Colombia's sugar market is projected to grow at a CAGR of 5.55% to reach US$940.124 million by 2027, from US$644.328 million in 2020.
Sugar is used widely across different industry verticals such as food & beverage, and confectionary, among a few. Sugar provides the body with energy in the form of glucose, which is essential for the optimal functioning of the brain, muscles, and nervous system under normal conditions. According to the US Department of Agricultural Service, Colombia would be producing 2.3 million metric tons (MT) of sugar in the year 2022-23 as the weather conditions are expected to return to normal along with increased productivity. In 2021, Colombia filled the 56,750 MT sugar export quota under the U.S.-Colombia Trade Promotion Agreement (CTPA) and the 30,995 sugar quota under the World Trade Organization (WTO) agreement. Colombia might fulfill its 2022 and 2023 U.S. sugar quotas and additional volume if demanded. However, the production of fuel ethanol limits the increase of sugar production as sugarcane is devoted to ethanol. The facilities for ethanol and sugar production are located one near the other which makes it more efficient for the input of sugarcane to be devoted to processing either product.
Trade Insights - 2020
The Observatory of Economic Complexity data revealed that in 2020, Colombia exported $367M in raw sugar, making it the 13th largest exporter of raw sugar in the world. In the same year, raw sugar was the 12th most exported product in Colombia. Colombia exports raw sugar to the US, Peru, Chile, Haiti, and Germany. Colombia’s fastest-growing leading exporter is the US with raw sugar exports worth $95.6 million in 2020. The country also imports raw sugar, Colombia imported $104M in Raw Sugar, in 2020. It imports primarily from Brazil, Bolivia, Peru, Ecuador, and Guatemala. Colombia’s leading importer is Brazil. Raw sugar worth $ 35.7 million was imported in 2020 from Brazil.
Market Restraints
Over the years, people have significantly changed their habits toward the healthier side. Sugar, which is a staple food across the globe, can lead to severe health diseases if taken in excess. People demanding low-sugar or sugar-free alternatives is a key market restraint. This strong demand is linked to increasing cases of diabetes and obesity. Moreover, the International Diabetes Federation (IDF) estimates that the global prevalence rate of diabetes over the previous ten years was 3% per year. According to the IDF, there will be 592 million individuals living with diabetes globally by 2035. The Colombian government has also been taking initiatives to promote a healthier lifestyle.
COVID-19 Insights
The COVID-19 pandemic had drastically affected staple foods, as due to the lockdown production units were closed. It worsened the value chain. Along with that, sugar demand from hotels, retailers, bars, and other establishments was also stopped due to the nation wise lockdown. Apart from being used as a final good, it disrupted the industry where it is used as an intermediate good, such as food, and beverage. The sugar supplies to these industries were stopped, and therefore, even they had to put a halt in their operations.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Market Size Value in 2020 | US$644.328 million |
| Market Size Value in 2027 | US$940.124 million |
| Growth Rate | CAGR of 5.55% from 2020 to 2027 |
| Base Year | 2020 |
| Forecast Period | 2022–2027 |
| Forecast Unit (Value) | USD Million |
| Segments Covered | Source, Type, Application, And Distribution Channel |
| Companies Covered | Manuelita, Riopaila Castilla S.A., INCAUCA SA |
| Customization Scope | Free report customization with purchase |
Segmentation: