Argentina Molasses Market Overview, 2030

The molasses market in Argentina has transformed from a by-product of sugar production in Tucumán, Salta, and Jujuy during the 19th century into a versatile ingredient for various applications in the distillation, animal feed, fermentation, and specific food sectors, while also becoming part of the global supply chains for ethanol and animal feed. Its purpose and reach include turning sugarcane waste into valuable resources, providing an affordable carbon source for bioethanol and spirits, serving as a nutrient-dense energy option for animals, and acting as a flavoring or binding agent in food products, alongside trading relationships with neighboring Latin American countries and select global customers. As the syrup left over after the sugar crystallization process, molasses was developed to improve efficiency and reduce waste in the original mills. Challenges like variability, issues with storage stability, and transport thickness prompted the creation of different types ordinary or true molasses for food and animal feed, blackstrap for animal feed and fuel production, and high-test molasses from syrup that hasn’t crystallized for effective fermentation. As a practical resource, molasses is a thick syrup derived from sugarcane that contains leftover sucrose, invert sugars, organic acids, and minerals; it provides a low-cost, easily fermentable base for producing ethanol and rum, an appealing energy source and binder in animal feed, and a unique flavoring and coloring element in sauces and baked goods. Its effectiveness lies in the combination of high fermentable solids with micronutrients that benefit both yeast and livestock diets, leading to advantages such as affordability, year-round storage capabilities, the return of agricultural waste into use, and less reliance on grain.

According to the research report, ""Argentina Molasses Market Overview, 2030,"" published by Bonafide Research, the Argentina Molasses market is anticipated to add to more than USD 90 Million by 2025–30. Current trends are focused on the mix of products and regulatory compliance blackstrap molasses is the fastest-growing sector as distillers and feed users prefer higher-congener, more cost-effective types, while true molasses continues to be the main revenue source. Supply is primarily provided by integrated sugar factories in NOA Tucumán, Salta, Jujuy, alongside traders and feed blenders that manage, store, and distribute bulk liquid to distilleries, ethanol facilities, and livestock centers; these mills provide reliable specifications and year-round logistics to enhance the value of a sugar by-product and meet downstream needs. Opportunities are concentrated on the expansion of ethanol, enhancing feed appeal and binding, as well as premium craft spirits South America is experiencing the fastest growth in global molasses demand, driven by biofuels and animal nutrition; Argentina has the potential to gain market share through consistent specifications, heated storage, and nutrient-ready lots. Compliance plays a critical role in adoption and trade Argentina’s standards and accreditation framework IRAM, OAA and food monitoring through ANMAT ensure labeling, safety, and quality across food and feed sectors; new conformity regulations Resolution 237/2024 introduce QR-linked Declarations of Conformity and move from border inspections to post-market monitoring, streamlining imports, alleviating bottlenecks, and improving traceability for industrial customers. These certifications and controls address issues of credibility and interoperability buyers receive verifiable origin and specification data, mills reduce transaction obstacles, and exporters gain access to retail and industrial markets. The impact is a market expanding on two fronts industrial ethanol and feed volumes as well as the rise of premium beverage segments boosted by enhanced process control at mills, clearer product categories.

In Argentina, the production of molasses by source is divided into sugarcane and sugar beet each having unique geographic locations, compositions, and purposes. Sugarcane molasses is primarily found in the northwestern provinces of Tucumán, Salta, and Jujuy. It is a thick by-product generated during the crystallization of cane sugar, generally yielding 3–7 tons for every 100 tons of cane processed. This molasses has a total sugar content ranging from 46–55%, moderate ash levels, and a diverse range of minerals and congeners. It is particularly well-suited for fermentation into products like ethanol, rum, and cachaça-style spirits, and can also serve as livestock feed, improving taste and helping to bond pellets. The darker hue and bolder flavor are indicative of its higher non-sugar solid content, which can add depth to beverages but necessitates careful management such as dilution, pH modifications, and heated storage to maintain flow and prevent microbial degradation. Sugar beet molasses, on the other hand, is mainly produced in the temperate zones of the central and southern regions. This syrupy substance is a residue that results from refining sugar beets, with a sucrose level that typically falls between 40–47%, along with lower amounts of flavor-active congeners. Its cleaner and more neutral taste profile, along with stable composition, makes it a favored choice for yeast, citric acid, and vitamin manufacturing. It serves as a high-energy additive that helps bind dust in compound feeds. The lower viscosity of beet molasses compared to cane molasses simplifies the handling process in bulk storage and dispensing systems, and its continuous availability throughout the year from beet harvesting ensures a stable industrial supply.

In Argentina, the molasses by end use is divided into Industrial, Food and Beverages, Biofuel, Animal Feed, Commercial and Household. Industrial uses are prevalent in fermentation-based production, which includes yeast, citric acid, and various biochemicals; for these processes, maintaining consistent °Brix levels, low ash content, and reliable nutrient profiles is crucial for operational effectiveness. Food and Beverages sectors employ molasses as a natural sweetener, color additive, and flavor enhancer in baked goods, candies, sauces, and artisanal spirits; food-grade certification HACCP, kosher/halal and maintaining consistent sensory qualities are vital to fulfill consumer expectations. Producers of Biofuel, especially ethanol facilities in Tucumán and other sugarcane areas, appreciate molasses for its high levels of fermentable sugars and its ability to be stored year-round; improvements in yields can be achieved through nutrient supplements and pH regulation, and political changes toward increased blending mandates may further develop this sector. In the Animal Feed industry, molasses is utilized as an energy source, binder for pellets, and an enhancement for flavor in diets for ruminants, pigs, and horses; its thickness and mineral composition help achieve uniformity in rations, and adherence to feed-grade standards ensures safety. Commercial applications encompass catering services, bakeries, and foodservice entities that buy molasses in bulk for use in recipes, along with breweries and distilleries located outside the main sugarcane zones; supply agreements prioritize dependable delivery and consistent specifications. Household use, while the least significant segment, holds cultural importance in rural Tucumán and specific urban areas, where traditional cane molasses is employed in sweets, drinks, and home remedies; offering packaging in smaller retail sizes and branding linked to its origin supports this niche market.

In Argentina's molasses industry, by nature is divided into organic and conventional categories in terms of how they are produced, what certifications are needed, and who their customers are. Organic molasses is made from cane or beet grown without the use of synthetic fertilizers, pesticides, or genetically engineered organisms, and it is processed without any banned additives. Producers are required to follow Argentina’s SENASA organic regulations and often need to meet USDA Organic or EU Organic standards for exports, which demand complete traceability from the farm to the final product. This category attracts consumers who care about health and sustainability, particularly in premium food, beverage, and nutraceutical markets, where molasses is prized as a minimally processed sweetener loaded with minerals. Organic molasses typically has a higher price tag due to the costs of certification, lower production rates, and selective distribution through specialty stores, high-end food services, and export markets. On the other hand, conventional molasses is produced from typical cane or beet farming using conventional agricultural methods and standard milling techniques. It holds a significant market share, providing a supply for industrial fermentation, ethanol production, animal feed, and large-scale food uses, where factors like cost-effectiveness, consistent quality, and mass availability are essential. Conventional producers are able to enhance their yields using agrochemicals, machinery, and adaptable processing methods, which helps them maintain competitive pricing and availability throughout the year. Although it does not have organic certification, conventional molasses still conforms to national food and animal feed safety standards, with mills applying HACCP, IRAM quality systems, and, where appropriate, halal or kosher certifications to reach a variety of markets. The growth of the organic sector is driven by a growing global interest in clean-label ingredients and Argentina's ability to utilize its organic agriculture potential, though local adoption is hampered by price sensitivity and a lack of consumer knowledge.

In the molasses industry of Argentina, by type is divided into light, dark, and blackstrap molasses, each representing unique processing steps, compositions, and applications. Light molasses is derived from the initial boiling of either cane or beet juice, which keeps the highest level of residual sugar, resulting in a subtle, sweet taste, along with a lighter color and lower thickness. It is popular in Argentine food and drink sectors, including baking, confectionery, and sauces, where its gentle flavor complements rather than dominates. It is also sought after in high-end craft spirits that desire soft molasses undertones. Dark molasses comes from a subsequent boiling process where more sugar is extracted, leading to a thicker syrup that is less sweet, with a richer color and a stronger, slightly bitter flavor. This variety finds use in richer baked items, marinades, and flavorful rums, as well as in fermentation processes that require more intense flavor compounds. Its elevated amounts of minerals and non-sugar solids necessitate careful management in distillation to prevent fermentation issues. Blackstrap molasses, produced from a third boiling, is abundant in minerals like iron, calcium, magnesium, and potassium and contains the least sugar, characterized by its thick, bitter taste and very dark hue. In Argentina, blackstrap is extensively used in large-scale ethanol production, animal feed serving as an energy source, binder, and enhancer of taste, and certain health-focused food items that highlight their micronutrient benefits. It is exported in bulk to neighboring biofuel and feed sectors. Processing blackstrap requires heating for storage, as well as dilution and filtration due to its high thickness and ash content. The selection among these three molasses types involves a trade-off between sweetness, flavor strength, nutrient profile, and compatibility with different processes molasses.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Molasses Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Source
• Sugarcane
• Sugar Beet

By Type
• Light Molasses
• Dark Molasses
• Blackstrap Molasses

By Nature
• Organic
• Conventional

By End Use
• Industrial
• Food and Beverages
• Biofuel
• Animal Feed
• Commercial
• Household Show more