Market Insights and the Future.
The global sugar market attained a consumption volume of about 178.52 million tons in 2022.
The market is expected to grow at CAGR of 1% in the forecast period of 2023-2028 to reach a volume of 189.50 million tons by 2028.
The intricate world of sugar imports reflects a multi-faceted global market, influenced by cultural preferences, economic growth, and dietary shifts.
As countries strive to meet their sugar demands, trade partnerships and supply chain management will continue to evolve, adapting to the ever-changing tastes and preferences of consumers worldwide.
Raw sugar futures in the US surged to above 26.6 cents per pound in September 2023, the highest since touching an 11-year high of 27 cents in late April amid supply threats from the world’s top producers.
Insufficient rainfall in key producing states in India exacerbated poor growing conditions for next season’s crop. The drought added to concerns that El Nino will extend dryness for a prolonged period, driving cane yields to slump and potentially prompting the Indian government to halt sugar exports as it attempts to contain elevated food inflation in the country.
Meanwhile, sugar ethanol prices in Brazil held near one-month highs from mid-August as oil prices soared, driving cane crushers to divert production towards biofuel blenders and reducing sweetener supply in global markets.
The Sugar No. 11 contract is the world benchmark contract for raw sugar trading and is available on The Intercontinental Exchange (ICE). The size of each contract is 112,000 pounds.
The biggest producer and exporter of sugar in the world is Brazil (21% of total production and 45% of total exports). A significant amount of sugar is also produced in India, European Union, China, Thailand and the United States.
The global sugar market has several major players including Suedzucker AG, Tereos, Cosan, Mitr Phol Sugar Corporation., Ltd., Associated British Foods, Nordzucker AG, Biosev (Louis-Dreyfus), Wilmar International Limited and Thai Roong Ruang Group. The sugar prices displayed in Trading Economics are based on over-the-counter (OTC) and contract for difference (CFD) financial instruments.
In the vast world of international commerce, sugar takes a prominent position as a staple and a sweetener.
In the year 2022, the world's insatiable appetite for sweetness translated into a whopping $35 billion in sugar imports. This unceasing demand underscores sugar's role not only as a beloved flavor enhancer but also as a key driver of international trade. A glance at the historical trajectory reveals a remarkable growth in sugar imports. Since 2018, the collective sugar import values of all purchasing nations have surged by an average of 41.4%.
This upward trajectory reflects the global trend of increasing consumption and changing dietary habits. In 2021, the momentum continued as sugar import expenditures registered an average year-on-year growth of 16.7%, reaching a total of $30.1 billion. This expansion was fueled by an ever-growing global population and the incorporation of sugar into an array of food products.
Leading the pack in the sugar import arena are five powerhouse nations: Indonesia, Mainland China, the United States, Italy, and South Korea. By 2022, the cumulative sugar purchases of these key players constituted over a quarter of the global total, standing at an impressive 28%.
Diverse Consumption Patterns
- Asia's Sweet Cravings: The continent of Asia emerges as the primary consumer of imported sugar, with an import value of $16.9 billion in 2022, capturing a substantial 48.1% of the global share. This demand is driven by both traditional cuisines and the incorporation of sugar into modern diets.
- Africa's Growing Role: African importers secure the second position with a 21.1% share, underlining the continent's economic growth and increased access to international markets.
- Europe's Palate: Europe follows suit, absorbing 17.5% of the global sugar imports, a testament to the widespread use of sugar in the continent's culinary landscape.
- North America and Beyond: North America's share stands at 8.3%, while Latin America, excluding Mexico but including the Caribbean, claims 4.4%.
- In a smaller proportion, Oceania contributes 0.6% to the global import demand, led by New Zealand.
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