Specialty Sugars Market Expected to Reach $69 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Specialty Sugars Market," The specialty sugars market was valued at $40.6 billion in 2022, and is estimated to reach $69 billion by 2032, growing at a CAGR of 5.4% from 2023 to 2032.

The global specialty sugars market was valued at $40,631.1 million in 2022, and is projected to reach $69,031.7 million by 2032, registering a CAGR of 5.4% from 2023 to 2032.  

Specialty sugars are special type of sugars which carry specific characteristics, flavors, and uses. These are utilized in various culinary applications to enhance flavors, textures, and appearances of dishes. Moreover, these sugars are less processed than conventional sugar and retain some of their natural molasses content or other flavors, which appeals to the consumer who seeks high nutritional content. In addition, specialty sugars are made by the co-crystallization process through grinding, mixing, or agglomerating secondary components. 

The Specialty Sugars Market Size is analyzed on the basis of type, application, distribution channel, and region. By type, it is divided into brown sugar, icing sugar, demerara sugar, muscovado sugar, and others. Among these, the brown sugar segment occupied the major share of the market in 2022 and is anticipated to maintain its dominance during the forecast period. Brown sugar is a special sugar used in cooking and baking. It is a delicious component that is made by mixing molasses with regular white sugar. Moreover, it is present in two varieties, including light brown sugar and dark brown sugar. It is made of small quantities of pure sugar syrups known as molasses. The amount of molasses used during the process, completely determines how different each type of brown sugar will be in taste and appearances as they are adopted for their color and flavor. Demand for brown sugar has been fueled by the expanding scope of the food & beverages service sector as well as its uses in beverages, confections, sauces, and baking. 

Depending on application, the market is categorized into food & beverages industry, food service industry, and retail. The food service industry segment was the major share contributor in 2022. This segment is mostly focused on including specialized and exclusive sugar products in restaurants and hotels menu, to accommodate shift in consumer preferences. The food service sector includes a variety of sugar types in its products to serve the requirement of health-conscious consumers. Moreover, the value addition process of distinctive selling preposition such as customization and personalization have fueled the demand for specialty sugars in food service industry. The customization and personalization cater the consumers demand according to their requirement and are major Specialty Sugars Market Trends. This is attributed to flavor provided in depth and complexity by the special sugars, which attracts discerning customers. In addition, the health & wellness sector has adopted brown sugar as a healthier alternative owing to its trace mineral content and natural molasses. Furthermore, this market has potential possibilities due to product innovation and availability of variants, such as flavored brown sugars and organic varieties. 

As per distribution channel, the market is bifurcated into B2B and B2C. Among these, the B2B segment occupied the major Specialty Sugars Market Share of the market in 2022 due to rise in affordability of the growing population along with purchasing parity. In addition, manufacturers and suppliers have easy & efficient operation owing to the introduction of digitalization in sales channel. Manufacturers directly advertise their products on social media sites such as Facebook, Instagram, Twitter, and Google. Consequently, businesses are able to increase both the size of their customer base and the perception of their brand, according to Specialty Sugars Market Analysis.   

Region wise, North America dominated the specialty sugars market in 2022 and is anticipated to continue the same trend during Specialty Sugars Market Forecast period. This is attributed to rise in popularity of specialty sugars as a basic ingredient for cooking & baking purposes and surge in demand for new flavors. In addition, availability of a number of variants with different formulations & ingredients has made specialty sugars a popular choice among consumers in North America. Moreover, with rise in demand for specialty sugars and its enhanced effect on diet, its products are seeing high popularity in the North America market. In addition, consumers are switching from conventional sugars to organic specials products as a result of their growing interest in healthy & premium products, which has increased Specialty Sugars Market Opportunities. Furthermore, increase in retail and online store penetration as well as rise in adoption of social media marketing strategies foster the growth of the market. The Food & Drug Administration (FDA) in the U.S. has established strict guidelines & legislation that control the standards of the components and packaging used in specialty sugar products, which has made specialty sugar a sustainable choice for consumers. Rise in consumer preference toward foods that are flavor-based, organic, and are low in calories, has surged the demand for specialty sugar in this region. Moreover, the market in this region is growing as a result of increase in penetration of retail & online retailers as well as social media marketing tactics.  

However, the outbreak of the pandemic has disrupted the global supply chains, causing shortage of food ingredients and delays in their production & distribution, thus affecting the Specialty Sugars Market Growth. In addition, the pandemic has led to changes in consumer behavior, with many people staying at home and preparing food items themselves. These changes in consumer behavior have had both positive and negative impacts on the specialty sugars market. The major players analyzed for the specialty sugars industry include American Crystal Sugar, Südzucker AG, Louis Dreyfus Company, ASR Group, Wilmar International Ltd, Michigan Sugar Company, Amalgamated Sugar, Nordzucker, Pfeifer & Langen IHKG, and MB Sugars and Pharmaceuticals Pvt. Ltd. 

KEY FINDINGS OF STUDY    

• On the basis of type, the brown sugar segment held the major share in 2022. However, the demerara sugar segment is observed as the fastest growing segment for the specialty sugars market.  

• As per application, the food service industry segment held the major share in 2022. However, the food & beverages industry segment is observed as the fastest growing segment for the specialty sugars market.  

• Depending on distribution channel, the B2B held the major share in 2022. However, the B2C segment is observed as the fastest growing segment for the specialty sugars market. 

• According to region, North America held the major share in 2022. However, the Asia-Pacific is observed as the fastest growing region for the specialty sugars market.