Global Molasses Market Overview
Molasses Market Size was valued at USD 10.8 Billion in 2022. The molasses market industry is projected to grow from USD 11.59 Billion in 2024 to USD 20.533 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.40% during the forecast period (2024- 2032). One of the main market drivers for expanding the market is the rising demand for molasses. The businesses of food and drink, personal care, medicine, pharmaceuticals, animal feed, and others all use molasses significantly. Additionally, dry molasses is also used to make corrective products, boosting the molasses market.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Molasses Market Trends
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Increasing consumer preference for healthy eating will promote market growth
The lifestyles of people in every large economy are changing increasingly due to consumers' increased concern for their health and happiness. Due to rapid urbanization, millennials are eating more on-the-go snacks. Molasses serves as a sweetener, giving sweetness while also delivering nutrition, especially in ready-to-eat bars and snacks. The big manufacturers use molasses to control consumers' blood sugar levels to fight diseases like diabetes and obesity. Molasses syrup also contains several elements that are lacking in normal sugar. The market's expansion is encouraged because molasses gains equitably from this.
Additionally, the molasses market CAGR is anticipated to rise due to rising import and export activity brought on by the increased use of molasses worldwide. Various industries use molasses, including those in the food and beverage, pharmaceutical, personal care, animal feed, and other sectors. Due to the numerous uses for molasses, there is an enormous demand worldwide, driving businesses to get heavily involved in molasses import and export activities. In consequence, this is raising molasses demand on a scale. For instance, the Observatory of Economic Complexity (OEC), the world's top tool for visualizing data from international trade, reports that in 2020, India (worth S123M), Indonesia (worth $77M), Russia (worth $81M), Germany (worth $80.7M), and Guatemala (worth $74.4M) were the top exporters of molasses, while the United States (worth $171M), the Philippines ($93M), the Netherlands ($100M), the United Kingdom ($77M), and South Korea (worth $68.8M). As a result, it is anticipated that rising import and export operations will fuel the molasses market's expansion due to molasses' expanding array of applications.
Furthermore, a crucial trend gaining traction in the molasses industry is the introduction of new products. Businesses are introducing new products to beat the competition and gain market share. New product launches aid businesses in brand development, product portfolio expansion, public awareness building, and income generation. As an illustration, in June 2021, International Molasses Corporation, a US-based manufacturer and supplier of sugar cane molasses products, honey, agave syrup, invert syrups, and custom-formulated sweeteners, introduced CaneRite Panela, a natural, unrefined and non-centrifuged-powder sweetener or dry molasses made from the sugar cane plant's freshly squeezed juice. Its nutritional composition is similar to that of the cane plant and includes potassium, magnesium, calcium, iron, manganese, and zinc. It also contains five times as many vitamins and minerals as raw sugar. Thus, driving the molasses market revenue.
Molasses Market Segment Insights
Molasses Source Insights
The molasses market segmentation, based on source includes sugarcane, sugar beets and others. The sugarcane segment dominated the market because sugarcane is grown for a wide range of purposes and the cost of the cycle to remove molasses is low, the sugarcane section is necessary to obtain the largest offer.
Molasses Type Insights
The molasses market segmentation, based on type, includes light, dark, blackstrap and others. The blackstrap category generated the most income. Blackstrap molasses, which provides 10% of the recommended daily intake of this mineral in just one tablespoon (15 mL), may benefit bone health. Blackstrap molasses' high iron concentration may help promote strong hair growth. Due to the health advantages above, it is possible to predict that the blackstrap molasses-type segment will develop. Due to these factors, the worldwide molasses market is anticipated to increase throughout the projected period.
Molasses Category Insights
The molasses market segmentation, based on category, includes organic and conventional. The organic category generated the most income. Organic molasses extracts are drawing a growing amount of consumer interest. The reason for this is the misconception that organic products are safer than inorganic ones and don't contain harmful components. As more people become health-conscious customers, there is an increasing demand for organic molasses extracts.
Figure 1: Molasses Market, by Category, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Molasses Application Insights
The molasses market segmentation, based on application, includes food & beverages, animal feed, biofuel and others. The animal feed category generated the most income. The creation of concentrated animal and mineral feed makes extensive use of molasses. Especially in dry times when the availability of natural feed supplies is at its lowest, it is added as a supplement to low-quality roughage. The potassium and sulfur content of molasses extract is high. It is typically combined with urea to solve protein shortages in the cattle herd. Additionally, molasses extract's low price has expanded its appeal as a cheap stock feed supplement. The segment is growing as a result of all these factors.
Molasses Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American molasses market will dominate this market due to consumers' increased propensity to use molasses instead of sugar when making foods and beverages. Additionally, molasses is a key ingredient in manufacturing drinks like rum and lager. The primary driver of the worldwide molasses market is the growing demand for molasses as a thickening ingredient, particularly in bakeries and confectioneries. The government's supportive policies and the industrialization occurring in emerging nations will help the molasses market flourish in the upcoming years.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: MOLASSES MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe molasses market accounts for the second-largest market share due to the rising demand for changing lifestyles and the expanding consumer awareness of health and wellness. The market in this region is expanding due to a trend towards ready-to-eat sweet snacks with strong nutritional content. Further, the German molasses market held the largest market share, and the UK molasses market was the fastest growing market in the European region
The Asia-Pacific Molasses Market is expected to grow at the fastest CAGR from 2023 to 2032. The molasses market is expanding in APAC as a result of factors such as rising consumer health consciousness and expanding use of molasses as a feed component for animals. Due to changing lifestyles, rising disposable income, and several other variables, consumers are becoming increasingly interested in natural sweeteners. Moreover, China’s molasses market held the largest market share, and the Indian molasses market was the fastest growing market in the Asia-Pacific region.
Molasses Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the molasses market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, molasses industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the molasses industry to benefit clients and increase the market sector. In recent years, the molasses industry has offered some of the most significant advantages to market. Major players in the molasses market attempting to increase market demand by investing in research and development operations include Michigan Sugar Company (US), B&G Foods, Inc.(US), Crosby Molasses Co Ltd. (Canada), The Archer Daniels Midland Company (US), Cora Texas Manufacturing Company, LLC (US), Malt Products Corporation (US), Westway Feed Products LLC (US), Good Food Inc. (US), E D & F Man Holdings Limited (UK), B&G Foods, Inc. (US), Sweet Harvest Foods Inc. (US), and Domino Specialty Ingredients (US).
In 1906, six independent sugar producers consolidated their operations to form the Michigan Sugar Company. To create the organization that exists today, Monitor Sugar Company and Michigan Sugar Company amalgamated in 2004 after Michigan Sugar Company converted to a grower-owned cooperative in 2002. Three transportation and distribution facilities are run by Michigan Sugar in Michigan and the neighboring state of Ohio, along with four beetroot sugar mills in Bay City, Caro, Croswell, and Sebewaing. At any given moment during the year when sugar beets are harvested and processed, the company employs 1,500 seasonal workers in addition to its regular workforce of 700.
In 1977, Crosby Molasses Company Limited was established. Groceries and associated products are distributed wholesale by the company. The Crosby Molasses Co., one of Canada's most reputable food businesses, is known for upholding the highest standards of quality in its workforce and culinary offerings. It has brought the best molasses in the world to the East Coast of Canada and provided shops and food producers in New England. Crosby's molasses products are perfect for various food processing applications.
Key Companies in the molasses market include.
- Michigan Sugar Company (US)
- B&G Foods, Inc.(US)
- Crosby Molasses Co Ltd. (Canada)
- The Archer Daniels Midland Company (US)
- Cora Texas Manufacturing Company, LLC (US)
- Malt Products Corporation (US)
- Westway Feed Products LLC (US)
- Good Food Inc. (US)
- E D & F Man Holdings Limited (UK)
- B&G Foods, Inc. (US)
- Sweet Harvest Foods Inc. (US)
- Domino Specialty Ingredients (US)
Molasses Industry Developments
June 2021: CaneRite Panela is a natural, unprocessed and non-centrifuged sugar derived from sugar cane that was introduced by International Molasses Corporation, a US-based manufacturer of sugar cane molasses products, invert syrups, agave syrup, honey, and customized sweeteners.
October 2020: Consumer products company Universal Robina Corp (URC), based in the Philippines, paid an undisclosed sum for the land, buildings, and milling and distilling facilities for sugar and bioethanol.
October 2020: The sugar milling and bioethanol distillery facilities, together with several pieces of property, were purchased from Roxas Holdings Inc (RHI) by Universal Robina Corp (URC), a multinational consumer goods corporation headquartered in the Philippines. The purchase enables URC to concentrate on its resources in Central Azucarera Don Pedro Inc. This Philippines-based company manufactures and markets raw and refined sugar, molasses, and related goods. San Carlos Bioenergy Inc. is a company that develops and sells ethanol.
Molasses Market Segmentation
Molasses Source Outlook (USD Billion, 2018-2032)
- Sugarcane
- Sugar Beets
- Others
Molasses Type Outlook (USD Billion, 2018-2032)
- Light
- Dark
- Blackstrap
- Others
Molasses Category Outlook (USD Billion, 2018-2032)
Molasses Application Outlook (USD Billion, 2018-2032)
- Food & Beverages
- Animal Feed
- Biofuel
- Others
Molasses Regional Outlook (USD Billion, 2018-2032)
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
Molasses Market Highlights:
molasses market has witnessed significant growth in recent years, driven by the increasing demand for sweeteners, animal feed, and bioenergy. As the competition intensifies, key players are strategically positioning themselves to gain a competitive edge. In this analysis, we delve into the competitive landscape, highlighting key players, their strategies, market share factors, emerging companies, industry news, investment trends, and recent developments .
