South America Maternal Health Market Outlook, 2030

Traditionally, molasses has deep cultural roots in global cuisines, serving as a staple in Caribbean and Southern U.S. baked goods, Middle Eastern treacle dishes, Indian jaggery-based syrups, and as a key ingredient in rum and yeast fermentation. Beyond food, it plays a critical role in livestock feed, where its binding properties improve pellet quality, reduce dust, and enhance palatability, while also serving as a cost-effective energy source for animals. Demand trends in the molasses market are increasingly shaped by urbanization and industrialization: as cities expand, food and beverage manufacturers rely more heavily on stable, affordable sweeteners, while livestock operations near urban centers integrate molasses into liquid feed systems to optimize costs. Global decarbonization efforts continue to boost ethanol production from molasses, particularly in sugarcane-producing countries, where it is a vital feedstock for biofuels. International trade flows are strong, with exports from Europe, North Africa, and Southeast Asia, while India emerges as a significant exporter due to its large sugar refining industry. innovations with disruptive potential include sustainability certifications like Bonsucro and ISCC, which ensure responsible cane cultivation and traceable biofuel supply chains; new bioprocessing pathways that use molasses to produce single-cell proteins or specialty chemicals; and the development of clean-label caramel colors and flavor bases for health-conscious food reformulations. Policy and regulatory frameworks also play a pivotal role, with Codex standards governing food-grade use, the EU Feed Materials Catalogue standardizing animal feed specifications, and renewable energy policies in markets like the EU supporting biofuel eligibility.

According to the research report, ""Global Molasses Market Overview, 2030,"" published by Bonafide Research, the Global Molasses market was valued at more than USD 8.43 Billion in 2024, with the CAGR of 6.36% from 2025-2030. Resilient livestock sectors use molasses as a low-cost energy source and pellet binder, fermentation industries prize it for yeast and ethanol, and food makers value its flavor, color and “heritage” positioning yet market size estimates vary widely depending on whether analysts include feed and biofuel co-products. Bunge Limited, for instance, is engaged in the production and trading of molasses and their uses in animal nutrition and industrial fermentation. These enterprises often separate themselves via savvy supply chain development, strategic area sourcing, and customizations available at a feed, food and energy level. Growth pockets are most visible where sugarcane and ethanol policies intersect, OECD-FAO projections imply Brazil and India will remain biofuel powerhouses, anchoring steady pull for cane-based molasses into ethanol, while ISO outlooks have flagged firm molasses values on constrained export supply through 2024–25. Meanwhile, trade data show molasses as an active, if niche, commodity class (HS 1703) with notable import demand in the EU and Turkey, underscoring its role beyond origin markets. For instance, Cargill Incorporated has one of the largest production and distribution networks for molasses in the Americas, Europe and Asia catering to food, feed and fermentation industries. Tate & Lyle PLC, as a large-scale sugar refiner, is in a strong position to supply high-quality molasses for food-grade and industrial use. Those Tier 1 companies benefit from economies of scale, strategic arrangements with sugar manufacturers, and diversified molasses product lines (cane molasses, beet molasses, blackstrap molasses, etc.

Market Drivers

• Rising Demand from the Food and Beverage Industry: Molasses, known for its natural sweetness, rich flavor, and nutritional content, is widely used in bakery products, confectionery, sauces, and beverages. As consumers increasingly shift toward natural sweeteners over refined sugar due to health awareness, molasses is being embraced as a healthier alternative because it contains iron, calcium, magnesium, and antioxidants. This trend is particularly visible in markets such as North America and Europe, where clean-label and functional food demand is soaring.
• Growing Use in Biofuel and Animal Feed: Another crucial driver is the expanding use of molasses in non-food applications, particularly in biofuel production and animal feed. With increasing emphasis on renewable energy and sustainable raw materials, molasses has become a key feedstock in ethanol production, contributing to the rising biofuel industry. Countries like Brazil and India, which have aggressive ethanol blending programs, are significantly boosting demand for molasses. In parallel, the livestock and dairy industries rely heavily on molasses as a feed ingredient due to its high energy value, palatability, and ability to enhance digestibility when mixed with roughage.

Market Challenges

• Supply Chain Instability and Price Fluctuations: One of the biggest challenges for the molasses market is its dependency on sugarcane and sugar beet processing, which makes supply highly vulnerable to seasonal fluctuations, weather conditions, and regional crop yields. Since molasses is a by-product, its production volume is directly tied to global sugar production. Droughts, pest attacks, or inconsistent rainfall patterns can significantly reduce sugarcane output, thereby tightening molasses supply and causing sharp price volatility in the global market.
• Competition from Alternative Sweeteners and Feedstocks: Another key challenge comes from increasing competition with alternative sweeteners and renewable feedstocks. In the food industry, molasses competes with honey, agave syrup, high-fructose corn syrup, and stevia, many of which are aggressively marketed as natural or healthier alternatives. Similarly, in biofuel production, molasses faces competition from corn, sugarcane juice, and other biomass sources, which in some regions are considered more efficient or cost-effective.

Market Trends

• Shift Toward Sustainable and Organic Products: Sustainability has become a dominant trend shaping the molasses market as both consumers and industries push for eco-friendly and organic solutions. Organic molasses, produced without chemical fertilizers or pesticides, is gaining traction in premium food markets, particularly in Europe and North America where demand for organic sweeteners is rising steadily. Additionally, the use of molasses in biofuels supports global carbon reduction goals, making it an attractive option in the energy sector.
• Innovation in Value-Added Molasses Products: Another notable trend is the growing innovation in molasses-based products across industries. Food and beverage companies are introducing flavored molasses syrups, molasses-infused beverages, and functional health products that highlight its mineral-rich composition. In agriculture, molasses is being used in soil enhancers and microbial fertilizers to promote organic farming practices. Moreover, pharmaceutical and nutraceutical industries are experimenting with molasses extracts for iron supplements and energy tonics.

Sugarcane is the fastest-growing source in the global molasses industry due to its high sucrose content, wide geographical cultivation, and dominance in global sugar production, which directly ensures abundant molasses output as a byproduct.

The sugarcane source is the fastest-growing segment in the global molasses industry primarily because sugarcane is the most widely cultivated crop for sugar production worldwide, accounting for nearly 80 percent of total sugar output, and molasses is generated in large volumes as a byproduct of this process. The high sucrose content of sugarcane, which typically ranges between 12 to 16 percent, ensures greater efficiency in sugar extraction and simultaneously results in more molasses during the refining stage, making it a preferred raw material over sugar beet or other feedstocks. Sugarcane thrives in tropical and subtropical climates, which are found in key producing regions like Brazil, India, Thailand, China, and parts of Africa, creating an extensive and reliable supply base that underpins the global molasses industry. Unlike sugar beet, which is more regionally restricted to temperate zones, sugarcane can be cultivated in a wider range of countries with longer harvesting periods, ensuring a more consistent flow of molasses into the global market. Moreover, rapid urbanization and rising demand for value-added products such as ethanol, rum, livestock feed, and bio-based chemicals are reinforcing the preference for sugarcane-based molasses due to its volume scalability and cost efficiency.

Light molasses is the fastest-growing type in the global molasses industry because of its higher sugar content, versatile applications in food, beverages, and fermentation industries.

Light molasses has emerged as the fastest-growing type in the global molasses industry primarily because it offers a sweeter taste, lighter color, and higher sugar content than dark or blackstrap molasses, making it more versatile for both industrial and household applications. This type of molasses is produced from the first boiling of sugarcane or sugar beet juice during the refining process, which means it retains more sucrose and has a milder flavor profile that appeals to a broader consumer base. In the food and beverage sector, light molasses is highly preferred for baking, confectionery, sauces, and beverages, as it enhances sweetness and provides a subtle caramel flavor without overpowering the product. Its superior taste profile compared to darker molasses allows it to be integrated into a wider range of consumer goods, from cookies and cakes to beverages like rum and other alcohol-based products, thereby driving demand globally. In addition to its food-related applications, light molasses is also widely utilized in fermentation industries for producing ethanol and other bio-based chemicals, as the higher sugar concentration facilitates faster and more efficient fermentation processes. This efficiency makes light molasses a cost-effective feedstock for biofuel production, an area that is expanding rapidly in line with the global push for renewable energy.

Organic molasses is the fastest-growing type in the global molasses industry because of rising consumer preference for natural, chemical-free, and sustainably produced food and beverage ingredients, supported by the global shift toward organic lifestyles.

Organic molasses has become the fastest-growing type in the global molasses industry as consumers worldwide increasingly seek natural and chemical-free alternatives in their diets and lifestyles, fueling demand for products that align with health, wellness, and sustainability values. Derived from organically grown sugarcane or sugar beet cultivated without synthetic fertilizers, pesticides, or genetically modified organisms, organic molasses appeals strongly to the growing population that prioritizes clean-label products. This preference is particularly pronounced in North America and Europe, where organic certification carries significant consumer trust and where retailers are expanding their organic product portfolios across food, beverages, and sweeteners. Unlike conventional molasses, organic molasses is perceived as a healthier and more sustainable option, rich in essential minerals like calcium, iron, potassium, and magnesium, making it an attractive natural sweetener substitute to refined sugar. It is widely used in organic bakery products, natural confectionery, sauces, beverages, and health supplements, as well as in rum and craft alcoholic beverages, where the demand for organic-certified inputs has been on the rise. The expansion of organic farming practices worldwide has also made raw material sourcing more feasible, ensuring stable growth of organic molasses production.

The biofuel end-user segment is the fastest-growing in the global molasses industry because of the rising demand for renewable energy, government blending mandates, and the cost-effectiveness of molasses as a sustainable feedstock for ethanol production.

The biofuel end-user type has become the fastest-growing segment in the global molasses industry due to the increasing global emphasis on renewable energy sources and the urgent need to reduce dependence on fossil fuels, which has positioned molasses as a valuable and sustainable feedstock for ethanol production. Molasses, being a byproduct of sugar production, is cost-effective, widely available, and rich in fermentable sugars, making it an ideal raw material for biofuel manufacturing. Countries like Brazil and India, which are among the largest sugarcane producers, have been at the forefront of utilizing molasses in large-scale ethanol programs, supported by strong government policies that mandate ethanol blending with gasoline to reduce greenhouse gas emissions and promote energy security. For example, Brazil’s Proálcool program and India’s Ethanol Blended Petrol (EBP) program have significantly increased molasses-based ethanol demand, directly driving the growth of this end-use segment. The global push toward achieving net-zero targets and meeting international climate commitments has further accelerated the reliance on biofuels, especially in transportation sectors, where ethanol acts as a cleaner-burning fuel alternative. Moreover, biofuel production from molasses not only reduces carbon footprints but also enhances the value of agricultural byproducts, thereby strengthening the circular economy in sugar-producing nations.

Asia Pacific is growing in the global molasses industry mainly due to its large-scale sugarcane production, which ensures abundant raw material availability and drives both domestic consumption and export opportunities.

The Asia Pacific region has emerged as the fastest-growing market in the global molasses industry primarily because of its dominant position in sugarcane cultivation, which forms the backbone of molasses production. Countries such as India, Thailand, China, and Indonesia are among the world’s leading sugarcane producers, creating a continuous and cost-effective supply of molasses for both domestic and international use. India alone accounts for a significant portion of global sugarcane output, and the by-product molasses is not only used in traditional sweeteners and bakery products but also increasingly diverted to industrial applications like biofuels, animal feed, and alcohol production. The region’s expanding population, particularly in densely populated countries like India and China, has fueled demand for affordable sweeteners and processed food, thereby boosting molasses consumption in the food and beverage sector. Moreover, Asia Pacific has been witnessing rapid industrialization and urbanization, which have amplified the need for energy alternatives and contributed to the rising demand for ethanol derived from molasses, aligning with government policies that promote biofuels as part of energy security and sustainability agendas. For example, India’s Ethanol Blended Petrol (EBP) program and Thailand’s biofuel promotion policies have created strong domestic demand for molasses-based ethanol, opening new avenues for growth.

• July 2025: Hartree Partners, a global energy and commodities trading firm, acquired ED&F Man Commodities' four major business units: Volcafe (coffee), ED&F Man Liquid Products (molasses, animal feed, and fish oil), ED&F Man Sugar, and ED&F Man Cotton. The acquisition followed Hartree's takeover of ED&F Man's senior secured debt and received all regulatory approvals. The transaction expanded Hartree's soft commodities portfolio, incorporating molasses trading operations and distribution networks that serve over 20 million animals daily and provide feedstock to the fermentation industry.
• In April 2025, Tate & Lyle, a global provider of food and beverage ingredients, completed the acquisition of SensoryEffects, a leading manufacturer of textured plant proteins and functional ingredients, including molasses, expanding its product portfolio and enhancing its capabilities in the food and beverage industry (Tate & Lyle Press Release).
• In October 2024, Expana introduced 24 new monthly Expana Benchmark Prices (EBP) for blackstrap, light, and dark cane molasses. These valuations represent the transactable value at 16:00:00 US Eastern Time, providing a standardized pricing mechanism for the molasses market.
• May 2024: Michigan Sugar Company inaugurated a molasses desugarization facility at its Bay City sugar-beet processing plant. The 22,000 sq ft facility, completed after four years of development at a cost of USD 109 million, processes 100% of byproduct molasses, up from the previous 60%. The facility doubled daily processing capacity from 325 to 650 tons and enables recovery of up to 80 million additional pounds of sugar annually.
• February 2024: Sugar mills were allowed to sell Potash Derived from Molasses (PDM) to fertilizer companies as an additional revenue source, according to the Food and Public Distribution Department. This ability to sell PDM will increase the demand for molasses as a valuable by-product, boosting its market growth.
• In January 2024, SuCANE Industries, a leading molasses producer, announced the launch of a new line of organic molasses, aiming to cater to the growing demand for organic and sustainable food products (SuCANE Industries Press Release).
• October 2020: Consumer products company Universal Robina Corp (URC), based in the Philippines, paid an undisclosed sum for the land, buildings, and milling and distilling facilities for sugar and bioethanol.
• October 2020: The sugar milling and bioethanol distillery facilities, together with several pieces of property, were purchased from Roxas Holdings Inc (RHI) by Universal Robina Corp (URC), a multinational consumer goods corporation headquartered in the Philippines. The purchase enables URC to concentrate on its resources in Central Azucarera Don Pedro Inc. This Philippines-based company manufactures and markets raw and refined sugar, molasses, and related goods. San Carlos Bioenergy Inc. is a company that develops and sells ethanol.


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