Molasses market in Western Africa

Earlier Report Observations

From 2018 to 2021, the molasses market in Western Africa expanded strongly, with volume growing from 189 thousand tons to 232 thousand tons. This surge was primarily fueled by Nigeria's sugar reform policy, which launched in 2018 to cut import reliance and boost local sugar cane cultivation and refining. The policy encouraged new players to enter the sugar sector with significant investments, and by 2021, enhanced government incentives like duty exemptions on processing machinery further accelerated local sugar output, directly increasing molasses production as a by-product.

Market volume then adjusted to 226 thousand tons in 2022 before stabilizing at a similar level in 2023. This period saw continued heavy investment in sugar industry capacity, such as Dangote Group's November 2022 announcement of a $700 million expansion to increase daily cane crushing capacity fivefold, and BUA Group's advancement of its large-scale Lafiagi project. These developments, part of the ongoing Nigeria Sugar Master Plan, supported a steady molasses supply even as the market consolidated after its earlier rapid growth.

Overall, between 2018 and 2023, the molasses market volume increased by 20%, adding approximately 38 thousand tons. In value terms, the market reached $94.7 million in 2023, having peaked at $120.5 million in 2021 amid price fluctuations. The consistent drive for backward integration in sugar production, underpinned by policy and private capital, remained a central force shaping molasses availability throughout the period.

Production molasses in Western Africa

In kind, 2017-2020, K t

Top producers of molasses, 2017-2020

World map of production of molasses, 2017-2020

Western Africa's molasses production has increased for the third year in a row. In 2020, the region produced 202.3 thousand tons of molasses, which represents a modest 3.4% rise compared to the previous year. Looking at the period from 2017 to 2020, production grew by 14.2%, translating to an average annual growth rate of 4.5%.

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

In value, 2017-2020, K $ US

In 2020, the value of molasses output in Western Africa reached 81 409 thousand US dollars, showing a significant 29.8% increase from the year before. Over the four-year span from 2017 to 2020, production value rose by 58.7%, with a compound annual growth rate of 16.6%. The only decline during this period occurred in 2019, when production value dropped by 4.9%.

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

Exports molasses from Western Africa

Exports in kind, t

Export volumes of molasses from Western Africa showed notable fluctuations over the period. In 2020, exports fell to 72 tons, down 53.1% compared to the previous year. The largest increase was recorded in 2019, with a 28.3% rise. Overall, from 2017 to 2020, exports varied significantly, with a 3.5-fold difference between the highest and lowest points.

Annual dynamics of product's exports from Western Africa in kind, 2017-2020, t

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

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

Exports in value, K $ US

In 2020, Western Africa exported molasses worth 29 thousand US dollars, marking a sharp decline of 41.2% year-over-year. Over the period from 2017 to 2020, export value decreased by 60.6%, with a compound annual growth rate of -26.7%. The largest decline occurred in 2018, with a 42.7% drop, while the largest increase was in 2019, with a 16.9% rise.

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

From 2017 to 2020, the Netherlands, Portugal, and Bunkers were the key markets for Western Africa's molasses exports in value terms. The Netherlands accounted for 10.3% of total export value, Portugal for 3.0%, and Bunkers for 1.0%. Together, these three markets represented 14.4% of all export flows during this period.

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

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

Imports molasses to Western Africa

Imports in kind, t

After two years of decline, Western Africa's molasses import volume increased in 2020. Imports reached 1 561 tons, showing a sharp gain of 43.7% compared to the previous year. Over the period from 2017 to 2020, imports decreased by 38.5%, equating to an annualized decline of 15.0%. The lowest import volume was recorded in 2019 at 1 087 tons, while the largest decline occurred in 2018 with a 50.7% drop.

Annual dynamics of product's imports to Western Africa in kind, 2017-2020, t

Between 2017 and 2020, India, China, and Morocco were the leading sources of molasses imports to Western Africa in volume terms. India accounted for 34.5% of total import volume, China for 9.9%, and Morocco for 7.0%. Combined, these three countries represented 51.3% of all import flows during this period.

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

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

Imports in value, K $ US

Molasses imports to Western Africa have increased for the third consecutive year. In 2020, import value amounted to 1 794 thousand US dollars, representing a substantial 119.2% uptick compared to the previous year. Over the period from 2017 to 2020, import value grew by 170.2%, with a compound annual growth rate of 39.3%.

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

Throughout 2017 to 2020, Indonesia, India, and China formed the core group of markets for molasses imports to Western Africa in value terms. Indonesia accounted for 25.0% of total import value, India for 20.6%, and China for 15.4%. Together, these three countries represented 60.9% of all import flows during this period.

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

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