Molasses market in Southern Asia

Earlier Report Observations

The molasses market in Southern Asia experienced a slight contraction from 16 947 thousand tons in 2018 to 16 821 thousand tons in 2019. A sharp drop to 14 064 thousand tons followed in 2020, directly attributed to the COVID-19 pandemic, which disrupted industrial consumption and altered market structures across the region.

Recovery commenced in 2021, lifting the market volume to 15 445 thousand tons. A significant expansion to 18 394 thousand tons occurred in 2022, primarily driven by a policy incentive in India that raised the price of ethanol produced from C-heavy molasses by 3%. This measure increased the economic attractiveness of using molasses for biofuel production, stimulating overall demand.

The market stabilized at a high level of 18 299 thousand tons in 2023, indicating a period of consolidation following the previous year's rapid growth.

Production molasses in Southern Asia

In kind, 2017-2020, K t

Top producers of molasses, 2017-2020

World map of production of molasses, 2017-2020

Southern Asia's molasses production declined for the second year in a row. In 2020, the region produced 14 098 K t of molasses, representing a significant year-over-year decrease of 16.4%. Looking at the period from 2017 to 2020, production actually increased by 11.6%, which translates to an annualized growth rate of 3.7%. The peak production occurred in 2018, reaching 17 142 K t, with the largest annual increase of 35.7% also recorded that year.

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

Exports molasses from Southern Asia

Exports in kind, K t

Molasses exports from Southern Asia fell for the third consecutive year. In 2020, exports totaled 36.3 K t, showing a sharp decline of 26.5% compared to the previous year. Over the 2017-2020 period, exports decreased by 85.7%, with a compound annual growth rate (CAGR) of -47.7%.

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

From 2017 to 2020, the Netherlands, Saudi Arabia, and the United Kingdom were the top buyers of molasses from Southern Asia. The Netherlands accounted for 23.2% of exports in kind, Saudi Arabia for 16.0%, and the United Kingdom for 12.9%. Together, these three countries made up 52.1% of total exports in kind.

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

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

Exports in value, K $ US

Molasses exports from Southern Asia in value terms also declined for the third year in a row. In 2020, exports reached 5 753 K US dollars, marking an 18.3% decrease year-over-year. Between 2017 and 2020, exports in value fell by 80.9%, with a compound annual growth rate (CAGR) of -42.4%.

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

From 2017 to 2020, the Netherlands, Saudi Arabia, and the United Kingdom led as the primary buyers of molasses from Southern Asia in value terms. The Netherlands held a 26.1% share of exports in value, Saudi Arabia 17.0%, and the United Kingdom 14.5%. Combined, these three countries accounted for 57.6% of total exports in value.

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

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

Imports molasses to Southern Asia

Imports in kind, K t

The import market for molasses in Southern Asia showed an unstable trend over the period. Imports reached their lowest point in 2017 and peaked in 2018, with a five-fold difference between these years. In 2020, Southern Asia imported 2.0 K t of molasses, a decrease of 26.5% from the previous year. The highest import volume was recorded in 2018 at 3.0 K t, with the largest annual increase of 395.8% also occurring that year.

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

During 2017-2020, the United Arab Emirates, Switzerland, and Azerbaijan were the main sources for molasses imports to Southern Asia in kind. The United Arab Emirates contributed 12.3% of imports in kind, Switzerland 4.1%, and Azerbaijan 1.7%. Together, these three countries accounted for 18.1% of total import flows.

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

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

Imports in value, K $ US

The import market in value terms experienced noticeable fluctuations during this period. Imports hit their lowest in 2017 and peaked in 2018, with a four-fold gap between these years. In 2020, Southern Asia imported molasses worth 5 753 K US dollars, reflecting a 14.8% increase year-over-year. The maximum value was recorded in 2018 at 739 K US dollars. The largest decline occurred in 2019, dropping by 27.8%, while the largest increase was in 2018, rising by 296.9%.

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

From 2017 to 2020, the partner landscape for molasses imports to Southern Asia in value terms was diverse. The United Arab Emirates, Switzerland, and Brazil were key suppliers, with the United Arab Emirates accounting for 18.6% of imports in value, Switzerland for 6.6%, and Brazil for 2.6%. Together, these three countries made up only 27.9% of total flows, while the remaining 72.1% came from many other countries.

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

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