SAN FRANCISCO, December 2, 2021 / PRNewswire / – The global sugar processing market is expected to grow at a CAGR of nearly 2% from 2021 to 2027, owing to the strong demand generated by the food and beverage industry. Brazil has been the world’s largest producer of sugar cane for the past two decades. However, since the start of 2019, sugar cane production in the country has declined by around 5%. This can be attributed to the unfavorably dry weather and the high incidence of fires in the fields. In addition, the stability of grain prices has encouraged the shift from marginal areas from sugar cane to soybeans and maize. This trend of sugar production continued due to Covid-19 in 2020. All these problems with the production of sugar in Brazil to help India reduce the production gap with Brazil, capturing several markets that were previously dominated by Brazil. For example, Indonesia imported more than 90% of its sugar from Brazil. However, the country has moved its sourcing destination from Brazil To India due to the pandemic.

The Indian government has taken many initiatives to improve sugar cane production in the country. For example, the government announced an incentive for sweets in the form of an additional domestic sales quota to those who export sugar and divert the merchandise to ethanol manufacturing in the new 2021-22 season starting. of October. The government has also urged sugar factories to take advantage of firm world sugar prices and plan to export raw sugar in this new season (October-September). In addition, the Indian government plans to invest around $ 5 billion over the next few years to increase ethanol production by 80%.

Sugar Processing Industry Purchasing Intelligence Report, By Grand View Research, deepens the following industry knowledge:

• The increased demand for sugar from the food industry will drive the supply needs for sugar processing – The global sugar processing market was valued at 166 million MT in 2020 and is expected to cross 200 million MT in volume by 2027, with strong demand generated by the food and beverage industry as the main growth drivers. However, a supply shortage due to the COVID-19 pandemic and the substantial reduction in the production of Brazil, India, the EU and Thailand resulted in a drop in production in 2020.

• The global sugar processing industry is witnessing strategic partnerships between large market players and small regional sugar cane suppliers in order to achieve higher profit margins. – The global sugar processing market is moderately fragmented and competitive in nature. With a large difference in the number of sugar cane producers and sugar processors, the latter being lower, sugar cane suppliers lose bargaining power over their products. Larger and established industry participants are therefore teaming up with smaller sugarcane producers to achieve higher profits for both parties. In addition, government initiatives are also announced to support regional suppliers of sugar cane.

• Suppliers largely prefer approved supplier operating models to reduce risk and improve the potential for value creation – Sugar cane production is outsourced to local producers (farmers) by sugar processors in order to reduce additional costs and maintain process flexibility. Suppliers are expected to gradually transition to proprietary services in the near future.

Sugar Processing Industry Cost Intelligence – Key Components:

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Grand View Research has identified the following key cost elements for sugar processing:

• Raw materials

• Other chemicals

• Wash

• Crushing

• Purification

• Crystallization

• Centrifugation

• Packaging

• Workforce

• Utilities

• SG&A

• Tax

• Profit

Raw material is the main component of the cost of sugar processing, accounting for over 45% of the total cost of sugar production.

Intelligence from suppliers to the sugar processing industry – Capacity-based ranking and selection criteria with weighting:

Operational capacities –

• Years of service – 15%

• Geographic presence of services – 35%

• Employee strength – 15%

• Revenue generated – 15%

• Key customers – 12%

• Certifications – 8%

Functional capacities –

• By type – 60%

• Liquid sugar

• Brown sugar

• White sugar

• By source – 40%

• Sugar cane

• Sugar beet

List of the main suppliers of the sugar industry:

• Có sẵn

• Mitr Phol Sugar Company

• Nordzucker SA

• Suedzucker AG

• Tereos

• Biosev

• Thai Roong Ruang Group

• Wilmar International Limited

• Savola Group Company

• Cofco Tunhe Sugar Co. Ltd.

Additional services offered by Grand View Research:

• Cost analysis – In the Sugar Processing Category Intelligence Study, we estimated the price of the main cost components. The costs of raw materials are the most important component of the cost of processing sugar. They represent more than 45% of the overall cost of sugar processing. Sugar cane and sugar beet are the main raw materials used for processing sugar. Sugar cane is highly preferred in the world due to its easy availability and low cost of processing.

• Comparative rate analysis – The type of raw material is one of the most important aspects when analyzing the benchmarking of sugar processing rates. In our research, we analyzed the weight and price of sugar cane and sugar beet to produce 1 kg of sugar. We have found that using sugar cane instead of sugar beet is 50% more cost effective. However, the volume of sugar beet needed to process 1 kg of sugar is 38% less than that of sugar cane.

• Comparative salary analysis – According to our research, COOs at Nordzucker and Sudzucker earn approximately 20% higher salaries than COOs working at other top companies, such as Cosan and Biosev. However, the year-over-year rate of increase in these companies is largely dependent on the KRAs.

• Supplier newsletter – Continuous monitoring of developments in the supplier landscape can be a tedious task. Our newsletter service helps organizations keep abreast of the latest developments and innovations, allowing them to avoid disruptions in the supply chain. Outsourcing these activities allows customers to focus on their core offerings.

A smart and efficient supply chain is essential for the growth of any organization. Grand View Research’s Pipeline division provides in-depth insight into every aspect of the supply chain, which helps make efficient sourcing decisions.

Our services include (without limitation):

• Market intelligence involving – market size and forecast, growth factors and driving trends

• Price and Cost Intelligence – adopted pricing models for the category, total cost of ownership

• Vendor insight – a rich insight into the vendor landscape and identifies vendors that dominate, emerge, bask and specialize

• Sourcing / Procurement Intelligence – industry best practices, identification of standard KPIs and SLAs, peer review, negotiation strategies to be used with suppliers and countries best suited for sourcing to minimize disruption in the chain supply

Browse Grand View Research’s Collection of Purchasing Intelligence Studies:

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• Sourcing Intelligence Report on Home Care Contract Manufacturing Market – The home care products industry has experienced over 70% outsourcing to reduce capital and labor costs. The appointment of a subcontractor also allows OEMs to access markets with strict rules and regulations for setting up a factory.

About Grand View Research

Grand View Research, a United States-based market research and consulting company, provides syndicated and personalized research reports and consulting services. Checked in California and headquartered at San Francisco, the company has more than 425 analysts and consultants, adding more than 1,200 market research reports to its extensive database each year. These reports provide in-depth analysis of 46 industries in 25 major countries around the world. Using an interactive market intelligence platform, Grand View Research helps renowned Fortune 500 companies and academic institutes understand the global and regional business environment and assess opportunities as they arise.

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