According to the Indian Sugar Manufacturers Association (ISMA), 2018 saw a decline in the production of sugarcane, which was the direct cause of low sugar production and sales. In India, consumers buy sugar in bulk to last them for a month, but due to the rise in unit prices and to help limit their consumption, many consumers reduced the quantity purchased.
Interestingly, consumers are shifting from unpackaged sugar to packaged formats, especially from branded players. However, many private label players also benefited from this transition, as packaged sugar has higher unit prices compared with unpackaged sugar.
Jaggery is gaining traction in the Indian market, arguably due to the fact that it is perceived to be a healthier alternative to sugar. Consumer foodservice players offer dishes and drinks made of jaggery in urban areas – jaggery desserts, hot drinks and flavoured milk are some of the popular offerings.
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