Demerara Sugar Market Size and Competitive Analysis by 2027

The demerara sugar market was valued at US$ 7,305.88 million in 2019 and is projected to reach US$ 10,635.27 million by 2027; it is expected to grow at a CAGR of 4.9% from 2020 to 2027.

Demerara sugar is derived from sugarcane and comprises large grains that provide a sweet and crunchy texture in baking and other applications. It is mostly used as sprinkles for decorating cakes and muffins. It can also be added to coffee and tea. A small amount of molasses is naturally found in Demerara sugar, which gives it a light brown color and caramel taste. Demerara sugar contains significantly lower sucrose content (88–93%) than white sugar (96–98%). Vital minerals such as manganese, magnesium, zinc, chromium, and cobalt are found in Demerara sugar. Demerara sugar originates from Guyana, South America, and most Demerara sugar available today originates from Mauritius in Africa. Moreover, the rising applications of demerara sugar in the food sector offers lucrative opportunities for the key market players.

The global demerara sugar market in Asia-Pacific is expected to grow at the highest CAGR of 5.2% during 2020–2027. The increasing demand for demerara sugar from various end-use industries such as food, pharmaceuticals & nutraceuticals, and beverages is expected to boost the growth of the market during the forecast period.

The COVID-19 outbreak was first reported in Wuhan (China) during December 2019. As of January 2021, the US, Russia, India, China, Italy, France, and Germany are among the worst-affected countries in terms of COVID-19 positive cases and reported deaths. According to the WHO figures updated in January 2021, ~85,929,428 confirmed cases and ~1,876,100 deaths have been reported globally. The outbreak is adversely affecting economies and industries due to lockdowns, travel bans, and business shutdowns imposed by governments. Food & beverages is one of the world’s major industries suffering serious disruptions in the form of supply chain breaks, technology events cancellations, and office shutdowns. Although, China is the global manufacturing hub and the largest raw material supplier for various industries in the world, it is also one of the worst-hit countries by the COVID-19 pandemic. The lockdown of various plants and factories in China is disrupting global supply chains as well as manufacturing activities and sales of various raw materials used in the food industry and end products. The shutdown of factories, obstacle in supply chains, and downturn in world economy are restraining the overall growth of demerara sugar market.

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Demerara Sugar Market: Strategic Insights

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Market Insights

Growing Applications of Demerara Sugar in Baking Applications Drive Market Growth

Demerara sugar is a kind of raw cane sugar that is minimally processed. It is available in the form of large grains of amber color, and is mainly used as a garnishing ingredient. In the baking industry, demerara sugar is largely used as a topping for baked goods such as muffins, scones, cookies, cakes as well as for crumbles. Demerara has a subtle molasses taste making it more delicious than normal white sugar. It keeps the baked products soft and moist. The mixture of sugar and water helps sugar hold in moisture so that products such as cookies, muffins, brownies, and frosts do not dry out too easily. It produces tenderness, deepens color and flavor, and adds crunchiness. Owing to this, it is widely used in baking applications. It mostly contains the right amount of calcium and magnesium, and also contains B3, B5, and B6 vitamins. The demerara sugar is also known to be helpful in retaining vitamins and minerals present innately in sugarcane. In addition, Demerara sugar contains substantially lower sucrose (88–93%) than white sugar (96–98%). Increasing awareness about the health benefits of demerara sugar is driving the demand for its introduction in various recipes.

Nature Insights

Based on nature, the demerara sugar market is bifurcated into organic and conventional. The conventional segment accounted for a larger market share in 2019; whereas, the market for organic demerara sugar is expected to grow at a higher CAGR during the forecast period. The conventional form of farming technique is widely adopted among the farmers to obtain higher yield and availability of product at low cost. The technique runs in favor of the producers and cultivators as the yields are high in comparison to cost. Moreover, the lack of knowledge among farmers toward health benefits associated with the organic farming have promoted the growth of the segment. For instance, in 2017, almost 63% of farmers adopted conventional agriculture to produce demerara sugar and 37% of them opted organic agriculture in Turkey. However, there are several disadvantages related to this method. Demerara sugar produced by conventional method may contain less nutrients. Conventional farming is one of the most practiced farming methods that involves use of fertilizers, pesticides and other chemical compounds. Further, it also involves health and environmental hazards as it involves the release of pollutants to the environment.

End-Use Industry Insights

Based on end-use Industry, the demerara sugar market is segmented into food, pharmaceuticals & nutraceuticals, beverages, and others. The food segment accounted for the largest share of the market in 2019, and the other segment is expected to register the highest CAGR during 2020–2027. Demerara sugar has a crunchy texture and a large sparkling golden crystal form. The large crystals mean it retains its shape when cooked. It is perfect for sprinkling and can also be used for baking, especially in items such as cheesecake bases, crumbles, flapjacks, and biscuits that need extra crunchiness. Demerara sugar is an unrefined raw cane sugar with large toffee-colored crystals. They are mostly used to offer desire texture in cakes, in a streusel top for a cake, in a crumble, or as a crunchy topping for biscuits.

Distribution Channel Insights

Based on distribution channel, the demerara sugar market is segmented into grocery stores, supermarkets or hypermarkets, distributors & wholesalers, online retailers, and others. The distributors & wholesalers segment accounted for the largest share of the market in 2019, whereas the online retailer segment is expected to register the highest CAGR during the forecast period. The company appoints a distributor to sell product on its behalf. Online retailer are the mediator between the producers/manufacturers and retailers. They sell and promote the product on behalf of the manufacturers to the concerned parties. Moreover, a wholesaler operates as a mediator between the retailer and distributor. These people buy a product in a substantial quantity from the manufacturer or distributor at a cheaper rate and resell it to the retailers at a higher price to make a profit. Distributors find wholesalers who will resale the products. A wholesaler works more closely with retailers to match their needs by buying products in bulk at a discount. A distributor is actively involved to promote a company's products, a wholesaler is not. Products purchased from the favorite stores often involve distribution from a variety of sources. Getting a product to the market mainly requires an effective marketing channel for companies that manufacture durable goods and other products. A supply chain typically features various intermediaries between a manufacturer and consumer.

Mergers and acquisitions, product launch, and research & development are commonly adopted strategies by companies to expand their footprint worldwide, which is further positively impacting the size of the demerara sugar market. The players operating in the market such as Ragus Sugars Manufacturing Limited, Tate & Lyle, and others have been implementing these strategies to enlarge the customer base,  gain significant market share, and maintain their brand name globally. For instance, in July 2017, Tate & Lyle launched its new premium brown and golden sugar product range named Taste for Adventure. The product range includes a mix of five premium organic brown and golden sugar such as Dark Soft Brown, Organic Dark Soft Brown, Golden Caster, Organic Golden Caster, and Demerara.

Demerara Sugar Market Regional Insights

The regional trends and factors influencing the Demerara Sugar Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Demerara Sugar Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Demerara Sugar Market Report Scope

Demerara Sugar Market Players Density: Understanding Its Impact on Business Dynamics

The Demerara Sugar Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Report Spotlights 

• Progressive industry trends in the global demerara sugar market that help players develop effective long-term strategies
• Business growth strategies adopted by developed and developing markets
• Quantitative analysis of the market from 2017 to 2027
• Estimation of global demerara sugar demand across various industries
• PEST analysis to illustrate the efficacy of buyers and suppliers operating in the industry to predict market growth
• Recent developments to understand the competitive market scenario and global demerara sugar demand
• Market trends and outlook, and factors driving and restraining the growth of the demerara sugar market
• Understanding of strategies that underpin commercial interest with regard to the market growth, which facilitates effective decision-making process
• Demerara sugar market size at various nodes of market
• Detailed overview and segmentation of the market, as well as dynamics in the industry
• Global demerara sugar market size in various regions with promising growth opportunities in the these regions

Demerara Sugar Market, by Nature

• Organic
• Conventional

Demerara Sugar Market, by End-Use Industry

• Food
• Pharmaceuticals and Nutraceuticals
• Beverages
• Others

Demerara Sugar Market, by Distribution Channel

• Grocery Stores
• Supermarkets or Hypermarkets
• Distributors and Wholesalers
• Online Retailers
• Others

Company Profiles

• Guyana Sugar Corporation Inc.
• Associated British Foods plc.
• Tereos Group
• LOC Industries
• Nordzucker AG
• Ragus Sugars Manufacturing Limited
• Sugar Australia Company Ltd
• Tate & Lyle
• Alteo Limited
• Rajshree Sugars & Chemicals Ltd