Sweet success: Growing sugar consumption will drive industry demand and revenue growth

The Sugar Cane Growing industry has performed strongly over the past five years, largely due to favourable weather patterns, higher commodity prices and fluctuations in global sugar production. At the beginning of the period, Australian sugar cane crops were recovering from excessive rainfall and flooding damage. Since then, mostly favourable weather conditions have allowed growers to increase harvested areas and sugar cane output. A forecast spike in the domestic price of sugar is expected to grow industry revenue by 18.3% in the current year. Over the five years through 2016-17, industry revenue is forecast to rise at an annualised 9.8%, to reach $1.8 billion.Approximately 80% of Australia's processed sugar is exported...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 12-17
9.8%
Forecast Growth 17-22
Profit
Employment
9,514
Businesses
4,899
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • A forecast spike in domestic sugar prices is expected to boost current year industry revenue
  • Sugar cane yields dictate industry performance and are highly volatile from year to year
  • Industry growth prospects are positive but modest, given its vulnerability to external variables
  • Industry Report - Industry Locations Chapter

    The industry displays substantial geographic concentration in line with Australia's climatic conditions. Sugar cane growing tends to be most successful in areas that have plentiful supplies of sunshine and water; at least 1.5 metres of rain per year or access to irrigation. Farmers also need to locate themselves in areas close to sugar processors, since the sugar content of cane declines quickly after harvesting. Other factors influencing geographic spread include soil nutrition and flat terrain.Australia's major sugar cane region spans the coastal and river plains in Queensland and northern New South Wales. The discontinuous belt stretches some 2,100 kilometres from the Clarence River in New South Wales, to Mossman in North Queensland. How...purchase to read more.

    Additional Insights for the Sugar Cane Growing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Sugar Cane Growing Industry are

  • Ability to take advantage of government subsidies and other grants
  • Superior financial management and debt management
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Demand from sugar manufacturing and Domestic price of sugar in the Sugar Cane Growing industry impact industry performance..

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    What's in this report

    What is the Sugar Cane Growing Industry?

    Operators in the industry are primarily engaged in sugar cane growing.

    Industry Products
  • Sugar cane
  • Industry Activities
  • Sugar cane growing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from sugar manufacturing
  • Domestic price of sugar
  • Level of annual rainfall
  • Trade-weighted index

  • Current Performance
  • Production constraints
  • A global market
  • Export controversy
  • Profit fluctuations
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream

    shake-up

  • Global demand and supply
  • Domestic consumption
  • Table: Sugar Cane Growing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Sugar Cane Growing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Sugar Manufacturing

  • Key Selling Industries
  • Fertiliser Manufacturing
  • Livestock and Other Agricultural Supplies Wholesaling
  • Pesticide Manufacturing
  • Shearing, Cropping and Agricultural Support Services

  • Products & Services
  • Sugar cane
  • Chart: Sugar Cane Growing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Sugar cane exporters
  • Sugar refiners selling to industrial users
  • Sugar refiners selling to supermarkets
  • Sugar refiners selling to wholesalers
  • Chart: Major Market Segmentation for the Sugar Cane Growing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Sugar Cane Growing

  • Basis of Competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Sugar Cane Growing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Sugar Cane Growing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Sugar Cane Growing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Cane crushed (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bagasse
  • A side product of sugar cane production, bagasse is used as a fuel in some sugar mills, and can also be processed into paper and other fibre-based products.
  • Farmgate Prices
  • Prices received by farmers, net of transport costs.
  • Molasses
  • A viscous by-product of the processing of sugar cane or sugar beets into sugar.
  • Tillage
  • Agricultural preparation of land for crop growing.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Sugar Cane Growing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Sugar Cane Growing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Sugar Cane Growing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Sugar Cane Growing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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