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The organic sugar market size is projected to grow at USD 4.21 billion by 2027, and will at a CAGR of 5.98% from 2022 and 2027. The growth of the market depends on several factors, including the growing health consciousness, the increase in disposable income, and the rise in food processing industries.
The market report extensively covers market segmentation by type (crystals and molasses), distribution channel (offline and online), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growing health consciousness is notably driving the market growth, although factors such as the high cost of production may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing health consciousness and health awareness is the key factor driving the growth of the global market. Organic sugar is a better option for those who are concerned about their health and want to avoid the harmful effects of refined sugar. The pandemic is also pushing people toward a more health-conscious lifestyle.
The mentality to stay healthy and switch to a more organic lifestyle is boosting the demand globally. Thus, even when the pandemic is over, the demand will remain high. Growth in the consumer lifestyle and a tendency to eat natural products will drive the global market during the forecast period.
The emergence of e-commerce platforms is the primary trend in the global growth. E-commerce platforms such as Amazon, Walmart, and Alibaba have made it easier for organic sugar manufacturers to reach a wider customer base. These platforms provide producers with a global marketplace to sell their products to customers around the world. For example, Walmart's website has a dedicated organic section where customers can buy different brands of organic sugar. E-commerce platforms have made it easier for customers to purchase.
Customers can now buy from the comfort of their homes, without having to physically visit a store. This has contributed to the growth of the market. In addition, e-commerce platforms have enabled producers to leverage data analytics to better understand their customers' preferences and behavior. This has allowed producers to develop targeted marketing strategies and improve their products to meet the changing demands of customers. In conclusion, the emergence of e-commerce platforms has played a significant role in boosting the growth of the global market, and the trend is expected to continue during the forecast period.
High cost of production is a major challenge to the growth of the global organic sugar market. Organic sugar is produced without the use of synthetic pesticides or chemical fertilizers, resulting in lower yields and higher production costs compared to conventional sugar. The high cost of production ultimately drives the price of organic sugar higher, which may discourage some consumers from purchasing. The high cost of production goes hand in hand with organic farming and itrequires more labor-intensive practices because farmers must use natural methods to control pests and maintain soil fertility.
In addition, organic farmers may also need to pay higher fees to get certified by organic certification bodies, which adds to the overall cost of production. The high cost of organic sugar production may also limit the availability in some markets, as it may be difficult for small farmers to compete with larger conventional sugar producers. Therefore, the high cost of production is one of the major factors that will hamper the growth of the global organic sugar market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Organic Sugar Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the crystals segment will be significant during the forecast period. The crystal segment typically includes granulated sugar that has been minimally processed, with large, uniform crystals that are ideal for use in baking, cooking, and sweetening beverages.
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The crystals segment was valued at USD 1,491.51 million in 2017 and continue to grow by 2021. This segment of the market is characterized by its high purity, natural color, and mild flavor profile, which make it a popular choice among health-conscious consumers who are looking for a healthier alternative to conventional sugar. Many vendors adopted sustainable farming practices, such as regenerative agriculture, to reduce the environmental impact of sugar production and improve soil health. They are also investing in renewable energy sources and carbon offsetting programs to reduce greenhouse gas emissions from sugar production. Such factors will increase segment growth during the forecast period.
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North America is estimated to contribute 32% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The North American market is also growing online sales channels. Many consumers now purchase organic sugar products through e-commerce platforms such as Amazon and Thrive Market. The North American organic sugar market is also facing increased competition from new entrants such as small organic sugar producers and private brands. These companies offer unique flavor profiles, packaging, and marketing strategies that resonate with consumers, especially those looking for more niche and specialty products. Such factors will increase the market growth during the forecast period.
The outbreak of COVID-19 negatively impacted the growth of the organic sugar market in North America in 2020. However, in 2021, due to the large-scale vaccination drive, several business and industrial activities resumed, such as operations in manufacturing plants. Moreover, the opening of offline stores fueled the market expansion of organic sugar across the region. In addition, growing health concerns among consumers and changing food habits are expected to boost the growth of the organic sugar market in North America during the forecast period.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global market as a part of the global packaged foods and meats market under the global food products segment of the global food, beverage, and tobacco market. The global packaged foods and meats market covers manufacturers or food processing vendors that are involved in food processing to eliminate microorganisms and extend shelf life. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Organic Sugar Market Scope |
|
Report Coverage |
Details |
Page number |
148 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.98% |
Market growth 2023-2027 |
USD 1,062.16 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.6 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 32% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Big Tree Farms Inc., Celebes Coconut Corp., Dhampur Bio Organics Ltd., Finasucre SA, JALLES MACHADO SA, Madhava Ltd., Mehrotra Consumer Products Pvt. Ltd., Mitr Phol Group, Natureland Organic Foods Pvt. Ltd., Nimbark Organic, NOW Health Group Inc., Pronatec AG, PT Mega Inovasi Organik, Raizen Energia SA, Sudzucker AG, Tereos Group, The Coconut Company UK Ltd., The Groovy Food Co., Tradin Organic Agriculture B.V., and Treelife |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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