The global powdered sugar products market was valued at USD 11.3 billion in 2022 and is projected to expand at a CAGR of 4.9% from 2023 to 2030. Powdered sugar, also known as confectioners’ sugar, is a finely ground sugar produced by milling granulated sugar into a powdered state. It is composed of very fine particles and has a free-flowing and velvety texture. Powdered sugar is widely used as a topping, a sweetener, or a decoration in cakes, pastries, and other food products.

The growth of the powdered sugar products market is driven by the growing demand for bakery products, confectionery items, and desserts. Furthermore, the expanding foodservice industry is also boosting the market. The increasing demand for convenience food and the rising preference for ready-to-eat food are expected to propel the demand for powdered sugar products. Furthermore, the growing trend of home baking is also driving the market growth. According to a survey conducted by the American Bakers Association in 2021, baking at home has increased by 40% over the past year.

In addition, the rising demand for organic and natural food products is propelling the market growth. The growing number of health-conscious consumers is driving the demand for natural and organic alternatives to conventional food products. This, in turn, is creating a demand for organic powdered sugar products, which is further driving the market. Furthermore, the growing trend of premiumization is also augmenting the demand for powdered sugar products. For instance, in November 2021, C&H Sugar Company launched a premium line of unbleached and organic powdered sugar.

The increasing demand for new product launches is also supporting the market growth. For instance, in February 2022, Imperial Sugar launched a new sugar product, Imperial Soft Powdered Sugar. This product is ideal for bakers who require a finer sugar for a smoother texture and superior performance. Furthermore, easy availability of these products through various retail channels such as supermarkets, hypermarkets, and convenience stores is driving the market growth. The rising trend of e-commerce is also creating lucrative opportunities for the market growth.

The bakery & confectionery segment led the powdered sugar products market and accounted for a share of around 40% in 2022. Growing demand for bakery products such as cakes, pastries, muffins, donuts, and cupcakes owing to the increasing popularity of western-style desserts among the younger generation is propelling the market growth. According to an article published by the National Confectioners Association, in January 2020, 34% of U.S. adults said they have purchased ice cream, cake, or other desserts in the last three months. Furthermore, rising demand for sugar alternatives such as reduced-calorie sweeteners and sugar-free confectionery is further driving the powdered sugar products market.

The beverages segment is anticipated to expand at the fastest CAGR of 4.3% over the forecast period. Increasing demand for powdered sugar products in the beverage industry is driving the market growth. According to an article published by the American Diabetes Association, in January 2020, people with diabetes should avoid sugar-sweetened beverages such as soft drinks and fruit juices. Thus, the growing health consciousness among consumers is further driving the market for powdered sugar products. In addition, increasing demand for non-alcoholic beverages fortified with vitamins and minerals is further propelling the market growth.

The supermarkets and hypermarkets segment accounted for the largest share of the powdered sugar products market in 2022. The segment is anticipated to remain dominant over the forecast period owing to the increasing preference of consumers towards supermarkets and hypermarkets for purchasing food ingredients. Supermarkets and hypermarkets provide a wide variety of powdered sugar products at competitive prices. In addition, these stores also offer discounts and promotional deals on the purchase of powdered sugar products, which further boosts their sales.

The online segment is projected to register the highest CAGR over the forecast period. The increasing number of internet users and the rising penetration of smartphones and tablets have led to the growth of the online sales of powdered sugar products. In addition, the availability of a wide range of products and the convenience of online shopping are some of the factors driving the growth of the online segment. For instance, Amazon and Walmart offer a wide selection of powdered sugar products from multiple companies.

The confectioner’s sugar segment held the largest market share in 2021. Confectioner’s sugar, which is also known as powdered sugar, has a smaller particle size than granulated sugar and contains a small percentage of cornstarch to prevent caking. It is used as a sweetener in many bakery products, including icings, glazes, frostings, and other desserts. The increasing demand for confectionery & bakery products, such as cakes, pastries, ice creams, and doughnuts, due to the growing demand for processed and packaged food, is driving the growth of the confectioner’s sugar segment.

The icing sugar segment is projected to register the highest CAGR over the forecast period. Icing sugar is also known as powdered sugar, and it is made from finely ground granulated sugar with a small amount of cornstarch to prevent caking. It is used in frosting, icings, and other desserts. The increasing demand for processed and packaged food products is expected to drive the growth of the icing sugar segment. Furthermore, the growing demand for convenience food and increasing demand for bakery products are expected to fuel the growth of the icing sugar segment.

Europe accounted for the largest revenue share in the powdered sugar products market in 2022. The presence of a large number of bakery product manufacturers to meet the demand of the regional consumers is a key factor driving the growth of the market in the region. For instance, in 2021, Puratos Group, a Belgium-based bakery product manufacturer, launched a new range of powdered sugar products, such as icing sugar, icing mixtures, and cake decorations.

Asia Pacific is expected to witness the highest growth in the coming years. This is attributed to the growing demand for bakery products in the region. The presence of several small and medium-sized manufacturers offering a wide range of bakery products is further driving the growth of the market. For instance, in 2021, Olam International, a Singapore-based agri-business, launched a range of powdered sugar products, such as icing sugar, cake decorations, and glazes.

In this part of the powdered sugar products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions

The main source of revenues for a powdered sugar products business comes from the sales of powdered sugar products, bulk orders, and wholesale orders. Other sources of income could include online sales, retail sales, custom orders, and private label orders.

Projecting Expenses

In this section, all the regular expenses related to keeping the powdered sugar business running will be described. The list of operating expenses includes the cost of raw materials, labor costs, advertising, rent, utilities, insurance policies, and other overhead costs. Additionally, you will need to factor in the cost of equipment and machinery needed to produce the powdered sugar products.

Some of the key companies operating in the powdered sugar market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:

– In June 2022, Imperial Sugar Company launched a new line of organic powdered sugar.

– In August 2022, Domino Foods Inc. launched a new range of organic powdered sugar in different flavors.

– In September 2022, C&H Sugar Co. launched a new line of premium powdered sugars.

Some of the prominent players in the powdered sugar market include:

– Imperial Sugar Company
– Domino Foods Inc.
– C&H Sugar Co.
– Archer Daniels Midland Company
– Tate & Lyle PLC
– Agrana Group
– American Crystal Sugar Company
– Wilmar International Limited
– Südzucker AG
– Cargill, Inc.

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global powdered sugar products market based on product type, distribution channel, and region:

1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)

– Granulated Powdered Sugar
– Confectioners Powdered Sugar
– Superfine Powdered Sugar
– Others

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Online
– Others

3. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What are the key factors driving the growth of the Powdered Sugar Products Market?
[A]: The key factors driving the growth of the Powdered Sugar Products market include increasing demand for convenience foods and beverages, rising disposable incomes, and changing lifestyles. Additionally, the growth in the bakery industry and the use of powdered sugar in halal and vegan products are expected to drive the market growth.

[Q]: What are the key strategies adopted by the key players in the Powdered Sugar Products Market?
[A]: The key strategies adopted by the key players in the Powdered Sugar Products market include product launches, mergers and acquisitions, collaborations, and partnerships. For instance, in 2020, Cargill Incorporated, a US-based food processing company, launched its Cargill Chef Select Ultra-Fine Powdered Sugar to meet the growing demand for convenience and food services.

[Q]: Who are the key players in the Powdered Sugar Products Market?
[A]: The key players in the Powdered Sugar Products market include Cargill Incorporated, Tate & Lyle PLC, Ingredion Incorporated, Archer Daniels Midland Company, Bunge Limited, Südzucker AG, American Sugar Refining, Inc., Agrana Beteiligungs-AG, Wilmar International Limited, and Amalgamated Sugar Company LLC.

[Q]: What is the global market outlook for Powdered Sugar Products?
[A]: The global Powdered Sugar Products market was valued at USD 10.3 billion in 2020 and is expected to reach a value of USD 14.5 billion by 2026, registering a CAGR of 4.9% during the forecast period (2021-2026).

[Q]: What are the major applications of Powdered Sugar Products?
[A]: The major applications of Powdered Sugar Products include bakery, confectionery, ice cream, ready-to-drink beverages, and others. Powdered sugar is widely used in bakery products such as cakes and pies, and in desserts such as ice cream, puddings, and custards. Furthermore, powdered sugar is also used in ready-to-drink beverages and other food items.