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Mexico Sugar Market - Forecasts from 2022 to 2027

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    Report

  • 75 Pages
  • December 2022
  • Region: Mexico
  • Knowledge Sourcing Intelligence LLP
  • ID: 5716700

Mexico's sugar market is projected to grow at a CAGR of 2.41% to reach US$2,149.106 million by 2027, from US$1,819.024 million in 2020.

Sugar is used in Mexico across various industries such as fast food, confectionary, and food & beverages. Sugar provides the body with energy in the form of glucose, which is essential for the optimal functioning of the brain, muscles, and nervous system under normal conditions. According to the Foreign Agricultural Service of the US Department of Agriculture, Mexico would produce 6.3 million metric tons of raw value (MT-RV) of sugar during the year 2022-23 (October to September). The production is expected to be better than the previous year due to better weather conditions, better availability of water in reservoirs, and expected late summer rains that may improve cane yields. Mexico’s Veracruz is the top sugar cane-producing state and accounts for 41.6 percent of total production, followed by San Luis Potosi with 31 percent and Jalisco with 10 percent. Sugar consumption during 2022-23 is forecasted at 4.53 MMT-RV, with human domestic consumption at 4.16 MMT-RV.

Market Restraints

Over the years, people have significantly changed their habits toward the healthier side. Sugar, which is a staple food across the globe, can lead to severe health diseases if taken in excess. People demanding low-sugar or sugar-free alternative is a key market restraint. This strong demand is linked to increasing cases of diabetes and obesity. Moreover, the International Diabetes Federation (IDF) estimates that the global prevalence rate of diabetes over the previous ten years was 3% per year. According to the IDF, there will be 592 million individuals living with diabetes globally by 2035. The government of Mexico has also been taking initiatives to promote a healthier lifestyle. Owing to new labeling regulations and consumer preferences for lower-calorie products have slightly reduced consumption and demand in recent years in Mexico.

Furthermore, in August 2020, Oaxaca, a southern Mexican state, banned the sale and consumption of sugary drinks and high-calorie snack foods to children. Oaxaca became the first state to take a step toward its population’s health. The decision was taken as a measure to curb the increasing obesity concern among the younger population. A law was proposed regarding the same. The proposed bill also includes fines and possible closure of stores for selling soft drinks and sweets to children. The harmful damage due to the consumption of sugary drinks has been considered a health emergency.

Sugar Tax

The country has also implemented a sugar tax. An excise tax of 1 peso per liter (approximately a 10% increase in price) on sugar-sweetened drinks. The tax has been successful in reducing the consumption of soft drinks. The research was also carried out to understand the population’s response to the implementation of the sugar tax. Around 1,770 adults, (average age 47) took part in the Health Workers Cohort Study. The researchers found that after the implementation of the tax, the probability of becoming a non-consumer of soft drinks increased by 4.7 percentage points, and the probability of low consumption of soft drinks increased by 8.3 percentage points. Moreover, the probability of being in the medium and high levels of soft drink consumption decreased by 6.8 percentage points and 6.1 percentage points respectively.

COVID-19 Insights

The COVID-19 pandemic had drastically affected staple foods, as due to the lockdown production units were closed. It worsened the value chain. Along with that, sugar demand from hotels, retailers, bars, and other establishments was also stopped due to the nation wise lockdown. Apart from being used as a final good, it disrupted the industry where it is used as an intermediate good, such as food, and beverage. The sugar supplies to these industries were stopped, and therefore, even they had to put a halt in their operations.

Market Segmentation:

  • By Source
  • Cane Sugar
  • Beet Sugar
  • By Type
  • Granular
  • Powder
  • Liquid
  • By Application
  • Dairy
  • Beverages
  • Confectionery & Bakery
  • Processed Food
  • Others
  • By Distribution Channel
  • Online
  • Offline
Frequently Asked Questions about the Mexican Sugar Market

What is the estimated value of the Mexican Sugar Market?

The Mexican Sugar Market was estimated to be valued at $1819.02 million in 2020.

What is the growth rate of the Mexican Sugar Market?

The growth rate of the Mexican Sugar Market is 2.4%, with an estimated value of $2149.11 million by 2027.

What is the forecasted size of the Mexican Sugar Market?

The Mexican Sugar Market is estimated to be worth $2149.11 million by 2027.

Who are the key companies in the Mexican Sugar Market?

Key companies in the Mexican Sugar Market include BSM, Zucarmex SA De CV and Wilmar International Ltd.

Table of Contents

1. INTRODUCTION
1.1. Market Overview
1.2. COVID-19 Scenario
1.3. Market Definition
1.4. Market Segmentation

2. RESEARCH METHODOLOGY
2.1. Research Data
2.2. Assumptions

3. EXECUTIVE SUMMARY
3.1. Research Highlights

4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Force Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis

5. MEXICO SUGAR MARKET, BY SOURCE
5.1. Introduction
5.2. Cane Sugar
5.3. Beet Sugar

6. MEXICO SUGAR MARKET, BY TYPE
6.1. Introduction
6.2. Granular
6.3. Powder
6.4. Liquid

7. MEXICO SUGAR MARKET, BY APPLICATION
7.1. Introduction
7.2. Dairy
7.3. Beverages
7.4. Confectionery & Bakery
7.5. Processed Food
7.6. Others

8. MEXICO SUGAR MARKET, BY DISTRIBUTION CHANNEL
8.1. Introduction
8.2. Online
8.3. Offline

9. COMPETITIVE ENVIRONMENT AND ANALYSIS
9.1. Major Players and Strategy Analysis
9.2. Emerging Players and Market Lucrativeness
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Vendor Competitiveness Matrix

10. COMPANY PROFILES
10.1. BSM
10.2. Zucarmex SA De CV
10.3. PROMOTORA INDUSTRIAL AZUCARERA, SA DE CV
10.4. Wilmar International Ltd
*List is not exhaustive

Companies Mentioned

  • BSM
  • Zucarmex SA De CV
  • PROMOTORA INDUSTRIAL AZUCARERA, SA DE CV
  • Wilmar International Ltd