Dry Molasses Market

Dry Molasses Market Outlook (2023-2033)

Revenue from the global dry molasses market was estimated at US$ 578.3 Mn in 2023, and is estimated to touch valuation of US$ 887.4 Mn by the end of 2033. Sales revenue is expected to register a value CAGR of 4.7% over the forecast period (2020–2030). Owing to the consumers preferring healthy foods with natural, high-quality, organic, functional, and fresh qualities, is anticipated to impact global dry molasses market positively in forthcoming years.

Dry Molasses Consumption Analysis (2018-2022) Vs. Market Estimations (2023-2033)

The global dry molasses market witnessed steady growth and registered a value growth of 3.4% during historical period of assessment (2018-2023). Sales were high from animal feed industry, accounting for around 60% market share. Dry molasses offering quick energy and an excellent source of minerals to farm animals found substantial demand from the animal feed industry. Cost-effective management of feed by including dry molasses is a vital factor contributing toward an increased market share of dry molasses for animal feed purposes.

However, awareness regarding the benefits of dry molasses for use in food & beverage products is also increasing. The trend of moving toward sugar substitutes and natural sweeteners is expected to propel demand for dry molasses from the food & beverage industry, with the value expected to reach around US$ 110 Mn by the end of 2033. In South Africa and GCC countries, demand for affordable and nutritious sweeteners is increasing, which is a promising factor for the expansion of the dry molasses market size across these countries. Overall, the market is expected to expand even faster over the coming years, at a CAGR of close to 4.7% to reach valuation of US$ 887.4 Mn by end 2033.

What are the Key Trends in the Market for Dry Molasses?

“Growing use of Dry Molasses as Natural Sweetener Support Market Growth”

Growing consumer preference towards natural products has increased the demand for such products in the market. Natural sweeteners are less refined when compared to table sugar and have more vitamins, minerals and antioxidants. Thus, food and beverage industry players are seeking alternatives for artificial sweeteners owing to their added health benefits. The use of artificial sweeteners in different processed food products is carefully observed by the regulatory bodies.

Food and beverage industry players use dry molasses owing to the color, aroma, and texture it adds to food products. The rise in demand for natural sweeteners among food industry players is increasing the use of dry molasses as a sweetening agent in the food and beverage industry.

“Sustained Customer Interest in Healthy Ingredients and Products”

Consumers are purchasing more items that can affect positively on their health, and the preference has shifted towards food products offering healthy ingredients. The focus on improving health through food is creating opportunities for nutrient-rich food products. These foods also help in reducing stress levels and create a sound body for consumers. As a result, manufacturers are harnessing dry molasses for product formulation to meet the latest market demand.

• International Molasses Corporation provides molasses that is ideal for marinades, craft sauces, and barbeque sauce. It provides a mild aroma to baked items, providing value added taste.

“Shifting Consumer Preference towards Non-GMO Products Profiting Market Growth”

The increase in fear among consumers about the effects of GMO food products has increased the demand for non-GMO food products. Consumers seeing non-GMO products as a safer and healthier option is helping drive the demand for these products. Growing health problems and demand for healthy food products has also impacted the buying behavior of consumers. They are increasingly demanding natural food products that do not involve any genetic modifications, thus compelling food and beverage manufacturers to use non-GMO ingredients and various certifications to assure the consumers about the quality of the products.

• Nature's Creation provides granules of molasses that finds application food processing industry especially in baked items like pies and gingerbread. Moreover, the products is natural maintains natural vitamins and minerals found in sugarcane and also has obtained NON-GMO certificate.

“Increasing Applications of Dry Molasses in Food and Beverage Industry to Drive Growth”

The use of dry molasses is increasing in the food and beverage industry owing to the inclination of consumers towards natural products and demand for sugar alternatives. Dry molasses in powdered form has a dark brown color, and has an intense molasses flavor and aroma that it adds to the food products. It can be used as a sweetening agent in many food products, including baked products, desserts, snacks, chocolate candies, bars, sauces and others. Dry molasses is easy to use, has effective functionality, and is a simple source of sugar. Thus, food and beverage manufacturers are increasingly using dry molasses as a natural sweetening agent in different food and beverage products.

• Archer Daniels Midland Company offers dry molasses that is 65% molasses solids converted into powdered form. It is NON_GMO, which can be used in various food applications such as cookies, beverages, processed meats, sauces, snacks, and others.

Country-wise Insights

What is the Brazil outlook in the global dry molasses market?

The sales generated from Latin America market for dry molasses is valued at US$ 45.3 Mn for 2023, and is predicted to grow at a value CAGR (compound annual growth rate) of 3.6% during (2023-2033). Technological progress has enabled new varieties, mechanizations, and different cropping practices for sugarcane production in the country. High sugarcane production has led to high yield of molasses, ranking it second in the world for molasses. High production volume has enabled increased use of molasses for different end-use industry across the country.

What is the market share held by Europe in the global dry molasses market?

In Europe, the dry molasses market is growing at decent rate and projected to generate sales of US$ 156.4 Mn by end 2033. The rising awareness regarding the high nutritional content of dry molasses for use in different food products is increasing in the country. Dry molasses, in the powdered form, has an intense flavor and aroma, ideal for adding in food products. Thus, food manufacturers in Europe are expected to increasingly utilize dry molasses for product development.

Category-wise Insights

What is bakery & confectionary outlook global dry molasses market?

The global demand for dry molasses from bakery and confectionary was valued at US$ 37.1 Mn by end of 2023. The consumption of dry molasses in bakery confectionary is estimated to grow at 5.2% over the forecast period. In the confectionery industry, dry molasses is included while producing candies, chocolates, and bars, owing to the natural flavor and texture provided to the end products. Thus, manufacturers are increasing the use of dry molasses as a healthy alternative to sugar for application in confectionery products.

Which source of dry molasses is gaining high traction across the globe?

On basis source segment, the market is majorly divided into sugarcane and sugar beet. The dry molasses market incurred sales of US$ 509.5 Mn in year 2023 and is anticipated to grow at value based CAGR of 4.7% by end 2023.

Competitive Dashboard

Manufacturers of dry molasses are engaged in the development of application-specific products to meet the demand from different target industries. Increased concern for animal health and growing demand for higher productivity of animals has led to dry molasses finding widespread application in the industry. Dry molasses is also find the application in crop protection industry owing to high carbohydrate and mineral content that is required in the soil for healthy crop production.

The key players are expected to continue expanding their production capacities and enhance capabilities to offer food grade dry molasses in different food and beverage industry applications. Besides, the increasing demand for healthy and natural sweeteners is contributing to the sales of dry molasses in food and beverage products.

• In 2020, International Molasses Corporation opened its new state-of-the-art drying plant at its Ohio manufacturing facility. It includes an innovative vacuum belt dryer that expedites turnaround time and provides complete in-house control.
• In 2020, Wind Point Partners and portfolio company Pestell Nutrition acquired Origination O2D.The acquisition of Origination O2D was a strategic step for the company to support its distribution in the U.S., value creation, and growth plan.
• Archer Daniels Midland Company facility is supported by state-of-the-art technologies and modern equipment to ensure greater customer proximity. This helps the company produce quality dry molasses through latest extraction technology to the market place.
• ACI Animal Health provides integrated solutions for animal health to ensure the highest level of impact and healthy results. For this, the company offers quality dry molasses for animal feed and livestock industry.

Dry Molasses Industry Report Scope

Dry Molasses Industry Research by Category

By Source:

• Sugarcane
• Sugar beet
• Other

By Form:

• Powder
• Flakes

By End Use:

• Food Industry
  • Bakery & Confectionery
  • Dressings, Seasonings & Sauces
  • Snacks & Cereals
  • Beverages
  • Others
• Crop Protection
• Animal Feed
• Nutraceuticals
• Other

By Distribution Channel:

• Business to Business
• Business to Consumer
  • Hypermarkets/Supermarkets
  • Specialty Stores
  • Online Retail
  • Other Retail Sectors

By Region:

• North America
• Latin America
• Europe
• South Asia & Pacific
• East Asia
• Middle East & Africa

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