Industrial Sugar Market Forecasts to 2028 – Global Analysis By Type (White Sugar, Brown Sugar and Liquid Sugar), Source (Sugarbeet, Sugarcane and Other sources), Form, Application and By Geography

Industrial Sugar Market Forecasts to 2028 – Global Analysis By Type (White Sugar, Brown Sugar and Liquid Sugar), Source (Sugarbeet, Sugarcane and Other sources), Form, Application and By Geography

According to Stratistics MRC, the Global Industrial Sugar Market is accounted for $44.19 billion in 2022 and is expected to reach $59.21 billion by 2028 growing at a CAGR of 4.8% during the forecast period. Sugar is a crucial and vital part of the food business. The method of extracting sugar from sugarcane molasses or sugar beets involves multiple steps, including washing, crystallization, drying, and extraction. Sugar comes in a variety of forms and sizes, and its use depends on the purpose. The manufacturing of ethanol, food and beverage production, brewing, baking, candy and confectionery production, medicines, animal feed production, and fermentation processes are just a few of the industrial uses of sugar.

According to the Organization for Economic Co-operation and Development (OECD) and Food and Agricultural Organization (FAO), Sugarcane accounts for around 86% of the total sugar crop production.

Market Dynamics

Driver

Growing demand from processed food & beverages

Sugar's wide range of uses has made it a crucial component in the food processing sector. Both alcoholic and non-alcoholic beverages consume a lot of sugar. Alcoholic beverages wouldn't exist without it. In order to make alcohol, a source of natural sugar is typically heated, extracted, allowed to ferment, and then a catalyst is added. Drinking as a snack is a new trend that has greatly boosted demand for different beverages and therefore increased market demand.

Restraint

Availability of alternate sweeteners

The alternatives to industrial sugar include crystalline fructose, HFCS, glucose, dextrose, and fructose. Due to the strong sweetness of these non-caloric sweeteners, only minuscule amounts are needed to sweeten meals. High fructose corn syrup (HFCS), which is frequently compared to commercial granulated sugar, is the main alternative sweetener. These substitutes, which can take the place of commercial sugar in a variety of meals, are extremely unpredictable.

Opportunity

Rise in exports and imports of organic cane sugar

Compared to conventional sugar, organic sugar offers certain advantages, such as rich sugarcane flavor, texture, and nutritional advantages. Chemicals are not used in the natural processes that produce organic sugar. Calcium, carbohydrates, and other minerals abound in organic sugars. They are extensively utilized in both food and beverages. Most ayurvedic medications and potions utilize organic cane sugar because it keeps all of the nutrients. The massive consumption from the food & beverage and pharmaceutical industries is driving up market demand.

Threat

Adverse health effects

The rising incidence of lifestyle-related illnesses like obesity and diabetes are linked to overindulgence in sugar. To avoid these illnesses and maintain general health, consumers are drawn to diets that are low in sugar, glycemic index, and carbohydrates. Thus, it is anticipated that the rising prevalence of ailments including diabetes and cardiovascular disorders will slow market expansion in general.

Covid-19 Impact

Due to growing consumer health concerns, the COVID-19 pandemic had a significant influence on sugar demand. Additionally, there was a major impact on sugar consumption from the widespread lockdowns and limitations on the supply of components to food manufacturing firms. Because of the decreased demand, industrial sugar prices fell dramatically, which also decreased the market's worth. However, once the pandemic's restrictive measures were withdrawn, the market's supply chain has also gotten back on track, which has resumed market growth.

The white sugar segment is expected to be the largest during the forecast period

The white sugar segment is estimated to have a lucrative growth, due to growing bakery sectors. The food industry and pastry industries utilize white sugar extensively. White sugars include tiny granules that are ideal for use in cooking and baking. They are also the most often used in homes, bakeries, cafés, restaurants, and facilities for preparing food. Popular white sugar subtypes include granulated, caster, icing, and jam-setting sugar. The segment's growth is growing due to its diverse set of applications.

The syrup segment is expected to have the highest CAGR during the forecast period

The syrup segment is anticipated to witness the fastest CAGR growth during the forecast period. Several factors contribute to the rising popularity of sugar made from syrup. For instance, because it dissolves more rapidly than granulated sugar and has a smoother texture, it is simpler to utilize in some applications, such as drinks and baked products. It is also more practical for goods with longer shelf lives than granulated sugar because of its longer shelf life. It has a lower glycemic index and less processing, which is promoting the growth of segment.

Region with largest share

Asia Pacific is projected to hold the largest market share during the forecast period. Soft beverages and confectionary items loaded with sugar are quite popular in this region. Promising opportunities for expansion and diversification in the region's food sector are presented by the expanding spending power, the quickening rise of the middle-class population, and the rising consumer demand for processed goods. Due to increased consumer discretionary incomes and a growing population, India is expected to see the strongest growth in the area, followed by China and then Indonesia.

Region with highest CAGR

Middle East & Africa is projected to have the highest CAGR over the forecast period. The key driver of market expansion in this area is the constantly changing food processing industry. In nations like Saudi Arabia and the UAE, bakery goods, sweets, dairy items, and drinks are growing increasingly popular. The need for sugar has greatly expanded over the last few years as a result of the region's rapidly expanding dairy industry. The market is expected to be driven by the growing demand for ready-to-eat and ready-to-cook goods throughout the predicted time frame.

Key players in the market

Some of the key players profiled in the Industrial Sugar Market include Crystal Sugar Company, Wilmar International Limited, Tereos Internacional SA, Mitr Phol Sugar Corporation Limited, Shree Renuka Sugars Ltd, Associated British Foods Plc, Suedzucker AG, Cargill, Archer Daniels Midland Company, Nordzucker Group AG, Raizen SA, Tongaat Hulett Group, Louis Dreyfus Company, Michigan Sugar Company, Dwarikesh Sugar Industries Ltd, THAI SUGAR GROUP, MEHTA GROUP, DALMIA BHARAT GROUP, BAJAJ Hindusthan Sugar Ltd and Bannari Amman Group.

Key Developments

In March 2023, Bajaj Hindusthan Sugar Ltd has acquired a 98 per cent stake in Phenil Sugars by converting existing preference shares worth Rs 350 crore into equity shares. The company has converted 3,50,03,927 redeemable non-cumulative convertible preference shares of Rs 100 amounting to Rs 350.04 crore into equity shares of 35,00,39,270 equity shares of Rs 10 each of PSL.

In December 2021, Wilmar International Limited and MSM Malaysia Holdings Bhd (MSM) signed an agreement to collaborate in the establishment of a sustainable sugar supply chain. MSM and Wilmar Sugar collaborated to pilot a method for sustainable raw sugar sourcing within MSM and Wilmar Sugar's joint supply chain by focusing on traceability reporting of sugar supplies and monitoring sustainability performance.

Types Covered
• White Sugar
• Brown Sugar
• Liquid Sugar

Sources Covered
• Sugarbeet
• Sugarcane
• Other sources

Forms Covered
• Powdered
• Syrup
• Granules

Applications Covered
• Food & Beverages
• Pharmaceuticals
• Dairy Products
• Sweetener
• Frozen Desserts
• Bakery Products
• Confectionery
• Packaged Foods
• Other Applications

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities,Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements