Sugar prices have been wild in the past 4 years, moving from [9c to 28c and back to 19c {or refined sugar equivalents}]. This has made life difficult for anyone exposed to sugar prices including food and beverage companies who’s procurement costs have dramatically increased.
A prominent sugar producer in the United States wanted to mitigate the impact the increasing sugar price has on their procurement costs. They asked us to provide a market study on the sugar price outlook to 2040 and to advise the best way to mitigate the risk of the price fluctuating.
CZ Approach
- Analysis of the world’s most significant sugar markets including production and consumption.
- We were able to use our local expertise and regional presence to comment on the evolving sugar landscape.
- Using the vast volume of in-house data sources and explainers produced by our analysis team.
- A review of fluctuations in the sugar price over the past 20 years and looking forward to 2040.
CZ Solution
Delivered a comprehensive market study to the client, enabling them to understand how the sugar market to 2040 may evolve and how the world will cope with the increasing consumption. This concluded with a number of price risk mitigation strategies to assist with future price fluctuations.
Outlook
Global sugar consumption will continue to rise in the future. Global wealth and urbanisation will also increase, meaning higher consumption of processed foods and beverages, which tend to have a higher sugar content.
The increase in sucrose consumption will require heavy investment in sugar production around the world. Global sugar production hasn’t increased in more than a decade; it’s been at 175m tonnes (+ or – 15m tonnes) since 2012.
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