Icing Sugar Market - Forecast(2024 - 2030)

Icing Sugar Market Overview

Icing Sugar Market Size is estimated to reach $9.8 billion by 2027. Furthermore, it is poised to grow at a CAGR of 6.9% over the forecast period of 2022-2027. Sugar refers to sweet-tasting, soluble carbohydrates. Sugar can be categorized into Monosaccharides, disaccharides, and polysaccharides. Long chains of monosaccharides are joined together by glycosidic linkages to form polysaccharides. Polysaccharides can be quickly broken down into simple sugars that is glucose which allows them to enter cell respiration and facilitate energy metabolism. Low blood sugar and water loss without electrolyte loss are treated using an intravenous sugar solution, which is a mixture of glucose or dextrose and water. Disaccharides are refined for making powdered sugar or icing sugar. Icing sugar is prepared by finely grinding granulated sugar into a very fine powder and is also known as confectioner's sugar. Anticaking agent, such as maize starch is added to commercial icing sugar to absorb moisture and keep the grains separate and free-flowing rather than clumping together. The growing demand of bakery and confectionery products, changing lifestyles, as well as increase in people’s disposable income are some of the factors driving the Icing Sugar Market growth during the forecast period 2022-2027.

Icing Sugar Market Report Coverage

The report: “Icing Sugar Market Forecast (2022-2027)", by Industry ARC covers an in-depth analysis of the following segments of the Icing Sugar Market.

Key Takeaways

• Geographically, Europe held a dominant market share in the year 2021 on account of high demand for bakery and confectionery products as well as presence of established manufacturers of icing sugar. Asia-Pacific is expected to offer lucrative growth opportunities to the manufacturers owing to increasing demand for processed and ready to eat food on account of increasing disposable income and busy lifestyles. The robust growth of bakery and confectionery products is predicted to augment the market growth during the forecast period of 2022-2027.
• Increasing application of icing sugar in cold beverages, cakes, pies and other delicate desserts as well as its various benefits such as prolonged shelf life, no sandiness in food products and creamy feel is estimated to drive the market growth of Icing Sugar Market. Ill effects of sugary foods as well as rise in the number of health-conscious individuals continues to pose threat to the market growth.
• A detailed analysis of strengths, weaknesses, opportunities, and threats will be provided in the Icing Sugar Market Report.

Icing Sugar Market: Market Share (%) by region, 2021

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Icing Sugar Market Segmentation Analysis- By Form

Icing Sugar Market based on form can be further segmented into Extra Fine, Coarse Grained and Decoration. Extra Fine segment held a dominant market share in the year 2021 owing to its wide application in airy, delicate baked goods and dessert such as mousse, pastries, macarons, meringues and puddings as well as in cold beverages for sweetening. It doesn’t require heat to dissolve and mix owing to its finer grains. Its finer crumbs and lighter texture give final products a silky-smooth texture and a creamy mouthfeel, making it preferable to many bakers.

However, Decoration segment is estimated to be the fastest-growing, with a CAGR of 6.6% over the forecast period of 2022-2027. It is used to decorate and add sweetness to cakes, donuts, pastries and are dusted over various baked goods and fruits. Buttercream icing is one of the most common frostings used by bakers. Buttercream icing which is made of icing sugar, butter, milk or cream and an extract flavouring taste better and have a superior mouthfeel. It is used for decorating cakes, cupcakes, and cookies. Furthermore, decorations help the bakers to make their products stand out from the competitors which is estimated to drive its market growth.

Icing Sugar Market Segmentation Analysis- By Application

Icing Sugar Market based on application can be further segmented into Bakery and Confectionary, Dairy Products, Beverages, Desserts and Others. Bakery and Confectionary segment held a dominant market share in the year 2021 and is estimated to be the fastest-growing, with a CAGR of 8.3% over the forecast period of 2022-2027 owing to the growing demand for convenience foods and customer preferences for attractive, flavourful, and textured foods. Consumers have become more inclined towards ready to eat, bit sized and frozen bakery products on account of their busy lifestyles and the ease of usage these products offer, owing to which icing sugar market is witnessing a growth. Icing sugar is used in bakery and confectionery products owing to its versatile nature. It is used for icing and frosting pastries, pies, cakes and others, for sweetening milk shakes, juices and cold beverages as well as for its retaining structure when dusted over bakery and confectionery products. The surge in the demand of fancy and luxury bakery and confectionery products is estimated to drive the market growth of icing sugar as it makes the final products more appealing and flavourful.

Icing Sugar Market Segmentation Analysis- By Geography

The Icing Sugar Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. Europe held a dominant market share of 31% in the year 2021 as compared to the other counterparts owing to huge demand for bakery and confectionery products, high usage of icing sugar in cafes and restaurants as well as presence of established players such as Associated British Foods and Couplet Sugars.

However, Asia-Pacific is estimated to be the fastest-growing, with a CAGR of 7.5% over the forecast period of 2022-2027 owing to the customers’ changing preferences and inclination towards ready to eat and bite sized products giving boost to frozen bakery and confectionery segment. This shift is mainly due to increase in consumers’ disposable incomes, rapid urbanization and adoption of western style snacking habits. According to a report published by United Nation in 2019, around 68% of the world population is projected to live in urban areas by 2050 with maximum growth concentrated in Asia, driving the market growth.

Icing Sugar Market Drivers

Growing consumption of bakery products is boosting the market growth

The demand for icing sugar is increasing owing to the rise in the consumption of bakery products owing to its wide application in the bakery segment. The demand for bakery products is increasing owing to rising disposable incomes, increasing consumption of ready to eat food owing o busy lifestyle as well as extra wage-earning women. Furthermore, increased demand for frozen baked goods owing to their ease of use and extended shelf life is propelling the bakery product market. Companies are continuously releasing new products, such as low-calorie bakery items, trans fat-free products, multi grain, and others, to satisfy this growing demand and to cater to the needs of health-conscious individuals, which is fuelling the market growth.

Rising demand for chocolate and other confectionery products is driving the market growth.

Application of icing sugar in chocolate and confectionery products is propelling the market growth of icing sugar. The growing demand for chocolate and confectionery products can be attributed to increasing consumer expenditure on indulgent chocolate confectionaries, growing trend of gifting chocolate on various occasions and innovative product launches. For instance, in 2020, Ferrero Rocher India launched a new product named Ferrero Rocher Moments which is meant to be used for premium gifting purposes. Icing sugar is used as a sweetener and to improve the flavour, smell, and quality of the products. Confectionery consumption is higher in urbanised areas as compared to its rural counterparts. According to United Nations, 68% of the world’s population is estimated to live in urban areas by 2050, thereby propelling the Icing Sugar Industry.

Icing Sugar Market Challenges

Increase in the number of health-conscious people pose threat to market growth.

As per the reports of Harvard School of Public Health, consuming sugary foods and drinks on a regular basis raises risk of heart diseases, diabetes, and obesity. Furthermore, eating excess of sweet food contributes to compulsive overeating. Processed foods, which are typically high in calories, contribute to excessive weight gain or obesity. As per the estimations of World Obesity federation, 2.7 billion adults will be overweight, over 1 billion affected by obesity, and 177 million adults will be severely affected by obesity by 2025. People are getting more health-conscious, and they are becoming more selective about the type and quantity of food they consume. These are the key factors estimated to impede the market growth over the forecast period.

Icing Sugar Industry Outlook

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Icing Sugar Market. The top 10- Icing Sugar Market companies are-

1. Associated British Foods Plc
2.  Blue Birds Foods India Ltd
3. Couplet Sugars
4.  Crusty International
5.  Dhampure Speciality Sugar Ltd
6.  Pacto Industries Ltd
7.  Sbec Sugar Ltd
8.  Sudzuker AG
9.  Tate Lyle Plc
10.  Weilkfield Foods Pvt Ltd.

Recent Developments

• In April 2021, Bakers Choice launches a new product packaging for one of its brand products – Bakers Choice icing sugar. The new packaging has a better reflection of the brand and a better durability for sustainable storage.
• In March 2021, Dalmia Bharat Sugar and Industries Ltd. (DBSIL) announced the launch of its packaged sugar under the brand name "Dalmia Utsav". The products will be available for B2B to B2C segments and also on top E-Commerce platforms like Amazon, Big Basket & Flipkart, and in offline stores.
• In March 2021, U.S. Sugar Corp., a Florida marketing partner in United Sugars Corp., of Edina, Minn., announced, that it will purchase the Imperial Sugar Co., including its big port refinery near Savannah, Ga. This will increase market stability for partner beet cooperatives in the Red River Valley.

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