New Delhi, Sept 12, 2025:
India’s demand for branded sugar is expected to grow steadily by 2030 — and it’s the country’s low-income households that are likely to lead this shift, according to a new report by the Indian Sugar and Bio-Energy Manufacturers Association (ISMA).
While overall sugar consumption in India is projected to grow slowly (1.5–2% per year) over the next five years, the study found that branded and packaged sugar — along with traditional sweeteners like jaggery (gur) and khandsari — will see stronger demand among low-income groups.
Who’s Driving the Growth?
ISMA classified:
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Low-income households as those earning less than $1,000 per person per year. There are about 205 million such households in India.
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Middle-income households (earning around $3,000) number about 70 million and already consume significant amounts of refined sugar.
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High-income households (earning $15,000 or more) account for only about 30 million and show relatively lower growth in sugar consumption.
The study suggests that low-income groups will increasingly shift toward branded sugar for reasons such as hygiene, consistency, and trust — especially as more packaged options become affordable.
Institutional Buyers Still Dominate
Despite these shifts, institutions — like food and beverage companies — still dominate sugar usage in India:
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In 2023-24, they accounted for 60–65% of total sugar consumption, up from 50–55% in 2018-19.
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Key sectors include non-alcoholic drinks (35–40%), confectionery (15–18%), bakeries, dairy and ice cream, HoReCa (hotels, restaurants, catering), and pharma.
Retail sugar consumption, on the other hand, is growing more slowly due to rising health awareness, especially around diabetes.
How Much Sugar Do Indians Eat?
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The average Indian consumes about 20 kg of sugar per year, which has remained steady for some time and is slightly below the global average of 22 kg.
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Sugar remains the dominant sweetener, making up over 85% of retail and 95–97% of institutional consumption.
What’s Next for the Sugar Industry?
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Production is expected to rise from 34 million tonnes in 2023–24 to 35–37 million tonnes by 2029–30, and up to 43–45 million tonnes in a high-growth scenario.
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The value of the sugar market is also projected to grow from ₹1.2 trillion today to ₹1.4–1.6 trillion by 2030 — and possibly up to ₹2 trillion if growth accelerates.
The findings were shared during the Indian Sugar and Bio-Energy Conference in New Delhi, with Union Ministers Pralhad Joshi and Nitin Gadkari in attendance.
