Brown Sugar Market

The global Brown Sugar Market was valued at USD 17.9 Billion in 2022 and is projected to reach a value of USD 31.2 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 8.3% between 2023 and 2030.

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The market for Brown Sugar is expanding as demand from various food and beverage industry sectors rises. Consequently, it is envisaged that it will continue to rise. Typically, refined white sugar crystals that permit precise control of the sugar crystal to molasses ratio and lower manufacturing costs are used to create Brown Sugar. The molasses in this Brown Sugar can be easily separated from the crystals to generate white sugar, but the resulting white sugar is typically coarser than its unprocessed counterpart. There are several food-related purposes for Brown Sugar, including dairy and baking products. As disposable incomes in developed economies have increased, there has been a rise in demand for luxury consumer goods, such as baked goods, which has increased their importance in the food and beverage industry. The bakery industry prefers Brown Sugar over white sugar due to its hygroscopic properties and the presence of molasses, which is expected to increase future demand for Brown Sugar.

The growing health-conscious population, which seeks healthier alternatives to white sugar, will also expand the market. Since it has been determined that Brown Sugar is healthier than white sugar, consumers may prefer Brown Sugar over white sugar, which would contribute to the growth of this market over time. Organic Brown Sugar combines sugarcane molasses with completely refined white sugar crystals in the appropriate proportion and ratio. Each variety of organic Brown Sugar is distinguished by its molasses content, which can be high or low. The expansion of the food and beverage industry is driving the growth of the global Brown Sugar market. Numerous food-related applications utilize Brown Sugar, including dairy, pastry, and others. The rise in disposable incomes in developed economies has resulted in a greater demand for bakery products and other luxury consumables, making bakery products more important to the food and beverage industry.

The hygroscopic nature and presence of molasses in Brown Sugar make it more desirable in the bakery industry than white sugar, which is anticipated to increase demand for Brown Sugar shortly. Urban regions, where flavored beverages are becoming increasingly popular, have contributed to the increase in beverage demand, which is anticipated to create opportunities for Brown Sugar market participants in the coming years. Dark sugar's molasses content and brown color make it unsuitable for household use as table sugar; consequently, increased demand for energy drinks and fruit-based or fruit-flavored beverages is likely to remain a key industry driver and benefit market participants.

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Economic Insights

The world's most recessive state, caused by the COVID-19 pandemic, will last for years. Between 2022 and 2022, the global economy dropped the most. However, stimulus and forced immunization by various governments helped most states and countries worldwide clean up the mess and thrive again. During the projection period, the Russia-Ukraine conflict is expected to worsen economically. Russia's activities against Ukraine will slow the global economy. Inflationary pressures, falling confidence, household purchasing power, and rising risks will likely lower worldwide market income.

Top Market Trends

1. Increasing Demand for Healthier Products: In recent years, the tendency of consumers to purchase healthful food varieties has increased. During and after the pandemic, the purchasing patterns shifted significantly. This trend has also affected the global sugar market. People seek healthier, less processed, and natural sugar varieties, such as brown and organic, to reduce the negative effects of sugar consumption on the body. Organic sugar is gaining popularity among consumers because it is healthier and safer than conventional sugar. Major sugar producers are concentrating on developing novel varieties to meet consumer demand. For instance, Nutrition Innovation, based in Singapore, introduced a new low-GI sugar product under Better Brown. This launch was intended to meet consumers' rising demand for healthier, less refined products. The rising prevalence of lifestyle-related health conditions such as obesity, cardiovascular disease, and diabetes will continue driving the demand for healthier sugar varieties.
2. Rising Utilization Within the Beverage Sector: Worldwide, the food and beverage industry thrives. Diverse categories of the food and beverage industry have expanded significantly due to the increasing emphasis on innovation, novel product development, and the evolution of consumer demand. Due to its extensive applications, sugar has become crucial in the food processing industry. Consumers' rising demand for processed foods and beverages is the primary growth driver for the market. In addition, sugar is widely utilized in both alcoholic and non-alcoholic beverages. The emerging trend of consuming beverages as a refreshment has increased significantly
3. Rising Demand for Confectionery Among Developing Economies: The increasing demand for confectionery, particularly in the developing markets of Asia-Pacific and the Middle East, contributes to the expansion of the market. Millennials and children are increasingly fond of novel confectionery varieties in countries such as China, India, and Indonesia. In countries such as Japan, China, and Singapore, premium confections are regarded as gift items of superior quality. Consequently, the demand for delectable confections has increased. In the coming years, the increasing emphasis of manufacturers on developing novel chocolates and chocolate bars to attract a larger consumer base is anticipated to propel market expansion.

Market Segmentation

The global Brown Sugar market can be categorized on the following: Type, Form, Distribution Channel, End User, Application, and Region. Based on Type, the market can be categorized into Dark, Light, and Regular. Additionally, based on Form, the market can be split into Powdered Brown Sugar, Granules Brown Sugar, Brown Sugar Syrup, and Brown Sugar Cubes. Moreover, based on Distribution Channel, the global market can be differentiated into Hypermarkets/Supermarkets, Convenience Stores, Specialty Retailers, and Online Retailer. Additionally, based on End User, the market can be broken down into Hotels, Restaurants, Café, Lounges, Pharmaceutical Industry, Residential Sector, and Cosmetic Industry. Furthermore, based on Application, the market can be fragmented into Bakery Products, Beverages, Dairy Products, Confectionery Products, and Medicinal Products. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Type

Brown Sugar to Account for Wider Sales due to Appropriate Sugar Content

Regular Brown Sugar is the most popular variety of Brown Sugar. This is because it is the most widely available form of Brown Sugar in grocery stores and is frequently used in various recipes. Regular Brown Sugar consists of granulated sugar and molasses, with a molasses content of approximately 3.5%. It is ideal for baked products, glazes, and marinades due to its moderate molasses flavor and moist texture. Compared to light Brown Sugar, dark Brown Sugar contains more molasses and has a stronger flavor, which can overpower certain recipes. In contrast, light Brown Sugar contains fewer molasses and has a milder flavor than regular Brown Sugar, which may not be desirable in certain recipes. Regular Brown Sugar balances flavor and versatility, making it the preferred option for most home cooks and bakers.

Based on Distribution Channel

Supermarkets/Hypermarkets to Distribute Most Sales Due to Easy Convenience

Consumers prefer hypermarkets and supermarkets because they offer one-stop shopping for all their grocery requirements, including Brown Sugar. Large product displays, an extensive product selection, and frequent discounts make these retail stores a convenient and cost-effective option for consumers. Due to their availability 24/7, convenient locations, and speedy service, convenience stores are another popular distribution channel for Brown Sugar. Those needing Brown Sugar can obtain it from a convenience store without traveling great distances. In contrast, specialty retailers offer a curated selection of high-quality Brown Sugar products, including organic and artisanal varieties, to meet the requirements of health-conscious and discriminating consumers.

Based on Application

Bakery Products to Increase Sales Due to an Expanding Confectionary Sector

Due to the rising demand for Western bakery products in developing economies, the rising demand for bakery products in urban areas will likely be a significant driver for the Brown Sugar market. The expanding confectionery industry is anticipated to be the primary consumer of Brown Sugar, contributing to the industry's future growth. Due to the economic dynamics of the food and beverage industry, global demand for bakery products is exceedingly high. The rise in the indigenous bakery products industry in developing markets, such as Asia-Pacific and Latin America, is anticipated to emerge as a significant factor driving the development of this market in the coming years due to the popularity of bakery products in urban areas in these regions. Due to rising consumer interest, household production of bakery products is projected to increase considerably in emerging economies, resulting in a healthy increase in demand for Brown Sugar over the forecast period. Due to the rise in disposable incomes of urban consumers, which has led to a rise in demand for bakery products and other luxury goods, bakery products have become increasingly significant to the economic dynamics of the food and beverage industry.

Based on Region

Asia Pacific to Occupy Largest Market Share Owing to Incorporating of Brown Sugar into Staple Dishes

Asia-Pacific dominates the Brown Sugar market, likely continuing throughout the forecast period. Brown Sugar is mostly produced in tropical nations such as China, Thailand, Vietnam, India, South Korea, Bolivia, Brazil, and Indonesia. Indonesia is one country that produces Brown Sugar and has significant potential as a Brown Sugar exporter. In Indonesia, Brown Sugar is commonly used as a sweetener, flavor, and color enhancer. It is one of the alternatives utilized to meet Indonesia's sugar needs. Due to its growing popularity, Demerara sugar is now manufactured in other nations such as Mexico and India. Furthermore, Asia Pacific is expected to boost demand for Brown Sugar throughout the projection period, as it has the largest customer base and contributes considerably to the revenue of the food and beverage industry. Furthermore, due to increased demand for natural and organic food ingredients, Asia Pacific has continually been the industry's growth hub. The better lifestyle in this region and several government rules that ensure the quality of the product is also pushing the Brown Sugar industry.

The Middle East and Africa are among the sugar industry's fastest-growing markets. This region's ever-changing food processing sector is the key driver of market growth. Bakery, pastries, dairy goods, and beverages are growing increasingly popular in countries such as Saudi Arabia and the United Arab Emirates. The substantial growth of this region's dairy sector has significantly raised sugar consumption in recent years. During the estimated period, the market is expected to be fueled by rising demand for ready-to-eat and ready-to-cook products.

Competitive Landscape

Suedzucker AG, Tereos S.A., Cosan, and Associated British Foods PLC are some of the leading participants in the industrial sugar business. In recent years, the growing popularity of organic food among customers has greatly raised the demand for organic sugar. Big corporations are adding organic sugar variants to their existing offering to meet the increased demand. Tereos S.A., a renowned French sugar manufacturer, produced a revolutionary new organic beet sugar from its Attin plant in December 2019. The industrial sugar sector is highly fragmented, with only a few global corporations maintaining considerable market share. On the other hand, small entrants with novel product portfolios are expected to create a constructive market rivalry.

The key players in the global Brown Sugar market include - Imperial Sugar (U.S.), American Crystal Sugar (U.S.), Sudzucker AG (Germany), ASR Group (U.S.), Sunshine Sugar (South Africa), Tate & Lyle (U.K.), DOMINO FOODS INC (U.S.), Garrett Ingredients (U.K.), Billington Food Group (U.K.), Organic Tattva (India), Mantra Organic (India), Nordzucker (Germany), Cargill, Incorporated (U.S.), Taikoo Sugar Limited (China), Wholesome Sweeteners Inc (U.S.) and Raizen (Brazil) among others.

Recent Market Developments

• April 2022: Flour Mills of Nigeria Plc (FMN) has introduced the first 100% Nigerian Brown Sugar. Customers' affinity for Nigerian products will grow when high-quality Brown Sugar is fortified with vitamin A and other health benefits.
• March 2021: U.S. Sugar announced a deal with Louis Dreyfus Company to buy the business and assets of Imperial Sugar Company, a port refiner with facilities in Georgia and Kentucky. This change will enhance output while decreasing costs.
• January 2021: Nutrition Innovation, a Singapore-based food tech firm, announced that it would bring its sugar reduction technology Nucane Life to Malaysia in collaboration with local sugar giant CSR, offering local food manufacturers a clean label option for reformulation with added functional properties based on common cane sugar.

Segmentation of the Global Brown Sugar Market