Panela Market

Global Panela Market Size (2024 to 2029)

Panela Market size was valued at USD 63.94 billion in 2024. The Panela market share value is expected to grow at a CAGR of 5.7% during the forecast period 2024-2029 to reach USD 84.36 billion by 2029. 

Panela is a sugar that is predominantly found throughout Latin America and certain regions of the Caribbean. For instance, in Colombia alone, there are approximately 350,000 sugar farmers and 18,500 crushing and milling facilities dedicated to processing sugarcane. The majority of organic panela is produced using traditional methods, involving the manual cutting of sugarcane and kettle-cooking it in small batches, preserving the age-old techniques. These methods include slowly dehydrating the raw sugarcane juice over low heat, resulting in a dried end product that is then molded into blocks for use in various beverages and foods. Panela shares similarities with jaggery, an unrefined sugar used in Asian cuisines. Panela can be easily found at Latin American grocery stores, as well as select big box supermarkets and local health food stores.

The Panela Market is currently witnessing notable trends driven by the utilization of specialized enzymes and an increasing focus on clean-label and natural attributes. Manufacturers are dedicating resources to research and development efforts aimed at crafting inventive enzyme solutions that enhance the panela production process. This leads to improved efficiency and a higher standard of product quality. These enzymes play a crucial role in facilitating better extraction, clarification, and crystallization, ultimately yielding a superior end product. As the demand for such improvements continues to grow, it will unlock previously unexplored opportunities within the panela market.

Panela Market Size Drivers:

The primary drivers for the growing demand for panela in the global market come from food manufacturers. This is because panela possesses unique qualities, such as a natural sugary taste and a richer flavor compared to regular brown sugar. Food manufacturers are increasingly incorporating panela as a key ingredient in their products to cater to the rising demand from consumers who are looking for natural, high-quality options. Panela can be used both as a final product or as an ingredient in various dishes to enhance their flavor and richness. A significant portion of the demand for panela comes from food manufacturers specializing in confectionery, sweets, and chocolates. They recognize the appeal of panela in creating products that satisfy consumers seeking natural flavors and quality.

Furthermore, the global panela market is experiencing growth due to an increase in health-conscious consumers. Panela is available in organic forms, which aligns with the preferences of individuals who prioritize healthier options. This demand from health-conscious consumers contributes to the rising popularity of panela on a global scale.

Panela Market Restraints:

The panela market faces several challenges that require thoughtful solutions. Technological constraints can hinder panela production by causing efficiency and consistency issues in certain processes. To overcome these limitations, it's essential to invest in ongoing research and development efforts aimed at improving production methods. Consumer perception and acceptance are also critical factors impacting the panela market. Some consumers may have misconceptions or doubts about the authenticity, quality, or health benefits of panela compared to other sweeteners. To expand market reach, it's important to build trust among consumers through transparent communication. Educating consumers about panela's natural and traditional characteristics and highlighting its nutritional advantages can help dispel misconceptions and increase its acceptance in the market.

Impact of COVID-19 on the Panela Market:

During the global COVID-19 pandemic, businesses across various industries faced significant disruptions as governments imposed lockdown measures to control the virus's spread. Consumers began prioritizing health and sought out nutritious and wholesome foods, with panela being one such option. Consequently, there was a noticeable uptick in demand for panela during the pandemic. That is, the panela market is expected to exhibit robust growth due to the increased focus on health amid rising infections and reduced economic activity caused by the pandemic. Thus, the food and beverage sector experienced a significant surge in demand during and after the pandemic, primarily fueled by consumers' heightened interest in natural and organic food supplements. Nevertheless, it's essential to acknowledge that the spread of COVID-19 did lead to lockdowns and supply chain disruptions, which, in turn, posed challenges in the supply of products.

REPORT COVERAGE: 

This research report on the Global Panela Market has been segmented and sub-segmented based on form, application, distribution channel and region. 

Global Panela Market - By Form:

• Solid
• Liquid
• Granulated

Based on form, the solid segment dominated the Panela market in 2022 and is anticipated to grow at the highest CAGR during the projected period. Panela is predominantly utilized in solid block form, enjoying a substantial market share due to its traditional and convenient usage.

On the other hand, Granulated panela is also a favored option, providing ease in portioning and dissolving. Liquid syrups are gaining popularity as a convenient choice for sweetening beverages and sauces. 

Global Panela Market - By Application

• Confectionery
• Bakery
• Savory
• Beverages

Based on the application, the bakery and the confectionary segment is expected to dominate the Panela Market during the forecast period. This dominancy is because, within the bakery and confectionery industry, panela serves as a natural sweetener incorporated into bread, cakes, cookies, and chocolates. Its sweetening properties extend to non-alcoholic beverages like teas, coffees, and smoothies. Panela plays a role in dessert creations, such as puddings, ice creams, and custards. It also lends its distinctive flavor to sauces and dressings. Moreover, panela is a sought-after ingredient in a range of other food products where a natural and traditional sweetener is preferred.

Global Panela Market - By Distribution Channel:

• Supermarket and Hypermarket
• Convenience store
• Online retail
• Specialty store
• Other

Based on the distribution channel, supermarkets and hypermarkets play a major role in the panela market in 2022, offering a diverse array of panela products in a single, convenient location. Convenience stores provide accessible and impulse-buying opportunities for panela. Online retail platforms are increasingly popular, giving consumers a direct and convenient way to purchase panela. Specialty stores serve niche markets, catering to health food stores and those emphasizing natural and organic products. Panela is also distributed through food service establishments, including restaurants, cafes, and bakeries, where it's used in culinary and beverage preparations.

Global Panela Market - By Region:

• Asia Pacific
• Europe
• Middle East and Africa
• North America
• Latin America

Based on region, in 2022, Latin America emerged as the dominant region in the panela market, commanding a substantial market share of about 60%. This prominence is attributed to the region's rich tradition and expertise in panela production, with countries like Colombia, Mexico, and Ecuador playing pivotal roles in its growth. Latin American consumers have a strong preference for panela, fueling its popularity across various food and beverage applications.

North America holds a significant market share next to Latin America. The region's growing interest in natural and unrefined sweeteners, coupled with the increasing adoption of Latin American cuisines, contributes to the rising demand for panela market. 

Europe represents a growing market for panela in 2022. The region's diverse food culture and consumer preference for natural and organic ingredients drive the demand for panela as a healthier substitute for refined sugar. Countries such as Spain, Germany, and the United Kingdom are experiencing heightened awareness and adoption of panela in various food and beverage products.

In the Asia Pacific region, the panela market exhibited promising growth potential in 2022. The region's large population, evolving dietary preferences, and increasing health consciousness contribute to the demand for natural sweeteners like panela. Countries like India, China, and Thailand are witnessing a surge in the incorporation of panela in traditional desserts, beverages, and health-conscious food products.

KEY MARKET PLAYERS:

Key Market players of Global Panela Market are ASR Group (United States), Sudzucker AG (Germany), Cosan Limited (Brazil), EID Parry (India), Tereos Internacional S.A. (France), Grupo Empresarial Lauberger (Colombia), Manresa S.A. (Peru), Pura Panela (Mexico), La Compañía Azucarera Valdez (Dominican Republic), Panela Colombia (Colombia).

RECENT HAPPENINGS IN THE MARKET:

In April 2023, ASR Group, the world's leading cane sugar refiner and marketer, is launching an enhanced easy baking tub for its well-known brands, Domino Sugar and C&H Sugar. This innovative packaging reduces plastic usage by 28% compared to the previous canister design, resulting in a 65% decrease in transportation emissions. Additionally, it includes recycling instructions, offering both convenience for bakers and sustainability benefits.

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