Australia Sugar Market Size, Share Analysis and Forecast Report (2025-2034)

Australia Sugar Market Trends

The Australia sugar market is thriving, with the country being a leading exporter of sugar, benefiting from strong international demand, particularly from Asia and the Pacific. Australia enjoys efficient and consistent sugar production, driven by advanced farming techniques. The tropical and subtropical climates in the northern regions support high yields. Furthermore, sugar production is diversified into raw sugar, ethanol, and other by-products, strengthening market resilience. In February 2023, Bundaberg Sugar launched "Bundaberg Pure Cane Sugar," focusing on premium, locally sourced sugar products to meet the growing demand for high-quality, Australian-made sugar, especially in the baking and food service industries.

The growth of the Australia sugar market is further supported by technological advancements, including precision farming, which have boosted productivity and enhanced environmental sustainability. Australia's sugar is recognised worldwide for its high quality, which underpins its strong export market. Sustainability efforts, such as water conservation and waste management, are a key focus. Government policies and trade agreements further enhance the industry’s competitiveness, while the country’s proximity to key Asian markets provides logistical advantages. In April 2022, Riviana Foods launched "Riviana Sugar" in eco-friendly packaging, offering white and brown sugar in biodegradable, recyclable materials to attract environmentally conscious consumers.

Australia Sugar Market Growth

The Australia sugar market offers significant opportunities, as it is a key employer, creating jobs across farming, processing, transport, and export sectors. It makes a substantial contribution to Australia's GDP, generating billions through production and exports. By-products such as bagasse are utilised for bioenergy, enhancing sustainability. Ongoing research and development efforts continue to improve yields and discover new uses for sugar. The use of sugarcane for ethanol production supports renewable energy and helps reduce carbon emissions. In June 2023, CSR introduced new resealable packaging for its "CSR Raw Sugar," making it more convenient for home use and catering to the growing demand for natural, unrefined sugar.

The Australia sugar market revenue is further boosted by the country’s involvement in trade agreements like the CPTPP, which opens access to key international markets and increases export opportunities. The industry is also exploring sugar substitutes to meet the rising demand for low-calorie and sugar-free options. A diversified production strategy ensures the industry remains resilient to market fluctuations. Advanced infrastructure supports efficient transportation both domestically and for exports. Environmental management practices are a priority, with growers working to reduce water use, improve soil health, and minimise chemical impacts. In May 2024, Tate & Lyle launched its "Naturally Sweet" stevia-sugar blend in Australia, offering a reduced-sugar alternative that combines stevia and sugar to maintain sweetness with fewer calories, in line with health-conscious consumer trends.

Australia Sugar Market Insights

• In 2023, Australia produced 4.2 million tonnes of sugar, mostly in Queensland and New South Wales. Production levels were affected by weather challenges and climate variability, as reported by ABARES.
• Industry reports indicate that domestic sugar sales in Australia held steady at 1.4 million tonnes in 2023, driven by continued demand from the food and beverage sectors.
• Australia imports around 600,000 tonnes of sugar each year, predominantly from Brazil and Thailand, to satisfy domestic demand for refined sugar, with import levels remaining stable in recent years, according to DAFF.
• The sugar market share in Western Australia is anticipated to experience substantial growth, with a forecasted CAGR of 15.7% from 2024 to 2032.
• The Australian Capital Territory and other regions are expected to grow at a CAGR of 2.5% and 2.0% respectively from 2024 to 2032.
• The liquid segment is expected to grow at a CAGR of 2.8% from 2024 to 2032.

Industry News

March 2023

Maggie Beer unveiled "Maggie Beer’s Natural Sugar". Sourced from Australian-grown cane, this sugar provides a more natural, less refined alternative for cooking and baking, catering to the increasing consumer demand for local and authentic ingredients.

December 2022

Coles launched its "Simply Less Sugar" range, offering a reduced-sugar option for everyday use. The range, which includes raw and white sugar, aims to help households manage their sugar intake more effectively.

Australia Sugar Market Drivers

Sustainability and Environmental Practices

Sustainability is becoming an increasingly important trend in the Australia sugar market, with efforts to minimise environmental impact growing steadily. Sugarcane farmers are adopting water-efficient irrigation, cutting pesticide use, and implementing soil health initiatives. The industry is also working to reduce carbon emissions by repurposing by-products like bagasse for bioenergy. Furthermore, sugar mills invest in renewable energy projects, such as converting sugarcane into ethanol, to support sustainability. These environmentally friendly practices are driven by both government regulations and rising consumer demand for sustainably sourced products, positioning sustainability as a central driver for the future of Australia’s sugar industry. In March 2023, Sugar Australia launched a carbon footprint reduction strategy, focusing on lowering emissions across the supply chain through optimising transport routes and improving energy efficiency at processing plants.

Diversification of Sugar Products

The demand in the Australia sugar market is growing as it diversifies its product range beyond traditional raw and refined sugar. This expansion includes the production of value-added products like ethanol, used as a biofuel, and molasses, which have multiple industrial and agricultural uses. With growing consumer demand for alternative sweeteners and low-calorie options, there has been a surge in innovation for healthier sugar substitutes. Furthermore, molasses is increasingly utilised for animal feed and bioenergy production, reducing waste and bolstering the industry's resilience. This diversification helps mitigate the risks posed by price fluctuations in traditional sugar markets, ensuring the sector’s long-term sustainability. In May 2023, Tate & Lyle introduced a new range of "sugar-free" sweeteners, using alternative sweetening agents to replicate the taste of sugar without the calories, expanding their product line to cater to health-conscious consumers.

Opportunities in the Australia Sugar Market

Biofuel Production and Ethanol Expansion

Biofuel production is shaping the Australia sugar market dynamics and trends, as ethanol derived from sugarcane is increasingly used as a renewable energy source to meet both domestic and international demand for cleaner fuels. The Australian government’s focus on reducing carbon emissions and promoting renewable energy has driven investments in ethanol production, positioning it as a key growth area for the sugar industry. With global demand for ethanol rising, particularly in the Asia-Pacific region, Australia is well-placed to benefit from its established sugarcane farming infrastructure. Additionally, ethanol production helps the industry make use of surplus or lower-quality cane, enhancing efficiency and sustainability. In September 2023, Wilmar BioEthanol announced an expansion of its ethanol production facility in Queensland, aimed at boosting biofuel output and supporting Australia’s renewable energy objectives, while utilising excess sugarcane.

Market Restraints

The Australia sugar market faces several constraints, including climate change and unpredictable weather, which threaten crop yields and production stability. Rising production costs due to water scarcity, fuel price hikes, and labour shortages further challenge the industry’s competitiveness. Volatile global sugar prices, influenced by global supply and demand, create uncertainty in profitability. Labour shortages and skills gaps in rural areas hinder productivity, while environmental and regulatory pressures require costly adaptations to sustainable farming practices.

Market access and trade barriers can limit exports, and pests, diseases, and biosecurity risks impact crop health. The industry must also contend with changing consumer perceptions of sugar and competition from alternative sweeteners. Finally, infrastructural constraints in transport and port facilities affect efficiency and export competitiveness.

Australia Sugar Industry Segmentation

“Australia Sugar Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• White
• Brown
• Liquid

Market Breakup by Form

• Granulated
• Powdered
• Syrup

Market Breakup by Source

• Sugarcane
• Sugar Beet

Market Breakup by End Use

• Food and Beverages
• Pharma and Personal Care
• Household
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Sugar Market Share

By Type Insights

According to the Australia sugar market analysis, white sugar dominates the market, being a key ingredient in food and beverage products. Its high purity, versatility, and long shelf life make it indispensable for both domestic use and exports. The demand for white sugar remains robust due to its broad applications in industries like baking, confectionery, and beverage production. In June 2022, Coles launched "Coles White Sugar," aimed at providing an affordable yet high-quality option for everyday consumers. Available in various sizes, it offers a reliable, cost-effective choice for households seeking quality white sugar at competitive prices.

The Australia sugar market also benefits from the growing popularity of brown sugar, known for its distinctive flavour and moisture content, making it ideal for baking and cooking. Retaining some molasses, brown sugar has a richer taste than white sugar. Its appeal has increased, particularly among consumers seeking more natural or less refined sweeteners. In December 2023, Lakanto introduced Brown Lakanto, a brown sugar substitute made from non-GMO erythritol and monk fruit extract. This product boasts zero carbs and 93% fewer calories than traditional sugar and is available at major retailers like Coles and Woolworths, as well as independent stores and online at Lakanto.com.au.

By Source Analysis

According to the Australia sugar market report, sugarcane remains the cornerstone of the industry, characterised by high yields and strong export demand. It is particularly suited for biofuel production, especially ethanol, offering a renewable energy source. Sugarcane also plays a crucial role in supporting local economies, providing jobs in farming, processing, and transportation, which ensures the industry's resilience and growth. Wilmar Sugar, a key player in Australia’s sugarcane sector, produced over 5 million tonnes of sugarcane in 2022. The company operates multiple mills in Queensland, focusing on optimising yields while implementing sustainable practices such as improved water management and reduced chemical usage.

The Australia sugar market is strengthened by the potential of sugar beet as an alternative for sugar production in cooler regions. It has a faster growth cycle compared to sugarcane and can also be used in bioethanol production. Increasing its cultivation could help diversify the sugar supply and stabilise the market. Northern Beet Industries is conducting trials of sugar beet cultivation in Northern New South Wales, with initial tests taking place in 2023. The company is evaluating local conditions to determine the feasibility of sugar beet farming as a supplementary option to sugarcane, aiming to diversify Australia's sugar industry.

By End Use Insights

The growth of the Australia sugar market is driven by sugar’s integral role in the food and beverage sector, where it enhances the flavour, texture, and shelf life of numerous products. It is widely used in soft drinks, confectionery, baked goods, and processed foods. The food and beverages segment is expected to grow at a CAGR of 2.3% from 2024 to 2032. Despite growing health concerns, sugar remains essential due to its versatility and preservation qualities. The industry is also responding to shifting consumer preferences by exploring healthier alternatives and reduced-sugar products. In June 2023, Bundaberg Sugar launched "Bundaberg Golden Syrup," an all-natural, Australian-made syrup aimed at meeting the rising demand for high-quality, locally sourced sugar ingredients in baking and cooking.

The demand for the Australia sugar market is also increasing in the pharmaceutical and personal care sectors. In pharmaceuticals, sugar is used as a binder in tablets and a preservative in syrups, while in personal care, it serves as an exfoliant and stabiliser. The pharma and personal care segment is expected to grow at a CAGR of 2.6% from 2024 to 2032. The Australian sugar industry is innovating to extend its presence in these industries, capitalising on sugar’s natural properties for health and wellness products. In November 2022, Blackmores introduced "refined sugar" in its "Blackmores Wellness Syrup," a sugar-based supplement designed to enhance digestion and immunity, targeting health-conscious consumers.

Australia Sugar Market Regional Insights

New South Wales Sugar Market Overview

According to the Australia sugar industry analysis, New South Wales enjoys stable sugar production, due to favourable weather conditions and advanced agricultural practices. The industry plays a vital role in local economies, providing employment in farming and processing. In 2023, the state produced approximately 1.5 million tonnes of sugar, according to ABARES, 2023.

Queensland Sugar Market Trends

As Australia’s leading sugar producer, Queensland benefits from strong export demand, particularly from Asia. The state’s extensive farming operations support regional economies, while innovations in production enhance sustainability. In 2023, Queensland produced over 4 million tonnes of sugar, establishing it as the country’s main sugar-producing region, according to DAFF, 2023.

Western Australia Sugar Market Dynamics

Western Australia is projected to grow at a CAGR of 2.2% from 2024 to 2032. The state is adopting innovative farming methods and sustainable practices, alongside ongoing trials of small-scale production. In August 2023, Agrifood Innovation WA launched a project to assess the feasibility of sugarcane farming in the Kimberley region, focusing on sustainable practices and biofuel development to diversify agricultural production.

Competitive Landscape

The Australia sugar market key players are involved in sourcing, processing, and distributing a range of food and agricultural products, including sugar, grains, oilseeds, and coffee. They utilise a global network of assets, such as ports, processing plants, and storage facilities. These companies are dedicated to sustainable practices, focusing on enhancing supply chain transparency, minimising environmental impacts, and promoting responsible sourcing. Through innovative solutions and their extensive global presence, they aim to meet the increasing demand for food while supporting global food security.

Key Industry Players

Wilmar Sugar Pty Ltd.: Wilmar Sugar Pty Ltd., headquartered in Brisbane, Australia, was established in 2010. It is a leading sugar producer, processor, and exporter in Australia, operating mills in Queensland. The company focuses on sustainable farming practices and innovative biofuel production, making a significant contribution to the Australian sugar industry.

Mackay Sugar Limited: Mackay Sugar Limited, founded in 1899 and based in Mackay, Queensland, is one of Australia’s largest sugar milling companies. It operates several sugar mills and is involved in the production of raw sugar, ethanol, and molasses, with a strong emphasis on sustainability and innovation in the sugar production process.

Bundaberg Sugar Services Ltd.: Established in 1882 and headquartered in Bundaberg, Queensland, is a key player in Australia’s sugar industry. It operates sugar mills, a refinery, and an ethanol plant, providing raw sugar, refined products, and biofuels, with a focus on environmentally sustainable practices and local community support.

MSF Sugar Pty Ltd.: MSF Sugar Pty Ltd. was founded in 1998 and is headquartered in Cairns, Queensland. The company operates multiple sugar mills in Queensland and is involved in the production of raw sugar, ethanol, and molasses. MSF Sugar focuses on sustainability and aims to reduce its environmental impact through innovative farming practices.

Other key players in the Australia sugar market report are COFCO International, and New South Wales Sugar Milling Co-operative Limited, among others.

Recent Developments

March 2023

Pura Cane introduced "Pura Organic Raw Sugar" to the Australian market, promoting it as a healthier, organic alternative to conventional sugars. The product emphasises sustainability and supports Australian farmers.

October 2022

Nature’s Way launched "Nature’s Way Organic Raw Sugar," offering pure, unrefined sugar sourced from Australian-grown cane. This product aligns with the increasing consumer demand for organic and ethically sourced ingredients in Australia.