Powdered Sugar Market Report 2026

The powdered sugar market size has grown steadily in recent years. It will grow from $6.31 billion in 2025 to $6.61 billion in 2026 at a compound annual growth rate (CAGR) of 4.8%. The growth in the historic period can be attributed to expansion of bakery and confectionery production, rising household baking activities, growth in food processing industries, increased availability of refined sugar supplies, expansion of packaged food distribution.

The powdered sugar market size is expected to see steady growth in the next few years. It will grow to $8.03 billion in 2030 at a compound annual growth rate (CAGR) of 5%. The growth in the forecast period can be attributed to increasing demand for premium bakery products, rising consumption of specialty desserts, expansion of organic food markets, growing focus on ingredient transparency, increasing application in beverages and dairy. Major trends in the forecast period include increasing demand for organic powdered sugar, growing use in decorative and specialty applications, expansion of fine-grain sugar processing techniques, rising adoption of clean-label ingredients, enhanced focus on consistent particle size.

Increasing demand for dairy food is expected to propel the growth of the powdered sugar market going forward. Dairy products include liquids and edible products derived from the milk of mammals such as cows, goats, sheep, and water buffalo. Powdered sugar plays a crucial role in dairy and bakery applications by enhancing texture, improving consistency, and adding a smooth, appealing sweetness. It contributes to fluffier forms and better mouthfeel in products such as cakes, icings, creams, and desserts. Due to these functional and sensory benefits, demand for powdered sugar continues to rise alongside dairy consumption. For instance, in March 2023, according to a report published by Farm Credit East, a US-based financial institution focused on agriculture, the average milk price for 2023 was projected to be approximately $20.5 per hundredweight, supported by steady consumer demand and constrained supply growth. Additionally, U.S. milk production was expected to increase by only 0.3% year over year, while feed costs surged by 25%, highlighting strong downstream demand in the dairy sector. Therefore, increasing demand for dairy food is driving growth in the powdered sugar market.

The rising demand for beverages is also expected to propel the growth of the powdered sugar market going forward. Beverages refer to liquid products intended for human consumption that provide hydration, refreshment, and enjoyment. Demand for beverages is increasing due to rising disposable incomes, evolving lifestyles, and growing consumer interest in premium, functional, and convenience drink options. Powdered sugar is widely used in beverages because it dissolves faster than granulated sugar, especially in cold liquids, delivering uniform sweetness and a smooth texture. It is also commonly used for garnishing and decorative purposes. For instance, in November 2023, according to Monster Beverage Corporation, a US-based energy drink manufacturer, net sales in the third quarter of 2025 increased by 16.8%, reaching $2.2 billion, up from $1.88 billion during the same period the previous year. Therefore, the increasing demand for beverages is driving the growth of the powdered sugar market.

In March 2024, Sugar Foods Corporation, a U.S.-based food service provider, acquired Concord Foods for an undisclosed amount. This acquisition aligns with Sugar Foods' strategy to strengthen its market position and diversify its product offerings. Concord Foods LLC, based in Massachusetts, specializes in retail food products. With this acquisition, Sugar Foods plans to integrate Concord's 255,000-square-foot facility into its operations, aiming to enhance customer service and foster innovation across its business segments. Concord Foods LLC is a U.S.-based manufacturer of powdered sugar.

Major companies operating in the powdered sugar market are Südzucker AG, Tate & Lyle Sugars, Cargill Incorporated, Nordic Sugar A/S, American Crystal Sugar Company, Domino Foods Inc., Taikoo Sugar Ltd., Wholesome Sweeteners Inc., Nanning Sugar Industry Co. Ltd., Cofco International, Corporación Azucarera del Pacífico S.A., United Sugars Corporation, Imperial Sugar Company, Michigan Sugar Company, Rogers Sugar Inc., Florida Crystals Corporation, Redpath Sugar Ltd., The Western Sugar Cooperative, Amalgamated Sugar Company LLC, Nordzucker Group, Tereos Internacional SA, Raffinerie Tirlemontoise, Eridania Sadam, British Sugar PLC, Südzucker Polska AG, Agrana Zucker GmbH, Pfeifer & Langen, Zucarmex SA.

North America was the largest region in the powdered sugar market share in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the powdered sugar market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the powdered sugar market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The powdered sugar market consists of sales of corn-starch, sugarcane, and anti-binding agents, such as titanium dioxide. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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