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The organic sugar market size is projected to grow at USD 1.06 billion at a CAGR of 5.98% from 2022 and 2027. Market expansion relies on various factors, such as the burgeoning health consciousness among consumers, the upward trend in disposable income levels, and the proliferation of food processing industries. These elements collectively shape the trajectory of market growth, reflecting a blend of societal trends, economic indicators, and industrial dynamics. The growing emphasis on health consciousness underscores the demand for healthier and more nutritious food options, driving market innovation and product development. Simultaneously, the increase in disposable income levels enables consumers to allocate more resources towards purchasing premium or specialized food products. Additionally, the rise of food processing industries signifies the importance of efficient production and distribution channels in meeting consumer demands and market requirements. Thus, the interplay of these factors delineates the landscape for the anticipated expansion of the market.
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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.
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 1.49 billion in 2017. 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 companies 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 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 market plays a pivotal role in diverse industries, much like the food and beverage industry, where concerns over sugar consumption drive demand for organic bakery products and cereals. With a focus on health, consumers seek alternatives to synthetic products and conventional varieties, leading to a rise in eco-friendly and organic food products. However, challenges persist, including the use of sugar beets treated with herbicides and genetically modified organisms (GMOs). To address these, there's a growing emphasis on ethical farming practices, supporting small-scale farmers, and promoting sustainable farming methods for environmental sustainability and the revitalization of farms. 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 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 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 it requires 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 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 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 Market Customer Landscape
Companies 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 companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2022 for the following segments.
The market responds to a growing demand for healthier lifestyles and natural food and beverages. As consumers seek organic products to mitigate concerns over synthetic chemicals and toxins, there's a surge in offerings like organic sugar scrubs, body wash, and creams in the cosmetics sector. This trend extends to the food industry, impacting sectors like bakery & confectionery, dairy & frozen desserts, and sweet & savory snacks. With an emphasis on environmental sustainability, the market supports small-scale industries and promotes non-GMO cane sugar and environmentally friendly production methods, such as sugarcane cellulosic ethanol for low-carbon fuel.
Moreover, the market is witnessing a significant uptick driven by consumers seeking a healthier lifestyle and organic products. With rising concerns over obesity, non-communicable diseases, and dietary sugar intake, there's a growing demand for alternatives to conventional sweeteners like raw sugar and beet sugar. Organic sugar, derived from sources like sugar beet, meets this demand while addressing environmental sustainability concerns in the agricultural sector. It caters to consumer demand for health benefits and product diversification in various sectors, including pharmaceuticals, cosmetics, and culinary experiences. This market shift reflects a broader trend towards natural, eco-friendly solutions in food production and consumer goods.
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 1.06 billion |
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 companies, Market Positioning of companies, 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 Forecasting, 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 the market 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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