Global Molasses Market Size, Share, Growth & Trends Analysis Report By Types (Regular Molasses, Blackstrap Molasses), By Source (Sugar Cane, Sugar Beet), By Category (Organic, Conventional), By Application (Cattle Feed, Food & Beverage, Biofuel, Others), Regional Outlook, Growth Potential and Segments Forecast 2022-2030.
The Global Molasses Market size was USD 12.14 billion in 2021 and USD 12.65 in 2022 it is expected to grow to USD 19.19 billion in 2030 with a CAGR of 7.4% in the 2022-2030 period.
Global Molasses Market: Overview
Molasses is the by-product of the Sugar extraction process from Sugar Cane juice. It has two types namely Original & Blackstrap Molasses. Original molasses contains near about 70% of sugar and a comparatively high amount of moisture. Whereas, Blackstrap molasses contains 55% of total sugars, more than 1% of protein, and 80% of total solids. In terms of commercial use, blackstrap molasses dominates the market as it is used in the production of ethanol.
Global Molasses market is expected to grow in the near future due to varied applications of the molasses & new product formation potential. After the onset of COVID-19, the people nowadays are more concern about the food and nutritional factors. They want to have a balanced and nutritional diet or dietary supplements that reduce the risk or chronic ailments and prove beneficial for immunity. Molasses in its various product forms proves beneficial for health and is more balanced than the sugar. Thus, people with diabetes, obesity etc. are using molasses as sweetener.
The molasses is primarily used in the production of ethanol through fermentation process. This ethanol has huge demand as it is used in alcoholic drinks such as Rums. Also, due to scarcity of conventional fuels, efforts are being made to mix ethyl alcohol in petrol in proportion in order to reduce the cost of fuel. As in case with India, the Union Government has allowed the petrol producing companies to blend ethyl alcohol to a proportion of up to 10% in Petrol. That would significantly reduce the cost. Also, efforts will be made to increase the proportion to 20% and further more in the coming future.
- As per the analysis done by our research analyst, the Global Molasses Market is estimated to grow with a CAGR 7.4% over the forecast period (2022-2030).
In terms of revenue, the Global Molasses Market size was valued at USD 12.14 billion in 2021 and is estimated to grow to around USD 19.19 billion in 2030. Due to its varied applications and numerous new products formation possibility, this market is experiencing growth in the forecast period.
- Based on Type Segmentation, rising demand of blackstrap molasses, this sector is expected to hold a dominant position.
- Based on Source Segmentation, majority of the molasses is obtained from the Sugar Cane compared to Sugar Beet.
- Based on the Application Segmentation, cattle feed is expected to hold a dominant position along with food and beverages.
- By Regional Analysis, North America contributes major share in the market.
On set of COVID-19 has made a negative on the Molasses Market. Due to lockdowns, and curfews there was a severe shortage of labor in the Sugar Industries. Due to severe restriction and non-cooperation from the government, Global transposition the production of molasses has hampered. This severely affected the market.
Molasses Market: Key Drivers & Restraints:
- Higher prevalence of chronic diseases: Sedentary lifestyles coupled with stress and bad habits has led to increase in number of chronic diseases worldwide. High Sugar level leads to diabetes, heart disease and obesity in people. Thus the people are looking for substances that could substitute regular sugars and has higher nutritional value. Molasses fulfills these requirements and is gaining popularity across the globe.
- Increasing Imports & Exports due to diverse applications of molasses globally: Molasses has diverse applications in various industries such as food & beverage, healthcare, pharmaceuticals, personal care, cattle feeds and many others.
According to Observatory of Economic Complexities (OEC) report 2020, key exporters and importers of molasses are as follows:
|1.||United States ($171 M)||India ($ 123 M)|
|2.||Netherlands ($100 M)||Russia ($ 81 M)|
|3.||Philippines ($93 M)||Germany ($ 80.7 M)|
|4.||United Kingdom ($77 M)||Indonesia ($77 M)|
|5.||South Korea ($68.8 M)||Guatemala ($74.4 M)|
- New Product Launches & Developments: People are coming with new product and making developments in the already existing. This trend is gaining popularity in the market which is a significant driver.
e.g. International Molasses Corporation, a U.S. based producer & provider of Sugar Cane molasses products, launched CaneRite Panela, a natural unrefined, and non-centrifuged powder sweetener made from freshly squeezed sugar cane juice. It has five times more vitamins & minerals than raw sugars.
- Complying with Stringent Regulations & Varying Standards: As in the case of India, the molasses trade, storage, manufacturing, and processing falls under the control of the Excise Department. They have a very complex licensing process and compliance. Such government interventions result in hindrances.
- Growing Competition: Due to luring profit margins, many big shots want to enter and play in the Global Molasses market. This poses fierce competition and minimizes the profit margin. Thus limiting the growth.
- Fluctuating Raw Material Prices: Molasses production mainly depends upon Sugar Cane and Sugar Beet. Prices of labor, Electricity, Fertilizers etc. influence the price of the raw material. These fluctuating prices serve as restraints.
- Climatic Changes & Irrigation Problems: Due to the climate change we are experiencing nowadays, the groundwater level is depleting day by day. The rainfall pattern is also disturbed. These things pose irrigation problems. As water is a necessary factor in the cultivation of Sugar Cane & Sugar Beets, Irrigation problems decide the growth of the molasses market.
Molasses Market: Opportunities
With the increase in the global food and beverage sector, especially the dairy and meat industry, the global population of livestock is rising day by day. This has resulted in the increased demand for the animal feed. Thus molasses market is likely to experience high demand from this sector. People now a days are looking for vitamins & minerals enriched food products, one may look forward for designing novel products so as to create a product driven market. With the increase in disposable income, people are spending more and more on the personal nourishment and personal grooming products. So, one may look forward in these areas too.
Molasses Market: Segmentation
- Based on Types: Based on types, there are two main categories of molasses. Original molasses and blackstrap molasses. Original molasses is the light-colored molasses, it is produced after the second boiling of the sugar cane juice. While Blackstrap molasses is dark colored, it is produced after the third boiling of the sugar cane juice. Thus, the original molasses contains a higher amount of moisture as compared to the blackstrap molasses.
- Based on Source: Based on source, the molasses is categorized into Sugar Cane obtained molasses and Sugar Beet obtained molasses. Worldwide, Sugar beets contribute for 20% of sugar produced while sugar cane contributes 80% of sugar produced. Thus we can confer that percentage of molasses obtained from sugar cane is more in quantity than sugar beets.
- Based on Application: Based on the applications, the molasses market is categorized into Cattle feed, Food & Beverage, Biofuels & Others. The primary and major application of molasses is in the preparation of cattle feed. Due to the nourishment and mineral profile of the molasses. This mixed with other feed constituents may prove beneficial for the bones and strength of animals. The food & beverage segment is dominated majority by wineries. Molasses is also used in the production of biofuels. Efforts were made to devise vehicles that could run on ethanol alone.
- By Category: On the basis of categories, the molasses is grouped into organic molasses and conventional molasses. Organic molasses is rich in carbohydrates, and simple sugars and is much more beneficial for human health than conventional ones.
The Global Molasses Market can be differentiated into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. In terms of regional analysis, North America is likely to dominate the global market. Asia Pacific is to be the fastest-growing global molasses market.
The Global Molasses Market is driven by Allied Old English Inc., Amoretti, Archer Daniels Midland Company, B & G Foods Inc., Cora Texas Manufacturing Co., Crosby Molasses Co. Ltd., Ed and F Man Holdings Pvt. Ltd, Fairly Traded Organics, Malt Products Corp., Michigan Sugar Co., Spreckels Sugar Company Inc.
- November 2021: Ethanol blending with petrol has been achieved in all the states and UTs, and is likely to touch around 8.3 per cent in the 2020-21 marketing year ending November, according to a senior official of state-owned HPCL.
- May 2021: International Molasses (IM), a leading supplier of molasses and natural sweeteners, has introduced CaneRite™ Panela, an all-natural, free-flowing powder sweetener made from the freshly squeezed juice of the entire sugar cane plant. Unlike conventional “raw sugar” products, CaneRite™ Panela is unrefined and non-centrifuged, so that it authentically and comprehensively retains all the cane plant’s original flavour and nutritional benefits.
Molasses Market Scope and Segment:
|Market Size in 2021||USD 12.14 billion|
|Estimated Market Size in 2030||USD 27.65 billion|
|CAGR Growth Rate||7.4%|
|By Types||· Regular Molasses|
· Blackstrap Molasses
|By Source||· Sugar Cane|
· Sugar Beets
|By Category||· Organic|
|By Application||· Cattle Feed|
· Food & Beverages
|Major Regions Covered||· North America|
· Asia Pacific
· Latin America
· The Middle East & Africa
|Companies Covered||· Allied Old English Inc.|
· Archer Daniels Midland Company
· B & G Foods Inc.
· Cora Texas Manufacturing Co.
· Crosby Molasses Co. Ltd.
· Ed and F Man Holdings Pvt. Ltd
· Fairly Traded Organics
· Malt Products Corp.
· Michigan Sugar Co.
· Spreckels Sugar Company Inc.
|Report Coverage||Revenue Forecast, Growth factors & Trends, Competitive landscape, Regional Analysis|
Frequently Asked Questions (FAQs):
- Which is the leading segment in the market?
- Among Types, the Blackstrap molasses is the leading segment in the global molasses market.
- What are the key factors driving the market?
- Prevalence of Chronic diseases, High volumes of Import & Exports, New product launches & Developments are the key driving factors in the molasses market.
- Which region will contribute notably towards the Molasses Market growth?
- North America contributes notably towards the Molasses Market.
- What are the key players in Molasses Market Company?
- Allied Old English Inc.
- Archer Daniels Midland Company
- B & G Foods Inc.
- Cora Texas Manufacturing Co.
- Crosby Molasses Co. Ltd.
- Ed and F Man Holdings Pvt. Ltd
- Fairly Traded Organics
- Malt Products Corp.
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