Sugar cane demand in Indonesia has seen a consistent decline from 2014 to 2023, with a significant drop in value from 25.75 million metric tons to 20.26 million metric tons. The most notable year-on-year decreases were observed between 2016 and 2017 (-6.78%), and between 2017 and 2018 (-7.28%). More recently, from 2022 to 2023, the demand further dropped by 1.52%, continuing the downward trend observed over the last five years, with a compound annual growth rate (CAGR) of -1.4%.
The forecast for the coming five years suggests this decline will persist, with a projected CAGR of -1.33%, leading to an overall reduction of 6.47% by 2028. Given these trends, stakeholders should monitor:
- Changes in agricultural policies and subsidies.
- Fluctuations in international sugar prices.
- Domestic alternatives and substitutes for sugar cane.
- Shifts in consumer preferences toward healthier or alternative sweeteners.
These factors will be crucial in influencing future demand patterns for sugar cane in Indonesia.
