The Malaysia sugar market is predicted to expand at a CAGR of 0.92% to account for US$1,024.785 Million by 2030 from US$978.998 Million in 2025.
Sugar is a key component of food and is used across multiple industries worldwide. It offers multiple applications in industries like food & beverage, and pharmaceuticals, where it is used as a sweetener, preservative, fermentation substance, flavoring, and coloring agent, among others. Sugar is generally obtained from sucrose, which is mainly concentrated in sugarcane plants or sugar beets.
The growth of the nation’s population is among the major driving forces propelling the Malaysian sugar market forward. Sugar is among the most consumed food products globally, either raw or in many other forms. With the rise of the nation’s population, the consumption of sugar across multiple industries is forecasted to increase.
The Department of Statistics Malaysia, in its total population, reports that in 2024, the total population of the nation was recorded at 34.1 million. The population of the nation has grown significantly over the past few years. In 2021, this figure was recorded at about 32.6 million, which grew to 32.7 million in 2022 and 33.4 million in 2023.
One of the major driving factors propelling the Malaysian sugar market is the growing demand for sugar across multiple industries in the nation. The increasing population of the nation also propels the human consumption of sugar.
The Foreign Agriculture Service of the US Department of Agriculture, in its report, stated that the consumption of sugar grew massively in the nation. The agency stated that in 2021-22, a total of 1,675 thousand metric tons of sugar was consumed in the nation, which expanded to 1,889 thousand metric tons in 2022-23. The total sugar consumed in Malaysia in the 2023-24 financial year was recorded at 2,000 thousand metric tons by the agency.
In Malaysia, granulated sugar is generally more prominent than any other type, consisting of fine, medium, or coarse grains. Urbanization is another key driver for Malaysia’s granulated sugar sector. As people move into cities, they develop an appetite for processed foods and drinks whose ingredients include sugars that are usually granulated. Moreover, processed foods, which are more readily available in cities compared to rural areas, have contributed significantly to the surge in demand for granulated sugars, enhancing their market growth.
Malaysia’s major players in the granulated sugar industry, such as MSM Malaysia Holdings Berhad, reflect their footprint in their earnings. In 2023, MSM Malaysia Holdings' annual reports say that its revenue grew to RM3091.223 million.
The Malaysian sugar market is expected to propel the food and beverage segment, owing to the increasing demand for processed food and soft drinks in the country. The growing food processing industry is one of the other major reasons for boosting the market growth in the coming years. For instance, according to the Ministry of Investment, Trade, and Industry, the total investment in food manufacturing in the country in 2021 and 22 together was RM 8.9 billion. Additionally, the investment in the beverages and tobacco segment in the same period was RM 0.14 billion. Hence, the increasing investment is anticipated to fuel the market growth in the coming years.
Moreover, according to the Food and Agriculture Organization of the United Nations (FAO), the sugar industry in Malaysia is rising rapidly, owing to direct rapid consumption supported by the equally rising processed food industry. The country is importing sugar and raw sugar cane to meet the growing demand from the end-use industries. According to the Malaysian Investment Development Authority (MIDA), the food processing sub-sector is crucial for Malaysia’s diversified economy, as it offers high-value food product manufacturing opportunities. The food processing sector contributed about 11% of Malaysia’s manufacturing output in 2023. RM 3.2 billion was the approved investment in 2023. Hence, the growing food processing sector is anticipated to boost the market for sugar in Malaysia in the projected period.
The increasing sugar imports from other countries are expected to have a positive impact on the food and beverage sector in the forecasted period. For instance, according to the Observatory of Economic Complexity (OEC), the country imported raw sugar worth US$844 million in 2022 and became the 8th largest importer of sugar. Brazil, India, Thailand, South Africa, and China were the major destinations from which Malaysia imported sugar. The import value of raw sugar from these countries was US$386 million, US$214 million, US$197 million, US$34.9 million, and US$4.44 million, respectively. Hence, the growing food processing sector in the country, coupled with increased demand for baked goods and confectionery products, is propelling market growth in the coming years.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Malaysia Sugar Market Size in 2025 | US$978.998 Million |
| Malaysia Sugar Market Size in 2030 | US$1,024.785 Million |
| Growth Rate | CAGR of 0.92% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2025 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Million |
| Segmentation |
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| List of Major Companies in Malaysia Sugar Market |
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| Customization Scope | Free report customization with purchase |
The Malaysia sugar market is segmented and analyzed as below: