Raw cane or beet sugar in solid form market in MERCOSUR

Earlier Report Observations

Production of raw cane or beet sugar in solid form in MERCOSUR increased from 30.3 million tons in 2018 to 43.8 million tons in 2023. This growth was driven by Brazil's dominant role as the world's largest producer, with low production costs ensuring global competitiveness. In 2023, a record Brazilian harvest compensated for losses in other regions caused by the El Niño phenomenon, leading to a significant production surge.

The regional domestic market also expanded, from 12.1 million tons in 2018 to 16.8 million tons in 2023, despite growing public health pressure to reduce sugar content in processed foods. Policies supporting domestic producers and bilateral trade agreements helped strengthen the region's position in international trade. By 2024, exports reached a historic record of 33.6 million tons, although adverse weather conditions, including droughts and wildfires, began to pressure harvest volumes and industrial costs.

The long-term competitiveness of Brazilian sugar is based on extensive industrial infrastructure and favorable climatic conditions for sugarcane cultivation. However, reliance on weather patterns makes the market vulnerable to phenomena like El Niño, requiring constant crop monitoring to ensure supply stability for both domestic consumption and export.

Production raw cane or beet sugar in solid form in MERCOSUR

In kind, 2017-2020, K t

Top producers of raw cane or beet sugar in solid form, 2017-2020

World map of production of raw cane or beet sugar in solid form, 2017-2020

Following two consecutive years of decline, MERCOSUR's production of raw cane or beet sugar in solid form rebounded. In 2020, the region produced 40 844 K t, representing a significant 36.1% increase compared to 2019. Over the 2017-2020 period, production grew by 4.6%, with an average annual growth rate of 1.5%. The lowest production level was recorded in 2019 at 30 004 K t, while the steepest decline occurred in 2018 when production fell by 22.4%.

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

In value, 2017-2020, M $ US

After experiencing declines for two straight years, the value of raw cane or beet sugar in solid form production in MERCOSUR turned upward. In 2020, production was valued at 11 385 M $ US, marking a sharp 33.7% rise from 2019. However, looking at the entire 2017-2020 period, production value actually decreased by 25.2%, with an average annual decline of 9.2%. The lowest value was recorded in 2019 at 8 514 M $ US, and the most substantial drop occurred in 2018 when values fell by 40.4%.

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

Exports raw cane or beet sugar in solid form from MERCOSUR

Exports in kind, K t

Following two years of contraction, MERCOSUR's exports of raw cane or beet sugar in solid form by volume surged. In 2020, the region exported 26 832 K t, representing an abrupt 66.3% increase compared to 2019. Over the 2017-2020 period, export volumes grew by 14.2%, with an average annual growth rate of 4.5%. The lowest export volume was recorded in 2019 at 16 138 K t, while the largest decline occurred in 2018 when exports fell by 22.3%.

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

Between 2017 and 2020, Algeria (10.7% of exports in kind), Bangladesh (10.2%), and China (8.5%) emerged as the largest buyers of raw cane or beet sugar in solid form from MERCOSUR. Together, these three countries accounted for 29.4% of total exports in kind, while the remaining exports were distributed among numerous smaller trading partners.

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

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

Exports in value, M $ US

After two consecutive years of decline, the value of MERCOSUR's raw cane or beet sugar in solid form exports rebounded. In 2020, exports reached 7 479 M $ US, showing a substantial 63.3% gain from 2019. However, over the full 2017-2020 period, export values decreased by 18.3%, with an average annual decline of 6.5%. The lowest value was recorded in 2019 at 4 579 M $ US, and the most significant drop occurred in 2018 when values fell by 40.3%.

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

From 2017 to 2020, MERCOSUR's export markets for raw cane or beet sugar in solid form remained highly diversified in value terms. Algeria (10.6% of exports in value), Bangladesh (10.1%), and India (8.1%) together accounted for just 28.9% of total export value, while the remaining 71.1% was distributed across a wide range of smaller markets.

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

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

Imports raw cane or beet sugar in solid form to MERCOSUR

Imports in kind, K t

In 2020, MERCOSUR's imports of raw cane or beet sugar in solid form by volume reached 21 K t, representing an 18.0% increase compared to 2019. However, over the 2017-2020 period, import volumes decreased by 10.9%, with an average annual decline of 3.8%. The lowest import volume was recorded in 2019 at 18 K t, while the highest was in 2018 at 26 K t. The most substantial decline occurred in 2019 when imports fell by 31.9%.

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

Between 2017 and 2020, the United States was the primary supplier of raw cane or beet sugar in solid form to MERCOSUR, accounting for 1.4% of total imports in kind.

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

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

Imports in value, M $ US

In 2020, the value of MERCOSUR's imports of raw cane or beet sugar in solid form amounted to 15 M $ US, showing a 12.2% increase compared to 2019. However, over the 2017-2020 period, import values decreased by 15.7%, with an average annual decline of 5.5%. The lowest value was recorded in 2019 at 13 M $ US, while the highest was in 2018 at 22 M $ US. The most significant decline occurred in 2019 when values fell by 40.1%, whereas the largest increase was recorded in 2018 with a 25.4% rise.

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

From 2017 to 2020, the United States stood out as the main supplier of raw cane or beet sugar in solid form to MERCOSUR in value terms, accounting for 3.6% of total imports.

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

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