Market evolution: Other sugars (CN 1702) — 2015–2025

Introduction

This report examines the evolution of EU extra-EU trade in products classified under Combined Nomenclature heading 1702, which encompasses a wide range of sugar-based products including chemically pure lactose, maltose, glucose and fructose in solid form; sugar syrups without added flavouring or colouring; artificial honey; and caramel. The analysis covers the period from 2015 to 2025, drawing on annual trade data reported by the European Union.

Over this decade, the EU consolidated its position as a major net exporter of CN 1702 products. Export values more than doubled, rising from €522.5 million in 2015 to €1,081.3 million in 2025 (+106.9%), while the trade surplus expanded from €288.1 million to €684.1 million (+137.4%). These headline figures reflect not only volume growth but also a sustained shift toward higher-value products, as unit export prices rose from €921/t to €1,317/t. The following sections explore the structural, geographic, and segment-level dynamics behind this transformation.

1. A Structural Shift Toward Higher-Value Export Specialisation

The EU's export growth in CN 1702 products has been driven substantially by price appreciation rather than volume expansion alone, signalling a qualitative shift in the product mix.

1.1 Value growth outpaces volume, reflecting compositional change

Between 2015 and 2025, EU export volumes grew by 44.7% (from 567,474 t to 821,057 t), while export values grew by 106.9% (from €522.5M to €1,081.3M). This gap implies a 43.0% increase in average unit export prices (from €921/t to €1,317/t). The same pattern is visible on the import side, where prices rose 31.6% (from €1,235/t to €1,625/t) against a 28.8% volume increase.

This price-driven value growth is consistent with a shift in the export basket toward higher-value-added sub-products—particularly lactose (170211) and the heterogeneous residual category (170290, including caramel, invert sugar, and artificial honey), both of which command unit prices well above the glucose and fructose syrup categories.

1.2 EU production volumes stagnate while values surge

EU domestic production data reveal a striking divergence: production quantities edged down slightly from 6.33 billion kg to 6.28 billion kg (–0.7%), while production values climbed from €2.73 billion to €5.15 billion (+88.8%). This mirrors the trade data—domestic manufacturers are producing similar physical volumes but capturing significantly more value, likely due to a combination of input cost inflation and a product mix tilted toward higher-margin specialty sugars.

1.3 Export propensity and trade intensity rose sharply

The EU's export propensity (exports as a share of production) surged from 5.8% in 2015 to 20.7% in 2025 (+256.4%). Trade intensity (the sum of exports and imports relative to apparent consumption) nearly tripled from 9.9% to 26.4%. The EU's sugar derivatives sector has thus become markedly more outward-oriented over the decade, suggesting improved competitiveness on global markets and/or growing demand from non-EU food-processing industries.

2. Geographic Rebalancing: Emerging Markets and Evolving Partnerships

The geographic composition of EU trade in CN 1702 evolved substantially, with the most dynamic growth concentrated in a handful of non-traditional partners on the import side and in high-growth Asian and Oceania markets on the export side.

2.1 Canada dominates EU imports; Türkiye and Mexico surge

EU imports by partner were led by Canada, whose share grew from €40.4M in 2015 to €107.5M in 2025 (+165.9%), making it by far the largest single-country supplier. Türkiye and Mexico also saw rapid growth (+168.8% and +177.6% respectively), while China's imports increased by 240.0%, albeit from a low base. By contrast, Israel's supplies declined by 29.5%.

The strong presence of Canada likely reflects lactose and glucose syrup flows from its large dairy and starch-processing industries, while Türkiye's growth may be tied to its expanding confectionery and food ingredients sector.

2.2 Exports to China and India explode; the UK remains the anchor

The most dramatic export growth was to China (+820.3%, from €10.8M to €99.3M) and India (+220.8%, from €26.0M to €83.4M), both of which have become major destinations for EU sugar derivatives. New Zealand also saw exceptional growth (+307.2%).

The United Kingdom remains the single largest export destination, reflecting both geographic proximity and deep supply-chain integration in the food and pharmaceutical sectors. However, its share has declined in relative terms as Asian markets grew faster.

2.3 Within the EU, France and Austria emerge as export powerhouses

Among EU reporting members, France saw the most dramatic export expansion (+482.2%, from €34.6M to €201.3M), overtaking several traditional exporters. Austria (+930.6%) and Denmark (+1,894.4%) also surged, though from lower bases. Germany (+99.1%) and the Netherlands (+48.4%) maintained their leadership as the two largest exporters, collectively accounting for a dominant share of EU extra-EU CN 1702 exports.

On the import side, Germany's imports nearly tripled (+148.5%), while Belgium saw the fastest growth among the top importers (+175.9%).

2.4 Market concentration remains moderate but increased slightly

The Herfindahl-Hirschman Index (HHI) for export values rose marginally from 572 to 626 (+9.4%), indicating that the export market remained relatively diversified even as a few large partners grew in importance. Import concentration increased more notably (HHI from 1,243 to 1,464, +17.8%), reflecting the growing dominance of Canada and Türkiye as suppliers. A higher import HHI implies a somewhat elevated supply-side concentration risk, though the level remains below thresholds typically associated with acute vulnerability.

3. Sub-Product Dynamics: Lactose and Residual Sugars Lead Growth

The broad heading CN 1702 bundles seven distinct six-digit sub-products. Examining their individual trajectories reveals that the EU's trade growth was not uniform but driven by specific high-performing categories.

3.1 Lactose (170211) dominates the export basket

Lactose in solid form (≥99% purity, CN 170211) was the largest export sub-product by value throughout the period, growing from €196.8M to €412.2M (+109.3%). Export volumes increased from 163,770 t to 228,940 t (+39.8%), while unit prices rose from €1,202/t to €1,800/t (+49.8%). This price appreciation likely reflects both global dairy ingredient demand growth and the EU's strong competitive position in high-purity pharmaceutical-grade lactose.

3.2 The residual category (170290) nearly doubled in value

CN 170290—a heterogeneous catch-all for invert sugar, maltose, caramel, artificial honey, and other blends—was the second-largest export category, growing from €187.7M to €400.1M (+113.2%). Notably, its average export price remained relatively stable (€1,771/t to €1,734/t), meaning growth was volume-driven: export quantities more than doubled from 106,018 t to 230,684 t. This suggests rising global demand for processed sugar ingredients, particularly caramel and specialty blends used by the food industry.

3.3 Glucose trade surged in 2022 before normalising

Glucose syrup (CN 170230) exhibited notable volatility: EU exports spiked sharply in 2022 to 413,490 t (up from 341,071 t in 2021), before retreating to 243,404 t by 2025. Import volumes followed a similarly erratic pattern, peaking at 80,495 t in 2023. This volatility is consistent with the broader commodity market disruptions of 2021–2022 linked to post-pandemic demand recovery and the Russia-Ukraine conflict's impact on grain and starch markets.

3.4 Maple sugar imports grew steadily, reflecting niche consumer demand

Imports of maple sugar and maple syrup (CN 170220) increased consistently from €43.0M (2015) to €109.3M (2025), with prices rising from €6,267/t to €6,954/t. This steady growth likely reflects expanding European consumer interest in natural and premium sweeteners, particularly in northern and western EU markets.

3.5 Fructose categories show divergent trends

Import volumes of chemically pure fructose (170250) remained broadly stable at 60–75 kt, but prices surged from €797/t to €1,118/t (+40.2%), possibly reflecting raw material cost pressures. The fructose syrup category (170260, >50% fructose) saw a gradual decline in import volumes from 32,137 t to 26,706 t, while prices increased from €1,219/t to €1,938/t. Meanwhile, the glucose-fructose blend category (170240, 20–50% fructose) collapsed in both imports (from 4,558 t to 974 t) and exports (from 27,775 t to 11,938 t), likely reflecting tightening EU regulations on isoglucose-type sweeteners.

Conclusion

Over the 2015–2025 period, the EU's trade in CN 1702 products underwent a transformation characterised by three key dynamics: a structural shift toward higher-value exports, a geographic rebalancing toward fast-growing Asian markets, and a product-mix concentration in lactose and specialty sugar derivatives. The EU's trade surplus more than doubled to €684 million, underpinned by a sharp increase in export propensity (from 5.8% to 20.7% of production) that signals growing international competitiveness.

Price appreciation—rather than sheer volume growth—was the primary driver of value gains, reflecting both input cost inflation and a compositional move toward premium sub-products like pharmaceutical-grade lactose and caramel. On the supply side, growing import concentration (HHI rising to 1,464) warrants monitoring, as the increasing reliance on Canada and Türkiye introduces potential vulnerability to supply disruptions in those corridors.

Looking ahead, the EU's position as a net exporter of sugar derivatives appears well-entrenched, though continued attention to supply-chain diversification and the evolution of health-related consumer preferences (which may shape demand for fructose and artificial sweeteners differently) will be important factors in sustaining this trajectory.