Mexico: Sugar Market 2022

Sugar Market Size in Mexico

In 2021, after four years of decline, there was significant growth in the Mexican sugar market, when its value increased by 10% to $X. Over the period under review, consumption, however, continues to indicate a pronounced setback. Sugar consumption peaked at $X in 2012; however, from 2013 to 2021, consumption stood at a somewhat lower figure.

Sugar Production in Mexico

In value terms, sugar production rose modestly to $X in 2021 estimated in export price. In general, production saw a perceptible curtailment. The pace of growth appeared the most rapid in 2016 when the production volume increased by 8.8% against the previous year. Over the period under review, production attained the peak level at $X in 2012; however, from 2013 to 2021, production failed to regain momentum.

The average yield of sugar in Mexico was estimated at less than X kg per ha in 2021, remaining stable against the previous year. Over the period under review, the yield continues to indicate 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 Mexico amounted to less than X ha, remaining stable against 2020 figures. Overall, the harvested area recorded a relatively flat trend pattern.

Sugar Exports

Exports from Mexico

In 2021, overseas shipments of sugar decreased by -23.9% to X tons for the first time since 2018, thus ending a two-year rising trend. Over the period under review, exports, however, recorded a tangible expansion. The growth pace was the most rapid in 2013 when exports increased by 145% against the previous year. As a result, the exports attained the peak of X tons. From 2014 to 2021, the growth of the exports remained at a lower figure.

In value terms, sugar exports dropped significantly to $X in 2021. In general, exports recorded a pronounced decline. The pace of growth appeared the most rapid in 2013 when exports increased by 57%. As a result, the exports reached the peak of $X. From 2014 to 2021, the growth of the exports failed to regain momentum.

Exports by Country

The United States (X tons) was the main destination for sugar exports from Mexico, with a 86% share of total exports. Moreover, sugar exports to the United States exceeded the volume sent to the second major destination, Morocco (X tons), ninefold.

From 2012 to 2021, the average annual rate of growth in terms of volume to the United States stood at +1.9%. Exports to the other major destinations recorded the following average annual rates of exports growth: Morocco (+62.5% per year) and Canada (+40.9% per year).

In value terms, the United States ($X) remains the key foreign market for sugar exports from Mexico, comprising 85% of total exports. The second position in the ranking was taken by Morocco ($X), with a 9.7% share of total exports.

From 2012 to 2021, the average annual rate of growth in terms of value to the United States amounted to -6.5%. Exports to the other major destinations recorded the following average annual rates of exports growth: Morocco (+58.4% per year) and Canada (+32.1% per year).

Export Prices by Country

In 2021, the average sugar export price amounted to $X per ton, therefore, remained relatively stable against the previous year. Over the period under review, the export price, however, recorded a deep setback. The pace of growth appeared the most rapid in 2018 when the average export price increased by 15% against the previous year. Over the period under review, the average export prices reached the maximum at $X per ton in 2012; however, from 2013 to 2021, the export prices remained at a lower figure.

Average prices varied noticeably for the major overseas markets. In 2021, the country with the highest price was Morocco ($X per ton), while the average price for exports to the United States ($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 Morocco (-2.5%), while the prices for the other major destinations experienced a decline.

Sugar Imports

Imports into Mexico

In 2021, imports of sugar into Mexico dropped rapidly to X tons, with a decrease of -57.5% compared with 2020 figures. Over the period under review, imports showed a dramatic descent. The growth pace was the most rapid in 2020 with an increase of 56%. Imports peaked at X tons in 2012; however, from 2013 to 2021, imports remained at a lower figure.

In value terms, sugar imports declined markedly to $X in 2021. Overall, imports showed a dramatic shrinkage. The most prominent rate of growth was recorded in 2020 when imports increased by 55%. Imports peaked at $X in 2012; however, from 2013 to 2021, imports stood at a somewhat lower figure.

Imports by Country

The United States (X tons), Guatemala (X tons) and Brazil (X tons) were the main suppliers of sugar imports to Mexico, with a combined 99% share of total imports.

From 2012 to 2021, the biggest increases were in Guatemala (with a CAGR of -17.8%), while purchases for the other leaders experienced a decline.

In value terms, the largest sugar suppliers to Mexico were the United States ($X), Guatemala ($X) and Brazil ($X), together accounting for 99% of total imports.

Guatemala, with a CAGR of -20.9%, saw the highest growth rate of the value of imports, among the main suppliers over the period under review, while purchases for the other leaders experienced a decline.

Import Prices by Country

The average sugar import price stood at $X per ton in 2021, reducing by -7.2% against the previous year. Overall, the import price saw a pronounced reduction. The pace of growth appeared the most rapid in 2020 a decrease of -0.2% against the previous year. The import price peaked at $X per ton in 2012; however, from 2013 to 2021, import prices remained at a lower figure.

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

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Brazil (+1.0%), while the prices for the other major suppliers experienced a decline.

Source: IndexBox Platform