Middle East Sugar Market – Consumption Growth Has Lost Momentum

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IndexBox has just published a new report: “Middle East – Sugar – Market Analysis, Forecast, Size, Trends and Insights”. Here is a summary of the main findings of the report.

The Middle East sugar market revenue was $ 5.9 billion in 2018, roughly mirroring the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs and retailer margins, which will be included in the final consumer price).

The market value increased at an average annual rate of + 3.9% from 2007 to 2018; the trend diagram indicated that some notable fluctuations were recorded in some years. The growth rate was most pronounced in 2011, when the market value increased by 20% compared to the previous year. During the period under review, the sugar market reached its highest level in 2018 and is expected to continue growing in the near future.

Production in the Middle East

In 2018, the amount of sugar produced in the Middle East amounted to 4.1 million tonnes, up 2.4% from the previous year. The total volume of production increased at an average annual rate of + 2.2% over the period 2007-2018; the trend remained constant, only minor fluctuations were observed during the period considered.

Exports to the Middle East

In 2018, approx. 235K tonnes of sugar were exported to the Middle East; up 4.9% from the previous year. In general, sugar exports continue to indicate significant growth. In terms of value, sugar exports amounted to $ 111 million (IndexBox estimates) in 2018.

Exports by country

Exports from the two main sugar exporters, Saudi Arabia and the United Arab Emirates, accounted for more than two-thirds of total exports.

From 2007 to 2018, the most notable growth rate in terms of exports among the main exporting countries was achieved by Saudi Arabia.

In terms of value, the United Arab Emirates ($ 57 million) and Saudi Arabia ($ 54 million) were the countries with the highest export levels in 2018, together accounting for 100% of total exports.

Export price by country

The export price of sugar to the Middle East was $ 474 per tonne in 2018, down -4.3% from the previous year. Over the period 2007-2018, it increased at an average annual rate of + 1.5%. Average export prices varied significantly among the major exporting countries. In 2018, the country with the highest export price was the United Arab Emirates ($ 511 per tonne), while Saudi Arabia stood at $ 439 per tonne.

From 2007 to 2018, the most notable growth rate in terms of export prices was achieved by the United Arab Emirates.

Imports to the Middle East

In 2018, the amount of sugar imported to the Middle East stood at 4.8 million tonnes, down -8.1% from the previous year. Total imports showed modest growth from 2007 to 2018: their volume grew at an average annual rate of +1.1% over the past eleven years. The trend pattern, however, indicated that some notable fluctuations were recorded throughout the period analyzed. Based on 2018 figures, sugar imports fell by -0.8% compared to 2014 indices. In terms of value, sugar imports amounted to $ 1.6 billion (IndexBox estimates) in 2018.

Imports by country

In 2018, the United Arab Emirates (1.2 million tonnes), Iraq (1.1 million tonnes) and Saudi Arabia (1.1 million tonnes) were the largest importers of sugar in the Middle East. East, accounting for 72% of total imports. Iran (698,000 tonnes) comes second in terms of total imports with a 15% share, followed by Yemen (6.4%). Jordan (122,000 tonnes) and Israel (83,000 tonnes) followed far behind the leaders.

From 2007 to 2018, the most notable import growth rate among the major importing countries was achieved by Iraq, while the other leaders experienced more modest growth rates.

In terms of value, the United Arab Emirates ($ 353 million), Saudi Arabia ($ 350 million) and Iraq ($ 332 million) appeared to be the countries with the highest import levels in 2018, together accounting for 67% of total imports. Iran, Yemen, Jordan and Israel lag somewhat behind, together accounting for an additional 30%.

Import prices by country

The import price of sugar in the Middle East was $ 324 per tonne in 2018, down -16.7% from the previous year. The import price indicated modest growth from 2007 to 2018: its price increased at an average annual rate of + 1.4% over the past eleven years. The trend pattern, however, indicated that some notable fluctuations were recorded throughout the period analyzed. Import prices varied significantly depending on the country of destination; the country with the highest import price was Israel ($ 495 per tonne), while Yemen ($ 289 per tonne) was among the lowest.

From 2007 to 2018, the most notable growth rate in terms of import prices was achieved by Iran, while the other leaders experienced more modest growth rates.

Source: IndexBox IA platform

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