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Industrial Sugar Market Size, Share & COVID-19 Impact Analysis, By Source (Cane Sugar and Beet Sugar), Type (White Sugar, Brown Sugar, and Liquid Sugar), End Use (Beverages, Confectionary, Bakery Products, Dairy Products and Other Food Applications), and Regional Forecast, 2022-2029

Region : Global | Format: PDF | Report ID: FBI102462

 

KEY MARKET INSIGHTS

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The global industrial sugar market size was USD 37.62 billion in 2021. The market is projected to grow from USD 38.58 billion in 2022 to USD 46.56 billion by 2029, exhibiting a CAGR of 2.72% during the forecast period 2022-2029. The global COVID-19 pandemic has been unprecedented and staggering, with industrial sugar witnessing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 18.78% in 2020 as compared to 2019.


The market is witnessing prominent growth across the globe due to the expansion of food processing activities in developing markets such as Asia Pacific and the Middle East & Africa. The growing demand for alcoholic and non-alcoholic beverages has considerably fueled the market growth. The increasing demand for baked goods, sweet confectionaries, and dairy products such as milk-based drinks, yogurt, and ice creams is anticipated to drive the industrial sugar market growth in the upcoming years.


COVID-19 IMPACT


Decreased Demand during Pandemic Negatively Affected Market Growth  


Sugar demand was highly impacted during the COVID-19 pandemic due to the emerging concerns related to health among consumers. Moreover, the nationwide lockdowns and restrictions over the supply of ingredients to food processing companies significantly impacted sugar consumption during 2020. The price of industrial sugar considerably declined due to the lower demand, which in turn reduced the market value. However, as restriction measures were lifted after the pandemic, the restaurants have reopened, and the supply chain of the market is also back on track, resuming the market growth. The sales of products are expected to increase at a steady rate over the forecasted period owing to the growing demand for processed food and beverages and rising away from home consumption.


LATEST TRENDS


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Growing Demand for Healthier Products to Influence Market Growth


In the past few years, the consumer inclination towards purchasing healthier food varieties has increased. The buying patterns have significantly evolved during and after the pandemic. This trend has also influenced the global sugar industry. Nowadays, people are seeking healthier, less processed, and raw sugar varieties such as brown and organic to reduce its negative impact on the body after consumption. Organic sugar is becoming popular among consumers as it is perceived and healthier and safer than conventional. Major sugar manufacturers are focusing on developing innovative varieties to keep up with consumer demand. For instance, Singapore-based firm, Nutrition Innovation has launched a new low-GI sugar product under the brand name, Better Brown. This launch was aimed towards the growing consumer demand for healthier, less refined products. The growing concerns regarding lifestyle-related health conditions such as obesity, cardiovascular diseases and diabetes are expected to further drive the demand for healthier sugar varieties.


DRIVING FACTORS


Increasing Utilization in Processed Food and Beverages to Support Market Growth


The food and beverage industry is flourishing across the globe. The increasing focus on innovation, development of novel products, and evolution of consumer demand has considerably driven the growth of various categories of the food and beverage industry. Sugar has become a vital ingredient across the food processing industry due to its vast array of application. The growing demand for processed food and beverages among consumers is the primary driver for the growth of the market. Moreover, sugar is extensively used in all alcoholic and non-alcoholic beverages. The emerging trend of consuming drinks as a way of snacking has significantly increased the demand for various beverages, including dairy, soft drinks, and functional beverages.


The demand for baked goods has increased exponentially in the last few years due to the rising population and increasing disposable income levels among consumers in developing markets. The intensifying demand for desserts among consumers is projected to fuel the demand for sugar in the upcoming years. The growing popularity of various other processed foods such as sauces, soups, ready-to-cook, ready-to-eat meals, and frozen foods is anticipated to support the market growth during the forecasted period.   


Increasing Demand for Sweet Confectioneries Further Propels Market Growth


The amplifying demand for confectionery, especially in developing markets of the Asia Pacific and the Middle East, further propels the market growth. Various innovative varieties of confectionaries are becoming popular among millennials and children in countries such as China, India, and Indonesia. Across countries such as Japan, China, and Singapore, premium confectionaries are considered as high-quality product to gift someone. This has in turn increased the demand for sweet confectioneries.


The increasing focus of manufacturers to develop innovative candies and chocolate bars to attract a more consumer base is projected to further propel the market growth in the foreseeable years.


RESTRAINING FACTORS


Rising Knowledge Regarding Adverse Health Effects of High Sweet Consumption among Consumers to Obstruct Market Growth


The increasing prevalence of lifestyle-related health conditions such as obesity and diabetes associated with excessive sugar consumption has a significant impact on the growth of the industry. According to the Global Diabetes Community, U.K., it is estimated that 415 million people were detected with diabetes in 2018 across the world, and the number is expected to rise to 642 million people living with the disease worldwide by 2040. Consumers are inclined towards reduced-sugar, low-GI, and low-carb diets to prevent these conditions and maintain overall health. Thus, the increasing number of people suffering from health conditions such as diabetes and cardiovascular diseases is expected to dampen the overall market growth during the forecast period. Moreover, the growing availability of sugar alternatives such as honey, stevia, and jaggery that are perceived to be healthier, is projected to act as a major restraint for the market growth.


SEGMENTATION


By Source Analysis


Cane Sugar to Dominate Market Owing to its Higher Global Production


Based on source, the market is segmented into cane and beet sugar.


Sugarcane is expected to be the primary crop used for sugar production. It is cultivated mainly in tropical and sub-tropical regions of Asia, Africa, and South America. Sugarcane production is projected to increase during the forecasted period, driven by both area expansion and yield improvements. 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.


Sugar beet is cultivated typically in temperate zones. Beet molasses and beet sugar is extensively used to produce a variety of products, including food, beverages, pharmaceuticals, chemicals and textiles. However, increasing input costs from improved harvesting technologies and decreasing cultivated areas are expected to dampen beet production growth over the upcoming years.


By Type Analysis


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White Sugar Segment to Remain Dominant Globally Owing to its Vast Application


Based on type the market is segmented into white, brown, and liquid sugar.


White sugars are widely used in the food manufacturing and bakery sectors. The fine granules found in white sugars are perfect for cooking and baking. They are also the most popular which are utilized in household kitchens, bakeries, cafes, restaurants, and food processing facilities. Granulated, caster, icing, and jam-setting sugar are a few popular white sugar subtypes.


Brown sugars contain some molasses that remain after the refining process. This molasses gives brown sugar its distinctive color and flavors and contributes to a small amount of minerals.  Liquid sugars are mainly used to add taste and color to baked goods. These also help prevent foods from drying out and extending their shelf life. 


By End Use Analysis


Confectionery Segment Holds Major Share Attributed to their Higher Consumption  


Based on end-use segment the market is segmented into beverages, confectionery, bakery, dairy products, and other food applications.


Confectionary holds the highest revenue share owing to its highest consumption across the globe. The popularity of sweet confectionery has significantly increased in countries such as China, India, Indonesia, and United Arab Emirates (UAE) during the past few years. The growth is primarily attributed to the rising discretionary income of the population in these countries. Consumers nowadays are ready to pay extra money for high-quality, tasteful, and flavorful products.


The beverages segment is expected to grow at the highest CAGR during the forecasted period due to the rising trend of healthy hydration across developed markets of Europe and North America. Soft drinks, alcoholic beverages, and sports drinks are becoming extremely popular among millennials in Asian countries. The growing demand for bakery products in Eastern markets is anticipated to further drive the market growth in the forthcoming years.


REGIONAL INSIGHTS


Asia Pacific Industrial Sugar Market Size, 2021 (USD Billion)

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Asia Pacific accounts for the largest isndustrial sugar market share across the globe. The market is witnessing substantial growth mainly due to the higher demand for sugar-rich confectionery products and soft drinks, largely in urban areas. India, followed by Indonesia and China is projected to witness strong growth across the region due to the increasing population and rising disposable incomes among consumers.


The sugar consumption has been observed to be decreasing across North American countries such as the U.S. and Canada due to the growing demand for sugar-free and reduced-sugar products. The rising number of health-conscious consumers in this region is expected to lead to the stable sugar market growth.


Sugar demand is anticipated to increase in Russia, attributed to domestically-produced confectionary products and homemade alcohol. 


Brazil is among the largest producers of sugar. Although the per capita consumption is significantly lower than other regions such as Asia Pacific, the demand for sugar is slowly gaining pace in the region. Constantly increasing demand for confectioneries and beverages among consumers drives the market growth in the region. Moreover, other South American countries such as Colombia, Argentina, and Chile are witnessing strong sugar demand due to the amplified demand for processed food products.


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The Middle East & Africa are among the fastest-growing markets in the sugar industry. Ever-evolving food processing sector in this region is the primary reason for the market growth. Bakery products, desserts, dairy products, and beverages are becoming very popular across countries such as Saudi Arabia and UAE. The strong growth of dairy sector in this region has significantly increased the sugar demand in the past few years. The intensifying demand for ready-to-eat and ready-to-cook products is anticipated to fuel the market during the forecasted period.


KEY INDUSTRY PLAYERS


Key Players Launching Innovative Organic Products to Strengthen Portfolio


Some of the major players operating in the industrial sugar market include Suedzucker AG, Tereos S.A., Cosan and Associated British Foods plc. The growing popularity of organic food among consumers has significantly increased the demand for organic sugar in recent years. The major companies are including organic sugar varieties to their existing portfolio to fulfil the growing demand. For instance, in December 2019, Tereos S.A., a leading French sugar producer, introduced a brand new organic beet sugar from its Attin plant. The industrial sugar industry is highly fragmented with few multinational companies holding significant shares. However, the small entrants with innovative product portfolio is expected to create a positive competition in the market.


LIST OF KEY COMPANIES PROFILED:



KEY INDUSTRY DEVELOPMENTS:



  • October 2020: DouxMatox and Lantic, a North American sugar manufacturer announced a collaboration to deliver a unique sugar reduction solution-based on cane sugar for food processing companies in North America.

  • October 2019: Parry’s, a leading sugar manufacturer in India has launched a natural brown sugar. The product is less processed and boasting micronutrients, like calcium, magnesium, potassium and iron.


REPORT COVERAGE


An Infographic Representation of Industrial Sugar Market

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The research report provides a detailed analysis of the market and focuses on key aspects such as competitive landscape, source, type, and end uses. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors contributing to the market's growth in recent years.


Report Scope & Segmentation















































  ATTRIBUTE



  DETAILS



Study Period



2018-2029



Base Year



2021



Estimated Year



2022



Forecast Period



2022-2029



Historical Period



2018-2020



Unit



Value (USD Billion)



Segmentation



By Source



  • Cane Sugar

  • Beet Sugar



By Type



  • White Sugar

  • Brown Sugar

  • Liquid Sugar



By End Use



  • Beverages

  • Confectionary

  • Bakery

  • Dairy Products

  • Other Food Applications



By Geography



  • North America (By End Use, Distribution Channel, Raw Material, and Country)

    • U.S. (By End Use)

    • Canada (By End Use)

    • Mexico (By End Use)



  • Europe (By Type, Distribution Channel, Raw Material, and Country)

    • U.K. (By End Use)

    • France (By End Use)

    • Germany (By End Use)

    • Russia (By End Use)

    • Rest of Europe (By End Use)



  • Asia Pacific (By Type, Distribution Channel, Raw Material, and Country)

    • China (By End Use)

    • India (By End Use)

    • Japan (By End Use)

    • Indonesia (By End Use)

    • Rest of Asia Pacific (By End Use)



  • South America (By Type, Distribution Channel, Raw Material, and Country)

    • Brazil (By End Use)

    • Colombia (By End Use)

    • Rest of South America (By End Use)



  • Middle East and Africa (By Type, Distribution Channel, Raw Material, and Country)

    • South Africa (By End Use)

    • Turkey (By End Use)

    • Rest of the Middle East & Africa (By End Use)





Frequently Asked Questions

Fortune Business Insights says that the global market size was valued at USD 37.62 billion in 2021 and is projected to reach USD 46.56 billion by 2029.

The market is projected to grow at a CAGR of 2.72% during the forecast period (2022-2029).

White sugar is expected to be the leading type segment in the global market.

Increasing utilization in processed food and beverages is the key factor driving the market

Suedzucker AG, Tereos S.A., and Cosan are a few of the top players in the global market.

Asia Pacific is expected to hold the highest market share throughout the forecast period.

The beverages segment is expected to be the fastest-growing segment during the forecast period.

Growing knowledge regarding the negative health impacts of sugar consumption among consumers is the major key restraint for the market.

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Industrial Sugar Market Size, Share and Global Industry Trend Forecast till 2026
  • Apr, 2022
  • 2021
  • 2018-2020
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