Australia Blackstrap Molasses Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

Key Market Trends and Insights:

• The Australian Capital Territory dominated the market in 2024 and is projected to grow at a CAGR of 4.7% over the forecast period.
• By product, organic category is expected to grow at a CAGR of 5.6% over the forecast period.
• By form, powered blackstrap molasses is projected to witness a CAGR of 4.6% over the forecast period.

Market Size & Forecast:

• Market Size in 2024: AUD 303.75 million
• Projected Market Size in 2034: AUD 458.35 million
• CAGR from 2025 to 2034: 4.20%
• Fastest-Growing Regional Market: Australian Capital Territory

The Australia blackstrap molasses industry share is growing as it is a nutrient-rich by-product of sugarcane processing, which is widely used in animal feed, industrial fermentation, and food applications. Rising sugar production ensures a steady and reliable supply of this versatile ingredient, supporting both domestic use and export opportunities. For the marketing year (MY) 2024/25, sugarcane crush is projected to reach 30.5 million metric tons, up from 29.8 million metric tons in MY 2023/24, due to favorable growing conditions and a modest increase in harvested area. 

Raw sugar exports are also expected to increase to 3.45 million metric tons, while domestic consumption continues to rise steadily. This combination of production growth and strong demand stabilizes molasses availability, enabling manufacturers and feed producers to plan reliably. As sugar output continues to expand, blackstrap molasses is increasingly recognized as a consistent, versatile resource. The alignment of agricultural productivity, export potential, and domestic demand collectively reinforces the role of sugar production as a central driver supporting growth in the Australia blackstrap molasses market.

Recent Developments

September 2025

Queensland’s sugarcane industry welcomed federal biofuels incentives, emphasizing sugarcane and its by-products such as molasses as key feedstocks for future fuel production.

January 2025

The Australian government launched its Future Drought Fund Investment Strategy, to support resilient farming practices, indirectly boosting demand for nutritious feed ingredients including molasses to combat drought effects and sustain livestock health

April 2024

Archer Daniels Midland (ADM) expanded its molasses production capabilities, introducing organic-certified blackstrap molasses targeting the Australian animal feed and food sectors, reinforcing sustainable sourcing commitments in the Australia blackstrap molasses market.

February 2023

The Sugar Manufacturers Association of Australia reported stable sugar manufacturing output in 2023, supporting the molasses by-product availability needed for expanding food, feed, and biofuel markets.

Key Drivers and Trends

Government initiatives strengthening livestock feed demand

Government initiatives are playing a pivotal role in driving blackstrap molasses demand in Australia, particularly through support for the livestock and dairy industries. Programs like the 2024 Australian Agricultural Trade and Market Access Cooperation (ATMAC) scheme are designed to strengthen export capacity and enhance the competitiveness of Australian cattle and dairy products. By ensuring steady livestock feed consumption, such initiatives indirectly fuel the use of molasses as a cost-effective energy supplement, reinforcing its role in the country’s agricultural value chain.

National biofuel initiatives to support molasses and crop utilization

The Australian government’s commitment of AUD 1.1 billion (USD 735 million) to low-carbon energy development, announced in September 2025, is set to accelerate biofuel production while strengthening the role of agriculture in renewable energy. Spread across ten years, the funding is designed to attract private investment in sustainable aviation fuel and biodiesel. With sugarcane, canola, and sorghum positioned as primary feedstocks, this initiative aligns with national decarbonization goals.

India–Australia MRA boosts organic trade opportunities

The India–Australia Mutual Recognition Arrangement (MRA) for organic products announced in September 2025, is driving the Australia blackstrap molasses market share by enhancing international trade opportunities. By recognizing each other’s certification standards, the MRA reduces compliance barriers and boosts confidence in imported organic products. This agreement facilitates smoother export and import of certified organic ingredients, enabling farmers and producers to access new markets.

Rising diabetes awareness boosts demand for natural sweeteners

Rising health consciousness in Australia is driving demand for natural, nutrient-rich ingredients like blackstrap molasses, particularly as consumers seek alternatives to refined sugars. With more than 300 Australians developing diabetes every day and nearly 1.9 million living with the condition, there is growing emphasis on managing blood sugar through healthier dietary choices. Blackstrap molasses, rich in minerals and lower on the glycemic index than refined sugar, is increasingly incorporated into foods and beverages.

Vegan lifestyle trends boost molasses adoption

The rising trend of vegan lifestyles has resulted in a growing acceptance for plant-based, nutrient-rich ingredients, adding to the Australia blackstrap molasses market development. With the number of Australians identifying as vegan growing from 250,000 in 2019 to approximately 1.3 million by 2024, consumers are seeking natural alternatives to animal-based products. Molasses, valued for its minerals, natural sweetness, and versatility, is increasingly incorporated into vegan foods and beverages. This growing vegan population is encouraging manufacturers to innovate and expand product offerings, indirectly boosting blackstrap molasses consumption across the food industry.

Australia Blackstrap Molasses Market Share

By product, organic molasses to witness higher demand

Government-backed certification and regulatory frameworks are boosting demand for organic blackstrap molasses in Australia. Agencies like Australian Certified Organic (ACO) enforce national standards and ensure product credibility, while initiatives such as mutual recognition agreements with international partners facilitate trade and market access. These policies give producers and exporters confidence to expand organic offerings, ensuring compliance and consumer trust. As regulatory support strengthens, the organic blackstrap molasses market benefits from greater adoption across food, beverages, and health-focused applications, driving sustained growth in the Australia blackstrap molasses market.

Beside this, increasing sugarcane production in Australia is driving growth in the conventional blackstrap molasses market. With rising crush volumes and favorable seasonal conditions, raw material availability has improved, enabling consistent supply for food, beverage, and animal feed applications. Conventional molasses remains a cost-effective and versatile ingredient for manufacturers seeking reliable sweeteners and energy supplements. This steady availability, coupled with strong domestic demand across multiple industries, reinforces the role of conventional blackstrap molasses as a key ingredient.

By form, liquid blackstrap molasses to gain preference

Liquid molasses is recording high demand driven by the growth of Australia’s confectionery sector, where it is has emerged as a highly preferred natural and nutrient-rich sweetener. With chocolate confectionery reaching USD 2.3 billion in retail sales in 2024 and sugar confectionery contributing USD 955.1 million, manufacturers are increasingly seeking healthier, plant-based, and functional ingredients. Molasses, valued for its minerals, flavor, and versatility, is being incorporated into chocolate, baked, and specialty treats. As the sector is expected to grow substantially, liquid blackstrap molasses is set for tremendous growth.

Meanwhile, powdered form witnesses notable demand amid the rising functional and fortified product trends in the region, thereby expanding the Australia blackstrap molasses market expansion. Powdered molasses provides a convenient, shelf-stable option for nutrition-focused applications such as baked goods, dietary supplements, and beverages. Its concentrated mineral profile supports fortification strategies, allowing manufacturers to enhance product health value while maintaining natural, clean-label appeal. With surging consumption of functional foods grows, powdered blackstrap molasses is expected to demonstrate growth a notable CAGR.

By application, animal feed to generate substantial revenue

Animal feed applications are demonstrating notable in the blackstrap molasses market across Australia. Since 2023, the Australian cattle market underwent significant shifts marked by volatility and uncertainty, yet it ended on a positive note. Despite lower prices mid-year due to weak demand and confidence, improved seasonal conditions and increased female slaughter revived the market. Producers turned to natural, nutrient-rich supplements like blackstrap molasses to boost livestock health and resilience. This adaptation aligns with the industry’s long-term cyclical nature and the strong fundamentals supporting sustained demand for quality cattle feed and beef production.

On the other hand, food and beverages sector has surged the consumption of blackstrap molasses in Australia owing to the rising consumer preference for natural and nutrient-rich ingredients. Shoppers increasingly seek clean-label products that offer both flavor and functional benefits, prompting manufacturers to use molasses in baked goods, sauces, and beverages. Its high mineral content and natural sweetness make it an attractive alternative to refined sugar. This shift in consumer behavior is encouraging product innovation and expanding the use of blackstrap molasses, reinforcing its role as a key ingredient in health-conscious food and beverage offerings.

Australia Blackstrap Molasses Market Regional Analysis

By region, Australian Capital Territory to dominate the market growth

Australian Capital Territory is set to expand at a notable CAGR as blackstrap molasses has seen growing accessibility due to wider distribution across local supermarkets, organic specialty stores, and digital retail platforms. Retailers like Goodness and Organic Times have enhanced packaging and improved supply chain transparency to cater to health-conscious consumers seeking natural, organic, and sustainable products. These efforts have provided customers across Australian Capital Territory with easy access to high-quality blackstrap molasses, boosting the Australia blackstrap molasses market value beyond niche outlets to mainstream retail and e-commerce channels.

Meanwhile, the bakery and foodservice sectors in Victoria are increasingly incorporating blackstrap molasses in artisanal breads and natural sweet snacks to meet rising consumer demand for clean-label and functional foods. In April 2024, Melbourne-based Allied Pinnacle launched a new range of bakery premixes, including high-fiber and molasses-enhanced mixes, designed to offer healthier, nutrient-rich baking options. This initiative reflects the company’s commitment to innovation and responding to growing preferences among Victorian consumers for wholesome, natural ingredients.

Competitive Landscape

Major Australia blackstrap molasses market players are focusing on product diversification and innovation to capture evolving consumer demand. Companies are expanding organic and health-focused offerings, highlighting nutritional benefits like high iron and calcium content. Strategic partnerships with retailers and e-commerce platforms are being leveraged to increase accessibility and visibility, while investments in processing technology and quality control enhance product consistency. These efforts ensure players stay competitive and responsive to both industrial and health-conscious consumer needs.

To strengthen market presence, companies are adopting sustainability and ethical sourcing practices as core strategies. Many companies are increasingly sourcing molasses from certified farms and emphasizing eco-friendly packaging, aligning with consumer expectations for responsible production. In addition, players are enhancing supply chain efficiency and exploring collaborations with livestock and food manufacturers to develop tailored solutions. Such strategic initiatives enable Australia blackstrap molasses firms to address the largest and fastest-growing applications effectively while fostering brand loyalty and long-term growth.

Allied Old English Inc.

Serving both domestic and international markets, Allied Old English Inc. produces high-quality sweeteners and syrups for the food and beverage industry. Founded in 1920 and headquartered in New York, the United States, the company emphasizes innovation and reliability. Its products are widely used in bakeries, confectioneries, and beverage manufacturing, reflecting a strong legacy of quality.

B&G Foods Inc.

B&G Foods Inc. emphasizes quality and trusted flavors that resonate with households across North America. Established in 1889 and based in New Jersey, the United States, it offers a wide range of shelf-stable foods and condiments. The company continues to expand its portfolio through strategic acquisitions and product innovation to meet evolving consumer tastes.

Buffalo Molasses LLC

Buffalo Molasses LLC caters to both food manufacturers and retail markets with consistent, sustainable products. Headquartered in Buffalo, the United States, and operational since 1987, the company specializes in molasses and liquid sweeteners. Its focus on high-quality processing and supply chain efficiency has strengthened its position in the sweeteners market.

Crosby Molasses Co Ltd.

Crosby Molasses Co Ltd. combines traditional methods with modern quality standards to serve industrial and consumer needs. Founded in 1876 and based in Boston, the United States, it is known for its premium molasses products. The company has built a reputation for consistency and flavor, supplying a variety of food and beverage industries.

Other players in the Australia blackstrap molasses industry include Crosby Molasses Co Ltd., Domino Speciality Ingredients (American Sugar Refining Inc.), E D & F Man Holdings Limited, GrainCorp Feeds Australia, Riverina, RahrBSG, and Louis Dreyfus Company B.V. (Louis Dreyfus Holding B.V.), among others.

Key Highlights of the Australia Blackstrap Molasses Market Report:

• Historical performance and reliable forecasts through 2034
• Insights into product innovations and evolving consumer trends in food, feed, and industrial applications
• In-depth competitive landscape profiling leading domestic and international blackstrap molasses producers
• Regional analysis identifying emerging high-growth markets across Australia
• Investment-focused outlook supported by data-driven insights and market opportunities

Why Choose Expert Market Research?

• Trusted insights backed by extensive primary and secondary research
• Actionable data to support strategic business and investment decisions
• Region-wise and product-specific analysis to capture niche growth opportunities

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