Primary sugar crops market in South-eastern Asia

Earlier Report Observations

Production of primary sugar crops in South-eastern Asia declined significantly from 221.9 million tons in 2018 to 154.4 million tons in 2020. This drop was driven by severe drought in Thailand reducing cane yields and low market prices forcing Vietnamese sugar mills to halt operations in 2018. The sharp fall in 2020 was primarily caused by the COVID-19 pandemic, which disrupted regional logistics and supply chains, delaying raw material imports and milling activities across the region.

A recovery began after 2020, with production reaching 172.8 million tons in 2022. This growth was supported by the expansion of sugarcane planting areas in Indonesia, where the government introduced land-use permits for new cultivation zones. In Vietnam, increased farm-gate prices incentivized replanting, although the threat of El Niño in 2021 posed a risk to output. By 2023, production stabilized at 172.5 million tons, aided by Indonesia meeting its domestic production targets and Thailand consolidating milling capacity through the closure of older, less efficient plants.

Regulatory measures continued to influence the market landscape. Thailand tightened front-of-pack sugar content labeling for packaged foods, while Singapore implemented a sugar tax on beverages, shifting consumer preferences. Vietnam observed a growing shift toward high-fructose corn syrup, prompting considerations for adjusted import tariffs. Additionally, global supply chain disruptions and volatile raw material prices remained key factors affecting regional costs and market access.

Production primary sugar crops in South-eastern Asia

In kind, 2017-2020, M t

Top producers of primary sugar crops, 2017-2020

World map of production of primary sugar crops, 2017-2020

Primary sugar crops production in South-eastern Asia has declined for the second year in a row. In 2020, the region produced 154.4 million tonnes, which represents a sharp 26.9% drop from the previous year. Looking at the period from 2017 to 2020, overall production decreased by 15.2%, with a compound annual growth rate of 5.4%. The highest production level was recorded in 2018 at 221.9 million tonnes, which also saw the largest annual increase of 21.8%.

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

Exports primary sugar crops from South-eastern Asia

Exports in kind, t

The data shows irregular changes, pointing to a volatile market environment. Exports reached their lowest point in 2019 at 771 tonnes, while the peak was in 2018 at 120 672 tonnes, creating a 157-fold gap between these years. In 2020, primary sugar crops deliveries from South-eastern Asia amounted to 81 780 tonnes, marking a dramatic increase of 10 513.8% compared to 2019. The largest decline occurred in 2019, with a drop of 99.4%.

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

From 2017 to 2020, China played the leading role in exports of primary sugar crops from South-eastern Asia, accounting for 84.8% of total flows.

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, K $ US

There were noticeable fluctuations in market performance during this period. Export volumes dropped to their lowest point in 2019 and peaked in 2018, with a top-to-bottom ratio of 4.1 times. In 2020, primary sugar crops exports from South-eastern Asia amounted to 13 710 thousand US dollars, up by 222.1% relative to the prior year. The minimum value was recorded in 2019 at 4 257 thousand US dollars, while the maximum was in 2018 at 17 320 thousand US dollars. The largest decline occurred in 2019, with a decrease of 75.4%.

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

Throughout 2017 to 2020, China concentrated 73.0% of total exports in value terms, with the remaining volume distributed among many countries, each holding smaller individual shares.

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 primary sugar crops to South-eastern Asia

Imports in kind, t

Foreign primary sugar crops supplies to South-eastern Asia have increased for the third consecutive year. In 2020, imports stood at 5 703 tonnes, marking a dramatic uptick of 3 963.8% compared to the previous year. Between 2017 and 2020, imports increased by 5 288%, equating to an annualized rate of 277.7%.

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

Over the period from 2017 to 2020, China consistently accounted for the largest share of imports in kind of primary sugar crops to South-eastern Asia, at 1.0% of total flows.

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, K $ US

In 2020, South-eastern Asia's primary sugar crops imports totaled 6 050 thousand US dollars, amounting to a decrease of 24.1% versus the previous year. Over the period from 2017 to 2020, imports decreased by 8.6%, with a compound annual growth rate of 2.9%. The maximum value was recorded in 2019 at 7 973 thousand US dollars, which also saw the largest annual increase of 22.5%.

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

From 2017 to 2020, the geographical structure of imports in value terms was centred on China, whose share reached 1.6% of total flows.

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