Global Sugar Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2024-2032)

Global Sugar Market Dynamics

Brazil has positioned itself as one of the leading producers of sugar due to its wide expanse of arable land, favourable weather conditions, and increasing investments in renovations of sugarcane fields. From April 2023 to March 2024, the country produced 705 million metric tons (MMT) of sugarcane. The increasing biodiesel and ethanol production amid renewable energy diversification in the country also fuels the growth of the sugar market. In 2023, ethanol and biodiesel production in Brazil totalled approximately 43 billion litres, with ethanol production rising by 15.5%.

The increasing demand for confectionery products is one of the major factors driving the sugar market growth. The household consumption of sugar remains high due to the increased popularity of homemade pastries, cakes, sweet rolls, and pies, among other dessert or bakery products. Rising standards of living and increasing purchasing power in emerging economies, which usually lead to higher consumption of processed foods containing high sugar content, such as dairy and soft drinks, are expanding the market share. Additionally, favourable government policies and agreements regarding the export, import and trade of sugar favour the market expansion.

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Global Sugar Market Trends

Rising Demand for Biofuels and Ethanol

The growing usage of sugar beet and sugarcane as feedstocks in bioethanol production is driving the sugar market forecast. Bioethanol, produced from sugarcane, sugar beet, and other crops, is regarded as a renewable and cleaner alternative to fossil fuels amid the growing focus on sustainability. The United States is the largest ethanol producer in the world, with 15 billion gallons produced in 2021 and 2022. The United States and Brazil produce 80% of the world's ethanol. Furthermore, advancements in biofuel production technologies, such as cellulosic ethanol, aimed at enabling the efficient and cost-effective production of ethanol from non-food feedstocks, including agricultural residues and waste, are favouring the sugar market expansion. Governments globally are also approving the usage of sugar in ethanol production. In August 2024, the Indian government approved the use of sugar syrup and sugarcane juice for ethanol production in the 2024-25 ethanol supply year (ESY). Moreover, the expansion of ethanol production facilities by key players is aiding the market. In May 2024, Rosneft-backed Nayara Energy Ltd announced an investment of INR 600 crore to establish two ethanol plants in Andhra Pradesh and Madhya Pradesh, each with a production capacity of 200 kilolitres per day.

Global Sugar Market Growth

Increasing Focus on Sustainability

As companies are increasingly focusing on reducing the environmental impact of sugar production, the adoption of efficient irrigation systems, precision agriculture techniques, and integrated pest management to improve yields and reduce chemical, water, and energy inputs is growing. Key players are also adopting circular economy principles by recycling and reusing materials within the production process while creating new products from waste streams to minimise waste. The development of innovative technologies that can convert sugar production waste such as molasses and bagasse into valuable materials such as biofertilisers, bioenergy, and bioplastics is revolutionising the sugar market landscape. Eco-friendly sugar packaging options made from bioplastics and recyclable and plant-based materials are further gaining traction. In June 2024, Cristalco replaced its plastic container with a Sonoco cardboard container fitted with a PP sprinkler, making the pack of 500g Daddy Sugar icing fully recyclable.

Global Sugar Market Drivers

Technological Advancements in Sugar Production

Technological advancements in sugar production and processing and the development of advanced crystallisation and filtration techniques are shaping the sugar market trends and dynamics. There is a growing usage of advanced technologies such as machine learning, artificial intelligence (AI), and the Internet of things (IoT) to monitor and optimise the production of various aspects of production processes. In September 2024, Mahindra & Mahindra introduced an Artificial Intelligence (AI)-based sugarcane harvesting programme for SM Shankarrao Kolhe SSK sugar mill. The programme, implemented during the 2024 crushing season, enables accurate measurement of sugar content for the timely harvesting of sugarcane crops. Furthermore, increasing research activities aimed at utilising genetic engineering and biotechnology and improving sugarcane varieties with improved resistance to diseases and pests, increased sugar content, and enhanced tolerance to environmental factors.

Market News

December 2023

Redpath Sugar announced the expansion of its Toronto cane sugar refinery amid the growing sugar demand in the food manufacturing sector in Canada. Through the investment, the company aims to boost its capacity by approximately 65,000 metric tonnes.

March 2022

Sucro Can Canada announced that it aims to double its Hamilton, Ontario, sugar refinery capacity to meet the growing demand for sugar among Ontario food manufacturers. Through the expansion, the company intends to reach its 200,000 MT annual sugar production capacity by 2024.

Global Sugar Market Overview

The sugar market is experiencing significant growth, driven by rising demand for biofuels, particularly ethanol, produced from sugarcane and sugar beet. As a cleaner, renewable alternative to fossil fuels, ethanol production is increasing globally, with the US and Brazil accounting for 80% of the world’s supply. Advancements in biofuel technologies, including cellulosic ethanol, are further supporting this growth. Governments, like India’s recent approval for using sugar syrup and sugarcane juice in ethanol production (2024-25). Sustainability is also a key focus, with companies adopting efficient irrigation, precision agriculture, and waste-to-value technologies such as converting molasses and bagasse into bioenergy or bioplastics. Technological innovations, including AI and IoT in production processes, are improving efficiency and yield. Notably, Mahindra & Mahindra’s AI-based sugarcane harvesting system exemplifies how technology is transforming sugar production, while sustainable practices, like eco-friendly packaging, are gaining traction in the industry.

Global Sugar Market Restraints

One of the major factors impeding the growth of the sugar industry is the growing health consciousness and the rising awareness regarding the negative impact of sugar on overall health. As excessive sugar can lead to lifestyle-related health issues like obesity and diseases, its consumption, especially in developed markets, is declining. Moreover, sugar prices are subjected to frequent volatility, due to factors such as evolving trade policies, poor weather conditions, and fluctuating production levels, impacting sugar beet and sugarcane yields. Sugar also faces competition from artificial, healthier, and low-calorie sweeteners such as aspartame, stevia, and sucralose; hence the growing popularity of natural sweeteners threatens the market.

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Global Sugar Industry Segmentation

The EMR’s report titled “Global Sugar Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• White
• Brown
• Liquid

Market Breakup by Form

• Granulated
• Powdered
• Syrup

Market Breakup by Source

• Sugar Beet
• Sugarcane

Market Breakup by End User

• Food and Beverages
• Pharma and Personal Care
• Household
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Global Sugar Market Share

By Type Insights

White sugar, a common type of refined sugar, occupies the major market share as it is the preferred sweetener for various foods and beverages. The food and beverage sector, which includes sectors like confectionery, bakery, and dairy, heavily relies on white sugar for its neutral flavour, colour, and preservative qualities. Moreover, the affordability of white sugar makes it a popular choice in both developed and developing countries, boosting the sugar market revenue. White sugar also has a long shelf life and does not require refrigeration to preserve its quality, making it a favourable choice.

Brown sugar is increasingly demanded by health-conscious consumers as it is a healthier alternative compared to white sugar. It is rich in antioxidants, vitamins, and minerals, and supports overall human health. It also contains polyphenols, a compound which has been scientifically researched to have multiple health benefits, further boosting its popularity. In April 2022, the Nigerian Sugar Master Plan, Flour Mills of Nigeria Plc (FMN) announced the launch of Sunti Brown Sugar, fortified with Vitamin A and offering additional nutritional benefits.

By Form Insights

As per the sugar market analysis, granulated sugar, variously known as fine sugar, is widely used in the household and food processing sectors. It is also used to sweeten coffee, tea, juices, and soft drinks. Granulated sugar is the most affordable form of sugar, making it ideal for budget-consumers manufacturers and consumers.

Powdered sugar, also known as icing sugar, is finely ground granulated sugar mixed with a small amount of cornstarch, making it ideal for use in delicate desserts, icings, and desserts. In July 2018, KCG, along with Mitr Phol, launched icing sugar boasting easy dissolution in liquid, sandy finesses, and anti-caking properties.

Meanwhile, sugar syrup is available in various forms, such as high-fructose corn syrup (HFCS), corn syrup, cane syrup, and maple syrup, and is used in a wide variety of food and beverage applications. Due to its ability to add sweetness and moisture to products and ease of usage, the rising use of the product in the food and beverage sector is creating lucrative sugar market opportunities.

By Source Insights

Sugarcane is grown in subtropical and tropical regions, and some major producers of sugarcane include Thailand, India, Brazil, and China. In India, nearly 50 million farmers and their dependents are involved in the cultivation of sugarcane. Furthermore, in the marketing year 2024-2025, the sugarcane crop reached 661.4 million metric tons (MMT) in Brazil, a 6.5% increase from the previous year due to high sugar prices and favourable weather conditions.

Meanwhile, the European Union is the largest producer of sugar beet, with countries like Poland, Germany, and France leading the production. The European Union reached 16.2 million tonnes of beet sugar during the 2021-2022 season, witnessing a y-o-y surge of 14.4%. Sugar beets are rich in sucrose, with sucrose content ranging from 16% to 20% of the beet’s weight. The ability of sugar beets to grow in a variety of climates and the growing sustainable farming of sugar beets are creating lucrative sugar market opportunities.

By End User Insights

The food and beverages sector holds the majority of the sugar market share as granulated sugar is widely used in various food and beverage products like baked goods, confectionery, soft drinks, and other processed foods. For example, in baked goods and confectionery, sugar can enhance the texture, volume, and colour of the product, whereas in bread and alcohol production, it can be used for fermentation.

The pharma and personal care sectors are also witnessing a rise in sugar demand for various purposes. Sugar can improve the taste of medicines and make them more palatable, which drives their demand for pharmaceuticals. Sugar coatings are used on medicines to improve their taste and make them easier to consume. Moreover, in the personal care sector, sugar is incorporated into exfoliating products such as scrubs to remove dead skin cells and improve the natural glow of skin.

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Global Sugar Market Regional Insights

North America Sugar Market Trends

The sugar demand growth in North America is being aided by the growing demand for natural and organic sugars amid the growing consumer preference for non-GMO and natural products. In June 2023, Whole Earth Brands, Inc. launched the first Regenerative Organic Certified cane and turbinado sugars under its Wholesome® brand. Both the sugars are packaged in a 72% bio-resin pouch that utilises a bio-resin made from sugarcane. Moreover, the expansion of sugar production amid the robustly growing food and beverage sector is favouring the market. In March 2021, U.S. Sugar announced the acquisition of Imperial Sugar, a port refiner with operations in Georgia and Kentucky. Through the acquisition, the company aims to expand its sugar production and lower production costs.

Europe Sugar Market Dynamics

The rising usage of sugar as a feedstock for producing bioethanol amid the growing demand for renewable energy and the increasing focus on sustainability is propelling the market. Increasing research and development (R&D) activities aimed at improving the yield of sugar beet crops are also boosting the Europe sugar market revenue. In February 2024, British Sugar secured funding of GPB 660,000 from the United Kingdom government to research the benefits of gene editing that can benefit the British sugar beet crop. However, the implementation of sugar taxes by governments in countries like the United Kingdom, Hungary, and Norway to curb increasing obesity rates can hinder the market.

Asia Pacific Sugar Market Overview

The growing sugar consumption in China and India amid the thriving food and beverage sector is propelling the sugar market development in the Asia Pacific. China’s sugar consumption is expected to reach 15.6 MMT in the marketing year 2024-25. Besides, sugar production in Vietnam is booming due to the advent of Industry 4.0 in sugar farming and promotion of the mechanisation in production such as land preparation, harvesting, and spraying pesticides. In the 2023-24 season, sugar yield in Vietnam reached 6.79 tonnes per ha, surpassing key producers such as Indonesia, Thailand, and the Philippines. In July 2024, Quang Ngai Sugar Joint Stock Company announced an investment of VND1.169 trillion to increase the sugar processing capacity at the An Khê plant in Gia Lai to 25,000 tonnes per day to stabilise the sugarcane supply, maintain its leading position in the Vietnamese sugar industry, and generate clean energy.

Competitive Landscape

Key sugar market players are establishing new sugar refineries and are increasingly investing in sugar production plants to lower their carbon footprint, promoting sustainability. They are also investing in advanced technologies to reduce costs, improve crop yields, and automate processes for harvesting, refining, and extracting sugar.

Key Industry Players

Cosan S.A.

Cosan S.A., headquartered in Brazil, is a company that operates across different sectors, including agribusiness, logistics, energy, and chemicals. Founded in 1936, the company’s largest revenue generators are energy, sugar, and ethanol. It is actively investing in carbon reduction efforts, energy-efficient technologies, and waste management.

The Savola Group

The Savola Group, founded in 1979, is a leading company based in Saudi Arabia. Operating in sectors such as retail, food manufacturing, and chemicals, the company has emerged as a major player in the food and beverage sector. In the MENA sector, the company is a leader in sugar production, with expansive distribution and refining capabilities.

Wilmar International Ltd

Wilmar International Ltd, established in 1991 and headquartered in Singapore, is a prominent agribusiness company, with a diverse portfolio encompassing food, agriculture, and industrial products. The company is actively adopting sustainable practices and expanding its product offerings by providing products catering to sustainable and health-conscious consumers.

Key players in the sugar market include Cargill, Incorporated, AB Sugar, Südzucker AG, Nordzucker AG, COFCO International, Tereos Group, Mitr Phol Group., Dalmia Bharat Sugar and Industries Limited, Louis Dreyfus Company, E.I.D. – Parry (India) Limited, Rusagro Group, and Thai Roong Ruang Sugar Group, among others.

Recent Developments

October 2024

Anamika Sugar Mills Private Limited, a subsidiary of the Shree Renuka Sugars, approved the capex investment of INR 183.8 crore to expand the cane crushing capacity from 4,000 TCD to 7,000 TCD and set up of 15 MW power plant at Anamika’s plant at Bulandshahr, Uttar Pradesh. Through this, the company aims to utilise cane availability, reduce the conversion cost of sugarcane to sugar, and improve its operating performance.

June 2024

Davangere Sugar Company Ltd. (DSCL) announced the expansion of its distillery and operations to add 45 KLPD grain-based units at a cost of project of Rs.54.00 crores and achieve an additional sugar cane growing area of 15,000 acres.