Molasses market in Oceania

Earlier Report Observations

From 2018 to 2020, the molasses market in Oceania was shaped by sugarcane supply conditions and demand from related industries. Established state-influenced companies like Bundaberg Sugar and Mackay Sugar maintained integrated production, with a portion of output destined for animal stockfeed. However, drought in 2019 significantly reduced sugarcane plantings in New South Wales, tightening the raw material supply for molasses and contributing to a lower market volume. The dry conditions persisted into 2020, boosting demand for molasses as a critical feed supplement during the drought, which increased competition from the livestock and ethanol sectors and drove a sharp rise in market value. In response, the NSW Sugar Milling Co-operative implemented long-term supply contracts to stabilize distribution.

Supply constraints dominated the market from 2021 onward. In 2021, limited sugarcane crushing tonnage and storage capacity, as noted by MSF Sugar, severely curtailed domestic molasses availability, leading to a substantial drop in market volume. That same year, Sunshine Sugar launched its Premium Blend Molasses, a boutique product made from 100% Australian sugarcane, marking the emergence of a new consumer segment for baking, distilling, and feed. Further reductions in sugarcane land area in 2022 extended the raw material shortage, keeping market volumes depressed. By 2023, the adoption of climate-resilient strategies, including drought-resistant sugarcane varieties, supported a slight recovery in production volume, while a shift in consumer preferences toward less refined sweeteners, reflected in products like Lakanto's Brown Lakanto, diversified potential demand avenues for molasses-derived ingredients.

Production molasses in Oceania

In kind, 2017-2020, K t

Top producers of molasses, 2017-2020

World map of production of molasses, 2017-2020

In 2019, Oceania produced 1,097 K t of molasses, marking the lowest output in recent years. Production then increased to 1,116 K t in 2020, representing a modest 1.7% rise from the previous year. The highest production level was recorded in 2018 at 1,230 K t, which was an 11.6% increase from the preceding period. The most significant decline occurred in 2019, with a 10.8% drop.

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

Exports molasses from Oceania

Exports in kind, K t

After two consecutive years of decline, molasses exports from Oceania showed signs of recovery in 2020, reaching 153.3 K t. This represented a 7.3% increase compared to the 2019 level of 142.9 K t, which was the lowest point in the period. The most substantial decline happened in 2018, with a 54.2% decrease. Overall, between 2017 and 2020, exports fell by 72.8%, averaging an annual decline of 35.2%.

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

From 2017 to 2020, three key markets—South Korea, the United States, and Thailand—collectively accounted for 52.0% of Oceania's total molasses exports by volume.

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

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

Exports in value, K $ US

Following a two-year downturn, molasses export values from Oceania rebounded in 2020, totaling $36,973 K US. This marked a significant 34.5% increase from the 2019 value of $27,482 K US, which was the lowest in the period. The sharpest decline occurred in 2019, with a 38.2% drop. Over the 2017-2020 span, export values decreased by 47.1%, corresponding to an annualized decline rate of 19.1%.

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

Between 2017 and 2020, the value-based export structure for molasses from Oceania remained highly diversified. South Korea (24.0% of export value), the United States (14.1%), and Thailand (10.9%) together represented just 49.1% of total exports. The remaining 50.9% was distributed across numerous smaller markets.

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

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

Imports molasses to Oceania

Imports in kind, K t

Molasses import volumes into Oceania experienced notable fluctuations during this period. The lowest point was in 2017, while imports peaked in 2018 at 120.3 K t, representing an extraordinary 1,743.5% increase from the previous year. In 2020, imports totaled {value_last_year} K t, showing a sharp 18.2% decline from 2019. The most significant drop occurred in 2019, with a 56.4% decrease. Overall, imports swung by a factor of 18 between the minimum and maximum levels.

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

From 2017 to 2020, the volume-based import structure for molasses into Oceania was dispersed. Thailand (17.7% of import volume), Indonesia (5.8%), and Vietnam (5.6%) together accounted for only 29.1% of total imports, with the remaining 70.9% spread across a wide range of other sources.

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

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

Imports in value, K $ US

Import values for molasses into Oceania showed considerable volatility between 2017 and 2020. The lowest level was in 2017, while values reached their peak in 2018 at $31,324 K US, reflecting a dramatic 980.8% increase from the previous year. In 2020, imports amounted to $23,637 K US, up 12.7% from 2019. The most substantial decline occurred in 2019, with a 33.0% drop. The difference between the highest and lowest values was 10.8-fold.

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

During the 2017-2020 period, the value-based import structure for molasses into Oceania featured a broad partner portfolio. Thailand (32.8% of import value), Vietnam (5.3%), and Indonesia (4.6%) together represented just 42.8% of total imports, with the remainder coming from various other markets.

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

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