SUGAR MARKETS

world sugar
demand and
supply

World sugar demand forklift

where sugar is from and how demand is delivered

World sugar demand factory

where sugar is grown


Around three-quarters of the world's sugar is supplied from sugar cane which is grown in tropical and sub-tropical regions.



grown in tropical and sub-tropical regions



cane and beet sugar are chemically identical




Sugar produced from either beet or cane is chemically and functionally identical.

Around one-quarter is supplied from sugar beet grown in more temperate climates.



grown in temperate climates



about global sugar consumption



Sugar is produced in over 100 countries and is used by two main food sectors; ‘food and drink manufacturing’ and ‘retail’.

The ‘food and drink manufacturing’ sector uses sugar across a wide range of products dependent on what type of functionality they are seeking sugar to provide. The majority of sugar produced serves the food sector. The smaller market sector known as ‘retail’ is purchasing sugar that is often sold directly to consumers for use at home, or across businesses such as cafés and restaurants.



sugar is
produced
in over

100

countries

two main
food sectors:



food and drink
manufacturing
and retail




total global demand





Global sugar consumption was over 183 million tonnes in 2020/211. Consumption is driven by long-term growth of around 2% annually which is expected to continue in the future.




sugar is traded in both raw
and refined formats




semi-refined brown sugar is internationally traded on the New York 'Number 11' market


refined 'white' sugar is traded internationally on the London 'Number 5' market






how demand is delivered



Of the global demand, approximately two-thirds is met by local regional production, with the remainder (about 60 million tonnes annually) supplied from globally traded exports.




A significant proportion (usually about one-third) of this export trade takes place under historic bilateral and preferential agreements.



...of which 10% is delivered through
commodity exchange

References

  1. LMC World Sugar Price Review, June 2022
  2. ISO, LMC Reuters, Czarnikow
  3. ISO, LMC Reuters, Czarnikow
AB Sugar China Azucarera British Sugar Germains Seed Technology Illovo Sugar Group Vivergo Fuelds