"It will be a challenge for the global sugar industry to meet the consumption increases we will see over the next decade," Stefan Uhlenbrock, a senior soft commodities analyst with F.O. Licht, told Reuters.

Global sugar output in 2012/13 is expected to equal last year's record level and stand at 177.1 million tonnes, F.O. Licht said earlier this month.

It said that while cane sugar output was seen continuing its upward trend and adding 2.3 million tonnes to reach a record 139.9 million tonnes, beet sugar production was seen falling by the same amount to 37.1 million tonnes.

Global consumption is expected to rise steadily at roughly 2 percent a year to around 200 million tonnes by 2021/22, according to Licht.

Rising incomes and population will lead to increased sugar demand.

Uhlenbrock said that Brazil, the world's top sugar producer, was the only sugar origin with the potential to add big swathes of land to grow sugar, depending on price trends, while technological advances would be key to boosting yields.

Uhlenbrock was speaking on the sidelines of Licht's one-day Sugar Trade Outlook conference, part of London Sugar Week, which gathers hundreds of traders from around the world.