Brown Sugar Market - Growth, Trends and Forecasts (2023-2028)

The global brown sugar market is projected to register a CAGR of 8.13% over the next five years.

Key Highlights

• The brown sugar market is growing with the rising demand from various sectors of the food and beverage industry. Therefore, it is anticipated that it will continue to increase over the coming years. White sugar crystals that have been sufficiently refined to allow precise control of the sugar crystal to molasses ratio and lower manufacturing costs are typically used to make brown sugar.
• The molasses in the brown sugar created in this manner may be easily separated from the crystals to produce white sugar, but it is frequently rougher than its unprocessed counterpart. There are several food-related applications for brown sugar, including dairy, baking, and other uses.
• As disposable incomes have increased in developed economies, there is a greater demand for upscale consumer products like baked products, enhancing their relevance to the food and beverage industry. The bakery industry prefers brown sugar over regular sugar due to its hygroscopic properties and the presence of molasses, which is anticipated to boost demand for brown sugar in the future.
• The rise of the health-conscious population, which is searching for healthier alternatives to white sugar, will also support the expansion of this market.
• Since brown sugar has been determined to be healthier than white sugar, customers may prefer brown sugar to white sugar, which would help this market grow over time. Organic brown sugar is produced by adding sugarcane molasses to completely refined white sugar crystals at the right proportion and ratio of molasses content. There are different types of organic brown sugar, and each of these types is redefined by a higher or lower molasses content.

Brown Sugar Market Trends

Increasing Demand for Bakery Products

• The increasing demand for bakery products in urban areas is likely to be a major driver for the brown sugar market, owing to the increased demand for Western bakery products in developing economies. The primary user of brown sugar is anticipated to be the developing bakery industry, which will assist in the industry's future expansion.
• Due to the economic dynamics of the food and beverage industry, bakery products are in extremely high demand worldwide. The rise in the indigenous bakery products industry in developing markets, such as Asia-Pacific and Latin America, is expected to emerge as a prominent factor boosting the growth of this market in the years to come, owing to the increasing popularity of bakery items in urban areas in these regions.
• The household manufacturing of bakery products is also projected to increase significantly in emerging economies due to consumers' increasing interest, leading to a healthy rise in the demand for brown sugar during the forecast period.
• Bakery products have become increasingly relevant to the economic dynamics of the food and beverage industry following the rise in the disposable incomes of urban consumers, which has led to a rise in the demand for luxury products, such as bakery items.
• The hygroscopic nature and molasses content of brown sugar also make it more desirable than conventional sugar in the bakery industry, as unrefined molasses mix better with bakery ingredients, which is likely to drive demand for the brown sugar market over the coming years.

Asia-Pacific Dominating the Global Market

• The brown sugar market is dominated by Asia-Pacific, which is expected to continue its dominance over the forecast period, followed by North America. Brown sugar is majorly produced by countries with a tropical climates, like China, Thailand, Vietnam, India, South Korea, Bolivia, Brazil, and Indonesia. Indonesia is one country that produces brown sugar and holds high potential as an exporter of brown sugar.
• Brown sugar is widely used as a sweetener and flavor and color enhancer in Indonesia. It is one of the alternatives used to meet the sugar demand in Indonesia. Due to its increasing popularity, demerara sugar is also produced in other countries, such as Mexico and India.
• Additionally, Asia Pacific, which has the largest customer base and contributes significantly to the revenue of the food and beverage industry, is anticipated to increase demand for brown sugar throughout the forecast period.
• Furthermore, Asia Pacific has consistently been the industry's growth hub due to increased demand for natural and organic food ingredients. This region's better lifestyle and a number of government regulations that uphold the quality of the produced are also factors driving the brown sugar market.

Brown Sugar Market Competitor Analysis

The huge shift of the food and beverage industry toward natural and organic food and ingredient production makes it a strong growth base for the brown sugar market. The market for brown sugar is highly fragmented, with lots of players. Some of the major key players in the brown sugar market globally include American Crystal Sugar Company, ASR Group, Südzucker AG, Cargill Incorporated, and Tate & Lyle Sugars. Domestic manufacturers are increasingly focusing on establishing strategic partnerships with numerous multinational corporations to make their products available across the world. Companies are actively expanding their product bases and increasing production capacities to meet the demand for applications emerging from various sectors.

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