Industrial Sugar Market Size, Share & Industry Analysis, By Source (Cane Sugar, Beet Sugar), By Type (White Sugar, Brown Sugar,Liquid Sugar), By Form (Granulated, Powdered, Syrup), By Application (Bakery, Confectionery, Beverage, Dairy Processed Products, Others (Canned & Frozen Foods and Others))and Regional Forecast, 2021-2028

Sugar is one of the irreplaceable ingredients in the processed food industry. The industrial sugar market is driven by increasing applications in processed food manufacturing. Industrial sugar is commonly used as a sweetening agent, flavor enhancer, and preservative in the food and beverage industry. Industrial sugar helps in freezing point reduction of the food product along with providing body and texture to the product. Increasing government initiative to increase sugar production by providing subsidy is anticipated to drive the global industrial sugar market.

The areas of application of industrial sugar range from the bakery, confectionery, ice cream to beverages. The increasing adoption of brown sugar over white sugar as a healthy alternative is anticipated to drive the global industrial sugar market. The prominent companies are focused on mergers and acquisitions to strengthen their market position. For instance, in March 2016, Western States acquired a controlling share of BIG Technologia and Colmena, leading manufacturers supporting the Brazillian sugar industry. This acquisition will help the Western States to increase South American service and support.

Key Market Driver -

Increasing Global Demand for Confectionery

Key Market Restraint -

Availability of Alternative Sweeteners

Sugar is extensively used as an additive in the food and beverage industry. The escalating cultivation of sugar cane and beet sugar due to their favorable returns per hectare compared to other competing crops is anticipated to drive the growth of the global industrial sugar market. Sugar is extensively used in the confectionery industry to get the desired texture and taste of the final product, such as sugar crystallization, which is desirable in fudge and dragees to get the perfect texture. The beet sugar is rich in nutrients and widely used in the low-calorie diet is anticipated to leverage the global industrial sugar market positively.

The availability of alternative sweeteners such as jaggery, coconut sugar, and dates is expected to act as a restraint for the growth of the global industrial sugar market. Moreover, the rising number of diabetic patients across the globe is expected to hamper the growth of the global industrial sugar market during the foreseeable years.

Key Players Covered:

The key companies operating in the Global Industrial Sugar Market are Suedzucker AG, Tereos S.A., Cosan, Associated British Foods, Mitr Phol Group, Cargill Incorporated, Imperial Sugar Company, Rogers Sugar Inc., American Crystal Sugar Company, Louis Dreyfus Holding B.V., Wilmar International, and others.

The cane sugar segment is anticipated to dominate in the global industrial sugar market owing to its high production volume. The easy availability and increasing cultivation of cane across the globe are anticipated to drive the cane sugar market. Furthermore, the increasing applications of brown sugar as a healthy alternative to white sugar are anticipated to boost the demand for brown sugar from the processed food industry. Brown sugar has a number of significant properties that contribute uniquely to a food’s appearance, texture, and shelf life. Brown sugar helps many foods to be more palatable, enhancing their flavor and mouthfeel. Brown sugars also help foods to last longer, add viscosity and be used as a bulking agent.

The powder sugar segment is expected to witness sturdy growth in the global industrial sugar market owing to the ease of mixing property and low prices compared to the sugar syrup. The granulated sugar is extensively used for flavoring and decorating purposes in the processed food industry. The bakery segment is anticipated to witness considerable growth in the global industrial sugar market. Industrial sugar plays an essential role in most baking applications as it helps to promote lightness in baked goods by interacting with leavening agents to create small air cells. Industrial sugar helps to stop cookies and biscuits from obtaining surface cracking and helps give many cakes their lightness by interacting with egg proteins to help stabilize the whipped foam structure of the batter. Industrial sugar is extensively used in the beverage industry as the least expensive preservative, which helps to extend the shelf life of the product.

Regional Analysis:

North America is anticipated to witness sturdy growth in the global industrial sugar market owing to the increasing consumption of processed foods in this region. Industrial sugar is one of the main ingredients in North America’s favourite drinks and foods. Furthermore, in South America, Brazil is also anticipated to hold a significant share in the global industrial sugar market because Brazil is one of the leading producer and exporter of sugar globally.

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Asia Pacific is expected to witness considerable growth in the global industrial sugar market owing to the high cultivation of raw products such as sugarcane and sugar beet and rising end-user demand. Sugarcane is the main crop to produce sugar, and it is cultivated largely in tropical and subtropical countries in Asia Pacific, such as India, China, and others. Moreover, increasing population and urbanization in the Middle East and Africa are expected to sustain growth in sugar consumption, driven by increased consumption of sweetened beverages and prepared food products in this region. 

Segmentation  

Key Industry Developments:

• In July 2019, U.S. commodities trader Bunge Ltd. and British energy company BP Plc announced that they would merge their Brazilia Sugar and Ethanol operations to create the world’s third-largest sugarcane processor.


• In July 2019, Dalmia Bharat Sugar and Industries were looking further to invest US$ 3-4 Bn for accelerating the production capacity, either by way of acquisition or organic expansion.