Released February 01, 2024 | NEW DELHI
en
Researched by Industrial Info Resources (Sugar Land, Texas)--In recent years, the global sugar market has witnessed a cyclical uptrend, with the key producing countries (Brazil, India and China) significantly contributing to global production. The production of sugar has been instrumental in allowing the nations meet their own domestic demands while reducing their dependence on imports.
According to the Food and Agriculture Organization (FAO), global sugar production is projected to reach an annual growth rate of 1.7%, hitting 210 million tons by 2026. This marks a substantial 24% increase compared to the average during the base period of 2014-2016.
The market for sugar production is further expected to be driven by growing investor enthusiasm for sugarcane byproducts. For instance, sugar production is used to produce ethanol, a biofuel that can help to lessen dependence on fossil fuels and therefore reduce greenhouse gas emissions. According to a 2023 report by the International Sugar Organization, the potential growth of bagasse cogeneration and the utilization of ethanol as a fuel are prospects that need to be endorsed.
Industrial Info is tracking 2,411 active capital projects, worth US$19.69 billion, aimed at the construction, expansion and maintenance of sugarcane-based production facilities. About 57% of the total spending is concentrated on plant unit additions. South America has the highest spending, equivalent to US$10.05 billion across 1,059 projects. Subscribers to Industrial Info's Global Market Intelligence (GMI) Food & Beverage Project Database can click here for a list of detailed project reports.
Brazil dominates with a spend pipeline of US$9.33 billion, followed by India (US$3.01 billion) and China (US$948.52 million). Brazil, with its long history of sugarcane cultivation and advanced farming technologies, contributes 23% of global sugar production. Indian sugar companies, benefiting from robust 2020 production and favorable rainfall, have experienced notable advantages. China maintains its position as the world's third-largest sugar producer, leveraging favorable soil quality and a history of sugarcane cultivation since the fourth century BC. Some of the other countries driving potential spending are Nigeria, Mexico, the U.S., Kenya, Saudi Arabia, Kazakhstan and Germany.
Companies like Shell plc (NYSE:SHEL) (London, England), Cosan SA (NYSE:CSAN) (São Paulo, Brazil) and Dangote Industries Limited (Lagos, Nigeria) are the key players in the market with a cumulative potential investment of US$4.78 billion.
As the leading investor, Shell is planning several projects concentrating upon expanding its bagasse-fired, cellulosic ethanol and biogas sugar plants. It also is focusing on adding storage tanks and sugar production units, water demineralization and raw sugar electrification.
Eighty-two percent of the projects are in their planning phase, 8% are being engineered and about 10% are under construction. Most of the projects are expected to become operational from December 2023 to September 2029.
Concerning its outlook, the sugar industry potentially can benefit from diversification. As the opportunities in production of sugarcane bio-refineries improve, the sugar sector is poised for enhanced sustainability, and a broader market presence.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
According to the Food and Agriculture Organization (FAO), global sugar production is projected to reach an annual growth rate of 1.7%, hitting 210 million tons by 2026. This marks a substantial 24% increase compared to the average during the base period of 2014-2016.
The market for sugar production is further expected to be driven by growing investor enthusiasm for sugarcane byproducts. For instance, sugar production is used to produce ethanol, a biofuel that can help to lessen dependence on fossil fuels and therefore reduce greenhouse gas emissions. According to a 2023 report by the International Sugar Organization, the potential growth of bagasse cogeneration and the utilization of ethanol as a fuel are prospects that need to be endorsed.
Industrial Info is tracking 2,411 active capital projects, worth US$19.69 billion, aimed at the construction, expansion and maintenance of sugarcane-based production facilities. About 57% of the total spending is concentrated on plant unit additions. South America has the highest spending, equivalent to US$10.05 billion across 1,059 projects. Subscribers to Industrial Info's Global Market Intelligence (GMI) Food & Beverage Project Database can click here for a list of detailed project reports.
Brazil dominates with a spend pipeline of US$9.33 billion, followed by India (US$3.01 billion) and China (US$948.52 million). Brazil, with its long history of sugarcane cultivation and advanced farming technologies, contributes 23% of global sugar production. Indian sugar companies, benefiting from robust 2020 production and favorable rainfall, have experienced notable advantages. China maintains its position as the world's third-largest sugar producer, leveraging favorable soil quality and a history of sugarcane cultivation since the fourth century BC. Some of the other countries driving potential spending are Nigeria, Mexico, the U.S., Kenya, Saudi Arabia, Kazakhstan and Germany.
Companies like Shell plc (NYSE:SHEL) (London, England), Cosan SA (NYSE:CSAN) (São Paulo, Brazil) and Dangote Industries Limited (Lagos, Nigeria) are the key players in the market with a cumulative potential investment of US$4.78 billion.
As the leading investor, Shell is planning several projects concentrating upon expanding its bagasse-fired, cellulosic ethanol and biogas sugar plants. It also is focusing on adding storage tanks and sugar production units, water demineralization and raw sugar electrification.
Eighty-two percent of the projects are in their planning phase, 8% are being engineered and about 10% are under construction. Most of the projects are expected to become operational from December 2023 to September 2029.
Concerning its outlook, the sugar industry potentially can benefit from diversification. As the opportunities in production of sugarcane bio-refineries improve, the sugar sector is poised for enhanced sustainability, and a broader market presence.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
