Molasses market in South-eastern Asia

Earlier Report Observations

The molasses market in South-eastern Asia exhibited considerable volatility from 2018 to 2023. Market volume peaked at 9.3 million tons in 2019 before contracting sharply to 6.4 million tons in 2020. This level represented a new baseline for the market, which fluctuated between 6.0 and 6.7 million tons in the subsequent three years.

The dramatic drop in 2020 was driven primarily by a collapse in domestic production, which fell by over 2.5 million tons from the previous year. While imports increased significantly in 2020 and 2021, they were insufficient to offset the production shortfall. A partial production recovery in 2022 helped lift market volume, but a steep decline in imports during 2023 contributed to another decrease in overall supply.

Throughout the period, trade flows played a stabilizing role, with imports rising when domestic output fell and exports adjusting accordingly. However, the market remained substantially smaller than its pre-2020 size, ending the period at 6.1 million tons in 2023.

Production molasses in South-eastern Asia

In kind, 2017-2020, K t

Top producers of molasses, 2017-2020

World map of production of molasses, 2017-2020

After two years of growth, molasses production in South-eastern Asia declined. In 2020, the region produced 6 384 K t of molasses, marking a sharp 28.7% decrease from the previous year. Over the period from 2017 to 2020, production fell by 7.2%, which translates to an annualized decline of 2.5%. The peak was reached in 2019 with 8 960 K t, while the largest year-on-year increase occurred in 2018 at 24.4%.

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

Exports molasses from South-eastern Asia

Exports in kind, K t

The market showed noticeable fluctuations during this period. Exports hit their lowest point in 2019 at 322.1 K t, with the largest decline that year at 32.5%. In contrast, 2020 saw the highest export volume of 919.0 K t, representing a steep 185.3% increase from 2019. This resulted in a 2.9-fold gap between the two years.

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

An analysis of exports in kind from 2017 to 2020 reveals a broad distribution across numerous markets. South Korea accounted for 15.6% of exports, Japan for 10.8%, and Asia, not elsewhere specified, for 3.5%. Together, these three partners made up only 29.8% of total flows, with the remaining 70.2% spread among many other countries.

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

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

Exports in value, M $ US

Molasses exports from South-eastern Asia increased for the third consecutive year. In 2020, the region exported 167.5 M $ US worth of molasses, reflecting a 44.7% uptick from 2019. From 2017 to 2020, exports grew by 75.4%, with a compound annual growth rate (CAGR) of 20.6%.

Annual dynamics of product's exports from South-eastern Asia in value, 2017-2020, M $ US

The structure of exports in value terms from 2017 to 2020 can be described as diversified. South Korea contributed 12.7% of exports, Japan 10.7%, and New Zealand 5.2%. Combined, these three countries accounted for just 28.6% of total flows, with no single nation holding a clearly dominant position.

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

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

Imports molasses to South-eastern Asia

Imports in kind, K t

Molasses imports into South-eastern Asia increased for the second consecutive year. In 2020, the region imported 932.9 K t of molasses, amounting to a 36.3% rise compared to the previous year. Over the 2017-2020 period, imports grew by 23%, with a CAGR of 7.1%. The lowest import volume was recorded in 2018 at 414.3 K t, which also saw the largest decline of 45.4%. The largest increase occurred in 2019 at 65.2%.

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

From 2017 to 2020, India, Egypt, and Australia were important suppliers of molasses to South-eastern Asia, accounting for 11.2%, 8.8%, and 5.9% of imports in kind, respectively. However, their combined share reached only 25.9% of total imports, with the remaining 74.1% distributed among many other partners.

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

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

Imports in value, M $ US

The data indicates irregular changes, pointing to a volatile market environment. Imports reached their lowest point in 2018 at 103.8 M $ US, with the largest decline that year at 33.8%. In 2020, foreign molasses supplies to South-eastern Asia totalled 232.5 M $ US, showing a robust 21.2% gain from the previous year. The largest increase was recorded in 2019 at 84.8%, resulting in a 2.2-fold gap between 2018 and 2020.

Annual dynamics of product's imports to South-eastern Asia in value, 2017-2020, M $ US

In the 2017-2020 period, India, Egypt, and Australia formed the largest group of molasses suppliers to South-eastern Asia in value terms, contributing 13.1%, 8.2%, and 4.9% of imports, respectively. Their combined share was limited to 26.1% of total imports, reflecting a diversified country structure.

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

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