Sugar holds a significant position among the world’s most important and well-known commodities. It can be found in beverages and food, cosmetics, and even medications. Given the enormous demand, it should come as no surprise that the sugar industry plays a significant role in the world economy.
Did you know that the yearly production of sugar worldwide is approximately 181 million metric tons, according to the United States Department of Agriculture?
Let’s dive into some brief statistics from the sugar industry.
Sugar industry statistics
- By 2033, the sugar market will register a growth rate (CAGR) of 1.36% and reach a production level of around 223 MMT.
- In the marketing year 2023/24, global sugar production reached 175.6 MMT and by the end of 2024/25 this figure is expected to rise to approximately 180 MMT. The forecast for 2025/2026 is 189 million metric tons.
- India tops the list of nations in terms of sugar consumption, with 31 MMT in 2023/2024, double China’s consumption at 15.5 MMT.
- With more than 36 MMT of sugar exported in 2023/24, Brazil leads the list of major sugar exporting nations. Not surprisingly, this country is also the largest sugar producer.
Global sugar production and consumption trend
Source: USDA
The impact of sugar on development
The apparent lack of a direct connection between sugarcane and development is misleading. Sugarcane is a significant source of sugar, ethanol, and jaggery (unrefined sugar products commonly produced in Asia and Africa). It serves as a vital economic engine for many countries, playing a vital role in exports, food security, and the generation of clean energy.
Sugarcane, which is grown in tropical and subtropical countries, accounts for around 85% of all sugar harvests, as reported by the Food and Agriculture Organization.
The sugar production industry generates many jobs, especially in rural areas. For instance, in India, over 50 million are dependent, in one way or another, on the sugar production industry. To understand the rate of population engagement, compare this to the 3 million involved in the Fast Moving Consumer Goods industry in this country.
It also generates tax income across multiple industries and export earnings, which ultimately benefits vital fields such as healthcare, education, and infrastructure.
Experts predict that as a result of economic development, over the next decade low- and middle-income nations in Asia and Africa will register sugar consumption at twice the level of the previous 10 years.
Which countries are at the top of the list when it comes to sugar production?
Sugar production by country
The global sugar production market is dominated by only a handful of nations. These include Brazil, India, Thailand, China, and the United States. The European Union also made it to the list, ranking third among the world’s largest sugar producers.
Source: USDA
*If the EU was a single country
The leading sugar producers
Let’s examine the top three sugar producing countries plus the EU in more detail:
1. Brazil
Brazil is the world’s top producer of sugar with an output in the 2023/24 marketing year of 43.7 MMT.
Thanks to its favorable climate for high crop yields, Brazil’s south-central region accounts for over 90% of the country’s sugarcane production.
The country uses sugarcane byproducts like bagasse (the biomass produced during the crushing of sugarcane) for power generation, which lowers the industry’s carbon footprint.
2. India
India follows Brazil with 28 MMT harvested in the 2023/24 season . There are about 50 million people who are either employed in or dependent on the sugar production industry.
Sugarcane is mostly produced in the states of Uttar Pradesh, Maharashtra, and Karnataka. Sugar is highly sought after domestically thanks to its extensive usage in traditional food and drinks. This is one of the reasons why India is the world’s #2 nation in terms of the number of adults with diabetes.
3. China
China registered an output of nearly 11 MMT in the 2023/24 marketing year, making it the third-largest sugar producer. Around 80% of China’s sugarcane is grown in the South and Southwest regions, mostly in the provinces of Yunnan, Guangxi, and Guangdong.
The country also leads in terms of sugar import volumes with the aim of satisfy rising domestic demand. In 2023/24, it imported 2.81 MMT of raw sugar and over 240,000 MT of refined sugar.
Sugar consumption in the EU
In 2023–2024, the European Union (EU), one of the biggest producers of sugar worldwide, registered an output of 16.5 MMT.
The cultivation of sugar beet forms the backbone of the EU’s sugar industry, with the majority of production concentrated in the Netherlands, France, Germany, and Poland. Among the member states, France and Germany are the largest sugar producers. The EU balances supply and demand by importing and exporting sugar.
The main export destinations and import sources of EU sugar are:
Source: Sugar Trade statistics
Final word
Sugar production remains a key driver of international trade, with major contributions from Brazil, India, China, and the European Union. Beyond its sweetness, sugar serves important functions, such as acting as a preservative while bagasse – a byproduct of sugarcane – is widely used to generate energy for refineries and mills, supporting sustainable operations in the industry.
