Industrial Sugar Market Size & Forecast

The Industrial Sugar Market is expected to reach $60.19 billion by 2031, at a CAGR of 3% from 2024 to 2031. The growth of the industrial sugar market is primarily driven by the increasing consumption of processed food & beverage products, the rising demand for confectionery products, and the low cost & high availability of industrial sugar. However, consumers’ increasing preference for sugar substitutes, the rising prevalence of chronic diseases such as diabetes, and the imposition of sugar tax in various countries restrain the growth of this market.

Furthermore, technological advancements in sugar processing and the increasing use of natural & organic sugar in the pharmaceutical & personal care industries are expected to generate growth opportunities for the players operating in this market.

Additionally, the increasing adoption of organic and clean-label products is a key trend in the industrial sugar market.

Industrial Sugar Market Growth Drivers

Increasing Consumption of Processed Food & Beverage Products

Consumer demand for processed and convenience foods has grown significantly. The demand for processed foods is driven by the increasing need for convenience due to hectic lifestyles, socioeconomic changes, and urbanization. In addition, consumers' increasing purchasing power, growing awareness regarding healthy and readily available foods, and changing food habits and meal patterns are driving the demand for processed & convenience foods. As per the survey conducted by the International Food Information Council in November 2022, approximately 81% of the 1,000 American respondents regularly stocked shelf-stable, canned, or packaged foods in their households. Additionally, the increase in brand consciousness, exposure to Western products in Asian countries, the introduction of new food categories, and the development of product variants catering to diverse tastes contribute to the widespread consumption of processed food products.

The food & beverage industry is among the top consumers of sugar, which is mostly used to enhance the sweetness and improve the taste of processed foods to make them palatable and more appealing to consumers. Sugar also acts as a preservative, extending the shelf life of processed foods by inhibiting microbial growth and slowing down spoilage. Also, it imparts texture, color, and flavor to processed foods. Thus, the growing use of sugar in the manufacture of processed foods and the increasing consumption of processed food & beverage products drive the growth of the industrial sugar market.

Rising Demand for Confectionery Products

In the confectionery industry, sugar is used as a primary ingredient in various sweet treats like candies and chocolates. The confectionery industry uses sugar for its sweetness, texture, and preservative properties. Different forms of sugar, such as granulated, milled, coarse, powdered, ultra-fine, and syrup, are used depending on the application and desired texture. According to the USDA, in 2021, the U.S. was the world's largest exporter of confectionery products, with an export value of $639.46 million, followed by Canada, with an export value of $343 million. Confectionery products represent a unique and growing application area for sugar globally. Hence, the rising demand for confectionery products is boosting the adoption of sugar, driving the growth of this market.

Industrial Sugar Market Trends

Increasing Adoption of Organic and Clean-label Products

The ‘clean label’ movement reflects consumer demand for authenticity and transparency in food products, advocating for real ingredients that are natural and free from artificial or synthetic substances. This trend emphasizes the use of recognizable ingredients that consumers perceive as wholesome.

In 2022, clean label claims significantly influenced the purchasing decisions of approximately two-thirds of consumers worldwide. Moreover, nearly half of global consumers expressed a willingness to pay a premium for products with clean labels, with Asian consumers showing an even greater propensity to do so. According to a recent study by Ingredion, a substantial 78% of global consumers are willing to pay extra for products bearing clean labels denoting natural, organic, or non-artificial ingredients. Some artificial and high-intensity sweeteners have been linked to serious health conditions. Industrial sugar derived from sugarcane and sugar beet is a natural sweetening option. Thus, the clean label trend has increased the consumption of natural sugar in various food & beverage products.

Industrial Sugar Market Opportunities

Technological Advancements in Sugar Processing

Globally, modern technology has brought about a dramatic change in the sugar industry in recent years. Advanced technology has revolutionized the sugar industry by introducing new techniques and equipment that streamline production, optimize resource utilization, and enhance product quality. Manufacturers are optimizing operations by reducing waste and increasing productivity with the adoption of automation systems, computerized controls, and data analytics. 

Moreover, the adoption of modern processing methods, such as centrifugal separators and continuous vacuum pan systems, provides better control over variables such as crystal size, color, and moisture content. Also, various manufacturers are opting for advanced equipment, including bagasse drier units, moisture control units, and high-performance absorbents. In India, the Sugar Technology Mission (STM), a joint initiative of the Department of Sugar & Edible Oils and the Department of Science & Technology, has driven technological upgrades in the sugar industry. STM provides technical and financial support for evaluating and implementing new technologies, resulting in improved sugar recovery, energy savings, and enhanced sugar quality. Thus, technological advancements are expected to further increase sugar production and processing capabilities, generating growth opportunities for the players operating in this market.

Increasing Use of Natural & Organic Sugar in the Pharmaceutical & Personal Care Industries

The use of sugar in the pharmaceuticals and personal care industries has been increasing significantly due to its various beneficial properties and widening applications. In the pharmaceutical industry, sugar is utilized as a carrier to add bulk to tablets and enhance the palatability of oral medications. Sugar-based substances enhance drug formulation, solubility, and patient compliance. The demand for pharmaceutical-grade sugar is rising, with the growing middle-class population and increased awareness regarding medical treatment.

In the personal care industry, sugar is increasingly being recognized for its beneficial role in skincare and cosmetics. It acts as a humectant, helping the skin retain moisture and promoting hydration. The glycolic acid content in sugar aids in cell turnover, giving the skin a glowing appearance. Moreover, sugar is used in scrubs and physical exfoliants to remove dead skin cells, and fine-grain sugars are used in lotions to allow the skin to lock in moisture effectively. Thus, the increasing utilization of sugar in pharmaceuticals and personal care products is creating an opportunity for manufacturers operating in the market.

Industrial Sugar Market Analysis: Key Findings

By Type: The White Sugar Segment to Dominate the Industrial Sugar Market in 2024

Based on type, the industrial sugar market is segmented into white sugar, brown sugar, and liquid sugar. In 2024, the white sugar segment is expected to account for the largest share of 75.0% of the industrial sugar market. The large market share of this segment can be attributed to the affordability and easy accessibility of white sugar, its significant use in food and beverage manufacturing, technological advancements in the production of white sugar, and the high versatility of white sugar, which makes it suitable for various culinary and industrial applications. Moreover, this segment is also projected to record the highest growth rate during the forecast period 2024–2031, owing to the increasing demand for processed foods due to population growth, urbanization, and changing lifestyles; the growing use of sugar in pharmaceuticals and personal care products; and the rising demand for organic sugar-based products.

By Source: The Sugarcane Segment to Dominate the Industrial Sugar Market in 2024

Based on source, the industrial sugar market is segmented into sugarcane, sugar beet, and other sources. In 2024, the sugarcane segment is expected to account for the largest share of 79.1% of the industrial sugar market. The large market share of this segment can be attributed to the increasing cultivation of sugarcane, the high yield of sugar with sugarcane, and the high affordability and availability of sugarcane for sugar manufacturers. In addition, sugarcane is a rich source of sucrose, which makes it an ideal raw material for sugar production.

By Form: The Granulated Segment to Dominate the Industrial Sugar Market in 2024

Based on form, the industrial sugar market is segmented into granulated, powdered, and syrup. In 2024, the granulated segment is expected to account for the largest share of the industrial sugar market. The large market share of this segment can be attributed to the easy availability, the wide range of F&B applications, and the ease of handling & transporting granulated sugar. In addition, a large number of manufacturers produce sugar in the granulated form, which is also relatively inexpensive compared to other forms. This further supports the adoption of granulated sugar.

By Application: The Food & Beverage Segment to Dominate the Industrial Sugar Market in 2024

Based on application, the industrial sugar market is segmented into food & beverage, pharmaceutical, biofuel, chemical, personal care, and other applications. In 2024, the food & beverage segment is expected to account for the largest share of 75.0% of the industrial sugar market. The large market share of this segment can be attributed to the increasing demand for processed food products and ready-to-eat (RTE) and ready-to-cook (RTC) food products, and the high use of sugar in confectionery and beverages, including sodas, energy drinks, and fruit juices. Sugar is a key ingredient in various food products, especially confectionery products where its concentration ranges from 85% to 99%.

Geographic Analysis

Asia-Pacific to Dominate the Industrial Sugar Market in 2024

Based on geography, the industrial sugar market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Asia-Pacific is expected to account for the largest share of 34.5% of the industrial sugar market, followed by North America and Europe. The industrial sugar market in Asia-Pacific is expected to reach a value of $3.08 billion in 2024. Moreover, Asia-Pacific is also slated to register the highest growth rate of 3.3% during the forecast period. The large share and high growth of this regional market can be attributed to the growing demand for processed food products and beverages, owing to population growth, rapid urbanization, and changing lifestyles. Also, the abundant availability of raw materials, the presence of major sugar producers, the growing number of food & beverage product manufacturers, and high sugar consumption in APAC support the region’s dominant position in the industrial sugar market.

Industrial Sugar Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. The key players operating in the industrial sugar market are Südzucker AG (Germany), Associated British Foods plc (U.K.), Rogers Sugar Inc. (Canada), United States Sugar Savannah Refinery, LLC (U.S.), Tereos Group (France), Mitr Phol Sugar Company Limited (Thailand), American Crystal Sugar Company (U.S.), Louis Dreyfus Holding B.V. (Netherlands), Cargill, Incorporated (U.S.), ARCHER-DANIELS-MIDLAND COMPANY (U.S.), Nordzucker AG (Germany), E.I.D. - Parry (India) Limited (India), Michigan Sugar Company (U.S.), and Nile Sugar (Egypt).

Industrial Sugar Industry Overview: Latest Developments from Key Industry Players

• In December 2023, Wilmar International Limited acquired Cosumar S.A.’s 43.275% equity interest in Durrah Advanced Development, a refined sugar producer in Saudi Arabia.
• In July 2021, Al Khaleej Sugar announced building a sugar factory in Merida, Northwest Spain.

Industrial Sugar Market Research Summary

Key questions answered in the industrial sugar market report: