to the reduction in sugar production in the country.

Brazil is among the world's most popular sugarcane producers and an exporter of sugar. The Brazilian sugar industry plays a leading role in the global sugar market as Brazil produces nearly 25% of global sugar and sugarcane. The county has a big swing factor in the global sugar market due to the flexibility of its mills, which manage to go quicker or slower while processing. The market is mainly growing due to the abundance of sugarcane and other properties, such as better flavor and caramelization, which are superior to beet sugar.

Moreover, opportunities for organic and fairtrade cane sugar are increasing. Consumers are increasingly interested in healthy and natural products. It provides interesting opportunities for organic and ethically sourced products.

Key Market TrendsLarge Production Base in the Country Resulting in Demand Growth

Over recent years, sugarcane cultivation has been a key part of improving the country's local economy. As the leader, Brazil produces 25% of the world's sugar and ethanol. Sugarcane contributes to 80% of the sugar produced worldwide. Over the last 35 years, the sugarcane sector of the country has grown tremendously, owing to outstanding technological progress, enabled by new varieties, fertilizers, chemicals, mechanization, and different cropping practices. The growing demand from various application areas worldwide will support the country's sugar production.

Despite all of the negative global effects of COVID-19, sugar consumption is expected to rise by 1.3 percent year on year in 2021-22 to 184.865 million mt, the highest yearly growth since 2015-16, as demand sluggishly continues to recover from the impact of the global pandemic.

Beverage Industry is the Major Application Area in the Country

Brazil cane sugar finds its application in the food and beverage industry in the country. After a few years of consistent decline in volume, the soft drinks industry in Brazil showed signs of recovery and a greater level of optimism, paving the way for increased use of cane sugar. The market for beverages is being driven by resuming the sales of carbonated drinks. Over the past few years, on-trade sales registered a faster growth rate than off-trade sales. This growth and the large size of the beverage industry provide great opportunities for cane sugar manufacturers operating in the country.

Competitive Landscape

The Brazil cane sugar market is a fragmented one, with the presence of various players. With a large production base in the country, the market also has the presence of various local players. Due to the strong presence of local players and the lucrative market behavior, various global players are entering the market and building partnerships with the local players. The different players in the market are trying to improve their presence among consumers. The market is dominated by some of the key players like Tate & Lyle, Tereos SA, Louis Dreyfus Company, Agro Betel, and Cosan Limited.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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