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For a long time, the global sugar market has been centered around key players like Brazil, Thailand, and India. However, in recent years, this landscape has changed a lot, and the emerging economies from the regions of Latin America, Southeast Asia, and Africa are the main reason why.
These emerging economies are influencing both the production and consumption of sugar, thus redefining the global market at an unprecedented pace.
“Emerging economies are reshaping the sugar market with their shifting dietary choices, rising populations, policy reforms, and technological advancements.”, says the founder of Geohoney and the CEO of B A Barry Group, Mr Basem Barry.
This blog explores how the emerging economies are redefining the global sugar trade and changing the market trends, bringing in a new era of innovation, sustainability, and competition in the sector. So, keep on reading till the end.
Top Emerging Players in the Sugar Market
How are These Emerging Economies Redefining the Global Sugar Market?
Consumption Trends are Changing
Health Trends are Shifting
Trade Dynamics Rewriting the Global Sugar Market
Technological Advancements to Enhance Production
Sustainability At the Core
About 180 million metric tons of sugar are produced annually around the globe, and a huge part of it comes from Brazil, Thailand, and India. Brazil is the largest producer of sugar, while India is the second largest producer and a huge consumer.
In recent years, other emerging economies from Southeast Asia, Africa, and Latin America have also appeared on the map when it comes to global organic sugar trade. The countries in these regions have observed a surge in their sugar consumption and production capacities, thus asserting great influence both in local and international markets.
The following are some notable emerging economies that are influencing the global sugar market at the moment.
This country produces about 300,000 to 4000,000 tons of sugar annually, and its consumption is about 500,000 to 600,000 tons per year. The high domestic consumption requires Ethiopia to import sugar from major global suppliers.
However, the country is currently working on agro-industrial parks and several sugar projects to increase its production and emerge as a key exporter in the coming years.
Pakistan is emerging both as a major producer and exporter of sugar in the global market. The annual sugar production in the region is about 6.8 to 7.2 million tons, while the consumption falls in the range of 6.1 to 6.7 million tons.
There are robust export-oriented policies and subsidies in place that are further expected to make it a leading sugar supplier in key global markets.
The Philippines produces about 1.8 to 2 million metric tons of sugar per year. Most of the sugar produced goes into domestic consumption. The country is currently working on technology integration and modernizing its milling equipment, which is expected to enhance yield and exports in the coming years.
The domestic consumption of sugar in Indonesia is about 7.7 million metric tons, while its production capacity is about 2.4-2.6 million metric tons. This huge supply and gap in demand make it one of the biggest sugar importers.
However, the country is working towards self-sufficiency in the sugar sector by developing policies and sugar-based industries that incorporate modern milling equipment, sustainable power sources, and bioethanol.
This country produces about 427,000 tons of sugar and consumes about 1 million tons per year. This necessitates reliance on sugar imports from major suppliers like Brazil, India, etc.
Backed by Gulf investors, relaxed policies, and modernization, Sudan is expected to increase its sugar production in the next decade.
The annual consumption of sugar in Mexico is about 4.6 million tons, while production is about 5.5 million tons. Factors like sustainable farming, rising demand, and robust industrial infrastructure have made this country among the most promising sugar exporters and a leading player in recent decades.
The following are a few ways growing economies are influencing and redefining the global organic and ICUMSA 45 sugar market.
An increase in urbanization and the corresponding rise in average salaries in emerging economies are leading to increased sugar consumption. Countries like Indonesia, Pakistan, and Sudan are witnessing increasing demand for sugar in beverages and processed food industries.
Some of the emerging economies, like India and Nigeria, are quickly becoming the top consumers of sugar, and that is asserting their dominance in the sugar sector.
Awareness of the health implications of sugar is also rising in emerging economies, which is greatly affecting the import numbers. Many countries, like South Africa and Mexico, are introducing sugar taxes to minimize obesity and rising diabetes risks.
Natural organic brown sugar and sweeteners like jaggery, stevia, and coconut sugar are also observing an increase in demand in these countries.
Many emerging markets are focusing more on regional trade partnerships instead of relying solely on Western markets. Initiatives like AfCFTA (African Continental Free Trade Area) and RCEP (Regional Comprehensive Economic Partnership) have been introduced with an aim to foster intra-African and Intra-Asian organic and ICUMSA 45 sugar trade, respectively.
These emerging economies are also focusing on markets in China, South Korea, and the Middle East to further diversify their exports and reduce reliance on markets in the EU and the USA.
Many emerging economies are embracing advanced technologies like precision agriculture, satellite imaging, and bioethanol production to modernize their sugar production and enhance yield.
These innovations are aimed at reducing inefficiency, managing sugar production costs, and reducing dependence on oil exports. This way, emerging economies are making successful efforts to modernize production without the burden of legacy systems.
Another promising aspect is the focus on sustainability in the sugar production sector. These economies are acquiring global sugar certifications like Fair Trade certifications and organic sugar labels to align with the global Environmental, Social, and Governance (ESG) standards.
Many nations are investing in waste-to-energy projects in their sugar production mills to minimize carbon emissions and reduce overall environmental impacts.
Emerging economies from the African, Southeast Asian, and Latin American regions have evolved from being passive participants to more active and key players in the global sugar market.
Factors like increased production, robust policy changes, and increasing consumption are placing these nations at the forefront of the global sugar industry’s landscape.
This unprecedented transformation presents a unique set of challenges and opportunities for the global producers, traders, and investors in the sugar sector.
However, by keeping an eye on how these emerging economies have evolved and adapted in the past few decades, it is possible for you to not only uncover exciting new trade avenues but also thrive in this new era of the global sugar market.
You can visit us at B A Barry today to order our premium quality bulk organic and ICUMSA 45 sugar for your businesses and trade worldwide.
