Demerara Sugar Market Size, Trends and Growth Analysis by 2027

The global market for demerara sugar was valued at approximately US$ 7,305.88 million in 2019 and is anticipated to grow to US$ 10,635.27 million by 2027, reflecting a compound annual growth rate (CAGR) of 4.9% from 2020 to 2027.

Demerara sugar, which is produced from sugarcane, features large granules that contribute a sweet and crunchy texture, making it a popular choice in baking and various culinary applications. It is commonly used as a decorative topping for cakes and muffins, and it can also enhance the flavor of beverages like coffee and tea. This sugar variety retains a small amount of molasses, imparting a light brown hue and a subtle caramel flavor. Notably, demerara sugar has a lower sucrose content, ranging from 88-93%, compared to white sugar, which typically contains 96-98%. Additionally, it is rich in essential minerals such as manganese, magnesium, zinc, chromium, and cobalt. Originally from Guyana in South America, the majority of demerara sugar available today is sourced from Mauritius in Africa. The increasing use of demerara sugar in the food industry presents significant opportunities for key players in the market.

The demerara sugar market can be categorized based on its nature into organic and conventional segments. In 2019, the conventional segment held a larger share of the market; however, the organic demerara sugar segment is projected to experience a higher CAGR during the forecast period. Conventional farming methods are widely adopted by farmers seeking to maximize yield and minimize costs. This approach benefits producers and cultivators due to the higher yields achieved compared to the expenses incurred. Furthermore, a lack of awareness among farmers regarding the health benefits of organic farming has contributed to the growth of the conventional segment. For example, in Turkey, as of 2017, approximately 63% of farmers utilized conventional agriculture for demerara sugar production, while 37% opted for organic methods. Nonetheless, conventional farming has its drawbacks, including potentially lower nutrient content in the sugar produced. This method often relies on fertilizers, pesticides, and other chemicals, which can pose health and environmental risks due to the pollutants released into the ecosystem.

Geographically, the demerara sugar market is divided into regions including North America, Europe, Asia Pacific, South America, and the Middle East and Africa. Europe dominated the market in 2019, followed closely by North America. The growth of the demerara sugar market in Europe can be attributed to the presence of several established companies such as Associated British Foods plc, Tereos Group, LOC Industries, Tate & Lyle, Ragus Sugars Manufacturing Limited, and Nordzucker AG. Both organic and conventional demerara sugars are in high demand across Europe, driven by consumers' increasing preference for convenience foods made with healthier ingredients. Additionally, the rising trend of on-the-go food consumption in developed nations like Germany, France, Italy, the UK, and Russia significantly influences purchasing decisions, thereby propelling the demerara sugar market in Europe.

The COVID-19 pandemic, which was first identified in Wuhan, China, in December 2019, has had a profound impact on global economies and industries. By January 2021, countries such as the US, Russia, India, China, Italy, France, and Germany were among the hardest hit in terms of COVID-19 cases and fatalities. According to the World Health Organization, there were approximately 85,929,428 confirmed cases and around 1,876,100 deaths reported globally by January 2021. The pandemic has severely disrupted various sectors, including the food and beverage industry, due to lockdowns, travel restrictions, and business closures mandated by governments. As a major global manufacturing hub, China faced significant challenges, with factory shutdowns disrupting supply chains and affecting the availability of raw materials essential for the food industry. These disruptions, along with the overall economic downturn, have hindered the growth of the demerara sugar market.

Key players in the global demerara sugar market include Guyana Sugar Corporation Inc., Associated British Foods plc, Tereos Group, LOC Industries, Nordzucker AG, Ragus Sugars Manufacturing Limited, Sugar Australia Company Ltd, Tate & Lyle, Alteo Limited, and Rajshree Sugars & Chemicals Ltd.

The size of the demerara sugar market has been determined through both primary and secondary research methodologies. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. Additionally, numerous primary interviews were conducted with industry participants and experts to validate the findings and gain deeper analytical insights. Participants included industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the demerara sugar market.