India Cane Sugar Market - Growth, Trends, and Forecasts (2023 - 2028)

India Cane Sugar Market - Growth, Trends, and Forecasts (2023 - 2028)

India's cane sugar market is expected to register a CAGR of 5.2% during forecasted period.

Key Highlights

• Despite the Covid-19 restrictions and unfavorable conditions in the supply chain, the Indian cane sugar market was growing owing to the increasing demand for sugar in the country. According to the Indian Sugar Mills Association, 365 lakh tonnes of sugar will be produced during the 2022–2023 sugar season. According to Ministry of Consumer Affairs data from that year, 35 LMT of sugar was diverted for ethanol production in 2022, and sugar mills produced 359 LMT of sugar.
• Sugarcane is majorly produced in nine states of India, namely, Punjab, Uttar Pradesh, Maharashtra, Andhra Pradesh, Bihar, Gujarat, Haryana, Karnataka, and Tamil Nadu. The sugar industry is an important agro-based industry that impacts the rural livelihood of many people. Demand for cane and organic sugar is increasing in India because of their extensive use in different application sectors like food and beverages, bakery, confectionery, and many more.
• Consumers in India use sugar on a daily basis in their teas, coffees, fruit juices, and medicines as well. Ayurvedic medicines and herbs are very famous in India, and brown sugar or organic cane sugar is a trend in India. Additionally, the demand for natural and chemical-free ingredients is growing in India. Therefore, the demand for organic sugar is increasing. However, sugar adulteration and the use of chemicals for production can pose a restraint for the market

Key Market TrendsRise in Exports and Imports of Organic Cane Sugar in India

• Organic cane sugar witnessed a rise in exports and imports in India. Organic sugar has some attributes, including eco-friendliness, nutritional benefits, texture, and rich sugarcane flavor over regular sugar. Organic sugar is made by natural processing and does not involve any use of chemicals. Organic sugars are rich in calcium, carbohydrates, and other minerals. They are used in food and beverages in large amounts. As organic cane sugar retains all the nutrients found in its original state, it has an aroma of special molasses that attracts consumers.
• Due to the increase in demand for organic and naturally derived products, demand for organic sugar is also growing in India. Additionally, India is known for its ayurvedic medicines, and organic sugar is used in most of the ayurvedic medicines and potions.
• According to the Agricultural and Processed Food Products Export Development Authority (APEDA) data, India exported 21932.591 MT of organic sugar in 2021-2022. Organic sugar manufacturers like Jaini International Export Private Limited, Vijayawada Chemicals, and Shree Ambika Sugars Limited, among others, export organic sugar to many countries from India.

India is the Largest Sugar Cane Producing Country

• India is one of the largest agricultural countries, making it an ideal market to expand due to the growing sugar consumption in the country. With new regulatory policies and amendments in the older ones, there is a greater chance for farmers and millers to increase their efforts toward cane sugar production and processing.
• India is the largest producer of sugar in the world and is also the largest consumer. Additionally, employment is created in a number of ancillary activities related to transportation, trade servicing of machinery, and supply of agriculture inputs.
• According to the Ministry of Consumer Affairs data from October 2022, 5000 lakh metric tons of sugar cane were produced in India, of which sugar mills crushed about 3574 LMT of sugarcane to produce about 394 LMT of sugar (sucrose). India is the world's largest producer and consumer of sugar; hence over the medium term, demand is anticipated to rise.

Competitive Landscape

The Indian cane sugar market is fragmented, owing to the presence of large regional and domestic players. The companies are emphasizing mergers, expansions, acquisitions, and partnerships, along with new product developments, as strategic approaches to boost their brand presence among consumers. The major players in the market studied are DCM Shriram Consolidated Limited, Triveni Engineering & Industries Ltd (Ganga Sugar Corporation), Wilmar International Limited (Shree RenUnited Kingdoma Sugars Limited), Murugappa Group (EID Parry India Limited), and Louis Dreyfus Holding B.V. Over the medium term, the market is expected to grow in the region owing to the increasing demand for organic sugar because of its health benefits.

Additional Benefits:

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

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