- 21 10,2024
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Sugar Prices
Between 2023 and 2028, the raw sugar market is expected to grow by USD 132.1 million at a compound annual growth rate of 2.09% as per the alternative investment data. The future of the market depends on several factors, the main one being the growing demand for raw sugar in applications pertaining to food and beverage. The market is expanding due to the growing popularity of raw sugar among consumers who are searching for natural sweeteners for their consumables. Moreover, the proliferation of private-label goods drives market growth by offering consumers a multitude of choices and fostering competition and creativity. Collectively, these elements shape the market landscape, highlighting the ways in which consumer preferences, health trends, and competitive pressures interact to propel the industry’s rising trajectory.
Did you know?
- One of the most valuable and traded agricultural products in the world is sugar.
- It is also the second most traded commodity in terms of politics, behind oil.
- In 23/24, the world’s sugar consumption increased to 189 million tonnes.
- Outside of domestic production and consumption, about 70 million tonnes of sugar are sold globally.
- Brazil, India, and other countries are the world’s top producers and exporters of sugar, with Brazil producing about 41 million tonnes yearly.
- India is the country that consumes the most sugar, with 28.5 million tons consumed in 23 and 24.
Whether you work as a producer, trader, or investor in the sugar industry, you must perform a detailed research of the sugar market which can be best done with alternative data market. You can predict price changes, spot opportunities, and make well-informed judgments by being aware of the sugar market’s characteristics with the alternative data provider.
What are the Key Datasets for Sugar Market Analysis?
When conducting a research of the sugar market, a number of important statistics representing the many market-moving factors must be taken into consideration. These databases contain the essential information needed to understand market dynamics and project future price movements. Let’s have a look below –
Supply and demand
Like any other commodity, the first rule of economics apply here as well i.e if the global production exceeds demand, the prices will decrease because of the surplus production. Prices usually rise in response to shortfalls in sugar production. But a lot of this depends on whether production stocks are high because of surpluses or because supply has historically outpaced demand. Despite production difficulties, prices for sugar may not rise if stocks are large enough.
Government Policies and Regulations
Understanding international trade flows requires knowledge of tariffs and trade barriers. For instance, when the import charges are higher by the European Union on sugar, this may cause a pull in the quantity of sugar that enters the EU. This limits the supply and raises the prices in the area. Information regarding new legislation, such those that restrict the quantity of sugar produced due to environmental concerns, may have an impact on supply. Data on government subsidies and minimum support prices in major sugar-producing nations, like India, can be used to estimate production levels. For instance, a rise in the Indian government’s minimum support price for sugarcane could lead to increased output, which would create a surplus and lower prices globally.
Geopolitical events
Sharp swings in the spot price of sugar have been directly caused by the conflict between Russia and Ukraine. Fertilizer shortages in 22–23 caused sugar prices to rise in Europe. Subsequently, in 23/24, the EU rectified this by permitting the import of up to 750,000 tonnes of sugar from Ukraine into the EU market at no duty until June 2024. Russia is currently the world’s top producer of beet sugar, and both Ukraine and Russia are producing more beet sugar than ever before.
Biofuel Prices and Production Data
Sugar producers may convert more of their sugarcane to ethanol production if ethanol prices climb significantly, which would reduce the supply of sugar and raise prices. Policies that promote the use of biofuels, including mandates or subsidies for ethanol blends in gasoline, may increase the demand for sugarcane and ethanol production. This change in the quantity of sugar available for consumers could have an effect on global pricing.
Summary of the Segment Overview
From 2024 to 2030, the North American sugar market is predicted to expand at the speediest rate of 6.5% CAGR. The demand for sugar-based goods such packaged snacks, sweetened beverages, and confectionery items is impacted by the trend toward convenience foods and snacking.
The U.S. sugar market is projected to grow at a CAGR of 6.8% from 2024 to 2030, driven by its widespread use in food and beverages, such as baked goods, confectionery, and sauces.
Because of its significant producers, including China, Thailand, and India, Asia Pacific is expected to have the largest revenue share of 42.1% in 2023. These places have the ideal agricultural conditions and the increasing demand for sweetened items also contribute to the situation. Because of its sizable and affluent population, China’s sugar market is predicted to increase at a 7.2% CAGR.
The 6.1% compound annual growth rate (CAGR) of the sugar industry in Europe is expected to be supported by government regulations, innovation, and consumer demand. Germany is expected to expand by 6.3%, and sugar is a staple in a lot of well-liked food and drink items.
