Malaysia: Sugar Market 2022

Sugar Market Size in Malaysia

For the sixth consecutive year, the Malaysian sugar market recorded growth in sales value, which increased by 7.8% to $X in 2021. Over the period under review, consumption, however, posted a strong increase. Sugar consumption peaked in 2021 and is likely to see gradual growth in the near future.

Sugar Production in Malaysia

In value terms, sugar production shrank modestly to $X in 2021 estimated in export price. Overall, production saw a abrupt decline. The most prominent rate of growth was recorded in 2017 with an increase of 12%. Sugar production peaked at $X in 2012; however, from 2013 to 2021, production failed to regain momentum.

In 2021, the average yield of sugar in Malaysia amounted to less than X kg per ha, stabilizing at the previous year. Overall, 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 Malaysia amounted to less than X ha, leveling off at the year before. Over the period under review, the harvested area showed a relatively flat trend pattern.

Sugar Exports

Exports from Malaysia

In 2021, shipments abroad of sugar increased by 14% to X tons, rising for the second year in a row after three years of decline. Over the period under review, exports recorded a modest expansion. The most prominent rate of growth was recorded in 2020 when exports increased by 142%. Over the period under review, the exports attained the maximum at X tons in 2013; however, from 2014 to 2021, the exports failed to regain momentum.

In value terms, sugar exports skyrocketed to $X in 2021. In general, exports, however, saw a slight setback. The most prominent rate of growth was recorded in 2020 when exports increased by 145%. Over the period under review, the exports reached the maximum at $X in 2013; however, from 2014 to 2021, the exports remained at a lower figure.

Exports by Country

Vietnam (X tons) was the main destination for sugar exports from Malaysia, accounting for a 76% share of total exports. Moreover, sugar exports to Vietnam exceeded the volume sent to the second major destination, South Korea (X tons), more than tenfold. The third position in this ranking was held by Singapore (X tons), with a 5.7% share.

From 2012 to 2021, the average annual rate of growth in terms of volume to Vietnam stood at +41.5%. Exports to the other major destinations recorded the following average annual rates of exports growth: South Korea (-0.9% per year) and Singapore (-16.4% per year).

In value terms, Vietnam ($X) remains the key foreign market for sugar exports from Malaysia, comprising 76% of total exports. The second position in the ranking was taken by South Korea ($X), with a 5.7% share of total exports. It was followed by Singapore, with a 5.5% share.

From 2012 to 2021, the average annual growth rate of value to Vietnam stood at +39.9%. Exports to the other major destinations recorded the following average annual rates of exports growth: South Korea (-3.9% per year) and Singapore (-18.6% per year).

Export Prices by Country

In 2021, the average sugar export price amounted to $X per ton, surging by 25% against the previous year. Over the period under review, the export price, however, continues to indicate a pronounced contraction. Over the period under review, the average export prices hit record highs at $X per ton in 2012; however, from 2013 to 2021, the export prices failed to regain momentum.

Prices varied noticeably country of destination: the country with the highest price was Indonesia ($X per ton), while the average price for exports to China ($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 Indonesia (+1.7%), while the prices for the other major destinations experienced a decline.

Sugar Imports

Imports into Malaysia

Sugar imports into Malaysia fell to X tons in 2021, waning by -8.3% compared with the year before. The total import volume increased at an average annual rate of +2.9% from 2012 to 2021; the trend pattern remained consistent, with somewhat noticeable fluctuations throughout the analyzed period. The most prominent rate of growth was recorded in 2013 when imports increased by 26%. Imports peaked at X tons in 2020, and then declined in the following year.

In value terms, sugar imports expanded sharply to $X in 2021. In general, imports, however, enjoyed a strong expansion. The pace of growth appeared the most rapid in 2013 with an increase of 33% against the previous year. Imports peaked in 2021 and are likely to see gradual growth in the near future.

Imports by Country

In 2021, Brazil (X tons) constituted the largest sugar supplier to Malaysia, with a 53% share of total imports. Moreover, sugar imports from Brazil exceeded the figures recorded by the second-largest supplier, Thailand (X tons), twofold. India (X tons) ranked third in terms of total imports with a 19% share.

From 2012 to 2021, the average annual rate of growth in terms of volume from Brazil amounted to +3.1%. The remaining supplying countries recorded the following average annual rates of imports growth: Thailand (+6.2% per year) and India (+13.7% per year).

In value terms, Brazil ($X) constituted the largest supplier of sugar to Malaysia, comprising 76% of total imports. The second position in the ranking was held by Thailand ($X), with a 7.4% share of total imports. It was followed by India, with a 6.1% share.

From 2012 to 2021, the average annual rate of growth in terms of value from Brazil totaled +17.8%. The remaining supplying countries recorded the following average annual rates of imports growth: Thailand (+1.9% per year) and India (+8.7% per year).

Import Prices by Country

In 2021, the average sugar import price amounted to $X per ton, increasing by 22% against the previous year. Over the period under review, the import price enjoyed a prominent increase. As a result, import price reached the peak level and is likely to continue growth in the immediate term.

There were significant differences in the average prices amongst the major supplying countries. In 2021, the country with the highest price was Australia ($X per ton), while the price for India ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Australia (+27.3%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform