Industrial Sugar Market Size, Share, Industry, Forecast and Outlook (2024-2031)

Global Industrial Sugar Market is Segmented By Type (Brown Sugar, White Sugar, Syrup Sugar), By Form (Granulated, Syrup, Powder), By Source (Sugar cane, Sugar beet), By Application (Food and Beverages, Nutritional Supplements, Animal Nutrition, Personal Care and Cosmetics, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

Industrial Sugar Market Overview

Global Industrial Sugar Market reached US$ 40.6 billion in 2022 and is expected to reach US$ 60.9 billion by 2030, growing with a CAGR of 5.2% during the forecast period 2023-2030.

The industrial sugar market occupies a central position within the global economy, functioning as a fundamental ingredient across a spectrum of products and industries. Its operations unfold within a dynamic and ever-evolving context, influenced by population growth, evolving consumer preferences, and the worldwide trade of sugar. The sustainability expectations are counterbalanced by prospects for innovation, adaptability, and ethical sourcing.

As the global population continues to burgeon, the industrial sugar market is set to play a pivotal role in fulfilling the demands of a changing global consumer base while navigating health and environmental considerations. The industry's adaptability, innovative capacity, and its ability to respond to shifting consumer preferences and regulatory changes are essential in shaping the future trajectory of the global industrial sugar market.

Similarly, North America dominates the industrial sugar market, capturing the largest market share of over 1/3rd. North America, with countries like the U.S., and Canada, represents a significant market for industrial sugar. The demand for industrial sugar in this region is characterized by several driving factors and applications across various industries.

Industrial Sugar Market Scope

For more details on this report Request for Sample

Industrial Sugar Market Dynamics and Trends

Emerging Applications of Sugar

The industrial sugar market is experiencing a notable diversification of applications beyond its traditional uses. This evolution is propelled by innovation, shifting consumer preferences, and technological advancements, which are broadening the horizons of the sugar industry. One of the prominent frontiers of sugar application is biofuels, particularly ethanol production. Sugar derived from crops like sugarcane is fermentable, resulting in the creation of ethanol.

In April 2023, Toray Industries, Inc. and Mitsui DM Sugar Co., Ltd. demonstrated that they had collaboratively proven and developed a fundamental technology to produce sugar from inedible biomass, a common raw material used in the production of fiber and resin. The biomass consists of pulp from squeezing cassava at starch plants and leftover bagasse, a pulpy waste from sugarcane processing.

Various Governments are supporting for the production of sugar-derived ethanol. In July 2023, Union minister Piyush Goyal launched a new Sugar-Ethanol site as a major step towards encouraging renewable energy sources and lowering reliance on fossil fuels. The portal was launched at the 'National Conference of Food Ministers of States/UTs' with the objective of augmenting the yield and application of sugarcane-derived ethanol in India.

However, the pharmaceutical industry recognizes sugar's versatility, utilizing it as an excipient in medication formulations. Sugar serves as a filler and binder in tablet production, offering bulk and aiding in compression. Moreover, sugar-based syrups enhance the palatability of liquid medications, rendering them more acceptable, especially for pediatric and geriatric patients.

Sugar's natural exfoliating properties have led to its integration into cosmetic and personal care items. Sugar scrubs are renowned for their capacity to eliminate dead skin cells, leaving skin smoother and rejuvenated. Additionally, sugar-based formulations are featured in body washes, shampoos, and other personal care products.

Expanding Confectionery and Bakery Sectors

The industrial sugar market shares an intrinsic connection with the confectionery and bakery sectors, both of which have long relied on sugar for its role in delivering sweetness, texture, and flavor to an extensive array of delectable creations. This exploration delves into the pivotal role played by the confectionery and bakery sectors in driving the industrial sugar market.

Confectionery and bakery products hold a timeless and universal allure, transcending cultural boundaries. These offerings are synonymous with celebrations, indulgence, and the simple pleasures of life. From sumptuous cakes and cookies to irresistible candies and chocolates, the confectionery and bakery sectors present a captivating assortment of treats that have become integral to one’s daily life.

Sugar stands as the major ingredient in both the confectionery and bakery sectors. Its multi-faceted role is irreplaceable, molding the flavor, texture, and overall desirability of products. Sugar primarily functions as a sweetening agent, bestowing the delightful sweetness that characterizes confectionery and bakery items. It forms the foundation of the delectable taste that consumers savor.

Sugar's capacity to lower water activity serves as a natural preservative by hindering microbial growth, thereby extending the shelf life of numerous confectionery and bakery products. This property contributes significantly to product longevity. In certain bakery items, sugar plays a supportive role in the leavening process. For instance, in yeast-based bread, sugar serves as a nutrient source for yeast, stimulating fermentation and the production of carbon dioxide, which causes the dough to rise.

Health Concerns and Sugar Consumption Regulation

The increased knowledge of health risks connected with excessive sugar consumption and the regulatory actions taken to mitigate these risks are the main factors limiting the industrial sugar business. Customers are actively looking for low-sugar or sugar-free alternatives as they become more health-concerned due to growing awareness of the dangers associated with consuming large amounts of sugar. The traditional sugar sector has difficulty as a result of this shift in consumer preferences because it now needs to meet the demand for healthier options.

Furthermore, governments worldwide are implementing regulations and levying taxes to curb sugar consumption. Sugar taxes and labeling requirements are becoming commonplace, pressuring sugar manufacturers to reformulate their products. These factors constitute a substantial restraint in the market, compelling the industry to innovate and develop healthier sugar alternatives while aligning with evolving regulations.

Competition from Sugar Alternatives

The ascent of sugar alternatives poses a substantial restraint within the industrial sugar market.  Alternative sweeteners like erythritol, stevia, and extracts of monk fruit are growing ever more popular as individuals are actively seeking out alternatives that are healthier and reduce off their sugar intake. Many sugar replacements are appealing to consumers who are health-conscious because they offer sweetness with fewer or no calories and no effect on blood sugar levels.

The competitive challenge posed by sugar alternatives compels traditional sugar producers to diversify their product portfolios and explore strategies for sugar reduction and reformulation. This shift in consumer preference presents a restraint, necessitating adaptability and innovation within the industrial sugar market to maintain competitiveness in an evolving landscape.

Industrial Sugar Market Segmentation

The global industrial sugar market is segmented based on type, form, source, application, and region.

Demand for Brown Sugar Fuel Surge in Industrial Sugar Market

The brown sugar segment held 41.1% of the global market share. The unique qualities of brown sugar make it a versatile ingredient in various culinary applications. Its caramel flavor is essential for achieving the desired taste and texture in these sweet treats. Some cocktails and specialty coffee drinks incorporate brown sugar to add sweetness and depth of flavor. Brown sugar is used in various sauces and glazes for dishes such as ham, salmon, and sweet and sour chicken, providing a delightful sweetness and sheen.

Brown sugar's less refined nature and "natural" image align with consumer preferences for less processed ingredients. Brown sugar is a common ingredient in a range of global cuisines, from American barbecue to Asian stir-fries and sweet and sour dishes. Its use in diverse culinary traditions contributes to its consistent demand. Brown sugar is globally significant due to its role in diverse culinary traditions. It is integral to many national and regional dishes.

The manufacturers are integrating brown sugar into their product portfolio. For instance, in September 2023, With the launch of its new SOWN Brown Sugar Organic Oat Creamer, SunOpta, a U.S.-based company, announced that its brand SOWN®, a pioneer in the field of organic oat coffee creamers, is expanding its product flavor lineup and aiming to bring decadent coffeehouse flavors to homes this fall. The new SOWN Brown Sugar Organic Oat Creamer, expertly created to order, melds the warming essence of brown sugar.

Global Industrial Sugar Market Geographical Share

Rising Sugar Consumption in North America

The North America industrial sugar market held the largest market share of 38.3% in 2022 in the industrial sugar market analysis. The industrial sugar market in North America has experienced substantial expansion, propelled by a range of factors such as shifting consumer preferences, and the versatile applications of sugar within the food and beverage industry. This growth is marked by increased production, evolving consumption patterns of consumers.

North America boasts a vibrant and diversified food and beverage industry, encompassing various segments such as soft drinks, and processed foods. Industrial sugar serves as a pivotal element in all of these sectors. The region is not only considered as a growing area in international trade, it  is also a major consumer of industrial sugar, which is driving the market growth in the region during the forecast period.

The United States Department of Agriculture (USDA) estimates that the sugar consumption in the U.S., has led to a significant portion of demand in North America, and has remained mostly constant over the years. The U.S. per capita sugar consumption in 2022 was approximately 69.5 pounds, indicating the ongoing need for sugar-containing products.

Industrial Sugar Market Companies

The major global players in the market include ADM, Cargill Incorporated, Bunge Limited, Wilmar International, Tereos, Südzucker AG, Louis Dreyfus Company, Mitr Phol Group, Rogers Sugar Inc. and Imperial Sugar Company.

COVID-19 Impact Analysis

The industrial sugar market was significantly affected by the COVID-19 pandemic. The emergence of the virus brought forth a series of challenges and opportunities for the sugar industry. Measures such as lockdowns, disruptions in supply chains, and changes in consumer behavior had a substantial impact. On one hand, the closure of restaurants, cafes, and other foodservice establishments led to a notable drop in the demand for industrial sugar used in the hospitality sector.

The pandemic also prompted the sugar market to adapt to logistical challenges stemming from movement restrictions, which affected transportation and import-export operations. This underscored the importance of having resilient and adaptable supply chains. The global sugar market experienced fluctuations in pricing and supply dynamics as it maneuvered through the different phases of the pandemic. This crisis highlighted the need for the industry to maintain flexibility and agility to respond to shifting demand patterns.

Russia-Ukraine War Impact Analysis

The conflict between Russia and Ukraine has had substantial implications for the industrial sugar market. Ukraine is a major producer of sugar beets and sugar, and the conflict introduced uncertainties in the agricultural sector. Disruptions in agricultural activities in the region had adverse effects on sugar supply. Moreover, the fluctuation in the value of currencies, particularly the Russian ruble and Ukrainian hryvnia, influenced trade and import-export dynamics in the sugar market.

Geopolitical tensions and disruptions in agricultural production underscored the importance of diversifying sources of sugar supply. Import-dependent countries in the region had to explore alternative sources for their sugar requirements as the conflict introduced an environment of uncertainty and risk. This emphasized the vulnerability of relying on a single source for sugar and highlighted the necessity of establishing more robust and adaptable supply chains within the industry.

Key Developments

• In September 2023, A brown sugar alternative named Brown Lakanto was nationally introduced in Australia by the all-natural sugar substitute company Lakanto. Brown Lakanto, according to the manufacturer, is a sugar alternative that has 93% fewer calories and zero carbohydrates while yet providing the molasses-like flavour profile of brown sugar. Non-GMO erythritol and monk fruit extract are the ingredients in the company's sweeteners.
• In April 2022, Flour Mills of Nigeria Plc, Nigeria's leading integrated food business and agro-allied group, announced the launch of its Sunti Brown Sugar, reaffirming its commitment to the backward integration strategy of the Nigerian Sugar Master Plan and the overall growth vision of the country's sugar industry.
• In March 2021, Dalmia Bharat Sugar and Industries Ltd. (DBSIL) announced the debut of its packaged sugar under the brand name "Dalmia Utsav" in an effort to attract wider customers. DBSIL introduces Sulphur Free White Crystal Sugar and Natural Brown Sugar in branded packets and sachets across markets in India.

Why Purchase the Report?

• To visualize the global industrial sugar market segmentation based on type, form, source, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of industrial sugar market-level with all segments.
• The PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global industrial sugar market report would provide approximately 68 tables, 69 figures and 212 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies