NEW YORK : Sugar consumption in China, the world’s second largest user after India, is heading to the smallest volume in nine years in 2022 as a result of measures to combat COVID-19 and lower economic growth, analyst Czarnikow said in a report on Wednesday.
Czarnikow, a company that also provides supply chain services, said that China will likely consume less than 15 million tonnes of sugar this year as severe restrictions to people’s movements in large cities after outbreaks of the coronavirus reduce sales of candy, cakes and sweetened beverages.
The last time China used less than 15 million tonnes of sugar in a year was 2013, the report said, adding that sugar production and imports combined are expected to fall 2.1 million tonnes in 2022 versus 2021.
Stocks at local sugar producers are also high as sales of the sweetener fell.
As a result of the weak demand, imports of raw sugar by Chinese refiners fell to the lowest level since 2019, projected at 4.47 million tonnes in 2022. Czarnikow sees even lower imports in 2023 at 4 million tonnes as stocks will remain high.