Sugar and other sweeteners are used by most processed food manufacturers. Although the usage of sugar as an ingredient is pretty straightforward, the global sugar market has seen various changes and innovations in recent decades. From the rise of artificial sweeteners to the popularity of sustainably sourced products, businesses that deal with sugar need to adapt to various changes. In this post, we’ll share more about the current state of the sugar market worldwide and the trends in this sector. If you operate a business in the sweeteners niche market, you might be curious to read our thoughts on sugar shipping practices and where to buy wholesale sugar.
Key takeaway: The size of the global sugar market is roughly $66 billion. The Asia-Pacific region is the main driver of growth in the industry. Recently, many businesses have switched from regular sugar to alternatives such as stevia, monk fruit sweeteners, aspartame, and sugar alcohols (primarily xylitol and erythritol).
The Global Sugar Market
The current size of the global sugar market is estimated to be around $66 billion. That includes primarily brown, white, and liquid sugar. According to market research, the expected growth of the sector is between 6 and 7 percent annually. However, the market for other sweeteners (stevia, aspartame, or sugar alcohols) grows even faster.
Currently, the main drivers of expansion in the sugar market are developing countries with increasing populations. As the standard of living in these regions grows, products such as processed sweets or soft drinks become more popular and in higher demand.
More than three-quarters of the sugar is produced from sugarcane. The rest comes from sugar beets. The reasons for that are the lower costs and the better efficiency of sugarcane production compared to sugar beets. However, sugarcanes require a specific climate. As such, sugar beet production is dominant in certain regions.
Sugar Trends
There are various topics and market trends that have moved the sugar industry in recent years. Some of them have led to lasting changes while others have shifted the sugar market temporarily. Both sugar wholesale suppliers and manufacturers need to be aware of the latest sugar trends in order to adapt to the shifts in demand. Let’s examine some of these trends.
- Health and wellness concerns. A growing number of consumers have become conscious of the health issues related to increased sugar consumption. That’s why many manufacturers of processed sweets and desserts have switched from regular sugar to alternatives such as stevia or xylitol.
- Rise of sugar alternatives. Speaking of stevia and xylitol, sugar substitutes have been among the major trends and disruptors of the global sugar markets. Their commercial and industrial applications have been used for decades in manufacturing sugar-free beverages and other low-calorie products. Recently, plant-based products like stevia and monk fruit sweeteners have become popular among cooking enthusiasts, people on a diet, and the restaurant industry.
- Supply chain disruptions and market volatility. Raw sugar is an important commodity. As such, its prices constantly fluctuate based on tariffs, harvest, and various factors. Wholesale prices of sugar can change due to supply chain disruptions. For example, India is one of the biggest producers of sugar. However, as local demand has increased faster than the supply, the export of sugar has decreased. This has led to increased prices of sugar and has prompted some business owners to switch to sugar substitutes.
- Sustainability. Growing sugarcane has a significant impact on the environment and on local communities. That’s why fair trade and sustainable growth of sugarcane have become major trends. In order to limit their environmental impact and reduce the cost of goods sold, some businesses have switched to artificial sweeteners or other sugar alternatives.
- Alternative marketing and sales channels. The increased market share of eCommerce sales has also affected the sugar market. Distributors of wholesale food products manage orders through eCommerce tools like BlueCart. Buyers also prefer to order online as it is easier to compare prices and vendors.
Opportunities in the Sugar Market
The trends mentioned above as well as other changes in consumer behavior have created various opportunities. Here are some of the opportunities you can research.
- There’s been a growing demand for organic or specialty sugar. That includes products like coconut or panela sugar.
- Emerging markets and developing countries can offer various opportunities for entrepreneurs. Imports and exports of sugar from and to Africa, Asia, and the Middle East can be an excellent business opportunity.
- Although one of the restaurant industry trends is to use less sugar, wholesale distribution companies can expand their catalogs by including sugar alcohols, plant-based sweeteners, and artificial sweeteners.
- Producers of sugars and businesses that use both sugar and other sweeteners can focus on sustainability as a way to market their products and improve their ecological footprint.
Frequently Asked Questions about the Global Sugar Market
From tips on how to buy wholesale products to advice on inventory management, there are multiple useful resources on BlueCart’s website. Below we’ve shared the answers to some common questions regarding the global sugar market.
What Are the Most Common Types of Sugar?
Regular and brown sugar are the two most popular types. They’re used to sweeten beverages and in various recipes. Powdered sugar is primarily used in baking and for decorating desserts. Liquid sugars are also common. They come in various forms – molasses, honey, corn syrup, or maple syrup. In recent years, alternative sugars have become popular as well. This category includes products like coconut sugar and date sugar. Their distinct flavor makes them a preferred choice when making certain desserts or preparing an exotic cocktail.
What Are the Alternatives to Sugar?
There are dozens of different sweeteners available on the sugar market. They all vary in applications, levels of sweetness, and other characteristics. Here are a few examples.
- Honey has been used as a sweetener for millennia. Read more about the different types of honey;
- Stevia is a low-calorie plant-based sweetener that is suitable for diabetics;
- Aspartame is one of the most used sugar alternatives. It’s primarily used in soft drinks and processed foods;
- Sugar alcohols like erythritol and xylitol are also common sugar substitutes;
- Other sweeteners such as monk fruit sweetener, maple syrup, high-fructose corn syrup, or sucralose are also used by both retail customers and businesses.
What Businesses Buy Wholesale Sugar?
Although many businesses use sugar in their day-to-day activities, they might not purchase it in bulk. When it comes to wholesale sales of sugar, the types of companies that purchase it in large quantities are often manufacturers. For example, producers of beverages or confectionery products might purchase large quantities of sugar and other sweeteners. Pharmaceutical companies also buy sweeteners in bulk as they are used to improve the flavor of syrups and in the coating of medicines. Cafes, restaurants, hotels, and other food service businesses often purchase packaged sugar as it’s primarily used to sweeten beverages.
BlueCart: The Platform to Buy and Sell Sugar in Bulk
BlueCart’s wholesale marketplace allows distributors of all sizes to easily increase their B2B sales, automate various aspects of their business, and increase the efficiency of wholesale ordering. Thousands of restaurants, cafes, and various other businesses can use BlueCart if they want to find suppliers or compare prices of different vendors. Schedule your demo today and see how BlueCart’s wholesale ordering software can help both your distribution company and your customers.