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10 Most Promising Sugar Companies to Invest In Now

Key Points

  • As global demand for sugar climbs toward an estimated annual demand of 196 million tons, investors clamor to invest in sugar stocks. 
  • Investors can diversify their holdings with futures-oriented ETFs as well as agriculture-based index funds. 
  • Learn more about the best sugar stocks to buy now.
  • 5 stocks we like better than KRFT)

One of the most important crops in the world, sugar is one of the most critical exports produced by countries like Brazil, Thailand and India. 

Currently, the world demands more than 180 million metric tons of sugar annually, both by individual shoppers and corporations that require massive amounts of sugar to create their products. A consumer staple in perpetual demand, investors now have the option to add sugar stocks to their portfolios. But which sugar companies are worth the investment now?

Choosing the right sugar stock comes down to individual preferences for risk and international diversification. Read on to learn more about how to invest in sugar stocks, some of the best sugar stocks and a few more details on some key factors to look for when choosing investments. 

Sugar Stocks: An Overview

Sugar as we know it is a processed form of sugarcane, a tall, tropical crop primarily grown in warm regions like South America and Southeastern Asia. Sugar is one of the most important global products in the world, with production and processing making up about 22% of the economic output of Brazil. Global sugar consumption should grow around 1.4% annually, reaching an expected annual demand of 196 million metric tons in 2030

Sugar production heavily depends on weather conditions and agricultural practices, making it vulnerable to crop yields and fluctuations in supply. Changes in climate patterns, natural disasters and diseases can impact sugar production and prices. Sugar is a globally traded commodity, and international trade policies, import-export regulations and changes in demand from major consuming countries can influence its prices. Consider keeping up with domestic and international tariff and tax news, especially in areas where sugarcane is grown. 

Features to Look for in Sugar Stocks

When selecting sugar stocks to add to your portfolio, consider the following major features and characteristics. 

Type of Stock 

When it comes to selecting sugar stocks, there are three major options we’ll cover:

  • Agricultural companies: Agricultural companies are involved in directly producing, manufacturing or processing sugar. The world’s largest agricultural companies dealing in sugar production are outside the United States. 
  • Consumer goods companies: Many consumer goods companies can be classified as sugar stocks because they rely on sugar as a primary product ingredient. Changes in sugar prices can influence these stocks, as sugar shortages can cause problems in the overall supply chain. 
  • Sugar ETFs: Exchange-traded funds (ETFs) are “bundles” of stocks that trade together as a single unit and follow a common theme. Sugar ETFs might invest in futures contracts for sugar or agricultural projects that produce or refine sugar. 

Adding multiple types of sugar stocks to your portfolio will result in more balanced risk across the agricultural sector. 

Geographic Presence 

Emerging markets have proven to be an opportunity for products with high sugar content. Companies operating or exploring these markets could show more future potential for growth. Additionally, companies operating in multiple countries may have an advantage in accessing diverse markets and mitigating risks associated with localized events, such as adverse weather or political instability.

Diverse Operations 

Some sugar companies add value to their primary products, such as refining raw sugar into specialty sugars or producing ethanol from sugar byproducts. Value-added products often command higher prices and improve profit margins, making them more stable long-term investments. 

10 Best Sugar Stocks to Buy Now

Now that you understand how to buy sugar stocks and what to look for in each stock, let’s look at the top sugar stocks in today’s changing stock market

1. Cosan S.A. 

2. Bunge Limited

While you can invest in sugar most directly with stocks like Cosan, agricultural companies can add a wider breadth of exposure to international crop sales. is a leading global agribusiness and food company that operates in various segments, including sugar. 

Unlike Cosan, Bunge Limited is not primarily known for its sugar operations; its primary product is consumer oils. While raw and refined sugar makes up a relatively small percentage of Bunge’s overall portfolio, it can provide a more diverse choice for conservative-leaning investors. 

Image text: Bunge Limited is a more diverse choice for sugar investors. 

3. The Hershey Company

If you’re an American, chances are you have a favorite product produced by . Hershey’s is one of the world’s largest manufacturers of chocolate and confectionery products and is best known for its chocolate-based candy bars and

Image text: With a total market capitalization of more than $48 billion, Hershey’s is a blue-chip consumer product option for investors. 

4. Tootsie Roll Industries 

Another option for investors, is best known for its eponymous line of Tootsie Roll products. However, the company’s offerings go far beyond the chocolate-flavored taffy, with companies like Junior Mints and DOTS complementing its confectionary umbrella. In July 2023, Tootsie Roll Industries boasted a total market capitalization of $2.38 billion, making it a when compared to Hershey’s. 

Image text: Tootsie Roll Industries’ July 2023 share price was a little under $35, making it more affordable than Hershey’s.

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