The Indonesia sugar market is expected to grow at a compound annual growth rate (CAGR) of 4.74% from US$8.449 billion in 2025 to US$10.648 billion in 2030.
Changes in local consumption patterns, governmental regulations, climatic circumstances, and global market dynamics, influence the Indonesian sugar market. There is a huge domestic demand forsugardue to the country's expanding population. Furthermore, sugarcane production and cultivation are influenced in Indonesia by local and global weather conditions fueling the sugar market in the nation. In addition to this, technological developments, foreign exchange rates, and pricing differences all influence the market's complexity. Concerns about sustainability, customer preferences, and the effectiveness of logistics and infrastructure systems are also significant factors driving the market growth.
The pricing and supply of sugar are significantly influenced by trade agreements, subsidies, and import taxes, among other government policies. For instance, as per the Government of Indonesia, one million hectares of land in the province of Papua were given to the government to increase sugar production and attain national self-sufficiency. The government claimed that the site would be accessible to foreign and domestic companies that are eager to build a sugar industry in the nation. It further added that several investors had already begun sowing sugar cane seeds around the region.
The robust demand for sugar in the food andbeveragesector is continue drivinges the Indonesian sugar market demand. Sugar is a flexible component that is widely used in the creation of a wide range of food and drink items, which influences both domestic consumption patterns and market dynamics. According to the survey conducted by the National Library of Medicine, in Indonesia,instant coffeewas the most often consumed sugar-sweetened beverage (SSB) (29.4%) among the 340,032 homes studied, whereas produced liquid milk was the least frequently prefferred (5.7%). 25% of the families in this survey drank mineral water, the sole unsweetened beverage, and spent an average of IDR 44,129 (US$ 2.9) per home per month on it. Although produced milk was the least popular beverage, families spent the most money on it (IDR 84,285 or US$ 5.5 on average) per month. Households, on the other hand, spend the least on tea drinks and carbonated beverages (on average IDR 35,999 or US$ 2.4).
Furthermore, market participants in the Indonesian sugar business employ various tactics such as product diversification, supply chain optimization, sustainability practices, and technology adoption to effectively traverse complicated market dynamics and maintain competitiveness in a constantly evolving sector.
The Indonesian sugar market growth is significantly influenced by the country's domestic sugar consumption. The demand for sugar is strong due to the vast and expanding population, which has a direct impact on the level of production, import-export regulations, and general stability of the market.
According to OECD estimates, Indonesia's sugar consumption rose from 27.67 kg in 2022 to around 28.23 kg in 2023. Less social distancing and travel limitations are anticipated to decrease domestic sugar consumption as Indonesia extends its COVID-19 immunization program, which was introduced in January 2021. On the other hand, rising demand in the food and beverage sector is anticipated to raise refined sugar consumption.
Furthermore, the production of sugar has a major effect on the pricing, supply, and market dynamics of sugar in Indonesia. Sufficient domestic production lessens the need for imports and promotes market stability by helping to fulfill the demand for sugar. For instance, the growth of private sugar mills results in higher production in 2022-2023. It is predicted that El Nino, which typically raises the amount of sugar in sugarcane and keeps private sugar mills' land expansion, would boost plantation white sugar output even more in 2023-2024, reaching 2.6 million metric tonnes (MMT). However, it is anticipated that imports of raw sugar will rise mostly as a result of increased refinery demand. The Government of Indonesia (GOI) has granted permission to import 991,000 tonnes of plantation white sugar in 2022-2023 to lower and stabilize retail prices.
As per the USDA report, the retail price of plantation white sugar has grown due to higher production costs and growing demand. A National Food Agency guideline on reference prices for buying and selling soybeans, shallots, chiles, beef, buffalo meat, and sugar was released by the GOI in December 2022 to control pricing. Plantation white sugar reference prices are established at Rp. 11,500/kg ($768/MT) for producers and Rp. 13,500-Rp. 14,500/kg ($901-968/MT) for consumers. As of 2022, the new reference price at the consumer level is Rp. 13,500 per kg ($901/MT), an increase of 0 to 7.4%. The average retail price is Rp 14,400/kg ($961/MT), up 0.8 percent from Rp 14,283/kg ($954/MT).
In addition, shifting dietary trends, health concerns, and customer tastes all affect the sugar market, causing producers to modify their methods of production and have an effect on the food and beverage industry. To navigate the complexity of the market and guarantee a sustainable and responsive sugar sector, stakeholders have a thorough awareness of domestic consumption trends and production.
Changes in local consumption patterns, governmental regulations, climatic circumstances, and global market dynamics, influence the Indonesian sugar market. There is a huge domestic demand forsugardue to the country's expanding population. Furthermore, sugarcane production and cultivation are influenced in Indonesia by local and global weather conditions fueling the sugar market in the nation. In addition to this, technological developments, foreign exchange rates, and pricing differences all influence the market's complexity. Concerns about sustainability, customer preferences, and the effectiveness of logistics and infrastructure systems are also significant factors driving the market growth.
The pricing and supply of sugar are significantly influenced by trade agreements, subsidies, and import taxes, among other government policies. For instance, as per the Government of Indonesia, one million hectares of land in the province of Papua were given to the government to increase sugar production and attain national self-sufficiency. The government claimed that the site would be accessible to foreign and domestic companies that are eager to build a sugar industry in the nation. It further added that several investors had already begun sowing sugar cane seeds around the region.
The robust demand for sugar in the food andbeveragesector is continue drivinges the Indonesian sugar market demand. Sugar is a flexible component that is widely used in the creation of a wide range of food and drink items, which influences both domestic consumption patterns and market dynamics. According to the survey conducted by the National Library of Medicine, in Indonesia,instant coffeewas the most often consumed sugar-sweetened beverage (SSB) (29.4%) among the 340,032 homes studied, whereas produced liquid milk was the least frequently prefferred (5.7%). 25% of the families in this survey drank mineral water, the sole unsweetened beverage, and spent an average of IDR 44,129 (US$ 2.9) per home per month on it. Although produced milk was the least popular beverage, families spent the most money on it (IDR 84,285 or US$ 5.5 on average) per month. Households, on the other hand, spend the least on tea drinks and carbonated beverages (on average IDR 35,999 or US$ 2.4).
Furthermore, market participants in the Indonesian sugar business employ various tactics such as product diversification, supply chain optimization, sustainability practices, and technology adoption to effectively traverse complicated market dynamics and maintain competitiveness in a constantly evolving sector.
Indonesian sugar market drivers
Increasing production and consumption is projected to propel the Indonesia sugar market expansion.The Indonesian sugar market growth is significantly influenced by the country's domestic sugar consumption. The demand for sugar is strong due to the vast and expanding population, which has a direct impact on the level of production, import-export regulations, and general stability of the market.
According to OECD estimates, Indonesia's sugar consumption rose from 27.67 kg in 2022 to around 28.23 kg in 2023. Less social distancing and travel limitations are anticipated to decrease domestic sugar consumption as Indonesia extends its COVID-19 immunization program, which was introduced in January 2021. On the other hand, rising demand in the food and beverage sector is anticipated to raise refined sugar consumption.
Furthermore, the production of sugar has a major effect on the pricing, supply, and market dynamics of sugar in Indonesia. Sufficient domestic production lessens the need for imports and promotes market stability by helping to fulfill the demand for sugar. For instance, the growth of private sugar mills results in higher production in 2022-2023. It is predicted that El Nino, which typically raises the amount of sugar in sugarcane and keeps private sugar mills' land expansion, would boost plantation white sugar output even more in 2023-2024, reaching 2.6 million metric tonnes (MMT). However, it is anticipated that imports of raw sugar will rise mostly as a result of increased refinery demand. The Government of Indonesia (GOI) has granted permission to import 991,000 tonnes of plantation white sugar in 2022-2023 to lower and stabilize retail prices.
As per the USDA report, the retail price of plantation white sugar has grown due to higher production costs and growing demand. A National Food Agency guideline on reference prices for buying and selling soybeans, shallots, chiles, beef, buffalo meat, and sugar was released by the GOI in December 2022 to control pricing. Plantation white sugar reference prices are established at Rp. 11,500/kg ($768/MT) for producers and Rp. 13,500-Rp. 14,500/kg ($901-968/MT) for consumers. As of 2022, the new reference price at the consumer level is Rp. 13,500 per kg ($901/MT), an increase of 0 to 7.4%. The average retail price is Rp 14,400/kg ($961/MT), up 0.8 percent from Rp 14,283/kg ($954/MT).
In addition, shifting dietary trends, health concerns, and customer tastes all affect the sugar market, causing producers to modify their methods of production and have an effect on the food and beverage industry. To navigate the complexity of the market and guarantee a sustainable and responsive sugar sector, stakeholders have a thorough awareness of domestic consumption trends and production.
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Industry and Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, Competitive IntelligenceReport Coverage:
- Historical data & forecasts from 2022 to 2030
- Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
- Competitive Positioning, Strategies, and Market Share Analysis
- Revenue Growth and Forecast Assessment of segments and regions including countries
- Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)
The Indonesia Sugar market is analyzed into the following segments:
By Form
- Granulated
- Powdered
- Syrup
By Source
- Cane Sugar
- Beet Sugar
By Use
- Food And Beverage
- Pharmaceuticals
By Distribution Channel
- Online
- Offline
Table of Contents
1. INTRODUCTION
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
5. INDONESIA SUGAR MARKET BY FORM
6. INDONESIA SUGAR MARKET BY SOURCE
7. INDONESIA SUGAR MARKET BY USE
8. INDONESIA SUGAR MARKET BY DISTRIBUTION CHANNEL
9. COMPETITIVE ENVIRONMENT AND ANALYSIS
10. COMPANY PROFILES
Companies Mentioned
- Tereos (SDHF)
- Wilmar International Ltd
- Olam International Limited
- Thai Roong Ruang Sugar Group
- PT. Medan Sugar Industry (MSI)
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 72 |
| Published | December 2024 |
| Forecast Period | 2025 - 2030 |
| Estimated Market Value ( USD | $ 8.45 Billion |
| Forecasted Market Value ( USD | $ 10.65 Billion |
| Compound Annual Growth Rate | 4.7% |
| Regions Covered | Indonesia |
| No. of Companies Mentioned | 5 |
