Top Trends in the Industrial Sugar Industry

What Is Industrial Sugar?

Refined sugar is often consumed in households, whereas industrial sugar is produced and used on a huge scale for various industrial applications. Industrial sugar, which is mostly made from sugarcane and sugar beet, is used in many different industries, such as chemicals, food and beverage, and medicines. Industrial sugar is utilized in many pharmaceutical products as a preservative, binder, and sweetener. Pharmaceutical companies need more industrial sugar because chronic diseases are getting more prevalent and customers are growing more health-conscious.

 

Growth Prospects in the Industrial Sugar Market

1. Growing use in processed foods and drinks to aid in market expansion

Globally, the food and beverage business is booming. Numerous food and beverage sector categories have grown significantly as a result of the growing emphasis on innovation, the creation of new goods, and the shift in consumer demand. Because it has so many uses, sugar has become an essential component in the food processing sector. The market's expansion is mostly being driven by customers' increasing desire for processed foods and drinks. In addition, sugar is widely utilized in both alcoholic and non-alcoholic drinks. Demand for dairy products, soft drinks, and functional beverages has substantially increased as a result of the growing trend of drinking as a snack.  

 

2. Growing urban development and population

The need for industrial sugar is fueled by the growing demand for food and beverages brought on by the world's population growth. In addition, consumers' dietary and lifestyle choices have changed as a result of growing urbanization, with a growing preference for sugar-filled beverages and convenience meals. As a result, there is a greater demand for sugar-based goods including candy, packaged snacks, and soft beverages. Additionally, shifting customer tastes and preferences have aided in the expansion of the industrial sugar market. The demand for industrial sugar has increased in line with consumers' growing need for sweet and flavorful products. In the upcoming years, the industrial sugar market is anticipated to continue expanding due to the rising demand for goods made with sugar.

 

Global Expansion of the Industrial Sugar Market

The Global Industrial Sugar Market size was valued at USD 51.64 billion in 2022 and is projected to USD 96.75 billion by 2032, exhibiting a CAGR of 6.48% during the forecast period 2022-2032. The top companies in the global industrial sugar market include Südzucker AG, Cargill, Inc., Associated British Foods plc, Raízen, Lantic Inc., Mitr Phol Group, AMERICAN CRYSTAL SUGAR, and Louis Dreyfus Company.

 

Challenges in the Industrial Sugar Industry

1. Easy accessibility of Alternatives and Substitutes

The use of alternatives and substitutes is growing in the global industrial sugar market. Numerous factors, such as changing consumer preferences, health and sustainability concerns, and legislative changes, are contributing to this trend. In the industrial sugar market, sugar cane and sugar beet have historically been the main sources of sugar. However, the investigation and application of alternatives to conventional industrial sugar have been spurred by shifting consumer needs and market realities.

 

Regional Insights into the Global Industrial Sugar Market

• The industrial sugar market is dominated by Asia Pacific, which is also expected to grow at the fastest rate. The demand from the processed food industry is expected to drive a rapid expansion in the region's use of sugar. The main nations included in this study are China, India, Japan, and other Southeast Asian nations. Promising opportunities for expansion and diversification in the region's food industry are presented by the growing middle class, increased spending power, and growing consumer demand for processed foods.

 

Trends in the Industrial Sugar Industry

1. Growing consumer demand for healthier products will affect market development

There has been a notable change in the consumption pattern in recent years. In particular, people's growing awareness of obesity and diabetes is what is driving this. Organic sugar has increased consumer preference for healthier food items. For example, one of the most important ingredients in organic processed food items is organic sugar, according to the U.S. Department of Agriculture. Moreover, USDA data indicates that the CAGR growth of organic food items has been larger than that of the food market as a whole. In the U.S. market for processed foods, organic food items have been rapidly gaining traction. Therefore, during the course of the projected period, the worldwide organic sugar market will rise due to the growing demand for organic and healthful food products.

 

2. Expanding market for commercial beet sugar

The industrial sugar sector is still expanding quickly. Beet sugar, a major industrial commodity used in food processing and the production of ethanol and biogas, is one of the main drivers of this increase. The sugar beet crop provides a useful substitute for sugarcane, primarily in tropical nations. Production and consumption of industrial beet sugar have historically shown an increased trend. Throughout the projected time, it is probably going to develop quickly. The drinks segment is expected to offer the highest market attractiveness in the worldwide industrial beet sugar market, based on industry consumption. Additionally, throughout the forecast period, it is anticipated that the introduction of a new class of consumers and the entry of numerous new international companies would support the expansion of the industrial beet sugar business internationally.

 

3. The market is expanding due to the rising demand for sweet confections.

The market is growing as a result of the increased demand for confections, particularly in expanding Asia Pacific and Middle Eastern countries. In nations like China, India, and Indonesia, millennials and kids are starting to enjoy a variety of creative confections. Premium confections are regarded as superior gifts in nations like China, Singapore, and Japan respectively. As a result, there is now a greater need for sweet confections. Additionally, the industry is expected to grow even more in the next years as a result of manufacturers' growing emphasis on creating novel sweets and chocolate bars to appeal to a wider range of consumers.

 

4. The growing popularity of natural and organic sweeteners

There is a growing demand for natural and organic sweeteners as a viable substitute for traditional refined sugar as more consumers take wellness and health measures. By expanding their product lines to include organic and natural sugar varieties, new market participants are taking advantage of this trend in the industrial sugar industry. They come from a variety of plant-based sources, including sugarcane and sugar beets. In order to attract health-conscious consumers who favor clean-label products with greater transparency, startups should provide non-GMO and organic sugar options.

 

5. A rise in the import and export of organic sugar

A commodity that is traded extensively on the global market is industrial sugar. India is a well-known nation that produces and exports industrial sugar to other countries. Organic cane sugar is now more widely imported and exported. Despite the general disapproval of sugar intake, organic sugar has important qualities that are increasing customer demand. These characteristics include availability, texture, cost, nutritional advantages, eco-friendliness, and a rich sugarcane flavor that set it apart from conventional cane sugar. Customers are drawn to organic cane sugar because it retains all of the nutrients present in its natural state and has a distinctive molasses scent. The bulk of organic cane sugar sold in the nation (both retail and as an ingredient) is imported because few nations, like the US, have a substantial supply of organic cane sugar that can satisfy domestic demand, and the nation's total sugar consumption is predicted to be around 200,000MT in 2019.

 

Conclusion

The increasing demand for processed foods, beverages, and pharmaceutical uses is driving significant expansion in the industrial sugar sector. Global urbanization, changing eating habits, and the growing demand for natural, organic, and health-conscious sweeteners are some of the main factors. Although conventional sugar sources like sugarcane and sugar beet are still widely used, organic cane sugar and beet sugar are becoming more popular as consumers' concerns about environmental sustainability and health grow. The sector is still developing despite competition from alternatives, particularly in Asia Pacific, where there is a growing demand for sweetened beverages and snacks. It is projected that this dynamic market will expand due to increasing customer demands and cutting-edge sugar products.

 

About the Spherical Insights & Consulting

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