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Molasses Market: Booming Bakery Industry to Fuel Demand for Molasses
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According to TMR, the global market is expected to reach US$18,281.7 mn by the end of 2025, compared to US$11,596.5 mn, its value in 2016. Thus during the period, TMR forecasts the market to exhibit a CAGR of 5.05%. Sugarcane and sugarbeet are the key sources from where molasses are derived. Of these, the sugarcane segment held clear dominance in the market and is anticipated to hold nearly 88% of the overall market through the forecast period. Regionally, the market will witness considerable prospects in Asia Pacific and Latin America through the forecast period.
Rising Sugarcane Production to Aid Expansion of Molasses Market
Among the key factors enabling the market gain pace, the rising demand for convenience food and ready-to-eat snacks is at fore. With the expansion of the bakery industry, opportunities for the market have escalated worldwide. Extracts from molasses are used as stabilizing agents in various food applications. Considering this, growth witnessed in the bakery industry will aid the overall expansion of the global molasses market. Besides this, growth witnessed in the market is also influenced by the production rate of its sources, which are sugarbeet and sugarcane. Sugarcane production has surged considerably in the last couple of years and the benefits of the same are reaped significantly by the global molasses market. In addition, their rising use in food, cosmetic, pharmaceutical, and other industrial applications will pave way for the market’s positive trajectory in the forthcoming years.
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In the last couple of years, food manufacturers have tended more to shift toward molasses as against spending high on sugar for manufacturing their food products. Also different types of molasses find different applications such as beet molasses are used for beef and dairy cattle, as they act as a great source of protein and other minerals. Also bakeries are starting to prefer molasses more than sugar because the former offers a better darker shade to bakery products than normal sugar.
Increasing Availability of Cheaper Alternatives to Adversely Impact Overall Market
On the downside, the decrement in the demand for molasses in feed applications and unsuitable climatic conditions to affect sales prospects of cane molasses are some of the factors that could restrain the market. Animal feed happens to be one of the chief application sectors for the molasses market. However, the rising availability of cheaper alternatives has negatively impacted the market’s future in the animal feed sector. Besides this, the unfavorable climate conditions in Asia Pacific adversely affects the sugarcane production, subsequently negative influencing the market’s growth prospects in the region.
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