The global brown sugar market is estimated to grow at a CAGR of 8.07% from a market size of USD33.837 billion in 2019 to a market size of USD53.904 billion by 2025. Brown sugar is prepared by the addition of white sugar with molasses. The darker color of the sugar is an indication of high-amount of molasses added in the mixture. The difference between light and dark brown sugar is actually due to the addition of molasses in different amounts. The addition of molasses turns brown sugar moister and tastier in comparison to the white sugar. The growing use of brown sugar in the bakery products is burgeoning the market demand in the forecast period. Also, the growing food and beverage industry with the production of bakery products is further propelling the market growth in the forecast period. The bakery products are nowadays made in households as well with great interest, hence, brown sugar utilized as one of the bakery ingredients is predicted to fuel the market growth over the next five years. The growing FMCG industry is augmenting the market growth in the forecast period. On the basis of product type, the market is categorized into light brown sugar and dark brown sugar. Light brown sugar is utilized mostly for baking purposes, sauces, and glazes. Hence, the use of light brown sugar in food glazing will increase the market share in the forecast period. On the other hand, dark brown sugar is utilized in sturdy food recipes like gingerbread due to its rich color and flavour.
The growing beverage consumption worldwide is further propelling the market demand in the forecast period owing to the use of brown sugar in a variety of beverages.
The brown sugar is used in various beverages, this includes coffee latte, smoothies, hot green tea, mocha drink, and many more. The market is expected to fuel at a decent rate with the increasing disposable income in the developing economies of the world and a high disposable income in the developed regions. This has further increased the purchasing power of the consumers where they are capable of purchasing premium drinks such as a premium coffee. The growing preference for convenience foods and beverages is further propagating the market growth in the forecast period due to the growing urbanization and consumer adoption of the busy lifestyle in order to sustain in the fast-moving urban environment. Additionally, key beverage industry players in the global beverage industry are adopting strategies in the form of acquisitions and mergers and strategic collaborations to increase their market outreach and satiating consumer demands. The expansion of distribution channels, online and offline are further strengthening the market growth in the forecast period. Furthermore, with continuous innovations in the beverage industry, the market is propelled to grow during the forecast period.
On the basis of geography, the Asia Pacific region is projected to hold a notable share in the market owing to an expanding middle-class population that provides a high consumer base. The growing disposable income, increasing family income, and increasing urbanization with an evolving consumer lifestyle is further augmenting the market demand in this region.
Furthermore, there are many regions around the globe with a strong prevalence of beverage drinking, for example, tea or coffee, hence, the market in these regions are predicted to offer strong growth prospects in the forecast period.
For instance, coffee drinking is prevalent in Portuguese culture; hence, people prefer drinking coffee at home as well as outside their homes, in restaurants and cafes. The prevalence of coffee drinking for pleasure among the citizens of Portugal is predicted to drive the market demand in the forecast period. In order to meet friends and socialize, coffee drinking is observed as an excuse. On the other hand, when outside the home environment, the espresso is the most preferred drink in the country. Also, coffee drinking among the Portuguese is most preferred outside the home environment, in cafes, kiosks, and restaurants, hence, a café on every street is found due to the prevailing culture of dining out rather than inside, such dominant culture of beverage consumption like coffee is providing an impetus in soaring the market growth in the forecast period.
Other factors such as stress at work and a more active lifestyle will continue to increase tea or coffee consumption, further strengthening the market growth in the forecast period. Furthermore, the growing active role of women in the society where coffee drinking among women is projected to rise and tend to gain an equal share with that of men is propelling the market growth during the forecast period. The growing home consumption of fine coffee is further burgeoning the market demand in the forecast period. However, the younger generation tends to have a slight disliking for bitter coffee, hence, for them, other varieties of coffee with milk such as coffee latte or cappuccino are projected to propel the market demand over the next five years.
The surging bakery industry is propagating the market demand in the forecast period.
The increasing consumption of baked goods is likely to augment the market growth in the forecast period. The change in the consumption patterns of the individuals is providing an impetus to the soaring market growth with the application of brown sugar in the bakery industry. The increasing spending ability of the people has given rise to the purchase of highly-prized bakery goods. The hygroscopic nature of molasses in brown sugar is more in demand than the traditional white sugar, as the raw sugar provides better mixing with bakery ingredients, further burgeoning the market growth in the forecast period. Hence, making a bakery item with brown sugar will lead to a softer and moister baked item, also, this imparts rich color to the baked product. Furthermore, the emergence of frozen bakery products is further increasing market demand. The millennials are used to consuming bakery products that suit their fast-paced lifestyle without compromising with the health benefits. Bakery products manufacturers also target millennials as their active consumers and prepare food items according to the present food habits of this group of the population.