Jaggery's Surge in the Global Market Amidst the Health-Conscious Trend

Over the past decade, there has been a significant increase in the health and wellness awareness among consumers, a trend that has played a significant role in purchasing decisions. This trend has also impacted the sugar industry, with customers shifting away from processed sugar to natural alternatives. Consequently, this has resulted in a surge in demand for healthier alternatives to processed sugar, creating a distinct opportunity for natural sweeteners like jaggery to gain widespread popularity. Jaggery, characterized by its perceived health benefits and natural origin, aligns seamlessly with the preferences of health-conscious consumers.

As a result of this rising demand, leading global exporters such as Brazil, India, and Thailand have ramped up their shipments over the past three years to capitalize on this. According to the United Nations Commodity Trade Statistics Database (COMTRADE), Brazil exhibited a substantial export growth from 15.98 million metric tons (mmt) in 2019 to 24.16 mmt in 2022. This 51.2% increase over three years reflects a robust expansion in production and export capacity. The ongoing expansion of sugarcane production in Brazil, with an annual growth rate of 4.66%, has surpassed 700 mmt, according to the United States Department of Agriculture (USDA). This consistent growth in raw material supply serves as a foundational element for the increased production and export of jaggery from Brazil.

Figure 1: Brazilian Jaggery Exports (HS Code: 170114)

Similarly, Thailand has witnessed significant growth in jaggery exports, with a recorded increase from 3.01 mmt in 2021 to 3.46 mmt in 2022, signifying a 15% rise, according to COMTRADE data. Additionally, Indian jaggery exports underwent a similar transformation between 2019 and 2022: from 1.17 mmt in 2018/19, there was a surge to 6.33 mmt in 2021/22, indicating an increase of 441% in just three years. This surge was primarily attributed to a growing global demand for jaggery.

Figure 2: Thai Jaggery Exports (HS Code: 170114)

Jaggery suppliers can further capitalize on this trend by emphasizing the health attributes of jaggery in their marketing strategies. Highlighting its natural, unrefined, and nutrient-rich qualities can be particularly appealing to consumers looking for alternatives to traditional sugars. Packaging and branding that communicate the health benefits of jaggery, such as being a good source of vitamins and minerals, can enhance its market appeal. Jaggery suppliers have an opportunity to position their products as not just sweeteners but as wholesome and nutritious choices for health-conscious consumers.

Additionally, suppliers could embark on comprehensive awareness campaigns to foster a greater understanding and appreciation for jaggery. These initiatives might involve leveraging various platforms, such as Tridge’s Social Marketplace, social media and traditional advertising, to elucidate jaggery’s origins, production methods, and health advantages. The packaging and labeling of jaggery products should be designed to clearly communicate their natural, unrefined attributes and nutritional value, aiding consumers in making informed choices. In-store promotions and tastings, especially in regions less familiar with jaggery, could provide consumers with first-hand experiences of its taste and benefits.

Bolstering the digital presence through user-friendly websites and e-commerce platforms, such as Tridge’s Transaction Data Services, can facilitate easy access to trade information and purchases. Participation in health and wellness events offers a direct avenue for engagement, allowing suppliers to address queries, distribute samples, and build relationships with consumers. Through these multifaceted strategies, Jaggery suppliers can bridge the knowledge gap, cultivating a positive perception of jaggery as a wholesome and beneficial sweetener.

As per the Agricultural and Processed Food Products Export Development Authority (APEDA), the demand for caloric sweeteners, including jaggery, is anticipated to witness substantial growth, projecting an increase from 33 million tons in 2023 to reach 213 million tons by 2027. The increasing demand for jaggery in Asia and Africa is poised to have a substantial impact on import patterns in these regions. Notably, China and Indonesia have emerged as leading importers, with the United States and the European Union following closely.