Raw Sugar Market Size 2024-2028

The raw sugar market size is forecast to increase by USD 132.1 million, at a CAGR of 2.09% between 2023 and 2028. The market's trajectory hinges on various factors, notably the increasing demand for raw sugar in functional food and beverages. As consumers seek natural sweeteners for their consumables, organic sugar emerges as a prominent choice, driving its market growth. Furthermore, the burgeoning health consciousness among consumers amplifies this demand, as individuals prioritize healthier alternatives in their dietary choices. Additionally, the rise of private-label brands adds momentum to market expansion, offering consumers diverse options while fostering competition and innovation. These dynamics collectively shape the landscape of the market, highlighting the intersection of consumer preferences, health trends, and market competition in driving its growth trajectory.

What will be the Size of the Raw Sugar Market During the Forecast Period?

To learn more about this raw sugar market report, View Report Sample

Raw Sugar Market Segmentation

The raw sugar market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Product Outlook 
  • Liquid sugar
  • Crystallized sugar

• Type Outlook
  • Conventional
  • Organic

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

By Product

The market share growth by the liquid sugar segment will be significant during the forecast period. Liquid sugar is a thick viscous syrup that is made by adding water to raw sugar. This process creates a solution that is easier to handle, transport, and use in various applications. Liquid sugar has become increasingly popular among manufacturers due to its convenience and versatility. 

Get a glance at the market contribution of various segments. View the PDF Sample

The liquid sugar was valued at USD 759.20 million in 2018. Liquid sugar is widely traded as a commodity in the market. Its price is affected by various factors such as supply and demand, transportation costs, and exchange rates. Demand is primarily driven by the food and beverage industry, with major markets in North America, Europe, and APAC. As a result, there has been a growing trend among consumers and manufacturers to use alternative sweeteners that are less processed and contain lower levels of sucrose, such as stevia, honey, and agave nectar. Thus, the above-mentioned factors are expected to increase the demand for liquid sugar, which is expected to propel the growth of the raw sugar market during the forecast period.

Key Region

For more insights on the market share of various regions, Download PDF Sample now!

APAC is estimated to contribute 45% to the growth of the global raw sugar market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the key reasons for the growth in demand for raw sugar along with industrial sugar in APAC is the increased health consciousness among consumers. Raw sugar is considered a healthier alternative to refined white sugar as it retains some of the nutrients and minerals found in sugarcane. This has led to the increased use of raw sugar in the food and beverage industry in APAC.

Moreover, there is an increasing trend toward natural sweeteners among consumers in APAC. This is driving demand for raw sugar, as it is perceived as a natural and organic sweetener. As consumers become more aware of the impact of artificial sweeteners and sugar alternatives on their health, they are keen to explore more eco-friendly and organic options. Raw sugar fits this profile, and APAC producers are well-positioned to tap into this market. Furthermore, the rise in the number of cafes and bakeries in APAC is boosting the demand for raw sugar.

Raw Sugar Market Dynamics

In the market, several drivers, trends, and challenges shape its dynamics. Output fluctuations from cane producers impact supply levels, while biofuel blending regulations impact demand. Consumer preferences for clean label ingredients and clean label products drive the demand for natural preservatives and texture modifiers. However, challenges persist, such as tariff barriers and subsidies affecting exporters, along with market volatility due to factors like deficits and fluctuations in beet production. These factors collectively shape the trajectory of the market. The market is influenced by a multitude of factors, including deficit concerns. Price fluctuations, often measured in cents per lb, are closely monitored by market participants. Market sentiment can sway trading decisions, impacting market output. The relationship between market demand and cane producers is critical, especially amid discussions on biofuel blending.

Key Market Driver

Growing health consciousness is the key factor driving raw sugar market growth. Growing health awareness among consumers is driving the growth of the market. The demand for raw sugar is increasing due to the growing awareness of the health benefits associated with raw sugar. Raw sugar is a better option for those who are concerned about their health and want to avoid the harmful effects of refined sugar. The COVID-19 pandemic has also pushed people toward a more health-conscious lifestyle.

Moreover, many people have become aware of the need to stay healthy and switch to a more organic lifestyle, which has boosted the demand for raw sugar globally. Thus, even with the pandemic being contained worldwide in 2022, the demand for raw sugar has remained high. Changes in the lifestyle of consumers and a tendency to eat more natural food products will drive the growth of the market during the forecast period.

Significant Market Trends

The emergence of e-commerce platforms is the primary trend shaping raw sugar market growth. The emergence of e-commerce platforms has helped drive the growth of the market. E-commerce platforms have made it easier for raw sugar producers to reach a wider customer base. These platforms provide raw sugar producers with a global marketplace to sell their products to customers around the world. These platforms have made it easier for customers to purchase raw sugar. Customers can now buy raw sugar from the comfort of their homes without having to visit a brick-and-mortar store in person. This has contributed to the growth of the market.

In addition, e-commerce platforms have enabled raw sugar producers to leverage data analytics to understand their customer's preferences and behavior better. This has allowed producers to develop targeted marketing strategies and improve their products to meet the changing demands of customers. In conclusion, the emergence of e-commerce platforms has played a significant role in boosting the growth of the market, and the trend is expected to continue during the forecast period.

Majo Market Challenge

The high cost of production is a major challenge to the growth of the raw sugar market. The high production cost of raw sugar is currently a major problem for the market. This problem stems from several underlying factors that contribute to increased overall costs. Factors such as labor costs, land, and equipment costs are all major components of production costs. The costs of raw materials, fertilizers, and other means of production are also steadily rising. Plant cost also plays an important role in raw sugar production. Farmers need a variety of machines and tools to grow and harvest sugar cane efficiently. Acquiring and maintaining this equipment can be expensive and require significant investments. The cost of raw materials such as fertilizers, pesticides, and other production inputs is another factor driving up the cost of producing raw sugar.

Further, the prices of these inputs have been rising steadily for many years, making it more expensive for farmers to cultivate their sugarcane crops. In addition to these factors, global market conditions also have an impact on sugar production costs. The recent reduction in global sugar prices has led to a decline in revenue for sugar producers. This has made it harder for farmers to justify the high cost of cultivating sugarcane for sugarcane production. Thus, the above-mentioned factors are expected to hinder raw sugar market growth during the forecast period.

Customer Landscape

The raw sugar market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the raw sugar market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.

Customer Landscape

Who are the Major Raw Sugar Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Alvean Sugar S.L.: The company offers raw sugar under the brand, Copersucar. Also, the company specializes in originating, commercializing, and trading raw and white sugar.

The raw sugar market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Azumex Corp.
• Bobs Red Mill Natural Foods Inc.
• Cargill Inc.
• Conscious Food Pvt. Ltd.
• Cumberland Packing Corp.
• EE Wholesale UK Ltd.
• Florida Crystals Corp.
• Incauca S.A.S.
• Louis Dreyfus Co. BV
• Natura Sugars CC
• Nordzucker AG
• NOW Health Group Inc.
• SUGART
• Sunbest Natural

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

In the raw sugar market, the cultivation of cane crop and the operations of mills significantly impact supply. Biofuel ethanol production diversifies revenue streams for both producers and consumers. Traders navigate market fluctuations, trading millions of metric tons each season. Sugar output forecasts, based on median estimates, suggest a slight increase. Factors such as crude oil benchmarks and sugar ethanol prices contribute to market volatility. Emerging trends like natural preservatives and texture modifiers cater to evolving consumer preferences. Exporters adapt to changing policy landscapes and address challenges like climate change and water scarcity.

Moreover, despite a small increase in production, there remains a substantial surplus due to factors such as efficient harvesting techniques. Growing consumer demand for healthier options has led to the incorporation of natural preservatives, texture modifier, flavoring agent, coloring agent, and bulking agents in sugar products. Exporters adapt to changing regulations, including the EU sugar policy, while catering to diverse markets with products derived from sugar beet, cane juice, and molasses. The fuel ethanol industry utilizes sugar-based products for biofuel production.

However, datasets provide insights into market trends, supporting informed decision-making amid evolving legislation and leveraging historic data tools. Additionally, sugar remains a key commodity in agricultural and processed food markets, alongside other staples like cocoa and coffee. Trading of raw sugar futures occurs on platforms, while over-the-counter transactions play a significant role. Consumers increasingly seek clean label products, favoring natural preservatives and other additives like texture modifiers derived from fermentation substrate. Exporters navigate challenges such as tariff barriers and subsidies, particularly concerning beet sugar.

View PDF Sample

What are the Key Data Covered in this Raw Sugar Market Growth Analysis Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across APAC, South America, Europe, North America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

We can help! Our analysts can customize this raw sugar market research report to meet your requirements. Get in touch