Industrial Sugar Market by Type (White Sugar, Brown Sugar, & Liquid Sugar), Application (Dairy Products, Bakery Products, Confectionery, Beverages, & Pharmaceuticals), Source (Sugarcane & Sugar Beet) and Region - Global Forecast to 2028
The industrial sugar market is projected to reach USD 59.1 billion by 2028 from USD 46.4 billion by 2023, at a CAGR of 5.0% during the forecast period in terms of value. Owing to the increase in demand for processed foods, consumer awareness and changing lifestyles drive the industrial sugar market.
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Market Dynamics
Driver : Growing industrial beet sugar market
The industrial sugar market continues to grow rapidly. Key factors contributing to this growth are beet sugar, a significant industrial crop utilized in food processing and producing ethanol and biogas. Mainly in tropical countries, the sugar beet crop offers a valuable alternative to sugarcane. The industrial beet sugar market growth in production and consumption has historically showcased an upward trend. It is likely to develop at a rapid pace during the forecast period. Based on consumption in the industry, the beverages segment is anticipated to offer the highest market attractiveness in the global industrial beet sugar market. Furthermore, introducing a new class of customers and entering various new international players is expected to strengthen the growth of the industrial beet sugar industry globally during the forecast period.
Restraint : Rising demand for alternate sweeteners as sugar substitutes
MECAS/ISO (41) outlines major sweetener categories and types. The first division is between caloric and non-caloric sweeteners, with caloric further divided into sucrose (sugar), HFCS, glucose, dextrose, and crystalline fructose. Generally, non-caloric sweeteners are intensely sweet, owing to which only minute quantities are required for sweetening foods. However, different sweeteners have different applications according to their properties; hence, their ability to replace industrial sugar in various foods is difficult to predict. Moreover, high-intensity sweeteners (HIS) are not perfect substitutes for sugar in all products, which limits their usage, although some non-diet foodstuffs use a blend of sugar and HIS. As a sweetener, the major alternative sugar substitute is high fructose corn syrup (HFCS), which is often compared to industrial granulated sugar.
Opportunity: Access to new markets due to increasing cooperative sector
The cooperative sector is the sugar industry's largest component, including millions of farmers and thousands of operational mills. It has played a key role in developing the industrial sugar market and has been a critical component of key developing countries such as India. A strong farmer-miller relationship will be essential for developing productivity improvements. Given the scattered landholding structure, improvements in farm productivity can materialize only in the presence of a strong farmer-miller relationship. This will enable the mill to drive the adoption of better seed varieties, improve farm practices, and incentivize the mills to invest in extension services. A long farmer-miller relationship will also enable risk mitigation for both. The off-take risk for farmers will be addressed through assured cane off-take by the mill; and mills, on the other hand, would be assured of cane supplies. The relationship will enable farmers to access credit from banks based on off-take guarantees provided by the mills. The availability of crop insurance to protect against crop failure risk would also be encouraged by mills and may be partially funded.
Challenge : The increasing cost of sugar production
According to a report by the International Sugar Organization, the average cost of producing sugar in the 2020-2021 season was around 21 cents per pound, up from about 18 cents per pound in the 2016-2017 season. The report also noted that the cost of production has been increasing faster than the price of sugar, which has put pressure on sugar producers' profitability. The increase in the cost of sugar production can be attributed to various factors such as rising labor costs, energy costs, raw material costs, environmental regulations, and climate change. Also, with a decline in the opportunities for low-cost production due to wage inflation, growth in costs associated with the investment in infrastructure, and a decrease in cultivable land, there has been an increase in the marginal cost of production, resulting in decreased profit margins.
Industrial Sugar Market Ecosystem
Prominent companies in this market include well-established, financially stable manufacturers of industrial sugar. These companies have been operating in the market for several years and possess state-of-the-art technologies, a diversified product portfolio, and strong global sales and marketing networks. Prominent companies in this market include Südzucker AG (Germany), Cargill, Inc. (US), Associated British Foods plc (UK), Raízen (Brazil), Lantic Inc. (Germany), Mitr Phol Group (Thailand), AMERICAN CRYSTAL SUGAR (US), Louis Dreyfus Company (Netherlands), Tereos (France), and Michigan Sugar Company (US).
Increased shelf life of syrup sugar to boost its use in the food industry
Syrup-based sugar is becoming increasingly popular for various reasons. For instance, it is easier to use in certain applications, such as beverages and baked goods, as it dissolves more quickly than granulated sugar and provides a smoother texture. It also has a longer shelf life than granulated sugar, making it a more practical choice for products with longer shelf lives. Furthermore, some consumers may perceive syrup sugar as a healthier alternative to granulated sugar due to its lower glycemic index and the fact that it is less processed. These factors contribute to the growing demand for syrup sugar in various industries.
Sugar beet cultivation promotes environmental sustainability and ensures local food security
The global demand for sugar is on the rise. Coupled with shifts in diet and lifestyle, this trend has led to Egypt's decision to augment its domestic sugar production by promoting the cultivation of sugar beet, which has a lower water consumption than sugarcane. Canal Sugar, a subsidiary of Al Khaleej Sugar Refinery located in Dubai, established the largest factory for the production of sugar beet worldwide in Egypt in 2020. The factory boasts an impressive annual output capacity of 900,000 tons, making a significant contribution to Egypt's sugar production efforts. Similarly, in 2021, Al Khaleej Sugar Refinery obtained approval for constructing a sugar beetroot factory in Spain, mirroring its efforts in Egypt, thus expanding its operations into the processing of sugar beets. This strategic move increases the company's influence beyond its existing reach in North Africa and the Middle East.
Asia Pacific is expected to dominate the industrial sugar market during the forecast period
Asia Pacific is the dominant market for industrial sugar and is projected to grow at the highest CAGR from 2023 to 2028. The application of sugar in the region is estimated to increase at a high pace due to the demand from the processed foods industry. China, India, Japan, and other Southeast Asian countries are the major countries covered in this study. The rising purchasing power, the rapid growth of the middle-class population, and the increasing consumer demand for processed products present promising prospects for growth and diversification in the region's food sector.
The expected growth in the number of food processing units in this region is further projected to boost the supply and consumption of sugar. The food processing sectors in countries such as China and India are export-oriented. The processing sector is of prime importance in these countries as players focus on technology adoption and automation. This is expected to positively impact the industrial sugar market in the region.
Key Market Players
The key players in this include Südzucker AG (Germany), Cargill, Inc. (US), Associated British Foods plc (UK), Raízen (Brazil), Lantic Inc. (Germany), Mitr Phol Group (Thailand), AMERICAN CRYSTAL SUGAR (US), Louis Dreyfus Company (Netherlands), Tereos (France), and Michigan Sugar Company (US). These players in this market are focusing on increasing their presence through agreements and collaborations. These companies have a strong presence in North America, Asia Pacific, and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.
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Report Metric |
Details |
Market size estimation |
2023–2028 |
Base year considered |
2022 |
Forecast period considered |
2023–2028 |
Units considered |
Value (USD Billion), Volume (KT) |
Segments Covered |
Type, Source, Form, Application, Region |
Regions covered |
North America, South America, Europe, Asia Pacific, and RoW |
Companies studied |
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Report Segmentation:
By Type |
By Source |
By Form |
By Application |
By Region |
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Recent Developments
- In August 2022, Raízen, the world's largest sugar exporting company, and ASR Group, the world's largest refiner and marketer of cane sugar, announced a partnership that sets the standard for sustainable raw cane sugar supply chains globally.
- In July 2021, Al Khaleej Sugar announced the construction of a new sugar factory in Merida, Spain. This expands the company's operations beyond the Middle East and North Africa, as it seeks to enter the sugar-beet processing industry. The company begun construction of the new factory in 2022 and invested approximately USD 590 million. The factory has a production capacity of up to 900,000 metric tons of sugar annually.
- In February 2021, Raízen, an integrated energy company and a benchmark in biofuels and bioelectricity, signed a commercial agreement to incorporate the assets of Biosev, a Brazilian subsidiary of Louis Dreyfus Holding. The deal includes nine production units strategically located in Brazil (six in São Paulo, two in Mato Grosso do Sul, and one in Minas Gerais), with a total installed sugarcane processing capacity of up to 32 million tons. The agreement also includes power cogeneration, with an export capacity of up to 1.3 GWh of electricity/year, covering an area of 280,000 hectares of planted sugarcane.
Frequently Asked Questions (FAQ):
Which are the major companies in the Industrial sugar market? What are their major strategies to strengthen their market presence?
The key players in this Südzucker AG (Germany), Cargill, Inc. (US), Associated British Foods plc (UK), Raízen (Brazil), Lantic Inc. (Germany), Mitr Phol Group (Thailand), AMERICAN CRYSTAL SUGAR (US), Louis Dreyfus Company (Netherlands), Tereos (France), Michigan Sugar Company (US). These players in this market are focusing on increasing their presence through agreements and collaborations. These companies have a strong presence in North America, Asia Pacific, and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.
What are the drivers and opportunities for the Industrial sugar market?
The industrial sugar market is expected to witness significant growth. Traditional industrial sugar remains a key ingredient in many products due to its low cost and availability. The increasing demand for convenience foods and beverages has resulted in the growth of this industry and subsequently increased demand for industrial sugar.
Which region is expected to hold the highest market share?
The market in Asia Pacific will dominate the market share in 2023, showcasing strong demand for industrial sugar products in the region. The food and beverage industry is the largest consumer of industrial sugar in the region, due to the high demand for sweeteners and other sugar-based ingredients in various food and beverage products. Additionally, the pharmaceutical and personal care industries are also driving the growth of the industrial sugar market in the region, as sugar is widely used in the production of medicines and cosmetic products.
What is the total CAGR expected to be recorded for the industrial sugar market during 2023-2028?
The CAGR is expected to record a CAGR of 5.0 % from 2023-2028.
What are the key challenges faced in the industrial sugar market?
The continuous fluctuation of sugar prices due to the factors such as supply chain distruption and adverse weather conditions such as floods and droughts are the major key challenges for the industrial sugar market.
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This research involves the extensive use of secondary sources; directories; and databases (Bloomberg and Factiva) to identify and collect information useful for a technical, market-oriented, and commercial study of the industrial sugar market. In-depth interviews were conducted with various primary respondents, such as key industry participants, Subject Matter Experts (SMEs), C-level executives of key market players, and industry consultants, to obtain and verify critical qualitative and quantitative information and to assess prospects.
Secondary Research
In the secondary research process, various sources, such as the AFND (Association of Health Food Nutrition and Dietetics), USDA (United States Department of Agriculture), FDA (US Food and Drug Administration), ANA (American Nutrition Association), and American Society for Nutrition were referred to identify and collect information for this study. The secondary sources also include clinical studies and journals, press releases, investor presentations of companies, white papers, certified publications, articles by recognized authors and regulatory bodies, trade directories, and paid databases.
Primary Research
The industrial sugar market comprises several stakeholders, including industrial sugar manufacturers, suppliers and organizations in the supply chain. Various primary sources from the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Primary interviewees from the supply side include research institutions involved in R&D to introduce technology, industrial sugar distributors and wholesalers, importers & exporters of industrial sugar, and industrial sugar manufacturers. Primary sources from the demand side include key opinion leaders, executives, vice presidents, and CEOs of sports and golf landscape-developing companies through questionnaires, emails, and telephonic interviews.
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Market Size Estimation
Both the top-down and bottom-up approaches have been used to estimate and validate the total size of the industrial sugar market. These approaches were extensively used to determine the size of the subsegments in the market. The research methodology used to estimate the market size includes the following details:
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Top-down approach:
- The key industry and market players were identified through extensive secondary research.
- The industry's supply chain and market size were determined through primary and secondary research.
- All percentage share splits and breakdowns were determined using secondary sources and verified through primary sources.
- The adjacent market—the sugar substitutes and sugar topping market—was considered to validate further the market details of industrial sugar.
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Bottom-up approach:
- The market size was analyzed based on the share of each type of industrial sugar and its penetration within the application and form at regional and country levels. Thus, the global market was estimated with a bottom-up approach of the type at the country level.
- Other factors include demand within the supply chain including the food industry; function trends; pricing trends; adoption rate and price factors; patents registered; and organic and inorganic growth attempts.
- All macroeconomic and microeconomic factors affecting the industrial sugar market were considered while estimating the market size.
- All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain final quantitative and qualitative data.
Market Size Estimation: Bottom-up approach
In the bottom-up approach, each country's market size for industrial sugar and the product types and application, including sports and recreational, was arrived at through secondary sources, such as annual reports, investor presentations, journals, and government publications. The bottom-up procedure was also implemented on the data extracted from secondary research to validate the market segment sizes obtained.
The penetration rate of each solution of industrial sugar as a percentage of the application sector in each country was calculated from secondary sources. Country-level data for industrial sugar were estimated based on the adoption rate of each solution of industrial sugar within the application sector. The mode of application of each product type was tracked via product mapping and studied for its penetration level to estimate the market size at the regional level. Each product type was studied for its commercially available mode of application and product type. The market size arrived at was further validated by primary respondents.
Industrial Sugar Market Size Estimation: Bottom-Up Approach
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Market size estimation methodology: top-down approach
For the calculation of each type of specific market segment, the most appropriate, immediate parent and peer market sizes were used for implementing the top-down procedure.
Secondary reports from CropLife Europe, the US Environment Protection Agency, the Plant Protection Association of India, and the International Association for the Plant Protection Sciences were considered. Further, appropriate weightage was assigned to the data derived from each parameter to arrive at the final shares for each region. The regional demand-supply trends, presence of manufacturing units, and regulatory scenario were also analyzed to further validate the shares arrived at. These shares were then confirmed with primary respondents from across regions.
Industrial Sugar Market Size Estimation: Top-Down Approach
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market was split into several segments and subsegments. The data triangulation and market breakdown procedures were employed, wherever applicable, to estimate the overall industrial sugar market and arrive at the exact statistics for all segments and subsegments. The data was triangulated by studying various factors and trends from the demand and supply sides. Along with this, the market size was validated using both the top-down and bottom-up approaches.
Market Definition
The industrial sugar market refers to the production, trade, and consumption of sugar as a raw material or ingredient in various industries, such as food and beverage, pharmaceuticals, cosmetics, and others. Industrial sugar is typically produced in large quantities from sugarcane or sugar beets and is used as a sweetener, preservative, or texturizer in various products. The market includes both white sugar and other forms of sugar such as brown sugar, liquid sugar, and powdered sugar, which are used in different industrial applications. The industrial sugar market is influenced by factors such as global supply and demand, government policies, technological advancements, and changing consumer preferences.
- According to the USDA, sugar is defined as “any grade or type of saccharine products derived, directly or indirectly, from sugarcane, sugar beets, sugarcane molasses, sugar beet molasses or in-process beet sugar whether domestically produced or imported and consisting of, or containing, sucrose or invert sugar, including raw sugar, refined crystalline sugar, edible molasses, edible cane syrup, liquid sugar, and in-process cane sugar.
Key Stakeholders
- Supply-side: Farmers and raw material suppliers, distributors, importers, and exporters
- Demand-side: Manufacturers, millers, and corporate factory owners, and research organizations
- Regulatory-side: International Sugar Organization (ISO), World Sugar Research Organization (WSRO), American Sugarbeet Growers Association, National Sugar Development Council in Nigeria, and Confederation of European Beet Growers.
Report Objectives
Market Intelligence
- Determining and projecting the size of the industrial sugar market based on source, type, form, application, and region over a five-year period ranging from 2023 to 2028.
- Identifying the attractive opportunities in the market by determining the largest and fastest-growing segments across the key regions
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Analyzing the demand-side factors based on the following:
- Impact of macro- and micro-economic factors on the market
- Shifts in demand patterns across different subsegments and regions.
- Providing detailed information about the key factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)
- To analyze the opportunities in the market for stakeholders and provide a competitive landscape for market leaders.
- To strategically profile the key players and comprehensively analyze their core competencies.
- To analyze competitive developments such as joint ventures, mergers & acquisitions, new product developments, and research & development (R&D) in the industrial sugar market
Competitive Intelligence
- Identifying and profiling the key market players in the industrial sugar market
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Providing a comparative analysis of the market leaders based on the following:
- Product offerings
- Business strategies
- Strengths and weaknesses
- Key financials
- Understanding the competitive landscape and identifying the major growth strategies adopted by players across the key region.
- Analyzing the value chain and regulatory frameworks across regions and their impact on prominent market players
- Providing insights into the key investments and product innovations and technology in the industrial sugar market
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to company-specific scientific needs.
The following customization options are available for the report:
Product Analysis
- Product Matrix, which gives a detailed comparison of the product portfolio of each company
Geographic Analysis
With the given market data, MarketsandMarkets offers customizations according to the company-specific scientific needs.
- Further breakdown of the Rest of Europe industrial sugar market, by key country
- Further breakdown of the Rest of South America industrial sugar market, by key country
Company Information
- Detailed analyses and profiling of additional market players
Growth opportunities and latent adjacency in Industrial Sugar Market