Vietnam Sugar Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The Vietnam sugar market size reached around USD 2.40 Billion in 2024. The market is projected to grow at a CAGR of 3.80% between 2025 and 2034 to reach nearly USD 3.48 Billion by 2034.

Vietnam Sugar Market Growth

According to the International Sugar Organisation (ISO), Vietnam's sugar production for the marketing year 2023/24 is estimated to be approximately 1 million tons, reflecting a 20% increase compared to the previous year. For the upcoming marketing year 2024/25, the ISO projects that sugar production in Vietnam may reach around 1.1 million tons.

As per the Vietnam sugar market report, in 2019, Vietnam's food and beverage market was recognised as one of the most appealing markets globally, ranking 10th in Asia according to BMI. In 2020, total food and beverage sales amounted to USD 41.7 million, representing a year-on-year growth of 3.8%. The increasing demand for sugar in Vietnam is closely associated with the growth of the food and beverage sector.

As the nation undergoes rapid urbanisation and the middle class expands, there is a notable rise in the consumption of processed foods, soft drinks, and confectioneries, which in turn drives the demand for sugar. Furthermore, the food sector's transition towards convenience and ready-to-eat products enhances sugar utilisation. The rising popularity of sugary drinks and snacks, particularly among younger consumers, also plays a significant role in the escalating demand for sugar across various food items.

Key Trends and Developments

The Vietnam sugar market growth can be attributed to rising domestic production, the growing food and beverage sector, favourable government policies and regulations, and rising consumer demand for sugar.

October 2024

SugarEx Vietnam 2024, the premier event in the sugar sector, was held in Ho Chi Minh City, Vietnam. The exhibition showcased an outstanding array of over 100 exhibitors, encompassing the full range of the sugar sector.

July 2024

Qu?ng Ngai Sugar Joint Stock Company, a leading sugar producer in Vietnam sanctioned an investment exceeding VNÐ 2 trillion aimed at enhancing its An Khê sugar processing facility and biomass power generation plant. This investment encompasses VNÐ1.169 trillion designated for augmenting the sugar processing capacity at the An Khê plant located in Gia Lai to 25,000 tonnes per day.

December 2022

The International Finance Corporation (IFC), the investment branch of the World Bank put forward a proposal for a USD 20 million investment in TTC Sugar, the largest sugar producer in Vietnam. This investment was intended to support a USD 40 million risk-sharing facility, which was secured through revolving trade financing in collaboration with Japan's Sumitomo Mitsui Banking Corporation for the Vietnamese company.

February 2021

The Vietnamese government decided to implement an anti-dumping duty on raw and refined sugar originating from Thailand, as indicated in a statement released by the Vietnamese Ministry of Industry and Trade, which was reviewed by S&P Global Platts.

Rising Domestic Production and Agricultural Conditions

Weather phenomena, including droughts and floods, significantly affect sugarcane production levels. Furthermore, government initiatives aimed at supporting farmers, such as subsidies and effective crop management practices, play a crucial role in shaping the domestic sugar supply, which leads to market stability.

Growing Food and Beverage Sector

One of the notable Vietnam sugar market trends is the expansion of the food and beverage sector. Sectors such as confectionery, soft drinks, and dairy, are significant consumers of sugar. Variations in demand within these sectors, influenced by alterations in product formulations or shifts in consumer preferences, have a direct impact on sugar consumption and market dynamics.

Favourable Government Policies and Regulations

The Vietnamese government has implemented tariffs on sugar imports to safeguard domestic production. Trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA) significantly impact domestic production and sugar prices, influencing Vietnam sugar market dynamics.

Rising Consumer Demand for Sugar

As per the Vietnam sugar market analysis, Vietnam's urban development and the expansion of its middle-class population are contributing to a heightened demand for processed and packed foods, which in turn is propelling sugar consumption.

Vietnam Sugar Market Trends

The market is presently experiencing several notable trends shaped by both local and global influences. One of the most significant trends is the growing demand for sugar in the food and beverage sector. As consumers become more aware of their dietary choices, the demand for sweetened products, including soft drinks, snacks, and desserts, continues to rise. This surge in demand is not only fuelled by traditional consumption patterns but also by the introduction of innovative products that incorporate sugar in unique ways, appealing to a diverse range of taste preferences, thereby leading to the Vietnam sugar market expansion.

In addition to the increasing demand for sugar, the emergence of a burgeoning middle class is playing a crucial role in shaping market dynamics. As more individuals attain higher disposable incomes, their purchasing power expands, leading to greater consumption of processed and packaged foods that often contain added sugars. This demographic shift is particularly pronounced in developing regions, where economic growth is translating into lifestyle changes and a greater inclination towards convenience foods.

Vietnam Sugar Industry Segmentation

The report titled “Vietnam Sugar Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Breakup by Source

• Cane Sugar
• Beet Sugar

Breakup by Product Type

• Brown
• White

Breakup by End Use

• Food and Beverages
• Pharmaceutical
• Dairy
• Bakery and Confectionery
• Household
• Others

Breakup by Region

• Southeast
• Red River Delta
• Great Lakes
• Mekong River Delta
• South Central Coast
• Others

Vietnam Sugar Market Share

Based on the end use, the market is segmented into food and beverages, pharmaceutical, dairy, bakery and confectionery, and household, among others. The food and beverages segment is projected to grow at a CAGR of 4.9% during the forecast period of 2025-2034. The rising demand for sugar in the food and beverage sector is fuelled by rising consumer preferences for sugary beverages and processed foods.

Leading Companies in the Vietnam Sugar Market

Market players are focusing on the adoption of sustainable manufacturing methods to gain a competitive edge in the market and to improve Vietnam sugar market outlook.

Quang Ngai Road Joint Stock Company

Quang Ngai Road Joint Stock Company, established in 2003 and based in Quang Ngai, Vietnam, is dedicated to infrastructure development, with a primary emphasis on road construction, repair, and maintenance projects throughout the nation.

Lam Son Sugar Cane Joint Stock Corporation

Lam Son Sugar Cane Joint Stock Corporation was founded in 2000 and is headquartered in Thanh Hoa, Vietnam. As per Vietnam sugar market analysis, the company is a prominent producer of sugar and other agricultural products in the area.

The KCP Limited

The KCP Limited, founded in 1941 and headquartered in Hyderabad, India, engages in various sectors, including sugar production, cement manufacturing, and engineering, with a strong commitment to innovation and sustainable business practices.

Nghe An Sugar Cane Company Limited

Nghe An Sugar Cane Company Limited, established in 1999 and headquartered in Nghe An, Vietnam, specialises in the production of sugar derived from locally cultivated sugarcane. The company also participates in agricultural processing and related sectors.

Other major players in the Vietnam sugar market are Thanh Thanh Cong - Bien Hoa Joint Stock Company, among others.