Global Sugar Cane Market - Forecast(2023 - 2028)

Global Sugar Cane Market Overview

Global Sugar Cane Market Report Coverage

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

By Source- Voluntary Sustainable Standards (VSS) and Conventional.

By Type- Chewing Canes, Syrup Canes, and Crystal Canes.

By By-Products- Raw Sugar and Refined Sugar.  

By End-Use- Food Manufacturing Industries and Biofuel Industries.

By Geography- North America (U.S., Canada, and Mexico), Europe (Germany, UK, France, Italy, Spain, Russia, and Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia & New Zealand, and Rest of Asia-Pacific), South America (Brazil, Argentina, Chile, Colombia and Rest of South America) and Rest of World (the Middle East and Africa).

Key Takeaways

• Geographically, Asia-Pacific’s sugar cane market held a dominant market share in the year 2021. The region leads the consumption aspect as well as the production dimension owing to robust demand and off-shore plants and manufacturing capacitors of multinationals in regions such as India, Thailand, and China amongst various others. Moreover, Asia-Pacific is expected to offer lucrative growth opportunities over the forecast period of 2022-2027. It is owing to the heightened demand being observed from dairy and confectionery industries along with soft drinks and other beverages.
• The growing end-user industrial usage of sugar cane as a better flavor provider in comparison to beet sugar along with the growing usage of sugar beet for biofuel production has been noticed as a key driver for the market. However, a decline in the usage of cane sugar owing to health challenges along with other supply and weather constraints impedes market growth.
• A detailed analysis of strengths, weaknesses, opportunities, and threats will be provided in the Global Sugar Cane Market Report.

  Global Sugar Cane Market- Application (%) for 2021.

  
  

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Global Sugar Cane Market Segmentation Analysis- By Source

The global sugar cane market based on the source can be further segmented into VSS or Voluntary Sustainable Standards and Conventional. Conventional held a dominant market share in the year 2021. Conventional sugarcane farming is less reliant on equitable practices, additionally, the demand stream for processed sugar is on the rise from Africa and Asia-which is heavily filled by the use of conventional practices. Moreover, a cost differential of 20-22% is observed between both the segments, giving the discussed a favorable edge. However, VSS standard crops are estimated to be the fastest-growing, with a CAGR of 6.2% over the forecast period of 2022-2027. The VSS system is a requirement defined by UNFSS which enforces those producers, traders, manufacturers, retailers, or even service providers to meet a wide range of sustainability metrics, which also includes basic human rights-worker health and safety- and the overall impact of production on community relations. Such equitable standards are now being demanded by the consumers in the western world, who are extremely label-conscious. Owing to such reasons, the said segment would outcompete the former.

Global Sugar Cane Market Segmentation Analysis- By Application

The global sugar cane market based on the application can be further segmented into Food Manufacturing Industries and Biofuel Industries. Food Manufacturing Industries held a dominant market share in the year 2021. Refined and Unrefined sugars are used in a variety of bakery & confectionaries related food items, dairy products, flavored and sugary beverages, and various others. Further, the bakery and confectionary market together accounts for a market size equivalent to $459 billion in 2020 and has been growing at a robust pace of a CAGR of 6.5%. However, biofuel industries are estimated to be the fastest-growing, with a CAGR over the forecast period of 2022-2027. The demand for biofuel has been growing rampant owing to the net-zero emissions target by 2050. Biofuels produced from residues and dedicated crops make up to 45% of biofuels consumed demand in 2030 for achieving net-zero emissions, which currently stands at 7% in 2020. Moreover, various governments are highly focused on providing immediate funding and subsidies to farmers to sustain and promote the said practice.

Global Sugar Cane Market Segmentation Analysis- By Geography

The global sugar cane market based on geography can be further segmented into North America, Europe, Asia-Pacific, South America, and Rest of the World. Asia-Pacific held a dominant market share of 44% as compared to the other regions in 2021. The region has a high supposed demand for various usages such as within the bakery and confectionary food items. Additionally, India ranks second, just after Brazil in terms of the production of cane sugar. India’s production was close to 31 metric tons during the 2019-20 season, with various other Asian countries such as Thailand, Pakistan, and China holding a dominant share. Moreover, Asia-Pacific is expected to offer lucrative growth opportunities over the forecast period of 2022-2027. Higher yields coupled with improving irrigation techniques and rising subsidy aids to the farmers supplemented by a growing demand observed in low- and middle-income countries are some of the reasons for such growth.

Global Sugar Cane Market Drivers

The growing demand for sugarcane to be used as a biofuel has been off-key market help and has driven the market forward.

Sugar cane has been of primary use within the food manufacturing domain, however, one of the predominant usages has been to use it as a feedstock for biofuel production. Sugarcane is an efficient form and medium to convert sunlight into energy. Biofuel production has been of keen importance owing to the non-replenishing nature of fossil fuels and a growing interest to depend on eco-friendly fuels. The demand for biofuel has been growing at a rate of 5% YoY from 2010 to 2019, with 2020 as an exception owing to the pandemic. Moreover, as per IEC, to achieve net-zero emissions by 2050- the demand resilience and growth of biofuel should touch 14% YoY, especially owing to a heightened movement and usage within trucking-shipping-aviation and various other options. Additionally, policies governed by governments across the regions have and will allow the demand for sugar cane to increase. For example, US Renewable Fuel Standard Plan and Canada’s Plan for Fuel along with Asia’s policies to use feedstocks would allow sugarcane usage to increase.

The demand sustaining from high sugar foods to reminisce feelings and other related attributes have allowed the market to grip.

Surveys have revealed that people have continued to purchase foods with high sugar value or confectionaries owing to the nature of being stuck in pandemics. Consumers have often revealed that they have adopted baking and other DIY trends which enforces them to depend on refined sugar and other sugary products. As per a report from Hershey’s, their chocolate sales increased by around 40%-50% higher, especially in areas where the COVID-19 cases were greater in number. Moreover, a strong correlation was studied in earlier phases itself, which was communicated by the dealers to the company which allowed them to stock up their shelves at all times, which enforced them to build displays and media. Furthermore, the National Confectioners Association reported that the consumption of premium chocolates and confectionaries sales rose by 12.5% from March 2020 to January 2021- as people were more satisfied with being a sweet tooth as the challenges of the pandemic grew. The overall sentiment pertaining to confectionaries has remained positive, as 93% of Americans as per the National Confectionaries Association believe that candies can be a part of a happy and balanced lifestyle.

Global Sugar Cane Market Challenges

The negative ramifications pertaining to one’s health post-consumption of sugary foods have impeded market growth.

The growing health concerns related to sugar consumption have led to increased government interventions. For example, UK Government and the Australian Government have pushed their pedals for introducing a sugar tax-which would further de-motivate the manufacturers to reduce their dependency on processed sugars. The following taxes were being thought of when the global diabetic numbers are forecasted to touch 550 million by 2025, which currently stands at 490 million people. Various researchers have contributed that sugary drinks and other beverage consumption led to a spike in glucose levels-causing diabetes mellitus. Additionally, sugar cane production has often troubled the farmers in long run, as history governs that the costs in the global markets often fall below the production costs, thereby making them vulnerable to falling into debt traps and losing their assets. Owing to such reasons, the overall market’s growth is hampered.

Global Sugar Cane Industry Outlook

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Global Sugar Cane Market. Top- Global Sugar Cane Market key companies are-

1. Global Organics
2. DO-IT Food Ingredients
3. Louis Dreyfus Company B.V.
4. Wilmar Sugar Australia
5. ASR Group
6. Tata & Lyle
7. COSAN
8. SAVOLA Group Company
9. DALMIA Bharat Limited
10. SUDZUCKER AG

Recent Developments

• In February 2022, Ellah Lakes announced that it would collaborate would Montserrado Investment Ltd to build a 600 tons of caner per day sugar processing plant. The following is in support of the NSMP or National Sugar Master Plan- which is geared towards accelerating the development and growth of the local sugar industry of India, thereby helping to achieve national self-sufficiency. The sugar processing facility is expected to run on 100 percent renewable power, and the period from construction to completion and commissioning is expected to be 24 months.
• In February 2022, Pract-Eco Solutions LLC launched a new form of straw – made from sugarcane. The Pract-Eco Solutions straws are composed of repurposed sugarcane bagasse and biodegradable PLA and meet European biodegradation standards requiring the compostable plastics to disintegrate after 12 weeks and biodegrade after six months. That means 90% or more of the plastic material will have been converted to carbon dioxide. Additionally, the product can be repurposed and used again post wash-thereby fulfilling the recyclability aspect.
• In January 2022, Vishwaraj Sugar Industries announced that it would invest 250 crores to set up a new ethanol plant in Karnataka, India. At present, the VSIL has a sugarcane crushing capacity of 11,000 tonnes per day- with a distillery capacity of 1 lakh liters per day- while generating around 36.4 MW. Furthermore, the company announced that the facility would be operational from FY 2024. Moreover, the company said that such expansion would allow for 5 lakh liter production per day.

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