Global Industrial Sugar Market is expected to grow with Healthy CAGR by 2032

Market Research Future (MRFR) has published on the “Global Industrial Sugar market”.

Industrial Sugar Market Highlights

The global industrial sugar market is projected to witness significant growth during the review period, exhibiting a CAGR of 6.01%. The market was estimated to be USD 39,339.5 million in 2022 and is expected to reach a value of USD 60,697.3 million by the end of the forecast period (2023-2032).

Market Synopsis

Sugar has an important and irreplaceable role in the food business. The process of extracting sugar from sugarcane molasses or sugar beets involves multiple steps, including extraction, cleaning, crystallization, and drying. Size and shape variations exist in sugar, and how it is used depends on the application. The bulk of sugars are utilized in the bread, beverage, and other food industries. In contrast, sugar utilized in the pharmaceutical business is in its purest form, free of sulphur and very poisonous substances like lead, arsenic, mercury. The increasing production of sugar crops is expected to drive the industrial sugar market, leading to a higher supply of raw materials for sugar production. The global demand for sugar is increasing, driven by population growth, rising incomes, and changing dietary habits. As a result, sugar production needs to be increased to meet this demand. 

For instance, Brazil is the world's largest sugarcane producer, the primary source of sugar production. In the 2020-2021 harvest season, Brazil produced a record high of over 600 million tons of sugarcane. The production of sugar crops such as sugarcane has been increasing in recent years, driven by rising demand for sugar-based products, population growth, and government policies to support the sugar industry. Brazil, India, and Thailand are some of the major producers of sugar crops, and their production levels have been increasing to meet the growing demand for sugar. Higher sugar crop production means more raw materials for sugar production, which is expected to drive the industrial sugar market.

However, health concerns related to industrial sugar consumption can restrain demand for this product as consumers become more aware of the negative health effects of excessive sugar consumption. For instance, in June 2020, the Mexican government implemented a new labeling law that required food and beverage products to display warning labels if they contained high levels of added sugars, sodium, or saturated fats. The law was designed to help consumers make more informed decisions about the products they consume and reduce their risk of developing chronic diseases such as obesity, diabetes, and cardiovascular disease. Implementing this law had significant implications for the industrial sugar market, as Mexico is one of the world's largest sugar consumers, with a high demand for sugar-based products such as soft drinks, baked goods, and sweets.

Competitive Landscape

The high competition among the players have encouraged the players to produce quality products in the market. In order to build new and quality products, numerous companies benefit from mergers, acquisitions, and product development. To preserve their positions and broaden their geographic reach, the players in the worldwide industrial sugar market are using a variety of strategies, including expansion, mergers and acquisitions, alliances, joint ventures, and product launches. To gain the largest possible market share, new product launch was the growth strategy that was most frequently used by market participants.

There are numerous international, national, and regional players in the worldwide industrial sugar industry. There is a lot of competition in this sector, and everyone is trying to increase their portion of customers' wallets. When comparing prices and quality, as well as product availability across regions, different suppliers will use different metrics. In order to be competitive, suppliers must offer reasonably priced, high-quality industrial sugars. Market and economic conditions, government laws, and technological progress all affect how quickly and how large market actors can expand. As a result, businesses in this sector need to concentrate on increasing output and refining their offerings to keep up with consumer demand. The companies in the market are investing heavily in creating new products. Although worldwide companies account for the vast majority of sales, smaller regional and local firms are also present.

Key Developments & Growth Strategies

Joint Ventures

• British Sugar announced a new partnership with startup company Vantage Motor Group to provide electric vehicle (EV) charging stations powered by renewable energy from its sugar factories. The initiative aimed to promote sustainable transport and reduce carbon emissions from the transportation sector.


• British Sugar signed a long-term agreement with Cargill, a global food company, to supply 50,000 tonnes of liquid sugar annually for use in food and beverage products. The agreement aimed to support Cargill's growth in the European market and provide British Sugar with a reliable outlet for its liquid sugar products.

Acquisitions

• The company announced the acquisition of a 70% stake in Guangxi Guitang (Group) Co., Ltd., a sugar producer and supplier in China.


• ADM announced the acquisition of a controlling stake in Industries Centers, an Israeli company that specializes in sweeteners and starches.

Product Launches

• British Sugar launched a new range of low-sugar granulated sugars under its Silver Spoon brand. The new products contained 30% less sugar than standard granulated sugar and were aimed at consumers looking to reduce their sugar intake.

Expansion

• Rogers Sugar announced the expansion of its maple syrup production facility in Magog, Quebec, Canada.


• Nordzucker announced the closure of two sugar factories in Germany due to overproduction and low prices.


• Cargill announced the expansion of its Krefeld, Germany facility to increase its production of glucose syrup and glucose-fructose syrup.


• Raizen announced plans to invest 1 billion reais ($174 million) in the construction of a new sugar mill in Brazil to increase its production capacity.


• Sudzucker announced that it would close two sugar factories in Germany due to the difficult market environment and declining sugar prices.


• Tereos announced the opening of a new plant in Brazil that produces high-purity liquid dextrose, a type of sweetener used in the food industry.

By Region

• North America: The US industrial sugar market is one of the largest in the world, with the country being a major producer and consumer of sugar. Its growth is driven by several factors, such as increasing consumer health consciousness, rising demand for organic and natural products, and the growing popularity of plant-based diets. Several US sugar producers have begun offering organic sugar as part of their product offerings. For instance, in March 2019, Cargill, a global food corporation, announced its partnership with Archer Daniels Midland (ADM) to launch a new joint venture, Vantage Corn Processors, to produce industrial corn syrup and other sweeteners. Also, in 2020, the US Sugar Corporation launched an organic sugar product line marketed as a sustainable and eco-friendly alternative to conventional sugar.


• Europe: Germany is one of Europe's leading producers and consumers of industrial sugar. The industrial sugar market in Germany is primarily driven by the food and beverage industry, where sugar is a key ingredient in various products such as confectionery, bakeries, and beverages. Sugar is also used in non-food applications such as pharmaceuticals, chemicals, and animal feed. A few large players, including Südzucker AG, the largest sugar producer in Europe, dominate the German industrial sugar market. These companies have a significant presence in the German market and are involved in various activities such as sugar production, processing, and trading. For instance, in January 2019, Südzucker AG, Europe's largest sugar producer based in Germany, announced a joint venture with the Belgian company CropEnergies AG to produce isomaltulose, a low-glycemic and non-cariogenic sweetener, at a new facility in Belgium.


• Asia-Pacific: China is the world's largest producer and consumer of sugar, with production and consumption levels expected to grow in the coming years. The market is driven by population growth, increasing urbanization, and changing consumer preferences, with a growing demand for processed foods and beverages. The market is also characterized by high competition, with major players including COFCO Sugar, Guangxi Guitang Group, and the Nanning Sugar Industry. For instance, in 2019, the Chinese company Jilin Province New Tianlong Industry Co. Ltd. launched a new range of low-calorie sweeteners, which are produced from corn and can be used as a substitute for sugar in a range of food and beverage applications. The new sweeteners are marketed as a healthier alternative to traditional sugar, as they contain fewer calories and do not raise blood sugar levels.


• Rest of the World: The South America Industrial Sugar Market is an important player in the global sugar industry, with Brazil being the world's largest producer of sugarcane. The South America Industrial Sugar Market has seen significant growth and innovation in recent years with various regional companies. For instance, in 2019, Valeo Foods, a Brazilian company, launched Enliten in Argentina. Enliten is a low-calorie sweetener made from all-natural ingredients, including stevia and erythritol, and is marketed as a healthier alternative to traditional sugar. This product launch shows a trend towards healthier and more natural alternatives to traditional sugar in the South America Industrial Sugar Market.