Sugar Coated: Unraveling the Sweet Industry

Sugar Industry Overview

The global sugar market size was estimated at USD 66.39 billion in 2023 and is projected to grow at a CAGR of 6.5% from 2024 to 2030. The increasing global population leads to a higher demand for sugar as it is a key ingredient in many food and beverage products. Changes in consumer preferences towards sweetened goods and beverages also play a significant role in driving the market growth.

Moreover, the food industry heavily relies on sugar for various products like confectionery, baked goods, and processed foods, further boosting demand. Economic development in emerging markets results in higher disposable incomes, leading to increased consumption of sugar-based products. In addition, the use of sugar in biofuel production, government policies, subsidies, and health and wellness trends advocating for reduced sugar consumption all contribute to shaping the market growth.

Gather more insights about the market drivers, restrains and growth of the Sugar Market

Societal shifts in dietary habits, especially prevalent in emerging economies, contribute to the rising consumption of sugar. As incomes rise and lifestyles become more fast-paced, people increasingly turn to processed foods, sugary snacks, and beverages for convenience. This inclination towards convenience foods, often laden with sugars, fuels the demand for sugar within these markets. The continual expansion of the food and beverage industry, encompassing segmentation such as confectionery, bakery, and beverages, serves as a major catalyst for the market. Sugar remains a fundamental ingredient in countless food and beverage products, ranging from soft drinks to pastries. The industry's growth inevitably translates into heightened demand for sugar to meet production needs.

The utilization of sugar crops, such as sugarcane, and sugar beets, for biofuel production further bolsters the demand for sugar. In regions where biofuel mandates or incentives exist, there's increased cultivation of sugar crops for this specific purpose, creating additional demand pressure on the global market.

Processed foods, which are a mainstay in modern diets due to their convenience and longer shelf life, often contain added sugars for various purposes. One of the primary reasons for adding sugar to processed foods is flavor enhancement. Sugar has a unique ability to enhance the taste profile of food products, making them more palatable and appealing to consumers. From sweetening beverages to balancing the flavors in savory snacks, sugar plays a crucial role in creating desirable taste experiences. Moreover, sugar serves as a preservative in many processed foods, helping to extend their shelf life by inhibiting microbial growth and preventing spoilage. This is particularly important for packaged and pre-prepared foods that need to maintain their quality over extended periods, especially in distribution and retail settings.

The availability of a wide variety of sugary products in the market fuels the market growth through multiple channels. With diverse options catering to varying tastes and preferences, consumers are more likely to indulge in sugary treats and beverages, expanding the consumer base and driving overall consumption rates. Enhanced accessibility across retail channels further encourages impulse purchases and regular consumption habits. Coupled with aggressive marketing efforts promoting sugary products as desirable and enjoyable, consumer demand remains consistently high, sustaining the need for sugar as a key ingredient in food and beverage manufacturing. As a result, the market growth is driven by the pervasive presence and popularity of sugary products in the market.

Browse through Grand View Research's Consumer F&B Industry Research Reports:

• The global fortified dairy products market size was estimated at USD 117.34 billion in 2023 and is projected to grow at a CAGR of 5.9% from 2024 to 2030. The growing health awareness, nutritional deficiencies, and evolving consumer preferences are accelerating the market growth over the forecast period.

• The global moringa juice market size was estimated at USD 248.6 million in 2023 and is expected to grow at a CAGR of 10.7% from 2024 to 2030. The increasing consumer awareness about the health benefits of moringa oleifera, often referred to as the "miracle tree," has significantly boosted the demand for moringa juice.

Key Companies profiled:

• Südzucker AG

• Tereos

• Cosan

• Mitr Phol Group

• Associated British Foods plc

• Nordzucker

• Texon International Group

• Biosev (Louis Dreyfus)

• Wilmar International Ltd

• Thai Roong Ruang Sugar Group

Order a free sample PDF of the Sugar Market Intelligence Study, published by Grand View Research.

Key Sugar Company Insights

Brand market share analysis indicates that key market players are focusing on strategies such as new product launches, partnerships, mergers and acquisitions, global expansion, and others. Some of the initiatives include:

• In August 2023, Sugar Refinery Sdn Bhd (CSR) launched its latest product, Better White Clear White Sugar, aiming to reinforce its position as Malaysia's premier sugar specialist. This introduction follows the success of CSR's Better Brown variant, which was introduced in 2018 to promote healthier sugar consumption and has since dominated 78% of the brown sugar segmentation in Malaysia. Better White aims to meet rising consumer expectations by offering high-quality sugar products at fair prices

• In September 2023, British Sugar, and Sidel announced a groundbreaking partnership to introduce an innovative end-of-line solution for the first time. British Sugar, a subsidiary of Associated British Foods plc and a leading sugar producer in the Irish and British food and beverage markets, stands to benefit from this collaboration. Demonstrating a firm commitment to meeting market demands and exceeding retailer expectations, British Sugar processes approximately 8 million tonnes of sugar beet annually, resulting in up to 1.2 million tonnes of sugar production. The objective of this initiative is to replace British Sugar's outdated end-of-line system, which has been operational for over 38 years, with a cutting-edge solution. This new system will be equipped to manage high levels of complexity and automation, ensuring efficient handling of multiple SKUs

• In August 2023, Mumbai-based UPL Sustainable Agriculture Solutions (UPL SAS) and Hyderabad's NSL Sugars signed an MoU to promote sustainable sugarcane production practices. UPL SAS aims for market penetration while NSL seeks benefits from sustainable cultivation. The partnership targets a 15% increase in sugarcane yield per acre, equivalent to 5 metric tonnes