The market share of molasses is predicted to grow from USD 11952.75 Million in 2023 to over USD 23512.86 Million by 2033. This is expected to further drive the market share of molasses and register a CAGR of 7.0% between 2023 and 2033. Increasing consumption of molasses in the animal feed industry and biofuel industry is driving the global molasses market's growth.
Increasing consumer interest in health and nutritional food products is driving the molasses market. Food and beverage manufacturers also use ingredients that provide nutritional benefits.
Sugar consumption leads to diabetes, heart disease, and obesity, so consumers are increasingly choosing healthier sugar substitutes in their diets. Additionally, molasses is known for having a higher nutritional value than regular sugar. Sugar extraction leaves molasses as a by-product, and in every process, molasses syrup has different nutritional properties that are beneficial for health. The types of molasses syrup are based on their sugar levels and are used according to consumer demand.
In addition, the increasing consumption of compound feed in the animal feed industry also drives the demand for molasses. This is because it is one of the main ingredients in these feeds. However, substitutes for molasses are limiting the global molasses market.
Sugarcane is the main source of molasses, and regions such as APAC and Latin America provide the best environments to grow sugarcane, which has a direct impact on molasses sales. As a by-product of sugar production, molasses is produced in large quantities in regions that produce a large amount of sugar.
| Attributes | Details |
|---|---|
| Molasses Market Value (2023) | USD 11952.75 Million |
| Molasses Market Expected Value (2033) | USD 23512.86 Million |
| Molasses Market Projected CAGR (2023 to 2033) | 7.0% |
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The global molasses market expanded at 5.2% CAGR over the past 10 years. Molasses is a sweetener produced by refining sugarcane and sugar beets. The food industry uses molasses as an ingredient since it is a thicker, darker liquid.
It's also a key ingredient in brown sugar and rum. Molasses is also used for various industrial purposes, such as a minor component of mortar for brickwork. It has been used to mix gelatin glue with glycerin when casting composition ink rollers on early printing presses.
Horticultural applications of molasses include promoting the activity of microorganisms in the soil. As a result, such uses of molasses in such industries are likely to propel market growth. The market is expected to expand at a CAGR of close to 7.0% over the forthcoming decade.
| Historical CAGR (2016 to 2022) | 5.2% |
|---|---|
| Historical Market Value (2021) | USD 10439.99 Million |
| Forecast CAGR | 7.0% |
The Rise in Import and Export Activities:
In addition to food and beverages, healthcare, pharmaceuticals, personal care products, and animal feeds, molasses is used in many other industries. There is a huge demand for molasses coming from across the globe due to its many applications. This is pushing companies to become involved in the import and export of molasses in significant numbers. In turn, this is driving more demand for molasses.
According to the Observatory of Economic Complexity (OEC), the leading data visualization tool for international trade data, India exported USD 123 Million of molasses in 2020, followed by Russia (81 million), Germany (80 million), Indonesia (77 million), and Guatemala (74 million).
Moreover, the United States (worth USD 171 million), the Netherlands (worth USD 100 million), the Philippines (worth USD 93 million), the United Kingdom (worth USD 77 million), and South Korea (worth USD 68 million) were the top importers.
Due to the increasing applications of molasses worldwide, the molasses market is expected to grow due to the increasing imports and exports.
Rise in the Utilization of Dry Molasses:
Increasing use of dry molasses in various applications. Like in pastry shop products, alcoholic and non-alcoholic beverages, and ranches rely on it to increase the quality and quantity of microorganisms in the soil, and as a sweetener in food. These are some of the factors driving the worldwide molasses market.
Besides these driving factors, the global dry molasses market is expected to record strong growth owing to the medical benefits associated with molasses products. Furthermore, dry molasses can also be used to create corrective items, which contributes to the growth of the dry market. As a result, the worldwide dry market is expected to expand rapidly during the estimated time frame owing to these driving variables.
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There has been a decline in molasses usage in feed applications, which is extremely challenging for the Molasses Industry. Animal feed is one of the key applications of molasses. The growing availability of less expensive alternatives, however, is compromising animal feed's interest in molasses.
The global molasses market can be segmented based on source, type, nature, end-use, and distribution.
According to the source, the molasses market is divided into sugarcane and sugar beet. As of 2023, sugarcane will account for 85% of the market share in terms of volume for molasses. Also, it is expected to grow at a CAGR of 5.2% and reach USD 17.5 Billion by the end of 2033. While sugar beet is projected to grow at a CAGR of 4.2% in the forecasted period.
Based on type, the market can be segmented into regular molasses, blackstrap molasses, and others. A market share of 52% is expected for blackstrap molasses over the forecast period, making it the dominant segment.
By nature, the market is segmented into conventional & organic. Organic foods are likely to grow at a relatively higher CAGR of 6.2% over the forecast period as consumers become more aware of the benefits of eating organic food. Conventional foods are expected to hold 82% of the market share by 2033.
The global molasses market can be segmented according to end-use by industrial applications, commercial applications, and household applications. The industrial segment can be further subdivided according to food and beverage production, animal feed production, biofuel production, and other industrial applications.
In 2023, the molasses end-use segment is expected to account for 79% of total molasses revenue and is expected to grow rapidly. In addition, the molasses market is segmented into direct and indirect sales based on sales channels.
As for indirect sales, they can be further segmented into modern trade, convenience stores, online stores, and others. Of these segments, direct sales are projected to hold the largest market share of 87.2% over the forecast period.
Molasses has been used for animal feeding for a long time but was first used as a substitution for cereal grains in the 1960s. This was due to the rapid expansion of the food and beverage industry, especially the meat and dairy industry.
Moreover, molasses, which is a viscous product derived from sugar beets or sugarcane, finds applications in the residential, biofuel, and commercial sectors, thereby stimulating market growth.
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Region-wise, Asia-Pacific dominated the blackstrap molasses market in 2023 and is expected to sustain its dominance throughout the molasses market forecast period. The massive production of cane sugar in the region is a key factor driving product market growth in the region.
It is primarily due to favorable environmental conditions, a large plantation area, and government support. For instance, the Indian Sugar Mills Association, an industry body, has estimated that India will produce 28.2 million tons of sugar from 2019 to 2020, about 19% more than in 2018 to 2019, according to the India Brand Equity Foundation.
The US dominates the North American molasses market with a total share of 78% in 2023 and is projected to continue exhibiting high demand through the course of the forecast period.
The US molasses market is estimated to grow at a CAGR of 2.6% and is projected to surpass the value of USD 4548.4 Million in 2023. This is due to the high consumption of nutritional sweeteners in the country.
Its market is driven by consumers widely using molasses in their food as an ingredient to enhance its flavor and taste, such as in breakfast cereals and pancakes. The incorporation of molasses into various fortified drinks has also contributed to the market.
Germany dominates the Europe molasses market, with a share of 28%. The German molasses market is estimated to grow at a CAGR of 3.6%. Because packaged molasses extract is being used as a sweetening agent in many bakery and confectionery products.
The German molasses market has been driven by foods like pies, porridges, baked beans, and others that utilize packaged molasses extract as an additive.
China holds a 55% share of the East Asia market and is projected to expand at a CAGR of over 8.5%. The market size of USD 5208.05 Million by the year 2033.
The rising demand for molasses as a thickening agent, particularly in bakeries and confectioneries, has emerged as the principal driver of the China molasses market. In the future, the molasses market will prosper as a result of favorable government policies and industrialization in emerging nations.
A major factor driving the growth of the product market in China is the massive production of cane sugar. As a result of the favorable environment, large plantation area, and government support, sugarcane production has become very successful.
Manufacturing is a global industry and for good reason. When properly executed, manufacturing can produce high-quality products at an affordable price. However, starting a business in molasses can be challenging. Fortunately, there are plenty of resources available in this industry.
Due to the availability of cost-effective raw materials, molasses products are expected to be launched in the near future, providing ample opportunities for market development.
A growing market for this product will lead to small producers and companies developing cost-effective solutions to meet the increasing demand. An unabated growth of this market will result in several businesses offering this product.
Several strategies are employed by key manufacturers to compete in an increasingly competitive environment, including new product launches and approvals, mergers and acquisitions, partnerships, and collaborations.
Key players are focusing on novel and innovative approaches for the development of new products. The strategy of expansion, new product launches, and approvals, by key manufacturers, is further strengthening their market presence and staying ahead of the competition.
For instance, the USA-based International Molasses Corporation launched CaneRite Panela in June 2021, a natural, unrefined, and non-centrifuged sugar made from sugar cane that is natural, unrefined, and non-centrifuged. It contains five times more vitamins and minerals than raw sugar, including potassium, calcium, magnesium, manganese, iron, and zinc.
Besides these, mergers and acquisitions have emerged as key growth strategies adopted by market players. Leading companies are strengthening their product portfolio and global footprint through acquisitions.
For instance, the Universal Robina Corp (URC), a Philippine-based consumer goods conglomerate, acquired the Roxas Holdings Inc (RHI) sugar milling and bioethanol distillery plants and landed in October 2020.
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2023 |
| Market Analysis | USD Million for Value and MT for Volume |
| Key Regions Covered | North America; Latin America; Europe; Middle East & Africa (MEA); East Asia |
| Key Countries Covered | USA, Canada, Brazil, Mexico, Chile, Peru, Germany, UK, Spain, Italy, France, Russia, Poland, China, India, Japan, Australia, New Zealand, GCC Countries, North Africa, South Africa, and Turkey |
| Key Segments Covered | Source, Type, Nature, End Use, Sales Channel, Region |
| Key Companies Profiled | Crosby Molasses Co Ltd. (Canada); The Archer Daniels Midland Company (USA); Michigan Sugar Company (USA); B&G Foods Inc.(USA); Cora Texas Manufacturing Company, LLC (USA); Good Food Inc. (USA); E D & F Man Holdings Limited (UK); B&G Foods, Inc. (USA); Malt Products Corporation (USA); Westway Feed Products LLC (USA); Sweet Harvest Foods Inc. (USA); Domino Specialty Ingredients (USA) |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The market size of the molasses market in 2023 is USD 11952.75 Million.
Asia Pacific is a lucrative molasses market and is expected to dominate throughout the forecast period.
The global market of molasses is projected to reach a valuation of USD 23512.86 Million by 2033.
The global market of molasses is projected to grow at approximately a CAGR of 7.0%.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Source 5.1. Sugarcane 5.2. Sugarbeet 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Nature 6.1. Organic 6.2. Conventional 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type 7.1. Light Molasses 7.2. Dark Molasses 7.3. Blackstrap Molasses 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 8.1. Industrial 8.1.1. Food and Beverages Industry 8.1.2. Animal Feed Industry 8.1.3. Bio-fuel 8.1.4. Others 8.2. Commercial 8.3. Household 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Distribution Channel 9.1. Direct 9.2. Indirect 9.2.1. Hypermarkets/Supermarkets 9.2.2. Retail Stores 9.2.3. Departmental Stores 9.2.4. Online Sales 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 10.1. North America 10.2. Latin America 10.3. Europe 10.4. Asia Pacific 10.5. Middle East & Africa (MEA) 11. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. Michigan Sugar Company 18.2. Crosby Co Ltd. 18.3. Cora Texas Manufacturing Company, LLC 18.4. Westway Feed Products LLC 18.5. Sweet Harvest Foods Inc. 18.6. B&G Foods, Inc 18.7. Spreckels Sugar Company 18.8. Malt Products Corporation 18.9. Good Food Inc 18.10. Domino Specialty Ingredients 19. Assumptions & Acronyms Used 20. Research Methodology
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Molasses Market
