United Kingdom: Sugar Market 2022

Sugar Market Size in the UK

After two years of growth, the UK sugar market decreased by -10.7% to $X in 2021. In general, consumption, however, recorded a pronounced curtailment. Over the period under review, the market hit record highs at $X in 2013; however, from 2014 to 2021, consumption remained at a lower figure.

Sugar Production in the UK

In value terms, sugar production fell rapidly to $X in 2021 estimated in export price. Overall, production recorded a mild slump. The most prominent rate of growth was recorded in 2020 with an increase of 66% against the previous year. As a result, production reached the peak level of $X, and then reduced dramatically in the following year.

In 2021, the average sugar yield in the UK was estimated at less than X kg per ha, standing approx. at the year before. Over the period under review, the yield showed 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.

The sugar harvested area in the UK stood at less than X ha in 2021, approximately mirroring the previous year. Over the period under review, the harvested area continues to indicate a relatively flat trend pattern.

Sugar Exports

Exports from the UK

In 2021, sugar exports from the UK declined remarkably to X tons, shrinking by -72% against the previous year. Over the period under review, exports continue to indicate a deep downturn. The pace of growth was the most pronounced in 2018 with an increase of 71% against the previous year. As a result, the exports reached the peak of X tons. From 2019 to 2021, the growth of the exports remained at a somewhat lower figure.

In value terms, sugar exports contracted rapidly to $X in 2021. Overall, exports faced a deep downturn. The pace of growth was the most pronounced in 2018 with an increase of 31%. Over the period under review, the exports reached the peak figure at $X in 2012; however, from 2013 to 2021, the exports remained at a lower figure.

Exports by Country

Norway (X tons), Ireland (X tons) and Barbados (X tons) were the main destinations of sugar exports from the UK, together accounting for 55% of total exports. Lebanon, Myanmar, the Netherlands, France, Belgium, Italy, the United Arab Emirates and Israel lagged somewhat behind, together comprising a further 28%.

From 2012 to 2021, the biggest increases were in Myanmar (with a CAGR of +8.4%), while shipments for the other leaders experienced mixed trend patterns.

In value terms, Norway ($X) remains the key foreign market for sugar exports from the UK, comprising 59% of total exports. The second position in the ranking was taken by Ireland ($X), with a 10% share of total exports. It was followed by Barbados, with a 3.4% share.

From 2012 to 2021, the average annual growth rate of value to Norway totaled +16.2%. Exports to the other major destinations recorded the following average annual rates of exports growth: Ireland (-23.3% per year) and Barbados (+2.4% per year).

Export Prices by Country

In 2021, the average sugar export price amounted to $X per ton, growing by 35% against the previous year. In general, the export price recorded a resilient increase. The pace of growth appeared the most rapid in 2020 when the average export price increased by 61% against the previous year. Over the period under review, the average export prices hit record highs in 2021 and is expected to retain growth in years to come.

Prices varied noticeably country of destination: the country with the highest price was Norway ($X per ton), while the average price for exports to Myanmar ($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 Norway (+16.3%), while the prices for the other major destinations experienced more modest paces of growth.

Sugar Imports

Imports into the UK

For the fourth consecutive year, the UK recorded decline in purchases abroad of sugar, which decreased by -5.6% to X tons in 2021. Overall, imports continue to indicate a abrupt contraction. The growth pace was the most rapid in 2013 with an increase of 16% against the previous year. As a result, imports reached the peak of X tons. From 2014 to 2021, the growth of imports failed to regain momentum.

In value terms, sugar imports stood at $X in 2021. In general, imports continue to indicate a abrupt slump. The growth pace was the most rapid in 2017 when imports increased by 25%. Over the period under review, imports reached the peak figure at $X in 2013; however, from 2014 to 2021, imports failed to regain momentum.

Imports by Country

Brazil (X tons), France (X tons) and Fiji (X tons) were the main suppliers of sugar imports to the UK, with a combined 61% share of total imports. South Africa, Swaziland, Belgium, Guatemala, Mauritius, Guyana, Ireland, Belize and Germany lagged somewhat behind, together comprising a further 30%.

From 2012 to 2021, the most notable rate of growth in terms of purchases, amongst the main suppliers, was attained by South Africa (with a CAGR of +175.3%), while imports for the other leaders experienced more modest paces of growth.

In value terms, Brazil ($X), France ($X) and Fiji ($X) were the largest sugar suppliers to the UK, together comprising 55% of total imports. South Africa, Swaziland, Belgium, Mauritius, Ireland, Guatemala, Belize, Guyana and Germany lagged somewhat behind, together comprising a further 32%.

Among the main suppliers, South Africa, with a CAGR of +88.3%, recorded the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

The average sugar import price stood at $X per ton in 2021, increasing by 11% against the previous year. In general, the import price, however, continues to indicate a noticeable decrease. The import price peaked at $X per ton in 2013; however, from 2014 to 2021, import prices stood at a somewhat lower figure.

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

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Belize (+3.5%), while the prices for the other major suppliers experienced a decline.

Source: IndexBox Platform