The worldwide liquid sugar market size is estimated to be USD 77 million in 2024. Displaying a CAGR of 5.8% through 2034, the sector is slated to be valued at USD 135 million by the end of the forecast period.
With lifestyles getting hectic by the day for the younger generations, the demand for convenient food and beverages is shooting up. Liquid sugar is thus being called upon more often in the service of masking convenient food and beverages.
The easy solubility as well as the sweet taste of the product make it popular among manufacturers of food and beverage products. The constant reinvention in food and beverage products, offering wider variety to consumers, also helps the sector’s prospects.
Demand for sugar in the liquid form is benefitting due to the overall demand for liquids progressing steadily. The beverage sector is enjoying enhanced demand due to continuous innovation in flavors, tastes, textures, and more. The propagation of the beverage sector also benefits the demand for the product.
Global Liquid Sugar Industry Assessment
| Attributes | Description |
|---|---|
| Historical Size, 2023 | USD 70 million |
| Estimated Size, 2024 | USD 77 million |
| Projected Size, 2034 | USD 135 million |
| Value-based CAGR (2024 to 2034) | 5.8% |
Increasing knowledge about the ill effects of sugar has not been enough to dislodge the sweet tooth in people’s mouths. The bakery and confectionery realms are seeing a continued increase in the number of customers. Liquid sugar is used in large proportions in bakery and confectionery sectors, leading to enhanced demand for the product.
The food processing application of sugar in liquid form is rising. As the preference for packaged and processed food increases, the ingredients used in food processing are enjoying greater demand, among them liquid sugar.
Like other ingredients used in food processing, technological advancement is looked at keenly by manufacturers. With sugar extraction itself becoming technologically developed, there is a greater focus on getting sugar in the liquid form more efficiently. Automation of industries is helping manufacturers to streamline the process, helping them save on manufacturing costs.
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The below table presents the expected CAGR for the global liquid sugar market over several semi-annual periods spanning from 2024 to 2034. For the first half (H1) from 2023 to 2033, the sector is expected to progress at a CAGR of 5.6%. For the second half (H2), growth is predicted at a CAGR of 5.8%.
| Particular | Value CAGR |
|---|---|
| H1 | 5.6% (2023 to 2033) |
| H2 | 5.8% (2023 to 2033) |
| H1 | 6% (2024 to 2034) |
| H2 | 5.9% (2024 to 2034) |
Moving forward to the subsequent period, from H1 2024 to H2 2034, the CAGR is foreseen to be 6% in the first half and 5.9% in the second half. Thus, it is clear that progress from 2024 to 2034 is set to outpace progress from 2023 to 2033. Further, progress in the first half of the second period is projected to be slightly faster than the second period.
Increasing Westernization Responsible for Greater Scope
People in Asian countries are adopting Western customs at a rapid rate. This adoption of Western customs extends to food, with consumers being drawn in by Western-style breakfasts and snacks. The preference for Western food is illuminated by the rapid acceleration of the bakery and confectionery sectors in developing nations. There is thus enhanced demand for sugar in liquid form in these nations.
The inclination towards Westernization is being propelled by rising urbanism. Significant urban migration in nations like China and India, fuelled by rising disposable income, is seeing the lives of people in these countries start to mirror those in Western nations. Thus, there is greater scope for the industry in developing nations.
Online Boom Makes its Presence Felt
Demand for the product is expanding at a satisfactory pace as supply chains for it proliferate. An increase in the number of hypermarkets and other retail shops is helping the cause of the product. These shops ensure the product remains prominent in shoppers’ eyes, while also making it easily available.
The online boom has increased the profile of the product immensely. The limited availability of the product in physical shops is being countered by making it available online. Online sales of energy drinks, sodas, bakery items, and more have also led to increased demand for liquid sugar.
Increasing Aversion to Sugar Counteracts Growth Potential
Health enthusiasts are turning away from sugar in rising numbers. The high glucose as well as calorie content of sugar is being looked at with disdain. Thus, the number of products being made from sugar substitutes or without any sugar is progressing. As a result, the scope of the product is limited.
Increased sugar consumption has also been linked to a greater risk of diseases like diabetes and obesity. There have thus been greater initiatives from medical personnel, dieticians, and even governments to curb sugar consumption. Fluctuating raw material prices also impact the sector negatively. For example, riots over sugarcane prices in India have led to the growth of the product slowing down.
Principal Consultant
The industry size was tipped to be USD 61 million in 2019. Throughout the historical period, the industry advanced at a CAGR of 5.9%, reaching a size of USD 70 million in 2023. While the pandemic put problems in the path of the industry, there were also causes for rejoicing. Increased online sales saw the product become more prominent.
Rising e-commerce activity was also beneficial to the sale of products where the liquid form of sugar is applied. For example, more people undertook the consumption of energy drinks during the pandemic period. As restrictions were lifted, the scope of the industry developed further.
The sector’s progress in the forecast period is set to be slower than in the historical period. Primary among the reasons for the slow uptake of the industry over the next decade is the emerging health trend.
Fitness enthusiasts are not only themselves turning away from sugar but also encouraging others to do so. An increase in the number of people affected by diabetes and the obesity epidemic are other reasons for demand slowing down.
Social media influencers are running campaigns to clamp down on sugar. However, despite all the negative prospects, there are still a myriad of opportunities present for investors.
Tier 1 companies that have a notable presence in the industry include Cargill, Incorporated, Tate & Lyle PLC, Archer Daniels Midland Company (ADM), and Südzucker AG. Tier 1 companies are tipped to generate 35% of the revenue of the sector.
Cargill has earned the trust of consumers through a wide variety of products and liquid sugar is no different. This trustworthiness is representative of several tier 1 companies in addition to Cargill, such as Tate & Lyle.
Archer Daniels Midland has a significant presence in the agricultural processing sector and supplies several products for food processing, including the liquid form of sugar. Sudzucker, on the other hand, dominates the sector in Europe.
Some notable tier 2 companies are Ingredion Incorporated, Cosan Limited, American Crystal Sugar Company, and Domino Foods, Inc. The revenue share of tier 2 companies is established to be lower than that of both tier 1 and tier 3 companies, at 20%.
Companies like American Crystal Sugar Company and Domino Foods dominate the demand in North America. Like tier 1 companies, several tier 2 companies too excel in a variety of sugar products and see that expertise transferred to liquid sugar operations. Ingredion Incorporated and Cosan Limited are two examples of that.
Some notable tier 3 companies are Roxas Holdings Inc., Sugar Australia Pty Ltd., and Natasha's Treasures. Tier 3 companies are projected to earn the most revenue in the sector, with their share projected to be 45%. These tier 3 companies rely on niche offerings to increase revenue. For example, Natasha's Treasures concentrates on organic and non-GMO food.
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The traditionally sweet-loving nations of the Asia Pacific, such as Japan and India, keep the momentum of the sector positive in the region. The Middle East is another region where traditional attraction to sweetmeats lends progress. While health trends in Europe and North America are peaking, liquid sugar still finds plenty of possibilities in this region.
| Countries | CAGR (2024 to 2034) |
|---|---|
| Italy | 6.8% |
| United States | 5.6% |
| United Kingdom | 5.8% |
| Spain | 6.6% |
| France | 6.3% |
The United States industry is anticipated to progress at a CAGR of 5.6% during the assessment period. With lives in the United States getting incredibly busy, convenience food is relied upon more prominently. In the absence of full breakfasts and proper meals, convenience food is sought. The climbing regard for convenience food also allows the liquid sugar industry to develop.
Rising popularity of convenience food is aided by a significant number of American consumers being enthralled by packaged and processed food. The liquid version of sugar is thus finding more application in the nation.
Demand for liquid sugar in Italy is set to record a CAGR of 6.8% over the next decade, making the country one of the most promising ones in Europe. Italy's thriving bakery and confectionery sectors, known for producing a wide range of pastries, desserts, and gelato, drive demand for high-quality liquid sugar.
The increasing popularity of Italian beverages, such as flavored syrups used in coffee and cocktails, further boosts the demand for the product. Italy has also been bitten by the organic bug. Thus, organic forms of the product are making their mark in the country.
The sector in the United Kingdom is anticipated to advance at a CAGR of 5.8% over the next ten years. The trend towards clean labeling and transparent ingredient sourcing in the nation supports the use of liquid sugar as a recognizable and trusted ingredient.
Ready-to-eat meals are becoming more common across the United Kingdom. Several of these meals use liquified sugar in their making, thus boosting the prospects of investors.
The booming beverage sector, including craft soft drinks and mixers, also drives demand. Rise of online food delivery services and changing consumer preferences towards gourmet and artisanal foods further stimulate the industry. Increased energy drink consumption, due to more people getting into sports, also drives the industry forward.
The below section offers insights into leading segments. Sugar cane is still the most popular resource for the production of sugar in liquid form. Despite the emergence of organic food, conventional still rules the roost when it comes to the nature of the sugar.
| Segment | Sugar Cane (Source) |
|---|---|
| Value Share (2024) | 78.4% |
Like with traditional sugar, it is sugar cane that triumphs over beet sugar when it comes to the resource of the product. It is estimated that sugar cane will account for 78.4% of the industry share in 2024.
Sugar cane continues to be the primary source for the extraction of sugar syrup. Thus, manufacturers have an ease with which the raw material is extracted. Sugar cane production also far outranks the production of beet sugar, making the ingredient more common in the making of liquid sugar.
Subsidies by governments to increase sales of sugar cane also lead to greater yield of the raw material, enabling more of its use in the making of liquid forms of sugar. As a result, the target segment will likely retain its dominance through 2034.
| Segment | Conventional (Nature) |
|---|---|
| Value Share (2024) | 83.2% |
Conventional sugar is anticipated to account for 83.2% of the industry share in 2024, thoroughly registering its victory over organic. Most manufacturers already have familiarity with the production of conventional liquid sugar. Thus, it is the conventional route that most manufacturers take.
The know-how regarding the process of conventional sugar also makes its production cost-effective. While organic products are all the rage in the food and beverage sector, their production is often costly, as is the case with non-solid sugar. Thus, conventional sugar is more common.
The familiarity and versatility of conventional liquid sugar in various applications, such as soft drinks, baked goods, and confectioneries allow it greater play in the sector. Consumer preference for traditionally sweetened products also plays a significant role in sustaining the demand for the product.
The liquid sugar market is highly competitive, as showcased by tier 3 companies comprising the majority of the revenue share. As a result, the barrier to entry is low, and a slew of new entrants are featured in the industry.
Key players such as Cargill, Tate & Lyle, and Archer Daniels Midland Company (ADM) use their extensive distribution networks, advanced production technologies, and strong brand recognition to maintain a leading position. These companies invest heavily in research and development to innovate and improve product quality.
Smaller companies are focused on providing personalized customer service and competitive pricing to differentiate themselves from larger competitors. Offering niche products, often taking the form of organic ones, is also a prominent strategy of these smaller companies.
The product faces competition from alternative sweeteners like stevia and agave syrup, which are gaining popularity due to increasing health awareness. Regulatory pressures and initiatives to reduce sugar consumption in food and beverages add to the competitive environment, compelling companies to adapt and innovate continuously.
The proliferation of online retail and food delivery services further intensifies competition by making liquid sugar products more accessible to a broader consumer base. Overall, the liquid sugar market is dynamic with players constantly striving to enhance their presence and cater to evolving consumer preferences.
Industry Updates
Based on source, the liquid sugar market is divided into sugar cane and beet sugar.
When it comes to nature, the global industry has been bifurcated into organic and conventional.
Based on the application, the liquid sugar market has been segmented into confectionery, bakery, processed food, frozen desserts, dairy products, and others.
The sector has been analyzed with the following regions covered: North America, Latin America, Europe, South Asia, East Asia, Oceania, and the Middle East and Africa.
The liquid sugar market value is set to total USD 77 million in 2024.
A CAGR of 5.8% is predicted over the forecast period.
The liquid sugar industry is forecast to reach USD 135 million by 2034.
Tate & Lyle PLC and Nordzucker AG are key companies in the industry.
The United States is forecast to record a CAGR of 5.6% over the next ten years.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Source 6.2. Nature 6.3. Application 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Source 7.1. Sugar Cane 7.2. Beet Sugar 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Nature 8.1. Organic 8.2. Conventional 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application 9.1. Confectionery 9.2. Bakery 9.3. Processed Food 9.4. Frozen Desserts 9.5. Dairy Products 9.6. Other Applications 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 10.1. North America 10.2. Latin America 10.3. Western Europe 10.4. South Asia and Pacific 10.5. East Asia 10.6. Middle East and Africa 11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. South Asia and Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Sales Forecast 2024 to 2034 by Source, Nature, and Application for 30 Countries 18. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 19. Company Profile 19.1. Boettger Gruppe 19.2. Tate & Lyle PLC 19.3. Nordzucker AG 19.4. Sugar Australia Company Ltd 19.5. Zukán S.L.U. 19.6. Banah 19.7. Südzucker 19.8. Maui Brand Sugars 19.9. Natural Raw Liquid Sugar 19.10. Eye candy 19.11. Da Vinci Gourmet and Monin 19.12. Cargill Incorporated 19.13. Archer Daniel Midland 19.14. Raizen SA
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