Primary sugar crops market in Southern Europe

Earlier Report Observations

The market volume for primary sugar crops in Southern Europe contracted from over 8.1 million tonnes in 2018 to approximately 5.5 million tonnes in 2022. This sustained decline was driven by a series of external shocks. The COVID-19 pandemic disrupted European logistics in 2020, slowing raw sugar shipments to Italy. Subsequently, soaring electricity and gas prices across Europe raised beet processing costs in 2021, putting further pressure on supply. The most severe drop occurred in 2022 when persistent drought in Brazil, a major supplier, drastically reduced exports to Italy.

A partial recovery to 6.9 million tonnes took place in 2023. Throughout this period, the market remained heavily reliant on imports, covering about 90% of national needs. Regulatory changes played a significant role, with EU rules on sugar product traceability and new 'clean label' requirements for added sugars forcing Italian producers to adapt tracking systems and packaging. Furthermore, the entry of new players in the low-calorie sweetener segment, facilitated by more permissive EU rules on plant-based ingredients, prompted traditional sugar companies to diversify their product portfolios.

Concurrently, the European sugar industry saw a strategic shift towards sustainability. Major producer Südzucker AG announced investments in low-carbon production technologies and partnerships in biotechnology, reflecting the influence of EU climate policies. Additionally, updates to EU import quotas for sugar from developing nations altered price dynamics for Italian importers, while the EU's energy crisis program created incentives to produce ethanol from molasses, affecting the availability of sugar for food use.

Production primary sugar crops in Southern Europe

In kind, 2017-2020, K t

Top producers of primary sugar crops, 2017-2020

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

Primary sugar crops production in Southern Europe has declined for the third year in a row. In 2020, the region produced 7 186 K t of primary sugar crops, marking a 6.3% decrease compared to 2019. Looking at the period from 2017 to 2020, production fell by 28.2%, with an average annual decline of 10.4%.

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

In value, 2017-2020, M $ US

The value of primary sugar crops production in Southern Europe has dropped for the third consecutive year. In 2020, output was valued at 3 963 M $ US, showing a moderate year-on-year decrease of 3.5%. Over the 2017-2020 period, production value decreased by 43.1%, with an average annual decline of 17.2%.

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

Exports primary sugar crops from Southern Europe

Exports in kind, K t

Southern Europe's primary sugar crops exports have increased for the second year running. In 2020, the region exported 10.4 K t, reflecting a sharp rise of 49.7% compared to 2019. From 2017 to 2020, exports grew by 49.2%, with an average annual increase of 14.3%. The lowest export volume was recorded in 2018 at 5.4 K t, which also saw the largest decline of 22.2%.

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

Between 2017 and 2020, Czechia, Slovakia, and France consistently led the country structure of exports in kind. Czechia accounted for 10.5% of exports, Slovakia for 6.7%, and France for 0.9%, together making up 18.0% of total flows.

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

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

Exports in value, K $ US

Foreign supplies of primary sugar crops from Southern Europe have risen for the second consecutive year. In 2020, exports were valued at 5 728 K $ US, equivalent to a 54.2% increase compared to 2019. Over the 2017-2020 period, export value increased by 18.1%, with an average annual growth of 5.7%. The lowest value was recorded in 2018 at 2 815 K $ US, which also experienced the largest decline of 42.0%.

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

From 2017 to 2020, Czechia, Slovakia, and France remained the main buyers of primary sugar crops from Southern Europe in value terms. Czechia represented 36.1% of exports, Slovakia 25.1%, and France 2.7%, jointly forming 64.0% of total export value.

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

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

Imports primary sugar crops to Southern Europe

Imports in kind, K t

In 2020, Southern Europe's primary sugar crops imports amounted to 98.2 K t, which is 27.9% lower than the previous year. Over the 2017-2020 period, imports decreased by 38.3%, with an average annual decline of 14.9%. The largest increase was recorded in 2019 at 8.2%.

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

Between 2017 and 2020, two countries—Hungary and Austria—concentrated the majority of imports in kind, with a combined share of 83.5% of total flows.

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

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

Imports in value, K $ US

Southern Europe imported 7 444 K $ US of primary sugar crops in 2020, representing a 22.0% decrease compared to the previous year. Over the 2017-2020 period, import value fell by 44.3%, with an average annual decline of 17.7%. The largest decline was recorded in 2018 at 30.7%, while the largest increase occurred in 2019 at 3.1%.

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

Throughout 2017-2020, Hungary, Germany, and Austria were the key directions for imports in value terms. Hungary accounted for 59.3% of imports, Germany for 6.5%, and Austria for 2.8%, together taking 68.7% of total flows.

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

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