Sudan’s War Strips the Acacia Trees that Supply Coca-Cola and PepsiCo

Why It Matters

The loss of gum‑arabic‑producing acacias jeopardizes supply chains for major soft‑drink manufacturers and accelerates climate‑risk deforestation in a fragile, war‑torn economy.

Key Takeaways

• Sudan's gum arabic output fell to ~48,000 tonnes in 2023‑24.
• Acacia hashab trees now cut for firewood, not resin.
• Coca‑Cola and PepsiCo face supply risk for gum arabic emulsifiers.
• Household gas cylinders cost $22.50, driving firewood demand.
• War and currency collapse accelerate forest loss, threatening climate.

Pulse Analysis

The conflict in Sudan has turned a once‑robust gum arabic industry into a precarious supply chain. Before the war, Sudan supplied up to 80% of the world’s gum arabic, a natural emulsifier prized by beverage giants for its stabilizing properties. The abrupt drop to roughly 48,000 tonnes this season reflects not only battlefield disruptions but also a shift in how local communities harvest the hashab acacia—prioritizing firewood over resin extraction. This transition has immediate repercussions for multinational soft‑drink producers that rely on the ingredient for product consistency and cost efficiency.

Beyond corporate concerns, the environmental fallout is stark. Acacia belts along the Nile’s confluence have been stripped at an unprecedented rate as displaced families seek cheap cooking fuel. With LPG cylinders priced at $22.50—a prohibitive cost for a collapsing currency—firewood and charcoal have become the default energy source. The resulting deforestation erodes soil, reduces carbon sequestration, and threatens regional climate stability, amplifying the humanitarian crisis with long‑term ecological damage.

Policy makers and investors must recognize the intertwined nature of conflict, commodity supply, and environmental health. International development agencies could mitigate the crisis by supporting alternative energy solutions and incentivizing sustainable gum‑arabic harvesting practices. For the beverage industry, diversifying raw‑material sources or investing in resilient supply‑chain strategies becomes essential to safeguard product quality and reduce exposure to geopolitical risk. The Sudanese acacia story underscores how war can ripple through global markets, environmental systems, and corporate bottom lines.