When the Japanese occupied Taiwan in 1895, planting techniques were improved and modern refineries were built, pushing production up to the third largest in the world.
當時的糖是用人工或畜力推動石磨、榨取蔗汁製成。日本人佔據台灣期，為了供應其本土巨大的砂糖消費量，對台灣的糖業特別重視，大事獎勵種值白甘蔗，並將舊式糖擴建為新式糖廠。台灣糖業因而更趨興盛，砂糖產量最高曾躍居世界第三位。