The industrial sugar market is rapidly expanding, with beet sugar being a major crop used in food processing and in the production of ethanol and biogas. The market is expected to reach USD 59.1 billion by 2028 from USD 46.4 billion by 2023, at a CAGR of 5.0% during the forecast period in terms of value.
The growth of the industrial sugar market is attributed to the increasing demand for processed and convenience food and beverages worldwide. This article will explore the drivers, restraints, opportunities, and challenges in the global industrial sugar market, along with key players in the market.
The industrial sugar market is experiencing an unprecedented growth rate, driven by the increasing demand for white sugar. This variety of sugar is widely used in baked goods, confectioneries, and beverages, and its production has been on the rise due to technological advancements and efficient cultivation practices. According to the United States Department of Agriculture, global sugar production is expected to reach a record high in 2021/2022, with most of the production being white sugar. The affordability and accessibility of white sugar have also contributed to its popularity in the market.
Beverages have the largest market share in the industrial sugar market, with the consumption of sugar-sweetened beverages increasing worldwide. Sugary drinks sales in the United States have increased despite efforts to reduce sugar consumption. Sugar is preferred as a sweetener in beverages due to its low cost and its ability to enhance the flavor of the product.
The Asia Pacific region is a major player in the industrial sugar market due to its high consumption rate and production capacity. Countries like India and China are the largest sugar consumers in the region, and they are also major sugar producers. This ensures a steady supply of sugar to meet the high demand in the region. According to the International Sugar Organization, the Asia-Pacific region accounted for over 50% of global sugar consumption in 2020. The growth of the industrial sugar market in the region is also driven by the increase in population and income levels, which leads to a higher demand for processed and packaged food items.
Key Players in the Industrial Sugar Market
The key players in this include Südzucker AG (Germany), Cargill, Inc. (US), Associated British Foods plc (UK), Raízen (Brazil), Lantic Inc. (Germany), Mitr Phol Group (Thailand), AMERICAN CRYSTAL SUGAR (US), Louis Dreyfus Company (Netherlands), Tereos (France), and Michigan Sugar Company (US).
