Industrial Sugar Market Size was valued at USD 37,645.5 million in 2022. The Industrial Sugar Market industry is projected to grow USD 69,795.3 million by 2032, exhibiting a compound annual growth rate (CAGR) of 6.01% during the forecast period (2023 - 2032). 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.
    
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
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, fluctuating prices in the Industrial Sugar Market can restrain demand for industrial sugar, making it difficult for buyers to plan and budget for their sugar needs. Here's an example of a recent development that illustrates how fluctuating prices can impact the Industrial Sugar Market: In 2020, the COVID-19 pandemic caused significant disruptions to global sugar markets, leading to a sharp price decline. The pandemic led to lower demand for sugar-based products, such as beverages and confectionery, due to reduced consumption in restaurants and other food service establishments. At the same time, sugar producers continued to produce high-sugar crops, leading to an oversupply of sugar in the market. As a result of these factors, the price of sugar fell sharply in 2020, with some markets experiencing the lowest prices in over a decade. For instance, in October 2020, the price of raw sugar on the New York futures market fell to its lowest level since 2008. This sharp price decline impacted the Industrial Sugar Market, impacting producers and buyers.
For sugar producers, the low prices meant lower revenues and profits, which could make it difficult for them to invest in their operations and maintain production levels. Some sugar producers responded to the low prices by reducing their production levels or temporarily shutting down their operations. For buyers of industrial sugar, the low prices may have initially seemed like a positive development, as it would have made sugar more affordable. However, the sharp price decline also made it difficult for buyers to plan and budget for their sugar needs. It may have been unsure whether the low prices were temporary or long-lasting, making it challenging to make long-term purchasing decisions. Other factors can also contribute to fluctuating prices in the Industrial Sugar Market, including weather patterns, government policies, and global economic conditions. As a result, it's important for buyers and producers in the Industrial Sugar Market to closely monitor market conditions and adjust their strategies accordingly to navigate through periods of fluctuating prices.
As the global population continues to grow, there is a corresponding increase in demand for food and beverages, which drives the demand for industrial sugar. Additionally, the increasing urbanization has led to a change in lifestyle and dietary habits, with consumers increasingly turning to convenience foods and beverages rich in sugar. This has increased demand for sugar-based products such as soft drinks, packaged snacks, and confectionery. Furthermore, changing consumer preferences and tastes have also contributed to the growth of the Industrial Sugar Market. For instance, Coca-Cola India launched a new product, Thums Up Charged No Sugar, a sugar-free version of the popular Thums Up carbonated soft drink. This move responded to changing consumer preferences for healthier and low-sugar alternatives. The product uses high-intensity sweeteners instead of sugar to provide the same taste and flavor as the original Thums Up product, but with fewer calories and no sugar.
Consumers are increasingly seeking out sweet and flavourful products, which has led to a corresponding increase in the demand for industrial sugar. The increasing demand for sugar-based products is expected to continue driving the growth of the Industrial Sugar Market in the coming years. However, the industry faces health concerns and competition from alternative sweeteners, which manufacturers must address to ensure continued growth and success. For instance, India is the world's second-largest sugar producer after Brazil, and its sugar production has increased steadily. According to the Indian Sugar Mills Association, India produced 30.5 million tons of sugar during the 2020-2021 season, a 13% increase from the previous year. The increase in sugar production in India is driven by rising demand for sugar-based products, population growth, and government policies to support the sugar industry.
Industrial Sugar Source Insights
The Industrial Sugar Market segmentation, based on the source, has been segmented into cane sugar and beet sugar. The cane sugar segment accounted for the largest market share in 2022 in the Industrial Sugar Market revenue. The cane sugar segment of the Industrial Sugar Market is expected to grow steadily during the forecast period, driven by increasing demand from the food and beverage industry. Key players in the industry, such as ASR Group, Wilmar International, and Tereos, are investing in expansion and acquisitions to strengthen their positions in key markets. For instance, in January 2021, ASR Group announced the acquisition of Imperial Sugar Company, a US-based cane sugar producer. This acquisition will allow ASR Group to expand its footprint in the US market and increase its production capacity.
Similarly, in November 2020, Wilmar International announced the acquisition of a 50% stake in Shree Renuka Sugars, a leading Indian cane sugar producer. This acquisition will enable Wilmar International to strengthen its position in the Indian market, which is one of the largest consumers of cane sugar. Thus, such type of instances are anticipated to drive the cane sugar segment growth during the forecast period. This is poised to positively impact the industrial sugar industry in the forecast period.
Oct-2020: 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.
Nov-2020: ADM announced the acquisition of a controlling stake in Industries Centers, an Israeli company that specializes in sweeteners and starches.
Oct-2021: 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.
Figure 2: Industrial Sugar Market, by Source, 2022 & 2032 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Based on category, the Industrial Sugar Market data has been bifurcated into organic and conventional. The conventional segment accounted for the largest market share in 2022 in the Industrial Sugar Market revenue. The conventional industrial sugar segment is the largest sub-sector within the Industrial Sugar Market, catering to the demand for conventional sugar in various industries. For instance, in November 2020, ADM announced that it had completed the expansion of its beet sugar plant in North Dakota, increasing its production capacity by 50%. The expansion will enable the company to meet the growing demand for conventional sugar in the US market. Similarly, in August 2020, Raizen announced that it had acquired a majority stake in Biosev SA, a Brazilian sugar and ethanol producer. This acquisition will enable Raizen to expand its conventional sugar production capacity and diversify its product portfolio. In conclusion, the conventional industrial sugar segment is the largest sub-sector within the Industrial Sugar Market, driven by the demand for conventional sugar in various industries. This has further broadened the growth opportunity for the industrial sugar industry.
Figure 2: Industrial Sugar Market, by Category, 2022 & 2032 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Based on type, the global industrial sugar industry has been segmented into white sugar and brown sugar. The white sugar segment accounted for the largest market share of in 2022 in the Industrial Sugar Market revenue. White sugar is a popular and widely used variety of industrial sugar. The food and beverage industry is the largest consumer of white sugar, driven by the increasing demand for processed and packaged foods. The growth of the food and beverage industry is expected to drive the demand for white sugar in the coming years. Furthermore, the growing population and urbanization in developing countries are expected to increase the demand for white sugar as a sweetener in various industries. In addition, technological advancements in sugar processing, such as the use of advanced filtration systems and automated production lines, are expected to increase the efficiency of white sugar production and lower production costs. In conclusion, the white sugar segment is a significant sub-sector within the Industrial Sugar Market, driven by the demand from the food and beverage industry and the growing population and urbanization. Key players in the industry, such as Sudzucker AG, Tereos, and Wilmar International Limited, are investing in technological advancements and expanding their operations to meet the growing demand for white sugar.
Figure 3: Industrial Sugar Market, by Type, 2022 & 2032 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Based on form, the global industrial sugar industry has been segmented into powdered, syrup, and granulated. The granulated segment accounted for the largest market share in 2022 in the Industrial Sugar Market revenue. Granulated sugar is one of the most commonly used types of sugar, with a wide range of applications in the food and beverage industry. The food and beverage industry is the primary end-user of granulated sugar, and the increasing demand for processed food products is driving the growth of the segment. Also, Granulated sugar has various applications in the food and beverage industry, making it a versatile ingredient for manufacturers. For instance, Sudzucker AG announced a new investment of EUR 40 million to expand its granulated sugar production capacity in Europe. Similarly, Tereos launched a new range of organic granulated sugars, catering to the growing demand for natural and healthy products. This drives the growth of the industrial sugar industry in the forecast period.
Figure 3: Industrial Sugar Market, by Form, 2022 & 2032 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Based on end use, the global industrial sugar industry has been segmented into food & beverages, pharmaceuticals, personal care, and others. The food & beverages segment is further segmented into dairy & frozen desserts, bakery & confectionery, beverages, and others. The food & beverages segment accounted for the largest market share in 2022 in the Industrial Sugar Market revenue. The food and beverages industry is one of the primary end-users of industrial sugar. The increasing demand for processed food products, along with the growing trend of natural and healthy products, is driving the growth of this segment. Key players in this industry, such as Nestle, Coca-Cola, and PepsiCo, are investing in product innovation and expanding their operations to meet the growing demand for sugar-based products. For instance, Nestle announced a partnership with Corbion to develop plant-based sweeteners for its products. Similarly, Coca-Cola launched a new line of low-sugar beverages, catering to the growing demand for healthy drinks. Furthermore, PepsiCo announced a new range of low-sugar snacks, catering to the growing demand for healthy food products. This drives the growth of the industrial sugar industry in the forecast period.
Figure 3: Industrial Sugar Market, by End Use, 2022 & 2032 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By Region, the study segments the market into North America, Europe, Asia-Pacific and the Rest of the World. Asia-Pacific is the largest region in the Industrial Sugar Market with the largest market share in 2022.
Figure 3: INDUSTRIAL SUGAR MARKET SHARE BY REGION 2022 & 2032 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The North America Industrial Sugar Market is expected to expand at a robust rate over the projected period, according to Market Research Future. North America consists of US, Canada and Mexico. The industrial sugar industry in North America is a major contributor to the region's economy, with the United States and Canada among the world's top producers and consumers of sugar. The growing demand for alternative sweeteners, such as high fructose corn syrup (HFCS), has impacted North America's demand for traditional sugar. HFCS is a lower-cost alternative to sugar that has become increasingly popular in the food and beverage industry over the past few decades. This has led to a decline in demand for traditional sugar in North America as manufacturers have switched to using HFCS in their products. In response to this trend, some sugar producers in North America have begun to diversify their product offerings to include alternative sweeteners to remain competitive in the market.
Europe’s Industrial Sugar Market accounts for the second largest market share as of 2022. Europe is one of the world's largest producers and consumers of industrial sugar. The Industrial Sugar Market in Europe is primarily driven by the food and beverage industry, which uses sugar as a key ingredient in 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 dominate the European Industrial Sugar Market, including Südzucker AG, the largest sugar producer in Europe, and Tereos, a French sugar cooperative. These companies have a significant presence in the European market and are involved in various activities such as sugar production, processing, and trading. For instance, in September 2020, the German company BENEO launched a new functional carbohydrate derived from chicory root called "Orafti® Synergy1" that can replace sugar in various food and beverage applications.
Asia-Pacific Industrial Sugar Market accounts for the largest market share as of 2022. The Asia-Pacific Industrial Sugar Market is a major sector of the region's food and beverage industry, with a significant domestic and international market share. The market is driven by an increasing population, changing consumer preferences, and growing demand for processed foods and beverages. The growing emphasis on innovation and sustainability in the Asia-Pacific Industrial Sugar Market, as well as the importance of partnerships and collaborations in expanding and diversifying product portfolios. For instance, in 2020, Chinese sugar producer COFCO Sugar launched a new range of organic sugars produced using natural and sustainable production practices. The new product range includes certified organic white, cane, and brown sugars, which can be used in various food and beverage applications. Asia-Pacific Industrial Sugar Market is expected to remain a key sector of the region's food and beverage industry, with opportunities for growth and innovation in the coming years. However, companies in the market will need to adapt to changing consumer preferences, regulatory requirements, and trade conditions to remain competitive.
The Rest of the World region includes various countries with different smoking prevalence rates and market dynamics. This includes countries in Africa, South America, the Middle East. The Rest of the World consists of South America, the Middle East, and Africa. The Industrial Sugar Markets in the Rest of the World are significant contributors to the global sugar industry. The regions are major sugarcane producers, and the sugar industry is critical in their respective economies. The Rest of the World's Industrial Sugar Markets are expected to continue to grow in the coming years, driven by population growth, increasing urbanization, and the growing demand for processed foods and beverages. However, companies in the market will need to navigate challenges such as political and economic instability, regulatory changes, and competition from other regions. Additionally, sustainability and ethical practices will be important factors for the industry's future in these regions.
The Industrial Sugar Market is characterized by the presence of many regional and local vendors. The market players are facing competition from various other market players. The market is increasing due to factors such as population growth, changing lifestyles, urbanization, and increasing disposable incomes. The market player contest is based on cost, product quality, reliability, and transportation service. The vendors must provide on-time delivery services, to survive and succeed in an intensely competitive market environment with major market players. Recent market statistics show that new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations are just some of the strategic steps market participants are doing to expand their global footprint, broaden their market outlook and focus on market growth.
There are numerous worldwide, regional, and local players in the market for industrial sugar. There is a lot of competition in the market, and everyone is trying to expand their part of it. While tier-1 and tier-2 corporation control over ~68% of the worldwide market share between them, tier-3 companies make up the rest of the pie. A number of factors, including market and economic growth, government laws, and technological progress, affect how quickly and how large market players can expand. As a result, businesses in the sector need to concentrate on increasing output to keep up with demand and bettering their offerings to grow in line with the expected market forecast.
Latest market report from Market Research Future portrays the leading players in the industrial sugar industry, which include British Sugar, Rogers Sugar Inc., Imperial Sugar Company, Guangxi Funan East Asia Sugar Co., Ltd, Nordzucker Gmbh & Co KG, Cargill Incorporated, Archer Daniel Midland, Raizen SA, Sudzucker AG, and Tereos. Most of these firms are investing in R&D resources into creating a variety of industrial sugars. Despite the dominance of global corporations, a number of regional and local players with relatively minor market shares are present as well. In key markets like North America, Europe, Asia-Pacific, the Middle East & Africa, and South America, the global players who have established production facilities or sales offices have expanded their operations.
Industrial Sugar Industry: Market Developments
Aug-2020: The company announced the acquisition of a 70% stake in Guangxi Guitang (Group) Co., Ltd., a sugar producer and supplier in China.
Nov-2020: ADM announced the acquisition of a controlling stake in Industries Centers, an Israeli company that specializes in sweeteners and starches.
Oct-2021: 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.
July-2021: 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.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 39,339.5 Million |
| Market Size 2032 | USD 69,795.3 Million |
| Compound Annual Growth Rate (CAGR) | 6.01% (2023-2032) |
| Base Year | 2022 |
| Forecast Period | 2023-2032 |
| Historical Data | 2020, 2021 |
| Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors |
| Segments Covered | Source, Category, Type, Form, End User, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, Rest of the World |
| Countries Covered | The US, Canada, Mexico, Germany, France, UK, Italy, Spain, China, Japan, India, Australia & New Zealand, Middle East, South America, and Africa |
| Key Companies Profiled | British Sugar, Rogers Sugar Inc., Imperial Sugar Company, Guangxi Funan East Asia Sugar Co., Ltd, Nordzucker Gmbh & Co KG, Cargill Incorporated, Archer Daniel Midland, Raizen SA, Sudzucker AG, and Tereos |
| Key Market Opportunities | Fluctuating Prices of industrial sugar productsRising Health Concerns |
| Key Market Dynamics | Increasing Demand for Sugar-based ProductsRising Population and UrbanizationIncrease in production of the sugar crop |
Frequently Asked Questions (FAQ) :
Industrial Sugar Market is pegged at USD 39,339.5 million as of 2022.
The US Industrial Sugar Market is valued at USD 7,163.5 million in 2022.
Industrial Sugar Market is poised to grow at 6.01% CAGR during 2023-2032.
Asia-Pacific region held the largest market share in the Industrial Sugar Market and was valued at USD 14,823.1 million in 2022.
British Sugar, Rogers Sugar Inc., Imperial Sugar Company, Guangxi Funan East Asia Sugar Co., Ltd, Nordzucker Gmbh & Co KG, Cargill Incorporated, Archer Daniel Midland, Raizen SA, Sudzucker AG, and Tereos are some of the vital players operating in the Industrial Sugar Market.
Cane sugar source is poised to drive the Industrial Sugar Market.
White sugar industrial sugar is poised to hold an upper hand in the Industrial Sugar Market.
Assistant Manager - Research High acumen in analyzing complex macro & micro markets with more than 6 years of work experience in the field of market research. by implementing her analytical skills in forecasting and estimation into market research reports, she has expertise in packaging, construction, and equipment domains. she handles a team size of 20-25 resources and ensures smooth running of the projects, associated marketing activities, and client servicing.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
