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Global sugar manufacturing market worth $61.4 billion in 2013

Press Release   •   Dec 10, 2013 08:45 GMT

Revenue within the global sugar manufacturing market has grown at an annualized rate of 2.6% in the five years to 2013 to reach a value of $61.4 billion.

However, industry revenue is forecast to decline 24.5% during 2013 as world prices decline.

It has been a challenging five years for the global sugar manufacturing industry as operators have been with huge fluctuations in production and global sugar prices.

The recent restructuring of the industry in the European Union (EU), rising demand for sugar in ethanol production and adverse weather conditions caused frequent declines in global sugar production, strained global sugar stocks and caused frequent spikes in sugar prices.

Rising energy prices during the past five years have prompted supply problems due to rising demand for alternative fuel such as ethanol, which is derived from sugarcane.

There has been increasing pressure on global sugar supplies due to more sugarcane being diverted to ethanol production as the global price of crude oil has risen as much as 28.9%, in 2010, and 30.6%, in 2011, during the past five years.

Government policies have intensified these factors, increasing the production and use of ethanol, especially in Brazil, where ethanol is a primary source of energy.

The largest sugar-producing region is South America, with Brazil the world's largest sugar producer and exporter. Other important sugar producing regions include Europe, India and Central Asia.

During the past five years, the dominance of South America in sugar production has increased. However, EU sugar production has declined due to reforms to sugar assistance, including a reduction of production quotas and increases in import volumes.

Increased production is expected to boost international trade over the next few years, and global sugar consumption will grow as demand from developing regions increases alongside income and population growth.

This will boost industry revenue over the next five years at an average rate of 4.1% per year to reach $75.1 billion.

For more information on the global sugar manufacturing market, see the latest research: Global Sugar Manufacturing Market

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