Molasses market in Central America

Earlier Report Observations

The molasses market in Central America expanded to 3 059 thousand tons in 2019 from 2 846 thousand tons in 2018, despite downward pressure from falling international sugar prices in Nicaragua, where the Fiscal Equity Law also altered the tax regime for the agricultural sector. The market volume then contracted sharply to 2 528 thousand tons in 2020.

A recovery followed in 2021, with the market reaching 2 920 thousand tons, supported by the sugar agro-industrial sector in Honduras remaining a macroeconomic pillar generating employment and foreign currency. After a slight dip to 2 853 thousand tons in 2022, the market declined to 2 674 thousand tons in 2023. Although Nicaragua's 2023-2024 sugarcane harvest was highly productive and international sugar prices rose, reduced sugar production in El Salvador limited molasses output as a by-product.

Production molasses in Central America

In kind, 2017-2020, K t

Top producers of molasses, 2017-2020

World map of production of molasses, 2017-2020

In 2020, Central America produced 3 698 K t of molasses, marking a modest year-over-year decline of 8.0%. Over the period from 2017 to 2020, production decreased by 3.8%, with a compound annual growth rate (CAGR) of -1.3%. The peak production was recorded in 2019 at 4 022 K t, which also saw the largest annual increase of 6.5%.

Annual dynamics of production in Central America in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Molasses production in Central America increased for the second consecutive year. In 2020, the output was valued at 539.1 M $ US, reflecting a moderate rise of 9.9% compared to the previous year. From 2017 to 2020, production grew by 14.3%, with a CAGR of 4.6%. The lowest value occurred in 2018 at 430.0 M $ US, which also experienced the largest decline of 8.8%. In contrast, 2019 saw the largest increase of 14.1%.

Annual dynamics of production in Central America in value, 2017-2020, M $ US

Exports molasses from Central America

Exports in kind, K t

Central America's molasses exports increased for the second consecutive year. In 2020, the region exported 1 171 K t of molasses, representing a substantial year-over-year growth of 21.3%. Between 2017 and 2020, exports rose by 15.9%, equating to an annualized rate of 5.0%. The lowest export volume was recorded in 2018 at 938 K t, which also saw the largest decline of 7.2%.

Annual dynamics of product's exports from Central America in kind, 2017-2020, K t

From 2017 to 2020, the United States (58.9% of exports in kind), the Netherlands (11.5%), and the United Kingdom (11.2%) formed the main cluster of markets for Central America's molasses exports, collectively accounting for 81.6% of total flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Central America in kind, 2017-2020

Exports in value, M $ US

Molasses volumes leaving Central America increased for the second consecutive year. In 2020, the export value amounted to 170.7 M $ US, indicating an intense gain of 44.9% over the previous year. Over the period from 2017 to 2020, exports grew by 37.7%, with a CAGR of 11.3%. The minimum value was recorded in 2018 at 106.8 M $ US, which also experienced the largest decline of 13.9%.

Annual dynamics of product's exports from Central America in value, 2017-2020, M $ US

From 2017 to 2020, the United States (64.8% of exports in value terms), the Netherlands (9.6%), and the United Kingdom (9.5%) remained the principal buyers of molasses from Central America, jointly accounting for 83.9% of total exports in value terms.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Central America in value, 2017-2020

Imports molasses to Central America

Imports in kind, K t

Volatility characterized the market behavior during these years. The lowest imports were recorded in 2020 at 0.3 K t, while the highest was reached in 2018 at 7 K t, reflecting a 22-fold gap. In 2020, foreign molasses supplies to Central America amounted to 0.3 K t, representing an abrupt reduction of 88.9% compared to 2019. The largest increase was recorded in 2018 at 38.8%.

Annual dynamics of product's imports to Central America in kind, 2017-2020, K t

Throughout 2017 to 2020, the United States was the single largest supplier of molasses to Central America, accounting for 15.8% of total imports in kind.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Central America in kind, 2017-2020

Imports in value, M $ US

Molasses imports into Central America declined for the third consecutive year. In 2020, imports came to 2.5 M $ US, which is 4.8% less year-over-year. Between 2017 and 2020, imports decreased by 21.5%, equating to an annualized rate of -7.7%.

Annual dynamics of product's imports to Central America in value, 2017-2020, M $ US

From 2017 to 2020, the United States and Brazil led the ranking of suppliers of molasses to Central America, with a joint share of 22.7% of total imports in value terms.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Central America in value, 2017-2020