Industrial Sugar Industry Poised for $59.1 Billion Revenue by 2028

Industrial Sugar Market Overview

The Industrial sugar market encompasses the large-scale production, distribution, and usage of sugar for various industrial applications across multiple sectors, such as food & beverages, pharmaceuticals, and cosmetics. The market plays a critical role in providing sweeteners and functional ingredients for processed foods, bakery items, soft drinks, and confectionery products. The industrial sugar industry is expected to grow steadily despite challenges posed by regulatory shifts and consumer demand for low-sugar products. Innovations in sugar substitutes, bioethanol production, and specialty sugars offer promising opportunities for market players to diversify their portfolios.

Market Size and Growth Drivers

Market Size: The industrial sugar market size is projected to reach USD 59.1 billion by 2028 from USD 46.4 billion by 2023, at a CAGR of 5.0% during the forecast period in terms of value.
Demand in Processed Foods: Increasing consumption of convenience foods, beverages, and confectionery globally continues to drive demand for sugar as a sweetener and texture enhancer.
Emerging Markets: Rapid urbanization and changing lifestyles in regions like Asia-Pacific, Africa, and Latin America are contributing significantly to market expansion.

What impact will the introduction of new customers and international players have on the industrial beet sugar industry?

The industrial sugar industry continues to grow rapidly. Key factors contributing to industrial sugar market growth are beet sugar, a significant industrial crop utilized in food processing and producing ethanol and biogas. Mainly in tropical countries, the sugar beet crop offers a valuable alternative to sugarcane. The industrial beet sugar market growth in production and consumption has historically showcased an upward trend. It is likely to develop at a rapid pace during the forecast period. Based on consumption in the industry, the beverages segment is anticipated to offer the highest market attractiveness in the global industrial beet sugar market. Furthermore, introducing a new class of customers and entering various new international players is expected to strengthen the growth of the industrial beet sugar industry globally during the forecast period.

Processed Food Boom Strengthens Asia Pacific’s Industrial Sugar Market

Asia Pacific leads the industrial sugar market and is expected to grow at the highest CAGR between 2023 and 2028. The region’s sugar consumption is projected to rise significantly, driven by increasing demand from the processed foods industry. Key markets in this study include China, India, Japan, and other Southeast Asian countries. Factors such as rising purchasing power, rapid middle-class expansion, and growing consumer preference for processed products offer strong potential for growth and diversification in the food sector.

The anticipated expansion of food processing units in the region is likely to further boost sugar supply and consumption. Countries like China and India, with their export-oriented food processing industries, place high importance on adopting advanced technologies and automation. These developments are expected to have a positive impact on the industrial sugar market across the Asia Pacific region.

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Industrial Sugar Industry Trends and Opportunities

Shift Towards Organic and Specialty Sugars: With rising health consciousness, there is growing demand for organic sugars and unrefined options.
Use of Industrial Sugar in Bioethanol Production: Sugarcane-based ethanol production, especially in Brazil, is gaining momentum.
Innovation in Reduced and Alternative Sugars: Increasing pressure from regulatory bodies has encouraged manufacturers to explore low-sugar formulations and sugar substitutes to cater to health-conscious consumers.

Beverages Application to Hold the Largest Industrial Sugar Market Share

Beverages have the largest industrial sugar market share in the application sector due to several factors. The consumption of sugar-sweetened beverages such as sodas, energy drinks, and sports drinks has been increasing worldwide, particularly in developing countries. Despite efforts by public health advocates to reduce sugar consumption, sales of sugary drinks in the United States increased by 6.4% in 2021, according to Beverage Digest. The production of these beverages has also been on the rise as the global beverage industry continues to expand.

Latest Advancements in the Industrial Sugar Industry

In August 2022, Raízen, the world’s largest sugar exporting company, and ASR Group, the world’s largest refiner and marketer of cane sugar, announced a partnership that sets the standard for sustainable raw cane sugar supply chains globally.
In July 2021, Al Khaleej Sugar announced the construction of a new sugar factory in Merida, Spain. This expands the company’s operations beyond the Middle East and North Africa, as it seeks to enter the sugar-beet processing industry. The company begun construction of the new factory in 2022 and invested approximately USD 590 million. The factory has a production capacity of up to 900,000 metric tons of sugar annually.

Key Questions Answered by the Industrial Sugar Market Report

Which are the major companies in the Industrial sugar market? What are their major strategies to strengthen their market presence?
What are the drivers and opportunities for the Industrial sugar market?
Which region is expected to hold the highest market share?
What is the total CAGR expected to be recorded for the industrial sugar market during 2023-2028?

Meet the World’s Top Industrial Sugar Companies