Industrial Sugar Market Report 2025

The industrial sugar market size has grown strongly in recent years. It will grow from $48.77 billion in 2024 to $51.82 billion in 2025 at a compound annual growth rate (CAGR) of 6.2%. The growth in the historic period can be attributed to colonial expansion and plantation agriculture, industrial revolution and refining techniques, expansion of sugar beet cultivation, slavery and labor practices, market liberalization and trade policies.

The industrial sugar market size is expected to see strong growth in the next few years. It will grow to $65.69 billion in 2029 at a compound annual growth rate (CAGR) of 6.1%. The growth in the forecast period can be attributed to environmental and sustainability concerns, increasing demand in pharmaceutical applications, expansion of food and beverage industry, rise in biofuel production, government policies and regulations. Major trends in the forecast period include health and wellness trends, demand for natural and clean-label products, technological innovations in processing, rise in low-calorie sweeteners, diversification of sugar applications.

The projected surge in demand for confectionery items, particularly dairy products, is set to drive growth within the industrial sugar market. Dairy items predominantly involve products containing mammalian milk like that of cows. The expansion of the global industrial sugar market is attributed to heightened confectionery usage in producing an array of beverages and confectionary goods, including cakes, milkshakes, croissants, and hot beverages with added sugar. As per the Department of Agriculture, Fisheries, and Forestry's data from August 2023, the expected growth in dairy exports for 2023-24 is estimated at 2%, increasing from 663 kilotons in 2022-23 to 679 kilotons. Thus, the escalating demand for confectionery products like dairy items fuels the industrial sugar market's growth.

The increasing demand for food and beverages is projected to drive the growth of the industrial sugar market in the coming years. The food and beverage industry, often referred to as the food service industry, encompasses companies involved in the manufacturing, production, distribution, and sale of food and beverage products. Industrial sugar plays a crucial role in this sector by providing sweetness, texture, preservation, and various other functional properties to a wide array of products, including baked goods, confectioneries, jams, and sauces. For example, in June 2024, the United States Department of Agriculture, a federal agency, reported that nominal food expenditures by U.S. consumers, businesses, and government entities reached $2.6 trillion in 2023, up from $2.4 trillion in 2022. Consequently, the rising demand for food and beverages is fueling the industrial sugar market.

Technological advancements have emerged as a prominent trend gaining traction within the industrial sugar market. Key market players are actively engaged in developing innovative technologies to fortify their market standing. For instance, in March 2022, Cargill, a US-based food corporation and industrial sugar producer, introduced the EverSweet + ClearFlo Stevia Platform, a pioneering stevia-boosting technology. This unique platform combines the company's leading sweetener with other natural flavors. Leveraging Cargill's ClearFlo technology, the EverSweet stevia-based sweetener serves as a foundation for incorporating additional natural flavors. This blend enhances flavor profiles, solubility, formulation stability, and dissolution speed, while also mitigating undesirable tastes that might exist in formulations, such as bitter coffee notes or metallic flavors from potassium chloride.

Major industrial sugar market entities are adopting a strategic partnership approach to explore sugar production from inedible biomass sources. Strategic partnerships involve leveraging combined strengths and resources for mutual benefits and success. For instance, in April 2023, Toray Industries, Inc., a Japan-based chemical company, announced a collaboration with Mitsui DM Sugar Co., Ltd. to develop sugar from non-edible biomass materials. These materials include extra bagasse, a residue from sugarcane processing, and pulp from cassava squeezing at starch manufacturers. Integrating this technique with Toray's ongoing development of producing monomers from sugars could facilitate a circular economy by manufacturing biomass-based polymers for fibers, films, resins, and various other products. Mitsui DM Sugar Co., Ltd. is a Japan-based manufacturing company specializing in sugar and related products.

In November 2022, US Sugar Corp, a US agricultural firm, finalized the acquisition of Imperial Sugar Co from Louis Dreyfus Co for $315 million. This strategic move aims to bolster US Sugar Corp's standing in the industrial sugar sector by integrating their expertise in sugar cane cultivation, milling, and cane sugar refining with Savannah refining's logistical capabilities, Sugarland's sales network, and customer service operations. Imperial Sugar, a domestic industrial sugar producer and marketer, complements this acquisition.

Major companies operating in the industrial sugar market are Cargill Incorporated, Nordzucker AG, EID Parry Ltd., Südzucker AG, Louis Dreyfus Company B.V., British Sugar PLC, Shree Renuka Sugars Ltd., Archer Daniels Midland Company, Raízen S.A., Tongaat Hulett Sugar Limited, Cosan SA Indústria e Comércio, Mitr Phol Sugar Corporation, Associated British Foods PLC, Wilmar International Limited, American Crystal Sugar Company, Lantic Inc., Michigan Sugar Company, Imperial Sugar Company, Guangxi Guitang Group Co. Ltd., Rizhao Lingyunhai Sugar Group, Bunge Limited, Thai Roong Ruang Group, China National Cereals Oils & Foodstuffs Corporation, Dhampur Sugar Mills Ltd., Balrampur Chini Mills Ltd., MSF Sugar Ltd.

Asia-Pacific was the largest region in the industrial sugar market share in 2024. The regions covered in the industrial sugar market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the industrial sugar market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Industrial sugar is derived from either sugarcane molasses or sugar beets, undergoing a series of processing stages encompassing extraction, purification, crystallization, and drying. This type of sugar serves as a preservative, preventing the proliferation of microorganisms and the formation of large ice crystals in frozen goods like ice cream.

The primary classifications of industrial sugar include white sugar, brown sugar, and liquid sugar. White sugar, also known as table sugar or granulated sugar, results from refined beet or cane sugar. Widely used in baked goods such as meringues, mousses, and light, airy pastries that require optimal rising, industrial sugar exists in granulated, powdered, and syrup forms sourced from various origins like cane and beet. Its applications span across industries including dairy, bakery, confectionery, beverages, and frozen foods.

The industrial sugar market research report is one of a series of new reports that provides industrial sugar market statistics, including global market size, regional shares, competitors with a share of the industrial sugar market, detailed industrial sugar market segments, market trends and opportunities, and any further data you may need to thrive in the industrial sugar industry. This industrial sugar market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The industrial sugar market consists of sales of granulated sugar, caster sugar, confectioners’ sugar, pearl sugar, sanding sugar, cane sugar, demerara sugar, and turbinado sugar. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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