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Increase In Value addition Of By-Products And Rise In Productivity Improvement Opportunities Are Factors That Are Projected To Drive the Growth Of The Industrial Sugar Market

(Food-Beverage-News.Com, June 26, 2020 ) Sugar is one of the key commodities produced and consumed around the world, of which nearly 70% of production is consumed in domestic markets, whereas 30% is traded in the international markets. International trade has the potential to maintain stability in the domestic market, as exports can help to provide any surplus of industrial sugar production in across regions, wherein marginal deficits can be catered to by importing raw sugar. Besides catering to the local demands in countries, the industrial sugar industry also aims to enhance the value addition from sugarcane by focusing on deriving by-products through integrated sugar complexes.The rise in sugar production is possible mainly through productivity improvements and increase in the milling capacity of the existing mills.

The global market for industrial sugar is projected to reach USD 52.9 billion by 2022, recording a CAGR of 6.0%

On the basis of type of industrial sugar, the white sugar segment is projected to drive the market growth.It is widely used in food applications, such as bakery, dairy, and confectioneries. The growth in retail market and the expansion of product portfolio are factors that are projected to drive the demand for the sugar confectionery market globally.The rise in awareness pertaining to health consciousness among consumers has led to an increase in demand for brown sugar.The demand for liquid sugar has also increased among food & beverage manufacturers due to its extended shelf life as compared to the types of industrial sugar.

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Significant usage in beverages, confectioneries, and other food & beverage applications is projected to drive the demand

The major factor encouraging the use of industrial sugar in food applications is due to its sweet taste. Besides its flavor-enhancing properties, sugar in food products also acts as preservative, texture modifier, fermentation substrate, coloring,and bulking agent. The various methods for the use of sugar are based on its physical and chemical properties. The awareness among consumers pertaining to sugar has increased over the years, which has led them to opt for health-enriching food products, such as low-calorie confectionery and bakery products.Due to these factors, confectionery manufacturers are specifically using various types of sugar to align with changing consumer preferences for healthy diet.

Geographical Prominence

Asia Pacific is estimated to account for the largest market share in the industrial sugar market, in terms of value, in 2016, dueto the presence of major players in the region and the increase in disposable income of consumers. Developed markets, such as North America and Europe, have reached the mature stage, and thus, offer growth opportunities for manufacturers in developingregions,including AsiaPacific. The growth of the industrial sugar market in the AsiaPacific region is driven by untappedapplication segments and increasing population. The increase in the consumption of consumer products and the rise in demand for packed food products are the key factors that drive the demand for sugar products in regions, such as Europe and North America.

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The industrial sugar market is highly competitive, with a few large and established players, as well as a large number of small and medium-sized firms.The rising average international prices and value addition to by-products area few major factors that are projected to drive the growth of the industrial sugar market. Key players in this market have adopted various strategies to expand their global footprint and increase their product offerings to capture the market share. The market is dominated by leading companies, such as Cargill (US), ADM (US), Raizen SA (Brazil), Sudzucker AG (Germany), Tereos (France), Nordzucker Group AG (Germany), and Tongaat Hulett Group (South Africa).


Mr. Aashish Mehra


Source: EmailWire.Com
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