The global sugar market is projected to witness a compound annual growth rate of 2.69% to grow to US$72.100 billion by 2026, from US$59.890 billion in 2019. Sugar has been known as a soluble crystalline, which is used to sweeten food & beverages. The production of sugar has been primarily under the control of local and regional farmers, and also under various food & beverage industries. The market is expected to grow in the coming years, due to the rise in the consumption of sweetened food & beverages, worldwide. However, the fluctuations in prices and the increasing demand for sugar-free products are expected to hinder the market growth, in the coming years. Major companies have been making significant developments in the market, in the past few years.
For instance, in July 2021, Al Khaleej Sugar Co, owner of the world’s biggest port-based sugar refinery, had announced that it had received the green light and approval to build a factory in Spain. The move is expected to enhance the company’s presence beyond the Middle East and the North African region. The company had been planning to expand its sugar-beet processing factory. Other players have also been making significant developments in the market. In July 2021, Nigeria had announced that it had designated three companies, which also include Dangote Sugar Refinery, as the nation’s sole importers of sugar. The country’s central bank had stated that it would not provide foreign currency for importers of wheat and sugar and have been trying to enhance its local production. The firms included by the country are Bua Sugar Refinery, Dangote Sugar Refinery, and Golden Sugar Company. These trends and developments are expected to enhance market growth in the coming years.
INCREASING CONSUMPTION OF CONFECTIONERY PRODUCTS
The market is expected to grow in the coming years, due to the rise in the consumption of bakery and confectionery products, worldwide. With the growth in urban population and disposable income, the demand for high-quality bakery and confectionary food is expected to surge. According to the World Bank, 68% of the global population is expected to reside in urban areas by the year 2050. According to Katjes International, a company focusing on investments in the Western European sugar confectionery market, in the year 2019, sugar confectionary volume growth had increased by a small margin in Western Europe. The company had stated that the sugar confectionery consumption per capita has been projected to be at 2.7kg until the year 2021, Moreover, the increase in Germany’s birth rate is expected to surge the sugar confectionery market growth. The United States is also expected to play a major role in the market growth, in the coming years. According to the survey conducted by the National Confectioners Association and Chocolate Manufacturers Associations, Americans had been eating an average of 22 pounds of candy and had been consuming 2.8 billion pounds of chocolate, per year. Major companies have been making significant developments in the market, in these regions. India and China are also expected to play a major role in the market growth, due to the rise in the urban population and disposable income. The International Cocoa Organization had stated that these countries are expected to be a major driver of chocolate demand, globally.
Increasing demand for processed food
The key factor which is increasing the application of sugar in this industry is the booming demand for processed food and promising growth prospects. Sugar is used as a taste ingredient and preservative in the food processing industry. As a taste ingredient, sugar is used to sweeten the food product as per the requirement. It is also a prime ingredient as a food additive in ready-to-eat and packed food products. Growing disposable income coupled with a complex lifestyle and occupied work culture has boosted the consumption of packed food products which has hence fueled the market demand for sugar. Growing outlets and services have supported the segment growth. Furthermore, increasing delivery aggregates and services also increase the market scope. Internet penetration supported the rise of delivery aggregates and home delivery services creating robust demand for packed and processed food. Online food ordering has increased at a significant rate supporting the segment. As a preservative, sugar is dominantly used in storing sauces and dips, butter, pre-made beverages, jams, jellies, bacon, ham, and others. Sugar act as a humectant and preserves food products. Vigorous growth in the processed food industry is projected to drive in more application of sugar as an additive and preservative.
USA to OFFER GOOD GROWTH OPPORTUNITIES
According to Healthy Food America, the United States leads the world in consumption of added sugars and ranks third in the world in sales of sugary drinks. It also states that Americans eat, on average, over 25 teaspoons of sugar a day, or nearly 20 percent of their total calories. Sugary drinks are key drivers for the widespread consumption of added sugar in the U.S. and are expected to propel the growth of the sugar market during the forecast period. According to CDC, in the U.S., 6 in 10 youth (63%) and 5 in 10 adults (49%) drink a sugar-sweetened beverage on a given day. On average, US youth consume 143 calories from SSBs and US adults consume 145 calories from SSBs on a given day. Furthermore, the consumption of sugary drinks among children is on the rise in the country. According to a 2019 analysis by UConn Rudd Center for Food Policy & Obesity, sweetened drinks contributed almost two-thirds (62%) of children's drink sales in 2018, including $1.2 billion in fruit drink (90% of children's sweetened drink sales) and $146 million in flavored water sales. Regular children's fruit drinks contained a median of 65 calories per serving (ranging from 30-200 kcal) and 16 grams of total sugar (ranging from 6-52 g). Also, the marketing aimed at children and youth is further increasing the interest of children in sugary products. For instance, the analysis also found that kids aged 2-11 saw twice as many ads for sugary drinks than for other beverages.
|Market size value in 2019||US$59.890 billion|
|Market size value in 2026||US$72.100 billion|
|Growth Rate||CAGR of 2.69% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, Application, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Cargill, Incorporated, Archer Daniels Midland, Raizan SA, Sudzucker, Tereos, Nordzucker AG, Tongaat Hulett Group, Illovo Sugar (Pty) Ltd, Dangote Group, E.I.D Parry Limited, Shree Renuka Sugars Ltd.|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the sugar market size by 2026?
A1. The global sugar market is projected to reach a market size of US$72.100 billion in 2026.
Q2. What is the size of global sugar market?
A2. Sugar Market was valued at US$59.890 billion in 2019.
Q3. What are the growth prospects for the sugar market?
A3. The sugar market is projected to grow at a CAGR of 2.69% over the forecast period.
Q4. How is the global sugar market segmented?
A4. The global sugar market has been segmented by type, application, and geography.
Q5. What factors are anticipated to drive the sugar market growth?
A5. The global sugar market is expected to grow in the coming years, due to the rise in the consumption of sweetened food & beverages, worldwide.