Malaysia Sugar Market - Forecasts from 2022 to 2027

The Malaysia sugar market is expected to grow at a compound annual growth rate of 3.93% over the forecast period to reach a market size of US$914.213 million in 2027 from US$697.787 million in 2020.

Market Overview:

Sugary foods are frequently consumed in Malaysia daily. It can be eaten alone as a sweetener or combined with other foods. The sucrose found in sugarcane or sugar beet is what makes up the granulated or table sugar that the majority of homes use as a sweetener. Obesity is a likely result of sedentary lifestyles and high sugar intake, and it may increase the risk of type 2 diabetes and other cardiovascular and non-communicable diseases. Malaysia is currently the fattest nation in Southeast Asia.

In Malaysia, the demand for sugar and sugar-related goods has grown recently. Malaysia does not, however, manufacture sugar on a large enough scale to meet the country's present demand. In Malaysia, just a small portion of the sugar consumed comes from native sugar cane plantations. As a result, the import of sugar and sugar-related items has flourished in the nation. Malaysia has imported 2,165,000 tons and exported 330,000 tons so far in 2022 (Source: fas.usda.gov).

Growth factor:

The average adult in Malaysia consumes 12 teaspoons of sugar per day. The typical daily intake of sugar is made up of 3 teaspoons of self-prepared drinks, 6 teaspoons of carbonated or non-carbonated drinks, and 3 teaspoons of premixed drinks. Furthermore, sugar's low cost has made it possible for a wide range of products to be distributed, with data showing a consistent rise in sugar distribution in Malaysia throughout time (Source: iptk.moh.gov.my).

Restraints:

Increase in Sugar price decision

Players in the sugar business, such as MSM Malaysia Holdings, have urged the government to revisit the sugar price cap in light of increased freight and raw material prices. The government also takes into account the fact that, should the price of sugar rise, restaurants and bakers would be forced to hike their pricing. Also, the vice president of the Restaurant and Bistro Owners Association stated that although sugar made just a minor portion of the overall food composition they utilized, any price increase would still affect the operators.

Market Developments:

• December 2021: A contract was struck by MSM Malaysia Holdings Berhad (MSM) and Wilmar Sugar Pte Ltd (Wilmar Sugar) to work together to create a sustainable sugar supply chain. The sustainable sugar program shows the dedication of MSM and Wilmar Sugar to safeguard the environment, labor, and communities while advancing operational efficiencies and best practices. Wilmar International Limited (Wilmar), the parent company of Wilmar Sugar, launched its No Deforestation, No People Exploitation (NDPE) Sugar Policy1 in September 2021.
• January 2021: Leading sugar refiner Central Sugar Refinery (CSR) announced that it has teamed up with award-winning food technology company Nutrition Innovation to bring their ground-breaking new technology for reducing sugar, Nucane Life, to Malaysia. This is a significant development that will benefit both commercial brands and consumers. Nucane Life has received praise from all around the world for its groundbreaking invention in sweetening. Included in this are its outstanding accomplishments at the World and Asian Food Innovation Awards and Best in Category at Slingshot 2019, where it was also recognized by eminent specialists in the related field of Danone Nutricia and The Yield Lab.

Market Segmentation:

By Form

• Granulated
• Powdered
• Syrup

By Source

• Cane Sugar
• Beet Sugar

By Use

• Food and Beverage
• Pharmaceuticals

By Distribution Channel

• Online
• Offline