Brown Sugar Market - Forecast(2023 - 2028)

Brown Sugar Market Overview

Brown Sugar Market size is estimated to reach $26.4 billion by 2027, growing at a CAGR of 7.9% during the forecast period 2022-2027. Brown sugar can be demarcated as brown-colored, sucrose sugar manufactured by mixing molasses and white sugar with each other; only molasses derived from sugar cane is added to refined sugar crystals during the manufacturing process, not the beer sugar molasses. Brown sugar is also called muscovado in countries like the Philippines and Mauritius. Molasses is a primary source of nutrients present inside brown sugar. Brown sugar contains nearly 380 calories and 98g of carbohydrates per 100 grams. Besides disaccharide sucrose, it is home to glucose and monosaccharide fructose. Both brown and regular (table) sugar extend the same quantity of calories per tablespoon (17.5), it is only distinctive flavor, color, and moisture content that separates them from each other. Brown sugar is commonly categorized into soft light and dark brown and has extensive applications in confectionery and bakery items. Expanding demand for bakery and confectionery products, diversifying cuisine culture, changing tastes and preferences, appealing tastes, spiking demand for organic sugar, and rising disposable incomes are factors set to drive the growth of the Brown Sugar Market for the period 2022-2027.

Report Coverage

The report: “Brown Sugar Market Forecast (2022-2027)”, by Industry ARC, covers an in-depth analysis of the following segments of the Brown Sugar Market.

Key Takeaways

Brown Sugar Market Share, By Region (%) in 2021

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Brown Sugar Market Segment Analysis-By Nature

The Brown Sugar Market based on the nature type can be further segmented into organic and conventional. The conventional segment held the largest share in 2021. The growth is owing to the cost-effective nature of conventional farming, high revenue, more yield in less land, and requirement of fewer resources, growing demand for brown sugar because of reduced yield caused by natural calamities. Unlike organic-farming, conventional farming is practiced all over the globe. Additionally, the high price of organic harvest and little to no awareness among people regarding the existence of organic alternatives has aided the demand for conventionally grown brown sugar. Furthermore, organic segment is estimated to be the fastest-growing with a CAGR of 8.7% over the forecast period 2022-2027. This growth is owing to the rising awareness among consumers regarding health problems is linked with conventional products has broadened the demand for organic brown sugar. Similarly, growing campaigns like “Save Soil” aimed at reviving the organic content of soil by reducing dependency on pesticides and fertilizers have aided the growth of the said segment.

Brown Sugar Market Segment Analysis-By Application

The Brown Sugar Market based on the application can be further segmented into Dairy products, Sauces, Beverages, Confectionery and bakery, and Medicines. The confectionery and bakery segment held the largest share in 2021. The growth is owing to the growing popularity of cakes, chocolates, candies, sweets, and desserts among youngsters as well as adults. Owing to the hygroscopic nature of molasses, which is a primary ingredient in brown sugar, brown sugar plays a vital role in retaining moisture in baked items. In addition to that, spiking usage of functional flavors, nut-based flavors, fruit, and herbal fillings to enhance the overall taste and aroma of products has its fair contribution to supplementing the growth of the aforementioned segment. Furthermore, estimated to be the fastest-growing segment with a CAGR of 8.9% over the forecast period 2022-2027. This growth is owing to a growing demand for brown sugar as a color and flavor enhancer, rising disposable incomes of consumers, especially in low-income countries, a spiraling trend of gifting sweets during festival seasons, and rapid urbanization are preeminent factors driving the market.

Brown Sugar Market Segment Analysis-By Geography

The Brown Sugar Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. Asia-Pacific held the largest share with 42% of the overall market in 2021. Even though Brazil is the biggest producer of sugar with more than 38-40 million metric tons annual production but when it comes to collective production Asia-pacific dominates the market. China, India, Vietnam, Thailand, and Indonesia are major sugar-producing countries because of the tropical climate. Every year India produces nearly 33.76 million metric tons of sugar; whereas, China’s production stands around at 10.5 million metric tons. In addition to that, over 4.7 billion people call this continent (Asia) home as of March 2022 which is nearly 59.6 percent of the total world population; consequently, brown sugar consumption is relatively high as compared to the rest of the world. Nevertheless, Asia-pacific is expected to be the fastest-growing segment over the forecast period 2022-2027. This growth is owing to the growing number of domestic confectionery products. Also, the rising living standards of people as disposable income level is spiraling has broadened the confectionery intake and beverage consumption.

Brown Sugar Market Drivers

Brown sugar is widely used as a flavor, taste, and color enhancer in various beverages and food items. Therefore, the growing demand for innovative flavored products has drawn the eyes of manufacturers toward brown sugar. Proliferating per capita chocolate and candies consumption worldwide is another factor driving the market. Switzerland’s per capita consumption has reached 9 kg (highest in the world) followed by Germany and Austria with 7.9 kg and 8.1 kg per capita consumption. In addition to that, the rapid migration of people from rural to urban is another prominent driver as urbanization increases the consumers’ exposure to such products. As of 2022, over 56 percent of the world population lives in urban areas, the figure is projected to reach 68 percent by the year 2050. On another hand, rapid digitalization has made marketing strategies quite easy and effective.

Besides Europe where the maximum number of nations have a GDP per capita of more than $55,000, various low-income countries like China, Indonesia, and India have witnessed a slight surge in income levels in recent years. For example, from $10,511 in 2020, China’s GDP per capita income soared and reached $12,551 in 2021; whereas, Indonesia’s GDP per capita witnessed a $580.41 jump and reached $4,450 in 2021. Also, the growing number of modern retail stores like supermarkets and hypermarkets has made purchasing so easy for busy shoppers. Additionally, a growing number of mergers and acquisitions has fueled the growth of the Brown Sugar Market.

Brown Sugar Market Challenges

Widescale deforestation, soil degradation, climate change, pollution, and biodiversity loss have emerged as major environmental catastrophes reducing the sugarcane crop yield across the globe. According to a report, organic content in Indian soil has dropped down to 0.5 percent which is likely to reduce the sugarcane yield in near future. On another hand, with a non-stop acceleration for 5 months, the inflation rate soared to 6.07 percent in February 2022. With a staggering 17.5 percent inflation rate, Sri Lanka is on the verge of collapse, already it is battling the worst economic crisis because of COVID-19. These all factors together are anticipated to hamper the market growth.

Brown Sugar Industry Outlook:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the aforementioned Market. Brown Sugar Market top 10 companies include-

1. Tate & Lyle Sugars
2. ASR Group
3. Cargill Inc.
4. American Crystal Sugar Company
5. Wholesome Sweeteners Inc.
6. Raizen SA
7. Taikoo Sugar Ltd.
8. Sudzucker AG
9. Garrett Ingredients
10. Nordzucker AG

Recent Developments

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