Introduction

Sugar’s journey from ancient cultivation to a global industrial powerhouse highlights its deep impact on history. 

Today, sugar is among the most widely produced and consumed commodities globally, with Brazil and India at the forefront of production.

Its applications are diverse and universal, spanning food manufacturing, retail, and increasingly, renewable energy sources such as ethanol, especially in countries seeking sustainable alternatives to fossil fuels.

 

Key properties

 

Trade flow

Major sugar-producing regions in Latin America and consumption centers across Asia, the Middle East, Africa, Europe, and North America. 

Global trade is split between raw sugar, shipped in bulk for refining at the destination, and white sugar, traded as a food-grade refined product. 

These flows have been shaped not only by production levels and consumer demand but also by refinery capacity, freight costs, government trade policy, and the growing competition between sugar and ethanol production.

Brazil remains the dominant force in global sugar exports, while Thailand and, at times, India also play key roles in supplying international markets.

China and Indonesia are among the most important importers, though their buying patterns diverged sharply in 2026.

Recent disruptions in the Strait of Hormuz have affected refinery-linked raw sugar demand and supported the premium for white sugar over raw.

 

Price drivers

Despite a currently bearish global surplus backdrop, sugar trade flows remain highly sensitive to weather risks, geopolitical tensions, and energy markets. 

In 2025-26, the most influential drivers have been Brazil’s cane allocation between sugar and ethanol, India’s export restrictions, Indonesia’s quota cuts, and growing concern over El Niño’s impact on Brazil, India, and Thailand. In the EU, the Mercosur trade deal and suspension of the Inward Processing regime, and the blockage of the Strait of Hormuz are impacting prices.

Author: Fikayo Owoeye
Editor: Meghan Gordon
Design: Content Design

 

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Atlas of Food    

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