The sugar industry has remained a strong and profitable part of the global marketplace. As it moves into 2020, the industry is expected to continue growing. Here are 5 facts you probably didn’t know about the sugar industry:
1) According to The Sugar Association, there are 1,000 sugar cane and beet farms in the United States and most of these are family-owned and operated.
The majority of all processed sugar cane in America comes from Florida with Texas second in production. Beet production happens mostly during the winter months when other crops are not viable. Sugar beet farmers mainly rely on contract farming agreements for harvesting which involves selling their beets at a contracted price per ton.
2) Every year in America alone, 80 million people consume three billion pounds of sugar in products ranging from cereal to sweets to beverages.
By taking on the role of a food manufacturer, I can tell you that sugar is an important ingredient for the food industry. That’s why there are more than 6,500 types of sugar out there to satisfy any craving. That number does not include artificial sweeteners! Sugar is an extremely profitable product for manufacturers and demanding customers alike. So how much does it really cost to produce a pound of sugar? Your answer may vary depending on where you are located geographically within America or even internationally-but no matter where you are in the world, it takes between 12 and 20 cents per pound of sugar to produce this product.
3) In 2016, the market for sugar was valued at $4.5 billion dollars in the United States alone with international markets totaling $14.6 billion dollars globally.
In 2020, the sugar market value in the United States is predicted to be around $6.58 billion. The demand for sugar is increased due to rising population and a higher preference for sweeter foods. This increase in demand will lead to an annual growth rate of 1%. The United Stated consumes more than 18 pounds of sugar per capita annually – 3x more than in the 1970s (6). That’s a lot of sugar!
4) The top five countries with highest export volume internationally were Germany (360,000 tons), Mexico (4,000 tons), Malawi (3,000 tons), Egypt (1,000 tons), Thailand (500 tons).
Germany has been ranked as number one in the world for sugar export volume since 1992, when it first took over from USAAs well at European Union Sugar Association figures show that Germany exported 360,000 tonnes of raw cane sugar worth US$641 million in 2017. The country has allocated around $2 million annually for its export promotion campaign intended to further increase its production and distribution abroad.
5) Approximate retail value per pound of granulated cane sugar: $0.045 cents per pound
One pound of granulated cane sugar costs about $0.045 per pound when purchased in bulk and that price drops as you need less of it. When looking at smaller quantities, be sure to shop around as there can be a big difference in price!