The global industrial sugar market is expected to grow at a substantial rate owing to increasing demand from confectionary, cereal, dairy, and bakery applications. Furthermore, the growth of the agricultural industry, which has resulted in the high production of cane sugar is expected to have a positive impact on the production statistics of the industry.
Industrial sugar is commercially manufactured using two key raw materials including sugar cane and beetroot. Cane based sugar has been dominating the industry owing to early adoption, abundant production volumes, and high consumer preference for the product. However, changing consumer dietary habits, coupled with rising awareness regarding the health hazards associated with high sugar consumption is expected to impact the product demand over the projected period.
In terms of types, the market is segmented on the basis of white, liquid, and brown sugar. White sugar has been the most common type amongst all and dominated the market in terms of both production and consumption. High demand for the product in confectionary and bakery products is expected to propel industry growth over the projected period.
The industrial sugar market is segmented on the basis of products as powdered, granulated, and syrup. Granulated sugar is the most consumed product amongst all, which finds high demand for food & beverage, pharmaceutical, dairy, and bakery industry. Furthermore, increasing demand for the product in the manufacturing of sweets, marmalade, chocolates, and chewing gum is expected to have a positive impact on industry trends.
The increasing demand for sugar in diverse application industries is encouraging the new entrants in the market which in turn is expected to increase competitive rivalry. The manufacturers primarily compete on the basis of production capacities and regional coverage. The industry has numerous small and medium-sized local players and a few market giants, which serve globally.
Rising concern over the economic and ecological impact of huge scale sugar crop farming is expected to be the key restraining factor. Several countries across the globe devote over 25% of the agricultural land to sugarcane production. The increasing use of agrochemicals and fertilizers during the production can contaminate the course of water affecting wildlife and people. Additionally, mills release toxic gases from the combustion which is harmful to human and wildlife health. The aforementioned factors are expected to act as a restraining factor for the market growth over the forecast period.
The growing monoculture production of sugar used in industry and alternative sweeteners including stevia, raw honey, coconut sugar, and dates is expected to hinder the industrial sugar market growth over the projected period. Moreover, the increasing number of diabetic patients across the globe is expected to degrade the usage of industrial sugar hampering its demand in application industries.
Asia Pacific region is the leading industrial sugar market and this trend is expected to remain the same owing to the increasing plantation of sugarcane and rising end-use demand over the forecast period. Moreover, abundant raw material availability in the southern Asian countries such as China, India, Pakistan, and Indonesia owing to favorable atmospheric conditions, is likely to impact the industry trend on a positive note.
Brazil is one of the largest producers of sugar in the world wherein production doubled from 2000 to 2014. Moreover, in 2014, the country accounted for approximately 25% of global sugar production. It is also one of the largest exporters of sugar and is expected to remain the same over the forecast period owing to the abundant availability of raw material in the region.
As of 2016, the European Union was one of the largest producers of beet sugar comprises approximately 50% of the world's production. The region had a quota for sugar production which was eliminated in late 2016 thereby propelling the production. This is expected to reduce the cost associated with sugar production which in turn is projected to fuel the market growth over the forecast period.
The key players in the industry are Cargill, Tereos, Nordzucker Group AG, E.I.D Parry Limited, Sudzucker, AG, Archer Daniels Midland Company, Illovo Sugar (Pty) Ltd, and Nordzucker Group AG.
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