Australia: Sugar Market 2022

Sugar Market Size in Australia

The Australian sugar market fell sharply to $X in 2021, waning by -16.8% against the previous year. Overall, consumption showed a drastic downturn. Sugar consumption peaked at $X in 2012; however, from 2013 to 2021, consumption stood at a somewhat lower figure.

Sugar Production in Australia

In value terms, sugar production declined modestly to $X in 2021 estimated in export price. In general, production, however, saw a noticeable descent. The pace of growth appeared the most rapid in 2016 when the production volume increased by 19% against the previous year. Over the period under review, production reached the maximum level at $X in 2012; however, from 2013 to 2021, production failed to regain momentum.

The average yield of sugar in Australia amounted to less than X kg per ha in 2021, approximately reflecting 2020 figures. In general, the yield saw a relatively flat trend pattern. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

In 2021, the total area harvested in terms of sugar production in Australia amounted to less than X ha, remaining constant against the previous year. In general, the harvested area continues to indicate a relatively flat trend pattern.

Sugar Exports

Exports from Australia

In 2021, overseas shipments of sugar increased by 2.3% to X tons, rising for the second year in a row after three years of decline. In general, total exports indicated a buoyant expansion from 2012 to 2021: its volume increased at an average annual rate of +5.6% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, exports increased by +7.7% against 2019 indices. The most prominent rate of growth was recorded in 2013 when exports increased by 25%. Over the period under review, the exports attained the peak figure at X tons in 2016; however, from 2017 to 2021, the exports remained at a lower figure.

In value terms, sugar exports surged to $X in 2021. The total export value increased at an average annual rate of +1.7% from 2012 to 2021; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The exports peaked at $X in 2016; however, from 2017 to 2021, the exports stood at a somewhat lower figure.

Exports by Country

South Korea (X tons), Indonesia (X tons) and Japan (X tons) were the main destinations of sugar exports from Australia, with a combined 90% share of total exports.

From 2012 to 2021, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by Indonesia (with a CAGR of +24.5%), while the other leaders experienced more modest paces of growth.

In value terms, the largest markets for sugar exported from Australia were Indonesia ($X), South Korea ($X) and Japan ($X), with a combined 87% share of total exports.

Among the main countries of destination, Indonesia, with a CAGR of +19.9%, saw the highest growth rate of the value of exports, over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

The average sugar export price stood at $X per ton in 2021, rising by 30% against the previous year. In general, the export price, however, continues to indicate a pronounced contraction. The export price peaked at $X per ton in 2012; however, from 2013 to 2021, the export prices failed to regain momentum.

There were significant differences in the average prices for the major export markets. In 2021, the country with the highest price was the United States ($X per ton), while the average price for exports to South Korea ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to Malaysia (+1.0%), while the prices for the other major destinations experienced mixed trend patterns.

Sugar Imports

Imports into Australia

For the seventh consecutive year, Australia recorded decline in supplies from abroad of sugar, which decreased by -10.7% to X tons in 2021. Overall, imports faced a dramatic descent. The most prominent rate of growth was recorded in 2014 with an increase of 64%. As a result, imports reached the peak of X tons. From 2015 to 2021, the growth of imports failed to regain momentum.

In value terms, sugar imports stood at $X in 2021. Over the period under review, imports continue to indicate a precipitous curtailment. The pace of growth appeared the most rapid in 2014 with an increase of 34%. Imports peaked at $X in 2012; however, from 2013 to 2021, imports remained at a lower figure.

Imports by Country

Thailand (X tons), Malaysia (X tons) and India (X tons) were the main suppliers of sugar imports to Australia, together accounting for 51% of total imports. Brazil, Colombia, China, New Zealand, Taiwan (Chinese), South Africa and Mexico lagged somewhat behind, together accounting for a further 40%.

From 2012 to 2021, the biggest increases were in Taiwan (Chinese) (with a CAGR of +14.5%), while purchases for the other leaders experienced more modest paces of growth.

In value terms, India ($X), Brazil ($X) and Thailand ($X) appeared to be the largest sugar suppliers to Australia, together accounting for 43% of total imports. China, Malaysia, Colombia, New Zealand, Taiwan (Chinese), South Africa and Mexico lagged somewhat behind, together accounting for a further 41%.

Taiwan (Chinese), with a CAGR of +23.8%, recorded the highest rates of growth with regard to the value of imports, among the main suppliers over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2021, the average sugar import price amounted to $X per ton, surging by 14% against the previous year. Over the period under review, the import price showed buoyant growth. The growth pace was the most rapid in 2017 an increase of 37% against the previous year. Over the period under review, average import prices attained the peak figure in 2021 and is expected to retain growth in years to come.

Prices varied noticeably country of origin: the country with the highest price was Taiwan (Chinese) ($X per ton), while the price for Thailand ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by El Salvador (+33.6%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform