The bakery industry is the largest consumer of specialty sugars across the globe, accounting for approximately 30% of overall market value.
Industry: Food and Beverages
Published Date: January-2023
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 300
Report ID: PMRREP14539
The market for specialty sugars is projected to expand at an annual growth rate of 7.2% and show an increase in the market size from US$ 43,780.6 Mn to around US$ 88,064.5 Mn by 2033.
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Specialty Sugars Market Size (2023E) |
US$ 43,780.6 Mn |
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Projected Sales of Specialty sugars (2033F) |
US$ 88,064.5 Mn |
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Value CAGR (2023-2033) |
7.2% |
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Value Share of Top 4 Countries (2022E) |
29.9% |
From 2018 to 2022, shipment of specialty sugars grew 5.7%. High demand for bakery products is among the key driving factors for the market. The beverage industry is also offering more products that are made using specialty sugars such as muscovite and demerara sugar.
Factors such as busy lifestyle and changes in dietary preferences are driving demand for baking ingredients due to increased consumption of bakery items. Furthermore, changes in people's routines in developed countries as well as increased demand for ready-to-eat convenient goods are expected to boost demand for specialty sugars. Increasing consumption of bakery and confectionery products will provide growth opportunity for the sales of specialty sugar in the food & beverage industry.
Robust growth of the bakery and confectionery industry across the globe will accelerate the sales volume of specialty sugars over the coming years, and its market value is projected to expand at a CAGR of around 7% through 2033. Due to increase in the number of artisan bakers, demand for caster sugar has risen in the last decade. The bakery industry is the largest consumer of specialty sugars across the globe, accounting for approximately 30% of overall market value.
“Rapid Growth of the Food Industry across the Globe Augmenting Increasing Usage of Specialty Sugars”
Rapid growth of the food industry across the globe is a major factor for high demand for specialty sugars. Busy lifestyle, changing dietary patterns, and increased consumption of beverages, dairy products, and bakery and confectionery products are boosting sales of specialty sugars.
Since specialty sugars have a longer shelf life, demand for packaged and processed foods is expected to grow. Additionally, manufacturers are using advanced contact networks to closely track commodity supply to major retailers in order to maximize sales.
Consumers, especially millennials, have a unique perspective on the food they are consuming. Consumer demand for organic, all natural, delicious, healthy, and clean-label ingredients has risen, as people have become more health-conscious. Clean label food is now claimed by a majority of customers around the world, which is expected to increase the sales of muscovado and demerara specialty sugars as these are least processed sugar.
“Expanding Retail Sector Boosting Revenue Sales of Specialty Sugars”
Changing retail climate has been one of the most important factors for rising demand for specialty sugar in recent years. Because of a well-established retail sector in North America and Western Europe, specialty sugars such as icing sugar, powdered sugar, and baker's special sugars are consumed in large quantities.
Hypermarkets and supermarkets dominate the confectionery industry in the United States, and this is expected to continue for the next ten years. Availability of varieties in hypermarkets and supermarkets is the primary reason for their supremacy in the confectionery industry in the United States.
These stores have a lot of room and a lot of foot traffic. As a result, they have a bigger share of the distribution than other retailers. Despite the global economy being wrecked by the COVID-19 crisis, e-Commerce has thrived and placed itself on an extremely promising growth trajectory.
“Increased Internet Penetration across Globe to Drive Specialty Sugars Market”
Over the past few decades, there has been rapid internet penetration across several countries, which facilitated the expansion of e-commerce channels thereby creating ample of opportunity for the manufacturers involved in food ingredient business across the globe. With wide number of online retail channels consumers can easily shop products they wish to buy.
In the era where time is valuable assets, shopping online allows consumers to save amount of time. Due to advancement in the modern retail sector, consumers across the globe can conveniently compare products side by side. Manufacturers can directly reach the target consumers and offer wide range of products.
“Increasing Preference for Convenient Food Products Benefiting Market Growth”
Convenience foods have become essentials in urban kitchens whilst being great time-savers for the consumers with busy schedules. With the increasing inclination of working population towards convenience food and packaging, the specialty sugars market is anticipated to have an optimal growth rate in the forecast period. Thus, the high demand of convenience food products is expected to propel the demand of specialty sugars.
Moreover, the growing Foodservice industry worldwide is in quest of convenient food products for better serving the customers at briskly. Specialty sugar helps in serving this demand of the Foodservice industry catering pastries, cakes, and smoothies. The addition of specialty sugars in food helps in adding distinctive texture and taste to the value added product while supporting the foodservice industry in serving better dairy, confectionery, and bakery products thus marking opportunity for the market growth across different end use industries.
Why is the U.S. a Prominent Market for Specialty Sugar Producers?
The market for specialty sugars in the U.S. is largely characterized by large market players that collectively holds around 30%-40% of the total market share. Manufacturers engaged in the business of specialty sugar production are aiming to expand their business and market presence by adopting various strategies. They are focused on merging and acquisition of businesses of sugar beet and sugarcane growers. Manufacturers are also keen on partnering with customers to provide tailored solutions according to their needs and have a larger consumer base.
What is the Market Scenario for Specialty Sugars in Europe?
European countries are renowned for their delicious bakery products, especially cakes and cookies. Countries such as Belgium, France, Italy, and Switzerland have a wide range of cakes that are commonly eaten by both, locals and tourists. One of the main drivers of the cake industry in Europe is rising number of tourists. Europe is projected to be an important market for specialty sugar manufacturers attributed to high income of consumers and flourishing tourism industry. Furthermore, Europe is estimated to hold the highest market share having the market valuation of around US$ 9,007.7 Mn by the end of 2023.
Should Specialty Sugar Manufacturers Target the Dairy Industry?
Among the food & beverage industry segments of application, the bakery and confectionery segment holds around 54% sales value share in the global specialty sugars market. However, the dairy & dessert segment is estimated to witness higher potential over the forecast period of 2023-2033.
A key considerable factor for substantial growth is increasing product development in the dairy and confectionery industry. Moreover, confectionery manufacturers are increasing innovative product development, which further creates high demand for specialty sugars in this sector.
Which Different Types of Specialty Sugars Gaining Popularity?
Icing sugar is commonly used as an anti-caking agent because it preserves viscosity and aids in the formation of fine structure and texture in food. It's also used to make icing and frosting for cakes, baked goods, and fruity confections. In addition, increased chocolate and confectionery demand has resulted in rising sales of specialty sugars.
In 2014, the World Health Organization (WHO) released news stating a change in white sugar recommendations for adults, dropping 10% of the daily calorie intake to 5%, thus creating more demand for muscovado sugar in a number of food applications.
Key players associated with manufacturing specialty sugars are expected to witness growth in demand, majorly from the food & beverage industry, to enhance existing product portfolios and increase usage of specialty sugars in processed food products and beverages. Additionally, companies are also emphasizing on new product development strategies to cater to the increasing growing consumer demand.
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Forecast period |
2023-2033 |
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Historical data available for |
2018-2022 |
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Market analysis |
USD million for value |
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Key regions covered |
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Key countries covered |
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Key market segments covered |
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Key companies profiled |
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Report coverage |
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Customization & pricing |
Available upon request |
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The global market for specialty sugars has a value of US$ 43,780.6 Mn in 2023.
The global market for specialty sugars has a value CAGR of 5.7% from 2018-2022.
The global market for specialty sugars has a value of US$ 88,064.5 Mn in 2033.
The global market for specialty sugars has a value CAGR of 7.2% from 2023-2033.
The top players in the global specialty sugars market includes Sudzucker AG, Tereos, AB Sugar, Wilmar International Ltd, American Crystal Sugar Company, Cargill Incorporated and others.
