Industry Analysis & Industry Trends
The Sugar Manufacturing industry has faced volatile commodity prices and fluctuating weather patterns over the past five years. Despite these trends, industry revenue is forecast to grow at an annualised 2.8% over the five years through 2016-17, to reach $3.0 billion. Domestic sugar prices have remained high for the majority of the past five years, although they have trended downwards over most of the period. Additionally, domestic sugar production has increased over the past five years. These two factors have boosted industry revenue over the period. Industry revenue is forecast to grow 19.9% during 2016-17, due to soaring world sugar prices in Australian dollar terms.
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 2016-17. 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