UK Sugar Market - Forecasts from 2022 to 2027

The UK sugar market is projected to grow at a CAGR of 3.65% to reach US$1,268.901 million by 2027, from US$987.617 million in 2020.

Across various industries such as fast food, confectionary, and food & beverages, sugar is used in the United Kingdom. The UK is well-known for its regional desserts such as cheesecake, apple crumble, carrot cake, and jelly. In the country, sugar is extracted from sugar beet. Sugar that is normally seen in kitchen bowls is known as sucrose. A large share of sugar that is made available domestically is supplied from the beet sugar farms that are grown in eastern England. Sugar provides the body with energy in the form of glucose, which is essential for the optimal functioning of the brain, muscles, and nervous system under normal conditions.

As the world is progressing toward healthier options, the UK government too took steps in this direction and launched a sugar and salt tax for England. However, in June 2022, it was announced that the proposal was rejected, as the government has now diverted its strategy to promote healthy diets. The government will now create a food system that will be aimed at maintaining and increasing production levels where ever possible.

Market Restraints

Over the years, people have significantly changed their habits toward the healthier side. Sugar, which is a staple food across the globe, can lead to severe health diseases if taken in excess. People demanding low-sugar or sugar-free alternatives is a key market restraint. This strong demand is linked to increasing cases of diabetes and obesity. Moreover, the International Diabetes Federation (IDF) estimates that the global prevalence rate of diabetes over the previous ten years was 3% per year. According to the IDF, there will be 592 million individuals living with diabetes globally by 2035. Various governments are taking up the initiative to aware their citizens about the side effects of consuming high sugar.

For instance, in September 2021, the UK was selected to head up the World Health Organization’s sugar and calorie reduction network in Europe. The nation is taking up initiatives to tackle obesity and challenge food options to reduce the sugar and salt intake that is most commonly used by children. Furthermore, the health and social care department of the UK also presented its data, where it was mentioned that sugar was cut by an average of 13% from breakfast cereals, yogurt, and, fromage fairs.

Moreover, the market players are also taking up the present trend to launch low-sugar or sugar-free products.

For example, under the SureChoc project, a partnership between leading industry bodies and the University of Reading in the UK was formed. Through the partnership, SureChoc developed a milk chocolate bar that had nearly half the sugar of a normal bar without losing flavor. The product had 44% less sugar than a normal chocolate bar.

COVID-19 Insights

The COVID-19 pandemic had drastically affected staple foods, as due to the lockdown production units were closed. It worsened the value chain. Along with that, sugar demand from hotels, retailers, bars, and other establishments was also stopped due to the nation wise lockdown. Apart from being used as a final good, it disrupted the industry where it is used as an intermediate good, such as food, and beverage. The sugar supplies to these industries were stopped, and therefore, even they had to put a halt in their operations.

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