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India Sugar Market - Forecasts from 2022 to 2027

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  • 78 Pages
  • January 2023
  • Region: India
  • Knowledge Sourcing Intelligence LLP
  • ID: 5716795

The India sugar market is anticipated to expand at a CAGR of 7.24% over the course of the forecast period, from US$5.943 billion in 2020 to a total market value of US$8.816 billion by 2027.

Several soluble carbohydrates with a sweet flavour and that are used in food are collectively referred to as sugar. After being extracted from the sugar beet or sugar cane plant, sugar can then be transformed into a variety of forms. Sugar is used in both food and non-food industries. Sugar has a number of important applications in the food sector along with providing a sweet taste. It serves as a preserver and prevents the growth of bacteria.

However, the younger population is switching to low-calorie sugar or artificial sweeteners, which could constrain the market in the region.

Consumption in the food industry to boost the sugar market in India

With high demand for processed food and beverage items, ice cream, baked goods, confections, mithai (Indian sweets), and other products that use sugar as a key ingredient, consumer product demand has largely increased. The increase in weddings, catering, and events has also helped India's largely unorganized restaurant industry, which accounts for some of the country's highest sugar consumption points, recover. Retail and institutional sugar demand in the nation will be driven by expectations of a successful holiday season and ongoing favorable demand. Additionally, leading players' increased investment and product innovation along with new product launches may further support the market's expansion.

Key Developments:

  • March 2021: Wilmar International Ltd has increased its ownership stake in Shree Renuka Sugars Limited (SRSL) to 62.48%. The annual cane-crushing capacity of SRSL is 8.4 million MT. India, the second-biggest producer of sugar in the world, has SRSL as its top miller and largest sugar refiner. The future is looking better for SRSL thanks to increasing sugar prices. The activities of SRSL, which is now a Wilmar International subsidiary, include refining raw sugar, producing sugar and ethanol from sugarcane, and selling, distributing, trading, and/or branding sugar and ethanol. Due to higher sugar prices and no asset impairment in India in 2021, the pre-tax profit for the Sugar Milling business climbed by more than five times, from US$104.8 million to US$564.1 million.
  • April 2021: India's centrifugal sugar production is anticipated to reach 34.7 million metric tonnes (MMT) in marketing year (MY) 2021/2022 (October-September), up 3% from the previous year, according to FAS New Delhi. This estimate takes into account 34.1 MMT of milled sugar and 600,000 MT of khandsari (equivalent to 31.8 MMT of crystal white sugar). In India, efforts are also being made to revive closed and inactive sugar mills in the states of Uttarakhand, Bihar, and Karnataka, which could help with increased sugar production. Since the domestic supply is predicted to be sufficient to meet demands for both consumption and stocks, imports are predicted to be minimal and remain stable at about one MMT.

Product Offerings:

  • Dextrose: Enzymatic hydrolysis of starch culminates in the production of dextrose, which is further purified, concentrated, crystallized, centrifuged, and dried. It comes in the form of a sweet-tasting, white, crystalline powder that is very soluble in water. In addition to being used in food and animal feed, dextrose is also used in chemical and pharmaceutical processes. When compared to sucrose and lactose, dextrose helps food manufacturers develop products with a balanced nutritional and sweetness profile, extend shelf life, and use fewer ingredients overall. In baking and brewing, it provides the perfect source of carbohydrates for yeast fermentation.
  • Polyols: Polyols, commonly referred to as sugar alcohols, are found in a number of foods such as fruits, vegetables, and mushrooms. Additionally, they are frequently discovered in fermented foods like wine and soy sauce. Various carbohydrates are hydrogenated or fermented to create polyols for industrial use. The typical procedure involves separating the starch from the cereal and then hydrolyzing it. The substance is then condensed and discolored. The method of crystallization is used to create polyol granules. It is used in toothpaste, dairy goods, chewing gum, candy, beverages, soups, and sauces. It is also used in the chemical, pharmaceutical, and cosmetics industries as well as in beverages, beverages, and chewing gum.

Market Segmentation:

By Form

  • Granulated
  • Powdered
  • Syrup

By Source

  • Cane Sugar
  • Beet Sugar

By Use

  • Food and Beverage
  • Pharmaceuticals

By Distribution Channel

  • Online
  • Offline

Table of Contents

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

2.1. Research Data
2.2. Assumptions

3.1. Research Highlights

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

5.1. Introduction
5.2. Sugar Cubes
5.3. Granulated Sugar
5.4. Powdered Sugar
5.5. Sugar Syrup

6.1. Introduction
6.2. Cane Sugar
6.3. Beet Sugar

7.1. Food and Beverage
7.2. Pharmaceuticals

8.1. Introduction
8.2. Online
8.3. Offline

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

10.1. E.I.D. - Parry (India) Limited
10.2. Shree Renuka Sugars Ltd
10.3. AB Sugar
10.4. Wilmar International Ltd
*List is not exhaustive

Companies Mentioned

  • E.I.D. - Parry (India) Limited
  • Shree Renuka Sugars Ltd
  • AB Sugar
  • Wilmar International Ltd