The global palm sugar market is expected to reach US$ 2.5 billion by 2030 and is poised to grow with a CAGR of 3.1% from 2023-2030, as palm sugar, finds application in a variety of food products, with the food & beverage industry to become the key end user in the forthcoming years.
Growing demand for natural ingredients and the increasing popularity of Southeast Asian cuisine are some of the factors driving the market growth. Palm sugar is a natural sweetener that is made from the sap of palm trees. It is a good source of minerals and has a lower glycemic index than white sugar. This has led to increased demand for palm sugar among consumers who are looking for healthier alternatives to artificial sweeteners.
Moreover, Southeast Asian cuisine is becoming increasingly popular around the world. Many of these dishes use palm sugar as a sweetener, which is driving demand for the product. In addition, the rising expenditure to undertake research and development activities, increasing demand for palm sugar by the HoReCa industry, and the rising consumption of organic and natural products especially in emerging economies will further induce growth in the global palm sugar market.
Growing health concerns coupled with the rapid consumption of organic products is expected to fuel the market demand
The growing health problems due to the consumption of processed white sugar and the rising prevalence of several chronic illnesses such as obesity, diabetes, heart diseases, and cancer are shifting the focus of food & beverage manufacturers to adopt alternative natural sweeteners and are anticipated to increase the demand from food processing units.
In addition, some beverage companies have started using palm sugar, jaggery, and other natural sweeteners for their milk & yogurt-based drink, which is a factor that is influencing the palm sugar market to change the conventional use of white sugar. However, the availability of alternative sweeteners, including stevia, coconut sugar, muscovado sugar, raw honey, dark brown sugar, maple syrup, and dates or date sugar is anticipated to limit the adoption of palm sugar.
The use of palm sugar in various dishes and cuisines is expected to create demand in the upcoming years
Asia Pacific is the largest market for palm sugar, accounting for the majority of the market share. This is due to the fact that palm sugar is a popular sweetener in many Asian countries. Europe is the second largest market, followed by North America, South America, and Middle East & Africa. There is a growing trend of consumers who are becoming more health conscious. These consumers are looking for products that are natural, unprocessed, and have health benefits. Palm sugar fits these criteria, which is why it is becoming more popular among health-conscious consumers.
In North America, the sales of palm sugar are mainly driven by the convenience while using palm sugar cubes in day-to-day activities and providing the consumer with a hassle-free experience. Moreover, the increasing popularity of Asian cuisine is expected to drive the demand for palm sugar as it finds application in a variety of Asian cuisines and dishes.
Besides, in regions like Europe, Latin America and the Middle East, and Africa the increasing demand for natural and organic sweeteners is anticipated to fuel the market growth in the forthcoming years. Other key factors affecting the overall growth of palm sugar in the global market are rising health-conscious trends coupled with the growing demand for gluten-free products like gluten-free oats are expected to act as headwinds of growth in the upcoming years.
Market Structure and Competition Landscape
The global palm sugar market is highly competitive, due to the presence of a large number of producers of palm sugar including The Groovy Food Company, Abbay Trading Group, Co Ltd, Valam Organic Foods, GREENDNA INDIA PRIVATE LIMITED, Future Organics, Coco Sugar Indonesia, Better Body Foods, True Nuts, AAAS FOODS AND NATURE’S SOUL PRIVATE LIMITED, and Bionova among others.
Moreover, the manufacturers operating in the global palm sugar market are focusing on new ingredient-based product launches, along with partnership strategies for their business expansion by new product launches and collaboration, for instance,
- In March 2023, Valam Organic Foods, a leading manufacturer of palm sugar in India, announced a partnership with Amazon India to sell its products on Amazon’s online marketplace.
- In February 2023, The Hain Celestial Group, a global food and beverage company, acquired the BetterBody Foods brand, which produces a line of palm sugar-based products.
- In January 2023, The Malaysian Palm Oil Council (MPOC) launched a new website dedicated to palm sugar. The website provides information about the benefits of palm sugar, as well as recipes and tips on how to use it.
- In December 2022, The Indonesian Palm Sugar Association (ISPA) announced the launch of a new certification program for palm sugar. The program aims to ensure that palm sugar products meet certain standards of quality and sustainability.
- In November 2022, The Thai Palm Sugar Association (TPSA) announced that it is working with the Thai government to develop a new marketing strategy for palm sugar. The strategy aims to increase the global demand for palm sugar and promote its health benefits.
Key market segmentation
RationalStat has segmented the global palm sugar market based on form, packaging, distribution channel, end use, and region.
- By Form
- By Packaging
- Bottle Jars
- By Distribution Channel
- Grocery Retail Platforms
- Company Website
- Convenience Stores
- Specialty Stores
- By End Use
- Food & Beverages
- Food Service
- By Region
- North America
- Latin America
- Rest of Latin America
- Western Europe
- Rest of Western Europe
- Eastern Europe
- Rest of Eastern Europe
- Asia Pacific
- South Korea
- ASEAN (Indonesia, Vietnam, Malaysia, etc.)
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of the Middle East & Africa
- North America
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Why Buy this Report?
The report is intended for global palm sugar manufacturers and producers, government organizations, educational organizations, regulatory agencies, and market research firms, among others. The report provides an in-depth analysis of market size, consumption patterns, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
Key Questions Answered in the Palm Sugar Report
- What will be the market value of the global palm sugar market by 2030?
- What is the market size of the global palm sugar market?
- What are the market drivers of the global palm sugar market?
- What are the key trends in the global palm sugar market?
- Which is the leading region in the global palm sugar market?
- What are the major companies operating in the global palm sugar market?
- What are the market shares by key segments in the global palm sugar market?