The blackstrap molasses market size was valued at $12,889.9 million in 2019, and is estimated to reach $18,185.8 million by 2027, registering a CAGR of 5.7% from 2021 to 2027.
Cane blackstrap molasses, a byproduct of the manufacture of raw sugar from sugarcane, usually contains slightly less than 55% total sugars, slightly more than 1% protein, and from 80 to 86 %total solids. Blackstrap molasses has been gaining major popularity in the industrial fermentation as it produces raw alcohol. Growing production of the cane sugar is expected to promote the growth of the product market during the forecast period. For instance, according to the Food and Agriculture Organization of the United States, the global sugar production was estimated to reach 179.3 million tons in 2018/19 (October/September).
The outbreak of the COVID-19 pandemic has negatively affected the blackstrap molasses market. Production has witnessed significant decrease due to lack of laborers, global transposition and shut down of the cane sugar factories. Furthermore, unfavorable conditions and lack of government support to famers in major cane sugar producing countries such as India, and Brazil, along with lock down and emergence of the curfew in the pandemic are majorly impacting the availability of human resources in cane sugar factories, which is expected to hamper the growth of the product market.
Blackstrap molasses has been majorly used for alcohol production through the process of ethanol fermentation. Ethanol fermentation is also called as alcoholic fermentation, which produces raw alcohol and is then distributed to consumable alcohol producing companies. Blackstrap molasses has witnessed significant growth owing to its diversified uses in various industries such as food and beverages, cosmetic, fertilizers, skin care and animal feed industries. For instance, in food and beverages industries, blackstrap molasses is used as a sweetening agent in baking products and it is used as a coloring agent in food services industries. Growing use of blackstrap molasses in food and beverages and rising popularity of its benefits among the consumers is anticipated to boost the growth of the blackstrap molasses market during the forecast period 2021–2027.
According to blackstrap molasses market analysis, the blackstrap molasses market is segmented into form, application, distribution channel, and region. On the basis of form, the market is categorized into offline and online. By application, it is segregated into industrial fermentation, food & beverages, pharmaceutical, animal feed and other. According to distribution channel, it is divided into offline and online. Region wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, UK, France, Russia, Italy, Spain, Finland and Rest of Europe), Asia-Pacific (China, Japan, Australia, India, Pakistan, Indonesia, Thailand and Rest of Asia-Pacific) and LAMEA (Brazil, Argentina, Colombia, Egypt, South Africa and Rest of LAMEA.
Liquid segment helds the major share of 68.4% in 2019
On the basis of form, the liquid blackstrap molasses is the basic form, which is directly formed while production of the sugar. Liquid blackstrap molasses segment accounted the around one-third half of the global blackstrap molasses market share in 2019, and is expected to continue this trend during the forecast period. This is majorly attributed to benefits associated with liquid blackstrap molasses as it is more convenient to use for ethanol fermentation and in animal feed industries.
Industrial fermentation segment helds the major share of 46.4% in 2019
According to blackstrap molasses market trends, depending on distribution channel, the online segment was valued at $4,690.9 million in 2019, and is expected to reach $7,006.6 million by 2027, with a CAGR of 6.5%. Emergence of the internet of things at commercial level, rise in globalization and growing trend of shopping on online platforms are adding to the growth of the product market. Online sales of the blackstrap molasses made people to export it from highly producing countries such as India, Brazil and China to low producing countries such as Canada, Spain, and Japan. Online selling platforms such as Amazon, have given major boost to the blackstrap molasses market growth as it is considerably used for household purposes.
By Distribution Channel
Offline segment helds the major share of 63.6% in 2019
On the basis of application, the animal feed segment is projected to grow at $2,262.5 million by 2027, registering a CAGR of 9.2%. Blackstrap molasses is considerably used in the animal feed owing to its rich sources of vitamins and minerals such as calcium, magnesium, and selenium. It is preferred to feed cattle as it boosts the strength of the cattle bones and make them healthy for hard work. It is usually feed to livestock by mixing with about an equal quantity of water and pour the diluted solution uniformly over the-grain or roughage. Growing production of the livestock including camel, sheep, swine and goats for meat, is expected to bolster the growth of the blackstrap molasses throughout the forecast period. For instance, according to report published by OECD in 2018, World meat trade increased to 31 million tons in 2017, 1.5% higher than in 2016, but growth was slower than the 5% registered in 2016.
Asia Pacific region helds the higest market share of 37.7% in 2019
Region wise, Asia-Pacific dominated the blackstrap molasses market in 2019, and is expected to sustain its dominance throughout the blackstrap molasses market forecast period. The key factors driving the growth of the product market in the region is massive production of the cane sugar. This is mainly due to the favorable environment condition, large plantation area and government support for the production of the cane sugar. For instance, according to the India Brand Equity Foundation, Industry body Indian Sugar Mills Association has pegged India's 2019-2020 sugar creation gauge at 28.2 million tons, somewhere around 19% more than 2018-19.
The players operating in the global blackstrap molasses market have adopted various developmental strategies to expand their market share, increase profitability, and remain competitive in the market. The key players profiled in this report include Allied Old English, Inc., Crosby's Molasses and More, B&G Foods, Inc., Meridian Foods Limited, Zook Molasses Company, ED&F Man Liquid Products UK Ltd., Malt Products Corporation, Pestell Minerals & Ingredients Inc., Domino Specialty Ingredients, and Buffalo Molasses.
Key Benefits For Stakeholders
- The report provides a quantitative analysis of the current market trends, estimations, and dynamics of the market size from 2019 to 2027 to identify the prevailing opportunities.
- Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier–buyer network.
- In-depth analysis and the market size and segmentation assist to determine the prevailing blackstrap molasses market opportunities.
- The major countries in each region are mapped according to their revenue contribution to the market.
- The market player positioning segment facilitates benchmarking and provides a clear understanding of the present position of the market players in the blackstrap molasses industry.
Blackstrap Molasses Market Report Highlights
By Distribution Channel
Key Market Players
MERIDIAN FOODS LIMITED, ED&F MAN LIQUID PRODUCTS UK LTD., ALLIED OLD ENGLISH, INC., BUFFALO MOLASSES, CROSBY’S MOLASSES AND MORE, DOMINO SPECIALTY INGREDIENTS, ZOOK MOLASSES COMPANY, PESTELL MINERALS & INGREDIENTS INC., MALT PRODUCTS CORPORATION, B&G FOODS, INC.
The global blackstrap molasses market exhibits high growth potential in in the developing economies such as India and China, owing to increase production of the cane sugar, which is mainly due to availability of large plantation area, favorable climatic conditions and cost-effective labor. Furthermore, growing mid-sized industries in cane sugar industry has promoted to growth of the blackstrap molasses market during the forecast period 2021–2027.
Exploration of blackstrap molasses in skin care and beauty care products has given new application segment to the global blackstrap molasses market. Growing trend of the organic cosmetic and skin care products are lucrative opportunities in the blackstrap molasses market, where blackstrap molasses are significantly used raw as ingredient. Decreasing soil fertility and farm productivity farmers are majorly preferring plant based fertilizers, for that blackstrap molasses has gained significant popularity due to its high potential to fulfill calcium demand. Moreover, animal feed is one of the growing segment of the blackstrap molasses owing to increasing use in cattle feed. This is majorly attributed to its benefits as it helps to reduce the metabolism problems in the cattle, and boost the health of bones, and it is considered as fattening diet for the cattle and other animals such as sheep, bull, and camel.
However, lack of awareness regarding the benefits of blackstrap molasses are largely affecting the growth of the blackstrap molasses market. Allergic reaction and side effects of the blackstrap molasses has been de-popularizing blackstrap molasses, which negatively affects its demand.