Molasses market in Western Europe

Earlier Report Observations

The molasses market in Western Europe saw significant fluctuations between 2018 and 2023. Following the end of EU sugar beet quotas in 2017, initial acreage expansion led to record sugar production and increased molasses availability as a by-product, supporting a market volume of 3 046 thousand tons in 2018. However, in 2019, market volume dropped sharply to 1 702 thousand tons, coinciding with producer investments in extraction technologies and sustainability regulations. The COVID-19 pandemic disrupted supply chains in 2020, yet market volume grew to 1 777 thousand tons as producers diversified molasses use into non-food sectors like bioenergy.

Demand for organic molasses rose in 2021, contributing to market stabilization at 1 784 thousand tons. Unfavorable weather conditions in Europe reduced sugar beet yields in 2022, affecting molasses supply, but market volume increased to 1 871 thousand tons due to sustained demand. In 2023, higher global sugar prices encouraged beet acreage recovery, and producers boosted molasses output for animal feed and bioethanol, though market volume edged down to 1 784 thousand tons.

Production molasses in Western Europe

In kind, 2017-2020, K t

Top producers of molasses, 2017-2020

World map of production of molasses, 2017-2020

Molasses production in Western Europe has declined for the third year in a row. In 2020, production reached 1 610 K t, marking a gradual decrease of 3.5% compared to 2019. Over the period from 2017 to 2020, production fell by 44.2%, which translates to an annualized decline rate of 17.7%.

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

In value, 2017-2020, M $ US

After two years of decline, Western Europe's molasses production value increased. In 2020, the output was valued at 1 164 M $ US, reflecting an improvement of 8.3% compared to 2019. However, between 2017 and 2020, production value decreased by 53.6%, equating to an annualized rate of 22.6%. The lowest value was recorded in 2019 at 1 075 M $ US, with the largest decline of 41.6% occurring that same year.

Annual dynamics of production in Western Europe in value, 2017-2020, M $ US

Exports molasses from Western Europe

Exports in kind, K t

The data shows irregular changes, indicating a volatile market environment. From the low in 2018 to the high in 2019, export volumes varied by 2.1 times. In 2020, Western Europe's molasses exports stood at 389.5 K t, down by 32.1% from the previous year. The minimum value was recorded in 2018 at 274.8 K t, while the maximum was in 2019 at 573.8 K t. The largest decline occurred in 2018 at 39.4%, and the largest increase was in 2019 at 108.8%.

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

During 2017–2020, molasses exports from Western Europe were relatively evenly distributed. Italy accounted for 10.4% of exports in kind, the United Kingdom for 3.7%, and Spain for 2.4%, with these three countries together making up only 16.5% of total flows.

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

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

Exports in value, M $ US

After a two-year uptick, molasses exports from Western Europe declined. In 2020, exports reached 129.2 M $ US, which is 14.4% lower than the previous year. The maximum value was recorded in 2019 at 150.9 M $ US, with the largest increase of 12.4% occurring that year.

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

Over 2017–2020, Italy, the United Kingdom, and Spain were the largest buyers of molasses from Western Europe in value terms, but they were not dominant. Italy accounted for 10.9% of exports, the United Kingdom for 5.4%, and Spain for 2.0%, together representing 18.3% of total exports against a backdrop of numerous smaller partners.

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

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

Imports molasses to Western Europe

Imports in kind, K t

After a two-year rise, Western Europe's molasses import volume declined. In 2020, Western Europe imported 556.1 K t of molasses, down by 8.4% year-over-year. Between 2017 and 2020, imports increased by 5.1%, equating to an annualized rate of 1.7%. The maximum value was recorded in 2019 at 606.8 K t, with the largest increase of 10.0% occurring in 2018.

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

In 2017–2020, India, El Salvador, and Russia formed the largest group of suppliers of molasses to Western Europe in kind. India accounted for 11.7% of imports, El Salvador for 5.3%, and Russia for 4.3%, but their combined contribution was limited to 21.3% of total imports, reflecting a diversified country structure.

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

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

Imports in value, M $ US

In 2020, Western Europe imported molasses valued at 151.5 M $ US, representing a 1.2% increase compared to the previous year. Between 2017 and 2020, imports decreased by 10.4%, equating to an annualized rate of 3.6%. The minimum value was recorded in 2019 at 151.5 M $ US, while the maximum was in 2018 at 172.0 M $ US. The largest decline occurred in 2019 at 11.9%.

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

During 2017–2020, molasses imports to Western Europe came from many different markets. Even the largest destinations — India, El Salvador, and the United Kingdom — together represented only 20.9% of total imports in value terms.

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

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