PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1627765
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1627765
The China sugar market is projected to grow at a CAGR of 3.77% over the forecast period, increasing from US$24.929 billion in 2025 to US$30.002 billion by 2030.
Sugar is one of the most essential food components worldwide. Globally, sugar has multiple applications, such as being used as a sweetener, preservative, fermentation substance, flavoring & coloring agent, and many more. Sugar is generally obtained from sucrose, which is mainly concentrated in sugarcane plants or sugar beets. The application of sugar is mainly in the pharmaceutical and food & beverages industry.
In China, the demand for sugar has witnessed a substantial increase in recent years, which can be credited to multiple factors, such as the increase in the nation's pharmaceutical product export. According to the Observatory of Economic Complexity (OEC), the nation's pharmaceutical product export in 2022 accounted for about US$ 15.3 billion. Sugar in the pharmaceutical industry is used as a bulking agent and coating agent. In various products, it is also used as a flavoring enhancer and preservative. This high volume of pharmaceutical product exports creates opportunities for the sugar producer to attract a greater consumer base in the nation.
Another major driver for the increase in the demand for sugar in China is the rise of the food processing industry in the country. Sugar finds most of its applications in the food processing industry. According to the Food Export Association of the USA, China is the second largest market for processed food globally, causing an increase in the import of sugar in the nation. According to the Observatory of Economic Complexity (OEC), in 2022, China imported raw sugar valued at US$ 2.25 billion, of which Brazil became the biggest trade partner with imports valued at US$ 1.69 billion of sugar originating from Brazil, followed by India at US$ 146 million.
China sugar market drivers
One of the major factors driving the Chinese sugar industry is the increasing urban population, which pushes the demand for processed food and beverages in the market. The increasing urban population also increases the number of Hotels, Restaurants, and Institutional (HRI), which includes resorts, cafes, and other food outlets.
According to the World Bank, China's total population remains stagnant, over a few years, with about 1.41 billion people. On the other hand, the urban population percentage of the nation increased significantly. In 2022, the urban population percentage of the nation was about 63.5%, which marked an increase of about 1% from 2021. This increase in the urban population is sure to boost the nation's sugar industry in the coming years.
Additionally, emerging urbanization within China is positively correlated to the prospective growth for sugar consumption within the country because of the rising demand for processed foods and beverages, an orientation shift in consumer preference towards convenience food products, and the increasingly affluent middle class. Urban lifestyles with busy schedules lead people to seek quick sugary snacks and meals. As disposable income increases with the middle class, spending on processed foods and sugary products is also expected to rise in the region. Hence, sugar intake will also increase. Accordingly, in 2023, national per capita disposable income grew by 6.3%, 39,218 yuan at face value, meanwhile, with 6.1% after price factor deduction. It recorded an increase of 5.1% in the per capita disposable income of urban residents, which stood at 51,821 yuan per capita according to the National Bureau of Statistics of China. Urban dwellers enjoy sweet-treated sugar desserts and beverages contributing to fueling the market.
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