Molasses Market Analysis
The molasses market is set to witness a spend growth of over USD 3 billion with spend momentum to accelerate at a CAGR of more than 4% between 2019-2024. Factors such as the increasing demand from the food and beverage industry for clean-label products will drive spend growth in the molasses industry. Beet molasses is considered as a key element for the osmotic dehydration of vegetables and fruits. It is used as one of the chief ingredients in the manufacture of food-grade alcohol. These usages are contributing to the demand growth in the molasses market.
Top Spending Regions in the Molasses Market
Increase in the bio-fuel production will be one of the chief spend accelerators in the molasses market across the key regions during the forecast period.
Europe
The prevalent environment-related regulatory framework is stressing on the adoption of bio-fuels. This is triggering a large-scale import of molasses to cater to the sudden increase in the demand locally. Not only will this large-scale import solidify the supply market influence but the fact that the UK is among the top three producers of molasses will also increase impact the supply influence of the molasses market in this region.
APAC
Factors such as high opportunities for ethanol production owing to government policies to promote biofuels and the exponential growth of the food and beverage industry are contributing to spend growth in the molasses market in this region.
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What are the Key Price Trends in this Market?
- The average price of molasses is highly dependent on the demand and the price of refined sugar.
- According to the molasses price trends, increase in energy costs and hiked import tariffs will suppliers' manufacturing costs. This will have a negative impact on buyer's procurement expenditure.
- Factors such as the need for providing employee training, lack of skilled workforce, and increase in minimum wages will increase the employee expenditure borne by molasses suppliers.
Download the free sample of this report to know what the key molasses procurement best practices that you must adopt to address price dynamism in this market.
Insights Offered in this Molasses Market Report
- Global and regional spend potential for the molasses market for the period of 2019-2024
- Supplier relationship management practices in the molasses market
- Supplier margins and selection criteria in the molasses market
- Top molasses suppliers and their cost structures
- Top molasses suppliers in the US and their cost structures
- Molasses market spend analysis in the US
- Molasses price trends, and forecasts
- Cost drivers influencing the molasses prices
Insights into Molasses Supply Market
- Despite being one of the leading producers of molasses, the supply of sugarcane molasses in APAC is threatened by the practice of suppliers of adopting equipment for sugar extraction that have a higher sugar recovery rate but at the same time reduce the molasses yield.
- Global suppliers achieve a relatively higher profit margin compared with regional suppliers due to the high adoption of vertical integration practices by the former that help them in minimizing procurement costs and reducing raw material prices.
- Molasses products are widely being used in the production of food and beverages. This makes it imperative for buyers to ensure that suppliers provide adequate product information and assistance to ensure suitability of the molasses in the formers' manufacturing/processing techniques. This will help buyers in choosing the right type of molasses required, thereby avoiding any additional procurement cost.
Insights into Some of the Leading Molasses Suppliers
The supply market dynamics hint at a substantial hike in suppliers' OPEX which will drive buyer's procurement spend. Keeping such dynamics in mind, strategic selection of suppliers and maintaining an effective supplier relationship management are observed to facilitate buyers with optimized procurement expenditure and better category management in the molasses market. This molasses market procurement intelligence report has enlisted the top suppliers and their cost structures, SLA terms, best selection criteria, and negotiation strategies for the top molasses suppliers. The top molasses suppliers highlighted in this report include:
- Louis Dreyfus Co. BV
- ED&F Man Holdings Ltd.
- Archer Daniels Midland Co.
- B&G Foods Inc.
- Peter Cremer Holding GmbH & Co. KG
- K.K. BIRLA GROUP OF SUGAR CO.
Criteria to select suppliers in this dynamic molasses market is subject to change based on the day-to-day market outlook. Get a free demo of our procurement platform to gain immediate access into real-time insights to the changing suppliers selection criteria.
