Molasses market in South America

Earlier Report Observations

The molasses market volume in South America rose from 14 031 thousand tonnes in 2018 to 19 935 thousand tonnes in 2023. Growth was modest in 2019, then accelerated sharply in 2020.

In 2020, market volume jumped to 18 810 thousand tonnes as global supply tightened due to poor harvests in Thailand and export restrictions in India, reducing worldwide availability and lifting regional demand. The market retreated to 16 146 thousand tonnes in 2021.

Volume recovered to 17 696 thousand tonnes in 2022 and reached 19 935 thousand tonnes in 2023. This expansion was supported by continued global supply constraints and increasing demand from biofuels, animal feed, and processed food sectors, with Brazil cementing its role as the world's leading producer.

Production molasses in South America

In kind, 2017-2020, K t

Top producers of molasses, 2017-2020

World map of production of molasses, 2017-2020

South America's molasses production has increased for the second consecutive year. In 2020, the region produced 18,846 thousand tons of molasses, marking a sharp 32.6% increase from 2019. Production reached its lowest point in 2018 at 14,053 thousand tons, which represented the largest decline of 21.2% during the period. Overall, between 2017 and 2020, production grew by 5.6%, equivalent to an annualized rate of 1.8%.

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

In value, 2017-2020, M $ US

South America's molasses production has risen for the second year in a row. In 2020, the output was valued at 3,682 million US dollars, showing an abrupt 31.7% gain compared to 2019. The minimum value was recorded in 2018 at 2,679 million US dollars, with the largest decline of 8.0% occurring that year. From 2017 to 2020, production increased by 26.5%, translating to an annualized growth rate of 8.2%.

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

Exports molasses from South America

Exports in kind, K t

After a two-year decline, molasses exports from South America have rebounded. In 2020, export volume reached 68.2 thousand tons, a 48.4% increase from the previous year. The lowest point was in 2019 at 45.9 thousand tons, while the largest drop of 69.6% occurred in 2018. Over the 2017-2020 period, exports decreased by 58.3%, with a compound annual growth rate of -25.3%.

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

From 2017 to 2020, molasses exports from South America were relatively evenly distributed. The top three destinations—the United States (13.3% of exports), the United Kingdom (12.1%), and Trinidad and Tobago (9.2%)—together accounted for only 34.5% of total flows.

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

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

Exports in value, K $ US

Following a two-year decline, South America's molasses exports have increased. In 2020, export value totaled 13,323 thousand US dollars, a 47.4% year-over-year gain. The minimum value was recorded in 2019 at 9,040 thousand US dollars, and the largest decline of 64.5% happened in 2018. Between 2017 and 2020, exports fell by 50.1%, equating to an annualized rate of -20.7%.

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

During 2017–2020, South American molasses was exported to a wide range of markets. Even the largest destinations—the United States, Barbados, and the United Kingdom—collectively represented just 35.2% of total export value, highlighting the diversity of trade partners.

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

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

Imports molasses to South America

Imports in kind, K t

After two years of growth, molasses imports into South America declined. In 2020, imports totaled 32.0 thousand tons, a substantial 12.7% decrease from the previous year. The peak was in 2019 at 36.7 thousand tons, which also saw the largest increase of 31.1%. Over the 2017-2020 period, imports rose by 16.8%, with a compound annual growth rate of 5.3%.

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

From 2017 to 2020, the main sources for molasses imports into South America were Russia (8.7% of imports), Belarus (4.3%), and Mexico (4.0%). Together, these three countries accounted for 17.0% of total import flows.

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

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

Imports in value, K $ US

In 2020, molasses imports into South America amounted to 10,428 thousand US dollars, a 5.0% increase year-over-year. The highest value was recorded in 2018 at 10,843 thousand US dollars, which also experienced the largest increase of 56.7%. The largest decline of 8.4% occurred in 2019. Overall, between 2017 and 2020, imports grew by 50.7%, equivalent to an annualized rate of 14.6%.

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

Between 2017 and 2020, the largest suppliers of molasses to South America included Mexico (14.9% of import value), Russia (8.6%), and Panama (4.6%). However, even combined, they represented only 28.1% of total imports, indicating a broadly diversified partner base.

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

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