The sugar market - Italy (2024)

1.2 The global market

in ****, the global industrial sugar market reached a total value of $**.* billion. This market is expected to grow modestly over the period ****-****, with a projected compound annual growth rate (***) of *.*%. By the end of the period, the world industrial sugar market could reach a total value of $**.* billion. Industrial sugar market World, ****-****, in billions of dollars ResearchandMarkets

Production

As for sugar production, there is a **.* percent growth between **** and **** worldwide, with total production rising from ***.* million tons to ***.* million tons. As shown in the graph below, the amount of sugar produced is highly variable from one year to the next. This can be attributed to several factors including: climatic conditions in major sugarcane and sugar beet producing countries, agricultural and trade policies, changes in food consumption and consumption habits, and fluctuations in commodity prices.

Raw sugar production World, ****-****, in millions of tons USDA In ****, the world's leading sugar producer is Brazil, with a **.* percent share of production. In second place is India with **.* percent of world production. It is followed by the European Union and China, with production shares of *.* percent and *.* percent, respectively. Thailand and the United States contribute *.* percent and *.* percent of world production, while the ...

1.3 The Italian market

To analyze the Italian sugar market, the total turnover of sugar production enterprises and sugar production in the territory are considered.

The total turnover of active enterprises under Ateco Code **.** "Sugar production" appears to have been declining in recent years. Between **** and ****, there is a **.* percent decline in total turnover, with the same falling from ***.* million euros to ***.* million euros. However, while between **** and **** the contraction is **.* percent, between **** and **** there is evidence of a recovery in the industry, with turnover growing again by **.* percent.

Total industry turnover of sugar production Italy, ****-****, in millions of euros Istat

Sugar beet production in Italy is declining. Between **** and ****, total production dropped from **.* million tons to just over half, **.* million tons (***). The decline appears to be constant throughout the period and suggests an increasing dependence of sugar industries on international imports. Sugar beet production Italy, ****-****, in million tons Istat

1.4 Import - Export

hS Code **** "Cane and beet sugar, chemically pure sucrose in solid form" is considered for the analysis of sugar trade flows to and from Italy.

Between **** and ****, growth is shown in both imports and exports. Regarding the latter, during the period analyzed, the total value of Italian exports grew by **.* percent, from $***.* million to $***.* million. With the exception of **** (***), growth appears to be constant during the entire period. The growth recorded on the import side between **** and **** stands at **.* percent, with the total value rising from $*.** billion to $*.** billion. The data just presented make it clear how Italy is positioned as a net importer of sugar. The export coverage ratio, determined by the ratio of exports to imports multiplied by ***, fluctuates between **.* percent and **.* percent over the period analyzed.

Import - Export of sugar and packaged sugar Italy, ****-****, in millions of dollars Uncomtrade

Sugar trade flows out of Italy are highly diversified and concentrated mainly in the European context. In ****, Germany is Italy's main trading partner, collecting **.* percent of the value of exports. This is followed by France and the Netherlands, with **.* percent and *.* percent. The United States, the only non-European country in the top **, collects *.* percent of Italy's exports ...

1.5 The consequences of the Russian-Ukrainian conflict

the outbreak of the Russian-Ukrainian conflict in February **** has led to, among other things, a general increase in consumer prices. The sugar consumption sector is particularly affected by the consequences of the conflict. Between January **** and January ****, the consumer price index for sugar rose by **.* points, indicating a **.* percent increase in prices. Compared to ****, consumer prices increased by **.* percent.

Producer price index for sugar Italy, ****-****, base ****=*** Istat

The increase in consumer prices is nothing but a reflection of the increase in production costs. Between January **** and December ****, the producer price index for sugar increased by **.* points, representing a **.* percent increase in production costs. Compared with ****, the cost increase for the industry is **.*%. Producer price index for sugar production Italy, ****-****, base ****=*** Istat

2.1 Demand in Italy

In order to analyze the demand for sugar in Italy, the trend of average monthly household expenditure on sugar purchases and the development of confectionery enterprises in Italy are considered. Regarding the second point, enterprises under Ateco Codes **.** "Production of rusks and cookies; production of preserved pastry products" and **.** "Production of cocoa, chocolate, candies and confectionery" are analyzed, highlighting the number of enterprises and the production sold in volume and value.

Households

Between **** and ****, average monthly household spending on sugar purchases appears to be on the rise. During the period analyzed, the average expenditure increased from *.** euros per month per household to *.** euros per month, representing a growth of *.* percent. However, analyzing the spending trend, between **** and **** there is a decline of **.* percent, while between **** and **** the growth is **.* percent. Considering the increase in consumer prices analyzed in Section *.*, the growth in spending recorded in **** is mainly attributable to the inflationary dynamics in ****.

Average monthly household expenditure on sugar purchases Italy, ****-****, in euros Istat

Industry

Regarding the demand for sugar by enterprises active in confectionery production, between **** and **** there was a decrease in the number of enterprises active in the production of cocoa, chocolate, candies and confectionery. During the period ...

2.2 Demand drivers

The demand for sugar finds explanation in a multiplicity of aspects, as sugar plays a central role in multiple aspects of cuisine, gastronomy and global food culture:

Sweetening

Sugar is the ultimate sweetener in many cultures, used to sweeten beverages such as coffee, tea, juices, and cocktails, as well as to enhance the flavor of fruits, cereals, yogurt, and other foods. Its sweetening power is essential not only to satisfy the human preference for sweet flavors, but also to balance the acidity or bitterness of some dishes and drinks. The simplicity with which sugar can be dosed and mixed makes it a versatile ingredient in cooking.

Cooking and confectionery

In baking, sugar contributes to multiple aspects of dessert chemistry. During baking, sugar caramelizes, giving color and a rich, complex flavor. It helps retain moisture, contributing to the softness of cakes and cookies, and it plays a crucial role in the structure of baked goods, affecting aeration and volume. In addition, sugar stabilizes meringues and creams, and prevents crystallization of chocolate and caramel, ensuring smooth and even texture.

Preservation

Sugar is a natural preservative that extends the life of foods through a process known as osmosis. Adding sugar in high concentrations, as ...

2.3 Geographical distribution of demand

To visualize the geographic distribution of sugar demand in Italy, the distribution of average monthly household expenditure and that of enterprises active under Ateco Code **.** "Production of cocoa, chocolate, candies and confectionery" in each Italian macro-region are considered.

As for the average monthly household expenditure, the Mezzogiorno has the highest value in ****, at *.** euros spent by households monthly. This is followed by the Center, where spending stands at *.** euros per month. Finally, in the North of the countries, households spend an average of *.** euros per month on sugar (***).

As for the industrial sector, in ****, **.*% of confectionery companies are located in the South while **.*% are established in the Northwest. This is followed by the Northeast with **.*% of the total. Finally, the Center and Islands have the same value, accounting for **.* percent of the national total.

2.4 New demand trends: organic sugar

The growing demand for organic sugar reflects a broader trend toward conscious and sustainable consumption, with consumers seeking more natural and ethically produced products. Interest in organic sugar is fueled by several factors, including health concerns, the environmental impact of conventional sugar production, and the quality of the final product. Here are some key aspects of this trend:

Health concerns: consumers who prefer organic sugar often do so because they perceive organic products to be healthier. Although organic sugar contains the same calories as conventional sugar, the lack of pesticides and chemical fertilizers in its production is a deciding factor for many. Environmental sustainability: organic sugar production is seen as more sustainable than conventional practices. Organic farms tend to use methods that promote soil health, reduce pollution, and decrease the use of nonrenewable resources. these methods may include crop rotation, use of compost, and natural pest management. Ethics and fair practices: fair trade often accompanies organic sugar production, ensuring that farmers receive fair remuneration for their work. This ethical aspect attracts consumers who are concerned not only about the quality of the food they eat but also about the conditions of those who produce it. Product quality: some consumers believe that ...

3.1 The market structure

to analyze the market structure in Italy, enterprises under Ateco Code **.** "Sugar production" are considered. In particular, the number of active enterprises, the number of employees in active enterprises and the legal form of activities are analyzed.

Number of enterprises

Sugar production in Italy appears to be extremely concentrated around a few players. Between **** and ****, the total number of active enterprises increased from ** to **, marking a growth of **.* percent.

Active enterprises under Ateco Code **.** "Sugar production" Italy, ****-****, in number Istat

Despite the increase in the number of enterprises, the total number of employees within them is declining. Between **** and ****, the total number of employees decreased by **.* percent, from *** to ***. The decline appears to be constant throughout the entire period, and the outbreak of the pandemic, given also the trend in global sugar demand, does not seem to have significantly affected the sector. Employment in active enterprises under Ateco Code **.** "Sugar production" Italy, ****-****, in number Istat Finally, analyzing the legal form of the activities, joint stock companies and limited liability companies both gather **.* percent of the activities. This is followed by sole proprietorships, simple partnerships and cooperatives, all accounting for *.* percent of the total. Legal form active enterprises under Ateco ...

3.2 Sugar Production

The sugar chain consists of several stages, the main ones of which are as follows.

Sugar, also called sucrose, is formed by photosynthesis in sugar plants. Sugar plants, namely sugar cane and sugar beets, are harvested and transported to sugar mills, often near fields.

Industrial processing is the extraction of sugar from the plants. As for the beets, they are washed, cut into strips (***). These cosettes can be used directly as feed for livestock. Otherwise, these cosettes are introduced into a long cylinder containing water heated to **°, through which they pass in countercurrent. This process, called diffusion, extracts a sweet juice from the cosettes, which is then filtered and evaporated to make a syrup with a concentrated sugar content. For sugarcane, the extraction process is similar, but the diffusion step is replaced by grinding to extract the sweet juice.

This syrup, known as molasses, is used to produce alcohol for direct consumption, for industrial use or to produce bioethanol, or packaged for other users.

Crystallization, dehydration, drying, and packaging steps make it possible to create sugar as it is marketed, particularly for food use.

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Therefore, the main players in the market are :

planters who harvest sugar plants sugar producers who ...

3.3 Main Actors

The following is a list of the main players active in sugar production in the Italian market:

Suedzucker: founded in **** by the merger of five sugar companies, it has established itself as the world's largest sugar producer. The company has marked its path with a constant commitment to innovation and growth, expanding its influence far beyond the sugar industry. With a production and distribution network that extends internationally, Südzucker has become an important figure in the agribusiness industry, offering a variety of related products. Its history is exemplary for companies seeking to combine tradition, innovation and social responsibility in an ever-changing industry.

Cristal Union: the history of Cristal Union, one of Europe's leading sugar and alcohol producers, is rooted in the cooperative model. The group is distinguished by its strong presence in France and a significant volume of sales abroad. Cristal Union is known for its emphasis on innovation and sustainability, having more than *,*** employees at the group level and about *,*** cooperative members. Its structure and operations are based on a cooperative model, focusing on the importance of the collective and a commitment to responsible agriculture and sustainable industrial practices.

Tereos(***): is one of the world's largest sugar producers and ...

3.4 The distribution

Wholesale

The sugar wholesale industry is expanding in Italy. Between **** and ****, the total number of active enterprises increased from **** to ****, marking a growth of **.*%. In particular, as shown in the graph below, almost all of the growth is concentrated in the two-year period ****-****, when the number of enterprises grew by **.*% in a single year.

Active enterprises under Ateco Code **.** "Wholesale trade of sugar, chocolate, confectionery and bakery products" Italy, ****-****, in number Istat

Some of the main players active in this sector are:

Italia Zuccheri Commerciale s.r.l: is a unique reality in the Italian sugar scene, being the only short supply chain in the sector in the country. With a history spanning over ** years, the group unites thousands of farms distributed in * regions of Italy. Their sugar production, sourced exclusively from beets sown, harvested and processed in Italy, is an example of their commitment to sustainability and the enhancement of the national agricultural supply chain. Their farmers, the protagonists of this story, work together to continue the important Italian sugar tradition, producing high-quality sugar while respecting the land. Italia Zuccheri represents a model of excellence in sugar production, with a focus on sustainability and the values of the ...

4.1 Types of sugar

There are several types of sugar on the market, the most popular of which are definitely white and cane sugar. These differ because of the molasses. This syrupy, brown compound is a by-product of sucrose refining; nothing more than a sugar solution formed during the boiling of beets in water, or sugarcane juice, necessary to extract sucrose.

If, however, beet molasses has an unpleasant flavor, and must therefore be removed totally (***) without affecting the performance of the finished product; adding slight aromatic notes of caramel to the pure sweetness of sucrose.

Another popular type of sugar is raw, partially refined, whole sugar obtained through a simple process of squeezing, boiling and drying sugarcane; without invasive refining interventions.

Turbinado, here molasses is not reintroduced and homogenized to crystals subsequent to the full refining process, but retained (***) directly during processing. After the sugarcane juice is boiled, it is centrifuged in turbines, a process from which it takes its name: it can therefore be considered the last degree of refining of raw sugar before it becomes fully refined white sugar. It comes in medium-sized crystals, slightly larger than pure sucrose, golden-amber in color; and is connoted by an aroma vaguely reminiscent of honey and ...

4.2 Prices

Between **** and ****, the consumer price index for sugar increased **.* points. This is reflected in a **.* percent price increase for consumers. However, as shown in the graph below and as detailed in Section *.*, the price increase is concentrated in the two-year period ****-****, when due to the outbreak of the Russian-Ukrainian conflict and the growth in global demand for sugar contributed to a **.* percent surge in consumer prices in just two years.

Consumer price index for sugar Italy, ****-****, base ****=*** Istat

Below are proposed prices for some product types broken down by producer and large-scale retail distributor:

Cane sugar

PRODUCT PRODUCER DISTRIBUTOR PRICE Cane sugar Moscovado ***gr Eridania Conad Coop Carrefour €*.** €*.** €*.** Raw cane sugar * kg Eridania Conad Coop Carrefour €*.** €*.** €*.** Demerara Brown Sugar ***gr Eridania Conad Coop Carrefour €*.** €*.** €*.** Brown sugar sachets ***gr Eridania Conad Coop Carrefour €*.** €*.** €*.** Raw sugar ***gr Italy Sugars Conad Coop €*.** €*.** Brown sugar ***gr Conad Conad €*.** Brown sugar ***gr Carrefour Carrefour €*.** Brown sugar ***gr Coop Coop €*.**

White sugar

5.1 Regulation

The sugar market, as with many other markets for agricultural products, is regulated by both national and European laws. The legislative framework is aimed at ensuring the quality, safety and origin of the product consumed. Some of the main laws related to the sugar market in Italy are:

Regulation (***) No. ****/****: establishing a common organization of the markets in agricultural products. Commission Delegated Regulation (***) ****/***: rules for the management of import and export tariff quotas subject to licenses. Regulation (***) No ***/**** as regards trade with third countries in sugar products. Council Directive ****/***/EC: relating to certain sugars intended for human consumption.

6.1 Segmentation

• Südzucker
• Cristal Union
• Co.Pro.B.
• Eridania s.p.a
• Srb s.p.a
• Italia Zuccheri Commerciale s.r.l
• Inagra s.r.l
• Rader s.p.a