Molasses market in Nicaragua

Earlier Report Observations

The molasses market in Nicaragua saw significant fluctuations in domestic volume between 2018 and 2023, largely driven by changes in export patterns. The period began with a notable expansion in 2019, as the acquisition of Ingenio Monte Rosa by Grupo Pantaleon and its investment in a distillery for ethanol production helped diversify local demand for molasses, coinciding with a sharp reduction in export volumes that increased domestic availability.

Market volume stabilized through 2020 and then reached a peak in 2021, supported by the continued operations of major sugar mills like Montelimar within an efficient production chain that treated molasses as a key by-product. A substantial contraction occurred in 2022 when export volumes rebounded strongly, drawing product away from the local market.

The market recovered partially in 2023 as Nicaragua solidified its role as a key molasses exporter to Costa Rica, reflecting regional demand, even as total export tonnage fell. International trade policy, including the use of a sugar quota with China to offset lost access to the US market, remained a critical factor influencing export dynamics and, consequently, domestic market volume into 2024.

Production molasses in Nicaragua

In kind, 2017-2020, K t

Globally, Nicaragua ranked as the 28th largest producer of molasses between 2017 and 2020.

Top producers of molasses, 2017-2020

World map of production of molasses, 2017-2020

In 2020, Nicaragua produced 295.0 K t of molasses, showing broad stability compared to the previous year. The lowest production level was recorded in 2018 at 292.0 K t, while the highest was in 2019 at 295.0 K t. The largest decline occurred in 2018, with a decrease of 0.7%, and the largest increase was in 2019, rising by 1.0%.

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

In value, 2017-2020, K $ US

Nicaragua's molasses production increased for the second consecutive year in 2020, with output valued at 37 436 K $ US, marking a 23.4% rise compared to the previous year. Over the period from 2017 to 2020, production grew by 20.4%, corresponding to a compound annual growth rate (CAGR) of 6.4%. The lowest value was recorded in 2018 at 25 856 K $ US, which saw the largest decline of 16.8%.

Annual dynamics of production in Nicaragua in value, 2017-2020, K $ US

Exports molasses from Nicaragua

Exports in kind, K t

In 2020, molasses exports from Nicaragua reached 141.4 K t, representing a 2.7% increase over the previous year. Between 2017 and 2020, exports decreased by 9.7%, equating to an annualized decline of 3.3%. The lowest export volume was in 2019 at 137.7 K t, while the highest was in 2018 at 185.2 K t. The largest decline occurred in 2019, falling by 25.7%, and the largest increase was in 2018, rising by 18.3%.

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

From 2017 to 2020, the United States, the United Kingdom, and Costa Rica were the key destinations for Nicaragua's molasses exports in kind. The United States accounted for 45.8% of exports, the United Kingdom for 13.5%, and Costa Rica for 11.7%, together making up 71.1% of total export flows.

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

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

Exports in value, K $ US

After a two-year decline, Nicaragua's molasses exports increased in 2020, amounting to 17 942 K $ US, which is 26.7% higher than in 2019. Between 2017 and 2020, exports grew by 8.4%, corresponding to an annualized rate of 2.7%. The lowest value was recorded in 2019 at 14 157 K $ US, which saw the largest decline of 13.7%.

Annual dynamics of product's exports from Nicaragua in value, 2017-2020, K $ US

From 2017 to 2020, the United States, the United Kingdom, and Costa Rica continued to be the main buyers of Nicaraguan molasses in value terms. The United States accounted for 47.7% of exports, the United Kingdom for 13.3%, and Costa Rica for 10.5%, jointly forming 71.4% of total export value.

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

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

Imports molasses to Nicaragua

Imports in kind, K t

The data shows irregular changes, indicating a volatile market environment. Imports bottomed in 2020 and peaked in 2018, with a 75 862-fold difference between these years. In 2020, molasses deliveries to Nicaragua totaled 0.0 K t, which is 50.6% lower than in 2019. The highest import volume was recorded in 2018 at 0.3 K t. The largest decline occurred in 2019, falling by 100.0%, and the largest increase was in 2018, rising by 118 849.4%.

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

Throughout 2017 to 2020, Honduras remained the almost exclusive supplier of molasses to Nicaragua, accounting for 99.9% of total imports in kind.

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

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

Imports in value, K $ US

The data reveals irregular changes, indicating a volatile market environment. Import volumes bottomed in 2020 and peaked in 2018, with a top-to-bottom ratio of 1 037 times. In 2020, cross-border shipments of molasses to Nicaragua registered 0.0 K $ US, down by 82.5% compared to the previous year. The highest value was recorded in 2018 at 33 K $ US. The largest decline occurred in 2019, falling by 99.5%, and the largest increase was in 2018, rising by 4 620.8%.

Annual dynamics of product's imports to Nicaragua in value, 2017-2020, K $ US

Over the period from 2017 to 2020, Nicaragua's dependence on Honduras was pronounced, with this market accounting for 97.3% of total molasses imports in value terms.

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

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