Cane Sugar Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global cane sugar market is witnessing a CAGR of 5.3% during the forecast period (2022-2027).

The global pandemic COVID-19 has negatively affected the supply of cane sugar across the globe. India and Brazil are the most prominent raw cane sugar producers and are facing disruption in the distribution channel system due to the pandemic. According to the General Authority of Statistics, the average price of sugar increased during the pandemic as compared to the average price of sugar in 2019 due to the lack of availability of laborers and government restrictions. The sales of cane sugar through food service had been partly offset by growth in retail sales. For instance, Herfy Food Services, a Saudi food service company, reported a 16.40% drop in its revenue from the year 2019 to 2020 due to the impact of COVID-19 (as per the annual report of Savola Group).

The market is mainly growing owing to the abundance of sugarcane availability, coupled with other properties such as better flavor and caramelization, which are superior to beet sugar. Also, innovations in the existing conventional sugar, such as brown cane sugar, which consists of added molasses to enhance flavor and appearance, by the leading global players as well as the small domestic players have fueled the market growth.

However, with the development of other better sugar substitutes such as coconut sugar and stevia and regulations imposed by the regulatory bodies and health organizations owing to its negative health effects, consumers have shifted preferences toward artificial sweeteners and are thus restraining the global cane sugar market.

Key Market Trends

Increased Trade of Organic Cane Sugar

Organic cane sugar has witnessed a rise in export and import. Despite overall sugar consumption criticism, organic sugar offers key attributes that are drivers of consumer demand growth. These attributes include its availability, texture, cost, eco-friendliness, nutrition benefits, and rich sugarcane flavor over regular conventional cane sugar. As organic cane sugar retains all of the nutrients found in its original state, it also has a special molasses aroma that attracts consumers. Few countries, such as the United States, where there is no significant source of organic cane sugar capable of supporting domestic demand and the estimated consumption of total sugar in the country is approximately 200,000MT in 2019. Therefore, most organic cane sugar marketed in the country (both in retail and as an ingredient) is imported.

Asia-Pacific Region To Witness Fastest Growth

Asia-Pacific has witnessed the fastest growth in the global cane sugar market' where India, Thailand, and China account for the largest share in the regional market, owing to the volume of sugarcane harvested and processed into sugar in these countries. Also, the shift from cassava to sugarcane production because of the higher returns and lowering of sugar prices are causing farmers of countries such as Thailand to prefer shifting towards cane sugar production. It is also anticipated to dominate the market share of cane sugar, owing to the rate of consumption and revenue growth. Also, several market players in the food and beverage industry have witnessed high consumption levels.

Competitive Landscape

The global market for cane sugar is fragmented, owing to the presence of large regional and domestic players in different countries. The major players are Global Organics, Ltd., DO-IT Food Ingredients BV, Louis Dreyfus Company B.V., Louis Dreyfus Company B.V., and Raízen. Emphasis is given to the merger, expansion, acquisition, and partnership of the companies along with new product development as strategic approaches adopted by the leading companies to boost their brand presence among consumers. For instance, in 2020, Durrah received fuel allocation from the Ministry of Petroleum to begin construction on its Jizan refinery. Other than expansion, investment in branding sugar products is also another strategy adopted by major players.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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