Blackstrap Molasses Market

Market Overview

The global blackstrap molasses market size was valued at USD 14,095.00 million in 2022. It is projected to reach USD 23,712.30 million by 2031, growing at a CAGR of 5.95% during the forecast period (2023-2031). 

Cane-based blackstrap molasses contains 55% sucrose and other sugars, 20% water, 15% organic non-sugars, and 10% ash. Numerous industries, including animal feed, cosmetics, food and beverage production, fertilizer, and skin care, make extensive use of blackstrap molasses. When supplies are abundant, for instance, there is room to significantly expand the use of inedible molasses as cattle feed. In recent years, the production of industrial alcohol has decreased while the use of molasses as feed has increased significantly. Even though blackstrap molasses has numerous health benefits, it has been shown that it can cause an allergic reaction if consumed. It is believed to be a healthy substitute for refined sugar and artificial sweeteners for diabetics, but some individuals have reported elevated blood sugar levels after consuming it.

Highlights

• The liquid segment is the major contributor to the market by form.
• The industrial fermentation segment is the major contributor to the market by application.
• The offline segment is the highest contributor to the market by distribution channel.
• Asia-Pacific is the most significant revenue contributor by region.

Market Dynamics

Global Blackstrap Molasses Market Drivers:

High Demand for Molasses in the Bakery Industry

Different types of liquid and powdered sugar are used to make baked goods like bread and cakes in the bakery industry. Therefore, the baking sector uses a variety of sweeteners, including molasses, glucose or corn syrup, honey, and maple sugar. Since it has a strong flavor, spicy taste, and is less sweet than other sweeteners, blackstrap molasses is increasingly used to make baked goods. Additionally, it is more economical, making it an effective and efficient alternative for baking items.

Alterations in Eating and Living Habits

Fast food, bakery goods, and other lifestyle items are becoming increasingly popular, and consumer expenditure on organic food is rising quickly. The popularity of foods made with plant-based ingredients, such as blackstrap molasses. Blackstrap molasses is also being consumed directly by individuals in functional food products. The market for blackstrap molasses grows more as a result. Due to the rising demand for ready-to-eat foods like bakery goods and confectionery, where blackstrap molasses plays a crucial role as a sweetening and flavoring agent, blackstrap molasses has been gaining significant traction in developing nations like India and China. Demand for ready-to-eat foods rises due to rising disposable income and high living standards.

Global Blackstrap Molasses Market Restraint:

Responses Owing to Allergies to Blackstrap Molasses

Although blackstrap molasses has several advantages, its consumption triggers some allergic reactions. For people with diabetes, it is regarded as a healthy substitute for refined sugar and artificial sweeteners. However, some users have reported elevated blood sugar levels after using it. It has a low glycemic index and is safe in moderation. Blackstrap molasses frequently cause loose stools and diarrhea as side effects. Additionally, after taking it for the first time, persons who take more than three tablespoons per day get lower abdominal pains and feel lightheaded. Blackstrap molasses' adverse allergic reactions and side effects reduce its appeal, restraining the market's expansion throughout the projection period.

Global Blackstrap Molasses Market Opportunities:

Rapid Expansion of the Retail Industry

In recent years, blackstrap molasses has become a popular food item that may be used in home kitchens as a flavoring, coloring, sweetening, and garnishing agent. The availability of blackstrap molasses has been made easier by the rapidly growing number of large retail establishments in developing economies, such as supermarkets and hypermarkets. These establishments help to increase the sales of directly consumable blackstrap molasses, which can be found in liquid and powder form. Blackstrap molasses has been more effectively distributed through supermarkets and retail outlets. The retail industry is predicted to expand at a faster rate as a result of increasing urbanization, which in turn will increase demand for blackstrap molasses. Additionally, a rise in urbanization and modifications in consumer behavior has accelerated retail sector growth, which has a substantial positive impact on expanding the global industry.

Regional Analysis

Asia-Pacific Dominates the Global Market

The global blackstrap molasses market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

Asia-Pacific is the most significant revenue contributor and is expected to exhibit a CAGR of 4.40% during the forecast period. The largest and most developing markets for blackstrap molasses are in the Asia Pacific. The two countries that export the most blackstrap are India and China. The key drivers of the expansion of the Asia-Pacific blackstrap molasses market have been the rise in purchasing power and changes in lifestyle and eating habits. From a production standpoint, the need for blackstrap molasses is expanding significantly in Asia-Pacific. The bakery industry is increasing at the fastest rate, which boosts consumer demand for goods, including frozen dough, bread, rolls, and other confectionery items. Another significant element that has supported the expansion of the blackstrap molasses market is the rise in fast-food restaurants and motels.

LAMEA is expected to exhibit a CAGR of 5.60% during the forecast period. Brazil, the United Arab Emirates, Saudi Arabia, Turkey, and the rest of LAMEA's functional food industry are all researched. During the projected period, the LAMEA region's consumption of functional foods is anticipated to increase significantly at a pace of 4.8%. An increase in disposable money stimulates the market for skincare, cosmetics, and bakery products. Blackstrap molasses production has become quite popular in Brazil due to the country's large cane sugar production. Through the ethanol fermentation of blackstrap molasses, Brazil is one of the significant producers of alcohol, which furthers the expansion of blackstrap molasses in the LAMEA region. Consumer ambitions for food composed of plant-based ingredients and rising purchasing power are two primary growth reasons.

In Europe, there is a noticeable surge in demand for these molasses due to consumers' growing awareness of the health benefits of blackstrap molasses. Consumer demand for bread and confectionery goods is rising due to high disposable income, which also supports the expansion of the blackstrap molasses market in the area. Blackstrap molasses has become more popular as a flavor and sweetening ingredient. From a consumer standpoint, the market for blackstrap molasses has been expanding significantly in Europe. Growing and producing cattle for milking and slaughtering purposes is mainly responsible since blackstrap molasses is thought to be an appetite-inducing food for many animals, including sheep, camels, horses, and cows.

The U.S., Canada, and Mexico are considered for the North American region. Due to a rise in health consciousness, the North American market is changing its consumption habits. Products with nutritional components and low cholesterol are in higher demand than other food categories. Increased adoption and acceptance of recently introduced plant-based food products are projected to present the blackstrap molasses market with exceptional growth potential. The busy lifestyles of North American customers and the growing number of people who are health aware are the main drivers of market expansion.

Segmental Analysis

The global blackstrap molasses market is segmented by form, application, and distribution channel.

Based on form, the global blackstrap molasses market is bifurcated into liquid and powder.

The liquid segment is the major contributor to the market and is estimated to grow at a CAGR of 5.50% during the forecast period. Blackstrap molasses is initially created as a liquid during cane sugar production. Blackstrap molasses is offered in liquid form in bottled packaging because it is often used in households. The liquid form is utilized chiefly for industrial fermentation. Most blackstrap molasses used worldwide is liquid, and the trend is projected to continue from 2022 to 2031. Blackstrap molasses is typically favored in liquid form from an industrial and transportation perspective. The cost of transporting liquid blackstrap molasses is four times less than that of transporting blackstrap molasses in powder form.

Since their demand is lower than that of the companies that make alcohol, blackstrap molasses is primarily used in the pharmaceutical and cosmetic industries. During the projection period, the use of blackstrap molasses in powder form is expected to grow significantly in the pharmaceutical and food services sectors. This was primarily due to the convenience of handling compared to liquid forms. Blackstrap molasses comes in 50 to 100-pound bags, which are more convenient and manageable than 600-pound drums of liquid blackstrap molasses. Additionally, it is favored in the animal feed sector since it simplifies blending with other feed ingredients and eliminates the hassle and expense associated with heating. Moreover, although liquid blackstrap molasses needs insulated tanker lots for storage, powder blackstrap molasses does not require any specific storage equipment.

Based on application, the global blackstrap molasses market is bifurcated into industrial fermentation, food and beverages, pharmaceutical, animal feed, and others.

The industrial fermentation segment owns the highest market and is estimated to grow at a CAGR of 3.80% during the forecast period. Using blackstrap molasses primarily for the production of ethanol is common. In the complicated biochemical process known as ethanol fermentation, also known as alcoholic fermentation, yeasts convert sugars to ethanol, carbon dioxide, and other metabolic byproducts that affect the chemical structure and sensory qualities of fermented blackstrap molasses. Alcoholic beverages like beer and wine are produced using an alcohol fermentation process. Blackstrap molasses is widely used in ethanol fermentation, making alcohol. Blackstrap molasses is a common ingredient in several well-known alcoholic beverages, including whiskey and rum.

In general, blackstrap molasses is employed as a sweating agent in various food and beverage products, including non-alcoholic beverages, baked goods, and confections. It is mainly utilized in the bread business since it is less sweet than other sweetening agents produced from fruits and is darker, denser, more robust in flavor, and more vicious. Its bitter taste works better in savory dishes than in sweet ones, such as baked beans or barbecue sauce. People are predicted to consume more ready-to-eat foods globally because of their busy lifestyles, increasing the demand for bakery and confectionery items and, consequently, for blackstrap molasses during the forecast period.

The pharmaceutical business extensively uses blackstrap molasses as a lump of liquid sugar. The pharmaceutical industry uses a variety of natural sweeteners, including honey, maple syrup, molasses, stevia, licorice, and sucrose. Using natural and organic ingredients in medicinal products, such as liquid syrups, tonics, and syrups that promote good health is expected to increase demand for blackstrap molasses. Organic blackstrap molasses are increasingly employed in medicinal products as a sweetener and a significant source of vitamins and minerals like iron, calcium, magnesium, vitamin B6, and selenium.

For agricultural animals, molasses can be a great source of minerals and a quick source of energy. A vital component of the cost-effective management of pastures and feeds can also be molasses. Sugar cane molasses has a high calcium level (up to one percent) but a low phosphorus content. Additionally, rich in potassium, magnesium, sodium, and sulfur is cane molasses. In contrast, depending on the nature of the other feeds in the mix and the following storage facilities for the finished ration, molasses can be added to the diets of beef cattle up to 10%. Similarly, young stock diets can safely incorporate up to 10% molasses starting at four weeks of age.

Based on the distribution channel, the global blackstrap molasses market is bifurcated online and offline.

The offline segment is the highest contributor to the market and is estimated to grow at a CAGR of 5.45% during the forecast period. The offline sale of blackstrap molasses is a direct sale to consumer businesses like the alcoholic beverage and food and beverage sectors. Due to its bulk volume sales and purchases, direct distribution has held the lion's share of the global blackstrap molasses market. This section also includes the sale of blackstrap molasses at convenience stores, drug stores, supermarkets, hypermarkets, and specialized shops.

Due to the rapid growth of the IoT (internet of things) in the business sphere, blackstrap molasses distribution online is becoming increasingly popular. Globalization and convenient, simple transportation are encouraging the expansion of business-to-business (B2B) online distribution of goods, including raw materials. In addition, increasing demand for blackstrap molasses is anticipated to grow on several online marketplaces, including Amazon, eBay, Ali Express, and Walmart, due to expanding usage in households, small businesses, hotels, and restaurants.