The USA sugar market is estimated to grow at a CAGR of 11.87%, reaching US$26,319.566 million in 2028 from US$12,000.916 million in 2021.
Consumer inclination towards confectionery, bakeries, and beverages has been the key driver for the sugar market in the United States. Recently, consumer preferences have been changing to favor healthier products. In response to customer demands, substitute goods, such as zero-calorie substitutes made from the stevia plant, are becoming prevalent on the market.
According to USDA, the total sugar production was at 9,157 short tons in 2021/22, which increased to 9,306 short tons in 2022/23. The total supply of sugar has also increased from 14,508 short tons in 2021/ 2022 to 14,637 short tons in 2022/23. Additionally, for 2020/21, the beginning stocks for sugar were 1,618 short tons, which increased significantly in 2021/22 to 1,705 STRV.
According to the NCA's third annual State of Treating study, published in 2022, sales of chocolate and candies increased by 11% in 2021 over 2020. This increase was attributed to consumers' increased attention to holiday festivities, sharing and gifting, and emotional well-being. Further, according to a July 2022 survey by the American Bakers Association, 84% of Americans think it's okay to treat themselves to baked goods like cookies, cupcakes, doughnuts, or pie now and then.
Consumer inclination towards confectionery, bakeries, and beverages has been the key driver for the sugar market in the United States. Recently, consumer preferences have been changing to favor healthier products. In response to customer demands, substitute goods, such as zero-calorie substitutes made from the stevia plant, are becoming prevalent on the market.
According to USDA, the total sugar production was at 9,157 short tons in 2021/22, which increased to 9,306 short tons in 2022/23. The total supply of sugar has also increased from 14,508 short tons in 2021/ 2022 to 14,637 short tons in 2022/23. Additionally, for 2020/21, the beginning stocks for sugar were 1,618 short tons, which increased significantly in 2021/22 to 1,705 STRV.
Growth Factors:
Government policies
Moreover, the US government implements policies and regulations to support the domestic sugar industry, including cane sugar production. Importantly, the US sugar market is protected by a tariff-rate quota (TRQ) system, which limits the amount of sugar that can be imported at a lower tariff rate. This protection ensures a stable market for domestic sugar producers, including those in the cane sugar segment.Growing population in the United States
The growing population in the United States translates into a larger consumer base, driving the overall demand for cane sugar. As the population increases, so does sugar consumption in various food and beverage products, providing opportunities for the sugar players.U.S. cane sugar market
The United States sugar market is segmented by source into cane sugar and beet sugar. The cane sugar held a significant share in 2021. The cane sugar segment is an important part of the sugar sector in the country. It also plays a significant role in meeting the country's sugar demand. It is known for its distinct flavor and versatility, making it a popular choice for various applications in the food and beverage industry. Consumers' preferences for natural and organic ingredients have also led to a higher demand for cane sugar, perceived as a more natural and less processed option than alternative sweeteners.Growth In U.S. Confectionary Industry
By application, the United States sugar market is divided into dairy, beverages, confectionery and bakery, processed food, and others. Confectioneries, such as chocolate and candies, gummies, and jellies, have become very popular among customers throughout the United States in recent years. Consumers are increasingly looking for a variety of delicious, high-quality confections. Over the projected period, it is predicted that this aspect will fuel the expansion of the American sugar market.According to the NCA's third annual State of Treating study, published in 2022, sales of chocolate and candies increased by 11% in 2021 over 2020. This increase was attributed to consumers' increased attention to holiday festivities, sharing and gifting, and emotional well-being. Further, according to a July 2022 survey by the American Bakers Association, 84% of Americans think it's okay to treat themselves to baked goods like cookies, cupcakes, doughnuts, or pie now and then.
Market Developments:
- In November 2022, Ferrero presented their Christmas product portfolio and introduced cookies, confections, and mints, among other items. The business increased its selection by including seasonal products from its cookie brands Keebler and Royal Dansk.
- Additionally, Nestlé announced the release of the Christmas 2021 line in November 2021, featuring holiday classics and some fresh products from some of its venerable brands, such as KitKat, Aero, and Milky Bar. One of Nestlé's most well-known candy products is Aero.
- In June 2022, Mars, Inc. and its affiliates announced a collaboration with Perfect Day, Inc., and the introduction of CO2COA, a new line of chocolate in the US market. Milk protein without the use of animals is produced by Perfect Day.
Market Segmentation:
By Source
- Cane Sugar
- Beet Sugar
By Type
- Granular
- Powder
- Liquid
By Application
- Dairy
- Beverages
- Confectionery & Bakery
- Processed Food
- Others
By Distribution Channel
- Online
- Offline
Table of Contents
1. INTRODUCTION
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
5. USA SUGAR MARKET BY SOURCE
6. USA SUGAR MARKET BY TYPE
7. USA SUGAR MARKET BY APPLICATION
8. USA SUGAR MARKET BY DISTRIBUTION CHANNEL
9. COMPETITIVE ENVIRONMENT AND ANALYSIS
10. COMPANY PROFILES
Companies Mentioned
- US Sugar Corp.
- Western Sugar
- American Crystal Sugar Company
- C&H Sugar Company, Inc.
Methodology
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