checkAd

Sugar Processing Industry Procurement Intelligence Report Emergence Of India As A Leading Sugarcane Producer Will Require Restructuring Of Procurement Strategies By Sugar Processing Suppliers | Grand View Research, Inc.

SAN FRANCISCO, Dec. 2, 2021 /PRNewswire/ -- The global sugar processing market is expected to grow at a close to 2% CAGR from 2021 to 2027, owing to the high demand generated from the food and beverages industry. Brazil has been the leading sugarcane producer globally for the last two decades. However, since the beginning of 2019, sugarcane production in the country has decreased by approximately 5%. This can be attributed to the unfavorably dry weather and high incidence of fire outbreaks in the fields. In addition, steady grain prices have encouraged the shift of marginal sugarcane areas to soybeans and corn. This sugar production trend continued due to Covid-19 in 2020. All these issues with sugar production in Brazil help India to reduce the production gap with Brazil, capturing several markets that were previously dominated by Brazil. For instance, Indonesia used to import more than 90% of its sugar from Brazil. However, the country shifted its sourcing destination from Brazil to India due to the pandemic.

Grand View Research

The Indian government has taken numerous initiatives to improve sugarcane production in the country. For instance, the government has announced an incentive for sugar mills in the form of an additional domestic sales quota to those that export sugar and divert the commodity toward ethanol making in the new 2021-22 season starting October. The government has also urged sugar mills to take advantage of firm global sugar prices and plan the export of raw sugar during this new season (October-September). Moreover, the Indian government is planning to invest approximately USD 5 billion over the next few years to increase ethanol production by 80%.

Sugar Processing Industry Procurement Intelligence report, by Grand View Research, deep dives into the following insights from the industry:

  • Increase in sugar demand from the food and beverage industry will drive the procurement needs for sugar processing – The global sugar processing market was valued at 166 million MT in 2020 and it is expected to cross 200 million MT in terms of volume by 2027, with high demand generated from the food and beverages industry as the key growth drivers. However, a supply shortage due to the COVID-19 pandemic and the substantial reduction in output from Brazil, India, the EU, and Thailand resulted in a decrease in production in 2020.
  • The global sugar processing industry is witnessing strategic partnerships between large market players and small regional sugarcane suppliers in order to get higher profit margins – The global sugar processing market is moderately fragmented & competitive in nature. With a major difference in the number of sugarcane producers and sugar processing companies, the latter being lower, sugarcane suppliers lose out on the bargaining power for their produce. Larger and established industry participants are therefore, partnering with smaller sugarcane producers to get higher profits for both parties. Moreover, Government initiatives are also being announced to support regional sugarcane suppliers.
  • Suppliers largely prefer approved provider operating models to reduce risks and improve the potential for value creation – Sugarcane production is outsourced to local producers (farmers) by sugar processing companies in order to reduce additional costs and maintain flexibility of the process. Suppliers are expected to move gradually to proprietary services in the near future.

Sugar Processing Industry Cost Intelligence – Key Components:

Seite 1 von 3


Wertpapier



0 Kommentare
Nachrichtenquelle: PR Newswire (engl.)
02.12.2021, 11:35  |  101   |   |   

Schreibe Deinen Kommentar

Bitte melden Sie sich an, um zu kommentieren. Anmelden | Registrieren

 

Disclaimer

Sugar Processing Industry Procurement Intelligence Report Emergence Of India As A Leading Sugarcane Producer Will Require Restructuring Of Procurement Strategies By Sugar Processing Suppliers | Grand View Research, Inc. SAN FRANCISCO, Dec. 2, 2021 /PRNewswire/ - The global sugar processing market is expected to grow at a close to 2% CAGR from 2021 to 2027, owing to the high demand generated from the food and beverages industry. Brazil has been the leading sugarcane …

Nachrichten des Autors

Titel
Titel
Titel
Titel