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 2030, Exhibiting A CAGR Of 2.72% During The Forecast Period 2022-2030.

Industrial Sugar Market Overview:

The global COVID-19 pandemic has been unprecedented and shocking. As a result, demand for industrial sugar is lower than expected in all regions compared to levels before the pandemic. Based on our research, the world market was 18.78% smaller in 2020 than it was in 2019.

Due to the growth of food processing in developing markets like Asia-Pacific and the Middle East and Africa, the market is growing quickly all over the world. The market has grown a lot because more people want to drink alcoholic and non-alcoholic drinks. In the coming years, the industrial sugar market is likely to grow because of the rising demand for baked goods, sweet treats, and dairy products like milk-based drinks, yoghurt, and ice cream.

Market Dynamics:

Latest Trends:

Market growth will be affected by the growing demand for healthier products.

In the past few years, people have become more interested in buying healthier food options. During and after the pandemic, buying habits have changed in a big way. This trend has also affected the sugar business around the world. People are now looking for sugars that are healthier, less processed, and more raw, like brown sugar and organic sugar, to reduce the negative effects that sugar has on the body after it is eaten. People are buying more organic sugar because they think it is better for them and safer than regular sugar. Major sugar companies are putting a lot of effort into making new kinds of sugar to keep up with consumer demand. For example, Singapore-based Nutrition Innovation has made a new sugar product called Better Brown that has a low GI. The goal of this launch was to meet the growing demand for healthier, less processed products among consumers. More people are worried about lifestyle-related health problems like obesity, heart disease, and diabetes, which is likely to keep the demand for healthier sugars high.

Driving Factors:

Using more of it in processed food and drinks to help the market grow

Around the world, the food and drink business is doing well. Different parts of the food and beverage industry have grown a lot because people are paying more attention to new ideas, making new products, and changing what they want. Sugar has become an important part of the food processing industry because it can be used in so many ways. The main thing that makes the market grow is that more and more people want to buy processed foods and drinks. Also, sugar is a big part of both alcoholic and non-alcoholic drinks. Drinking drinks as a snack is becoming more and more popular. This has led to a big rise in the demand for dairy, soft drinks, and functional beverages.

In the last few years, the demand for baked goods has gone up by a factor of ten. This is because the number of people living in developing markets has grown and their incomes have gone up. In the coming years, people are expected to eat more desserts, which will increase the need for sugar. During the forecasted period, the growth of the market is likely to be helped by the growing popularity of sauces, soups, ready-to-cook meals, ready-to-eat meals, and frozen foods.

Market growth is further fueled by the rising demand for sweets.

The growth of the market is also helped by the rising demand for sweets, especially in developing markets in Asia, the Pacific, and the Middle East. In places like China, India, and Indonesia, kids and people in their 20s and 30s are starting to like new kinds of candy. In places like Japan, China, and Singapore, premium candies are seen as a high-quality item to give as a gift. In turn, this has led to more people wanting sweet treats.

Manufacturers are putting more effort into making new candies and chocolate bars to attract more customers, which is expected to help the market grow in the coming years.

Restraining Factors:

Consumers' growing awareness of the bad health effects of eating a lot of sweets will slow market growth.

The growing number of lifestyle-related health problems, like obesity and diabetes, that are linked to eating too much sugar has a big effect on the growth of the industry. According to the Global Diabetes Community in the United Kingdom, 415 million people around the world were diagnosed with diabetes in 2018. By 2040, that number is expected to rise to 642 million people. People tend to choose low-carb, low-GI, and low-sugar diets to avoid these diseases and keep their health in general. So, during the forecast period, the overall market growth is likely to be slowed by the growing number of people with health problems like diabetes and heart disease. Also, the growing availability of healthier sugar alternatives like honey, stevia, and jaggery is expected to be a major factor slowing the growth of the market.

Segmentation Analysis:

By Source Analysis:

Cane sugar and beet sugar are the two main types of sugar on the market.

It is expected that sugarcane will be the main crop used to make sugar. It is mostly grown in tropical and subtropical areas of Asia, Africa, and South America. During the predicted time period, sugarcane production is expected to rise due to both more land being used and better yields. The Organization for Economic Cooperation and Development (OECD) and the Food and Agricultural Organization (FAO) say that sugarcane makes up about 86% of all sugar crops.

Most sugar beets are grown in temperate zones. Molasses and sugar made from beets are used to make a wide range of goods, such as food, drinks, medicines, chemicals, and textiles. But in the coming years, beet production is likely to slow down because better harvesting technologies are making input costs go up and farmers are planting less land.

By Type Analysis:

The market is split into white sugar, brown sugar, and liquid sugar.

White sugar is used a lot in the food industry and in bakeries. White sugar is great for cooking and baking because it has small granules. They are also the most common ones used in homes, bakeries, cafes, restaurants, and places where food is processed. Some of the most common types of white sugar are granulated, caster, icing, and jam-setting sugar.

Brown sugar still has some molasses in it after it has been refined. This molasses gives brown sugar its unique colour, flavour, and a small amount of minerals. Most of the time, liquid sugars are used to make baked goods taste better and look better. These also keep foods from drying out, which makes them last longer.

By End Use Analysis:

Based on how the product will be used, the market is split into segments for beverages, sweets, bread, dairy products, and other food applications.

Because people all over the world eat sweets the most, they bring in the most money. In places like China, India, Indonesia, and the United Arab Emirates (UAE), the popularity of sweet treats has grown a lot in the past few years. The main reason for the growth is that people in these countries are getting more money to spend on things they want. People are willing to pay more for high-quality, tasty, and flavorful products these days.

Due to the rising trend of healthy hydration in developed markets like Europe and North America, the beverages segment is expected to grow at the fastest rate over the next few years. In Asian countries, millennials are becoming more and more interested in soft drinks, alcoholic drinks, and sports drinks. In the coming years, the growth of the market is likely to be driven by the growing demand for bakery goods in Eastern markets.

Regional Insights:

Asia Pacific has the largest share of the industrial sugar market in the world. The market is growing a lot because more people, especially in cities, want sweets and soft drinks with a lot of sugar in them. India is expected to have the most growth in the region, followed by Indonesia and China. This is because the number of people living in the area is growing and people's incomes are rising.

In North American countries like the U.S. and Canada, people are eating less sugar because there is more demand for sugar-free and low-sugar foods and drinks. The steady growth of the sugar market is likely to be caused by the fact that more and more people in this area are concerned about their health.

Sugar consumption is expected to go up in Russia because of the increase in home-made sweets and alcohol.

Brazil is one of the biggest countries that makes sugar. Even though people in the region don't eat as much sugar as people in other places, like Asia-Pacific, the demand for sugar is slowly growing. The market in the region is growing because consumers want more and more sweets and drinks all the time. Also, other South American countries like Colombia, Argentina, and Chile are seeing a high demand for sugar because more people are buying processed foods.

The Middle East and Africa are two of the markets for sugar that are growing the fastest. The main reason for the growth of the market in this area is the food processing industry, which is always changing. In places like Saudi Arabia and UAE, baked goods, sweets, dairy products, and drinks are becoming more and more popular. In the last few years, the strong growth of the dairy industry in this area has led to a big rise in the demand for sugar. During the next five years, the market is expected to be driven by the growing demand for ready-to-eat and ready-to-cook products.

Scope Analysis

Recent Development:

• October 2020: North American sugar manufacturers DouxMatox and Lantic announce a collaboration to provide a unique cane sugar-based sugar reduction solution for food processing companies in North America.
• October 2019: Parry's, a leading sugar manufacturer in India, launched natural brown sugar. This product is less processed and boasts micronutrients such as calcium, magnesium, potassium and iron.

Market Segmentation

By Source:

• Cane Sugar
• Beet Sugar
• Others

By Type:

• White Sugar
• Brown Sugar
• Liquid Sugar
• Others

By End Use:

• Beverages
• Confectionary
• Bakery
• Dairy Products
• Others

By Companies:

• Suedzucker AG (Germany)
• Tereos S.A. (France)
• Cosan (Brazil)
• Associated British Foods (U.K.)
• Mitr Phol Group (Thailand)
• Cargill, Inc. (U.S.)
• Imperial Sugar Company (U.S.)
• Rogers Sugar, Inc. (Canada)
• American Crystal Sugar Company (U.S.)
• Louis Dreyfus Holding B.V. (Netherlands)
• Others