Allied Market Research

Blackstrap Molasses Market Expected to Reach $ 18,185.8 million by 2027—Allied Market Research


quote Blackstrap molasses has been majorly used for ethanol fermentation to produce raw alcohol and it is accounted for 38% of the blackstrap molasses market, but as it is considerable source of vitamins and minerals, and cost-effective, its increasingly being used for animal feed, which is expected to boost the demand for blackstrap molasses. quote

Roshan Deshmukh
Assistant Manager, Consumer Goods at Allied Market Research

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According to a new report published by Allied Market Research, titled, “Blackstrap molasses Market by Form, Application and Distribution Channel: Opportunity Analysis and Industry Forecast, 2021–2027,” the global blackstrap molasses market size is expected to reach $18,185.8 million by 2027 at a CAGR of 5.7% from 2021 to 2027.  

Blackstrap molasses form cane is composed of roughly 55% sucrose and other sugars, 20% water, 15% organic non-sugars, and 10% ash.  Blackstrap molasses finds enormous applications in the various industries such as Animal feed, cosmetic, food and beverages, fertilizer and skin care. For instance, there is opportunity for much expansion of the use of inedible molasses as livestock feed in periods of ample supply. Use of molasses as feed has expanded sharply in recent years while its use for making industrial alcohol has declined. 

Despite the enormous benefits of blackstrap molasses, it is found that consumption of blackstrap molasses causes some kind of allergic reaction.  It believes to be good alternative to refined sugar and artificial sweeteners for diabetic people, but some people have observed raised blood sugar level after taking it. It has low glycemic index, which makes it safe, but within limited amounts. It is recommended to diabetic patients that, they should not consume it in excess amounts and avoid using it more than one teaspoon per day.

According the blackstrap molasses market analysis, the blackstrap molasses market is segmented into form, application and distribution channel and region. By form, it is categorized into liquid and powder. Depending on application, it is fragmented into industrial fermentation, food & beverages, pharmaceutical, animal feed, other. On the basis of distribution channel, it is differentiated 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)

On the basis of form, the powder segment was valued at $4,076.7 million in 2019, and is projected to reach $6,142.4 million by 2027, registering a CAGR of 6.6% from 2021 to 2027. This is attributed to the fact that, powder form of the blackstrap molasses is more convenient to transport as compare to the liquid blackstrap molasses. Liquid form need specialized tankers trucks to transport which cost more. Powder form of blackstrap molasses can be transported through regular trucks or other transport facilities. Furthermore, powder form of blackstrap molasses is majorly used in the food services industries as sweetening and coloring agent. It is cost-effective sweetener as compare to other sweetening agents such as honey.    

According to blackstrap molasses market trends, on the basis of distribution channel, the offline segment was valued at $8,199 million in 2019, and is expected to reach $11,179.2 million by 2027, registering a CAGR of 5.3% from 2021 to 2027. This is majorly attributed to the growing demand of blackstrap molasses from the industrial segment where massive amount of blackstrap molasses is getting demanded. The selling of blackstrap molasses is mainly through business to business process. Furthermore, increasing consumption of the blackstrap molasses in the households is likely surge the growth of the blackstrap molasses market through various offline distribution channels including retail stores, supermarket, hypermarkets, pharmacy, and specialty stores.   

On the basis of application, the others segment is estimated to reach $3,038.1 million by 2027, at a CAGR of 7.6%. In other application segment, cosmetic, fertilizer and skin care applications are considered.

Exploration of the blackstrap molasses in the cosmetic industries has given rise for the growth of the blackstrap molasses market during the forecast period. Viscous nature and vital sources for the minerals, blackstrap molasses is used for the cosmetic and skin care products. Growing trend of use of plant-based organic fertilizers has boosted the demand for blackstrap molasses. It is a considerable source of calcium, which makes it useful for soil fertility. Decaying soil fertility, low productivity of farm are major attributes to use plants based organic fertilizers, which likely to boost the blackstrap molasses market demand through fertilizer application segment.          

Region wise, LAMEA held second highest blackstrap molasses market share in 2019, after Asia-Pacific, and is projected to maintain this trend throughout the blackstrap molasses market forecast period. Brazil is the highest cane sugar producing country in the region. As blackstrap is the byproduct of sugar production, Brazil has been producing massive amount of blackstrap molasses and accounted for 30% of the global blackstrap molasses market. Brazil played a pioneering role in implementing a competitive bioethanol industry. Growing production of sugar in Brazil is estimated to bolster the blackstrap molasses market growth during the forecast period. For instance, according to the United States Department of Agriculture, Foreign Agriculture Services, the production of sugar in Brazil accounted for 29,500 million metric tons in 2018 and reached to 29,925 million metric tons in 2019. 

The players operating in the blackstrap molasses industry have adopted product launch and business expansion as their key 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 findings of the study  

  • The blackstrap molasses market was valued at $12,889.9 million in 2019, and is estimated to reach $ 18,185.8 million by 2027, growing at a CAGR of 5.7% during the forecast period.  
  • By form, the powder segment is estimated to witness the fastest growth, registering a CAGR of 6.6% during the forecast period.      
  • In 2019, depending on distribution channel, the offline segment was valued at $ 8,199.0 million, accounting for 63.6% of the global blackstrap molasses market share.  
  • In 2019, the Brazil was the most prominent market in LAMEA, and is projected to reach $ 3,036.6 million by 2027, growing at a CAGR of 3.3% during the forecast period.

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quote Blackstrap Molasses Market by Form (Liquid and Powder), Application (Industrial fermentation, Food & Beverages, Pharmaceutical, Animal Feed, Other), and Distribution Channel (Offline and Online): Global Opportunity Analysis and Industry Forecast 2021–2027 quote

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