Industry Analysis & Industry Trends
Although the Sugar Manufacturing industry has been subjected to volatile commodity prices and fluctuating weather patterns, it has performed well. Industry revenue is forecast to grow at an annualised 4.6% over the five years through 2014-15, to reach $3.1 billion. This includes forecast 1.2% growth for 2014-15. Despite trending downwards, world sugar prices have remained high for the majority of the past five years. Additionally, domestic sugar production volume has increased over the past five years. These two factors have helped boost industry revenue over the period.
The industry derives a large share of its revenue from exports... purchase to read more
Industry Report - Industry Key Buyers Chapter
The industry has a high concentration level with the four largest companies estimated to account for over 70.0% of industry revenue in 2014-15. Australia's Sugar Manufacturing industry has become more concentrated over the past five years. This means that fewer companies control the number of operational mills and that fewer mills are serving wider geographic markets. Increased consolidation is consistent with similar trends in other food manufacturing industries. Industry consolidation has been mainly driven by the pressure to reduce costs through economies of scale and increased efficiency, especially in years with low sugar prices.
Industry consolidation activity has gained momentum over the past few years, with leading sugar manufacturers increasing in size and capacity... purchase to read more