India Sugar Market Forecasts from 2023 to 2028

India's sugar market is evaluated at US$6.148 billion for the year 2021 and is projected to grow at a CAGR of 6.87% to reach the market size of US$9.791 billion by the year 2028.

In India, consumers regularly add sugar to their tea, coffee, fruit juices, and medications. Brown sugar or organic cane sugar is popular in India, where ayurvedic herbs and remedies are well-known. In India, demand is also rising for organic and chemical-free ingredients. Consequently, there is a rising need for organic sugar. For instance, 365 lakh tonnes of sugar were produced during the 2022–2023 sugar season, according to the Indian Sugar Mills Association.

Growing focus on product innovation

To stay competitive and grow their business, India's sugar market participants are always concentrating on the creation of new products to meet the evolving needs of Indian customers. To innovate their current product lineup, many businesses in the sector have turned to improving packaging and product quality. In response to consumer demand, businesses are coming up with innovative ways to provide customers with more of what they demand. For instance, in FY2021, EID Parry unveiled "SweetCare, " sugar with a reduced glycemic index that bills itself as a healthy substitute for normal sugar.

Increasing demand for cane sugar

India is one of the most agriculturally productive nations, making it a prime location for market expansion given the rising sugar consumption there. The implementation of updated regulatory policies and adjustments to the existing ones holds the potential to empower farmers and millers to enhance their endeavours in the production and processing of cane sugar. The Ministry of Consumer Affairs reports that as of October 2022, India produced 5, 000 lakh metric tonnes of sugar cane, of which sugar mills crushed about 3574 LMT to generate roughly 394 LMT of sugar (sucrose). Since India is both the world's largest producer and consumer of sugar, demand is expected to increase in the medium term.

Rising import and export of cane sugar

India saw an increase in cane sugar imports and exports. The demand for organic sugar is rising in India because of the rise in the popularity of organically produced and organic products. The majority of ayurvedic medications and potions contain organic cane sugar, and India is also well-known for its ayurvedic remedies. India sold 21932.591 MT of organic sugar in 2021–2022, according to data from the Agricultural and Processed Food Products Export Development Authority (APEDA). Manufacturers of organic sugar from India include Jaini International Export Private Limited, Vijayawada Chemicals, and Shree Ambika Sugars Limited, among others.

Rise in FRP of sugarcane

According to estimates from the Indian Sugar Mill Association, the rise in FRP (fair remunerative price) of sugarcane has shown a consistently rising graph. There is a consistent rise in prices from 2020 to the year 2022, indicating profitable avenues for cane sugar production till the forecast period. Furthermore, the higher cane yield shows an increase in sugar production wherein more sugar can be adequately diverted for ethanol blending, even after meeting the export requirements.

Additionally, as the rising trend of ethanol blending will continue to expand in the upcoming years, cane production is set to generate a higher record in India. For instance, in the year 2022, according to Ministry of Consumer Affairs data sugar diverted for ethanol production accounted for 35LMT whereas 359 LMT of sugar was produced by the sugar mills in the country.

Market Key Developments

• In November 2021, Wilmar International Ltd increased its ownership stake in Shree Renuka Sugars Limited (SRSL) to 62.48%. The annual cane-crushing capacity of SRSL is 8.4 million MT. India, the second-biggest producer of sugar in the world, has SRSL as its top miller and largest sugar refiner.
• In March 2021, Dalmia Bharat Sugar and Industries Ltd. (DBSIL) announced the debut of its packaged sugar under the brand name "Dalmia Utsav" intending to increase its reach to customers.

Segmentation:

By Form

• Granulated
• Powdered
• Syrup

By Source

• Cane Sugar
• Beet Sugar

By Distribution Channel

• Online
• Offline