Understanding The Global Sugar Market
Globally, sugar manufacturers produce sugar from either sugar cane or sugar beet and very few of them use both these raw materials. Sugar cane, however, is the most widely used agent used to produce sugar on a large scale.
Sugar Market Across Various Countries In The World
The rise in population, increase in income and shifting dietary patterns has amounted to an overwhelming rise in the demand for sugar across the world. Major players in the sugar industry such as India, Brazil, Mexico, Switzerland, El Salvador, and Argentina account for more than half of the sugar industry.
- The coming years are expected to see a trade reduction in the net cross-boarder sugar industry. This is observed after Brazil and the European Union cut production. Sugar manufacturing and exports are predicted to increase in India, making it a significant player in the sugar market. Sugar prices in India have declined by as low as 5.5% as the demands in the domestic and the export market has reduced by a significant margin.
- Meanwhile, in Africa, the low-cost producers will benefit from an open trade across the globe giving tough competition to the established giants of the sugar industry such as India and China. The European Union is expected to emerge as a net importer with their respective governments making substantial compensation to their farmers to cater to the financial void emerging from displaced processing facilities. Alongside this, Brazil is predicted to take over the fulcrum of new market developments because of the rise in oil and ethanol prices.
- China, EU-28, Indonesia, and the United Kingdom enjoy a substantial share of the raw sugar import market. White sugar is primarily exported to Sudan, the United States, and Sri Lanka. In Mexico, sugar production remains averagely unchanged after being stable for a less than a decade. The exports are, however, expected to suffer a decline with special emphasis on non-US exports. Domestic consumption is however expected to rise in Mexico.
- Unlike Mexico, China is facing an expansion of its sugar industry. Sugar production is forecast to observe an upward graph due to favorable weather and an expanded territorial area. After safeguard measures for exports were reconstructed in July 2018 that put additional duties to all suppliers, the country is building up its exports and reducing its dependence on sugar imports.
Sugar manufacturing benefitting various other industries
The bi-products of sugar manufacturing are used as livestock feed and in the generation of biofuels energy (sugar-based ethanol). According to, the world sugar price forecast, the sugar and oil industry find market linkages that further makes Brazil one of the largest sugar-derived biofuel producers in the globe.
Developing countries, particularly in the Asia-Pacific region account for a significant destination market for sugar and are expected to the epicenter for future demands as well. While some markets are exploring more stringent and nationalistic sugar policies that govern the global sugar industry, countries like Sri Lanka and India are looking forward to filling the lacuna in the global sugar market.