Bittersweet: The growing cost of sugar cane has hindered industry revenue growth

The Sugar Manufacturing industry has faced volatile commodity prices and fluctuating weather patterns over the past five years. The way milled sugar is marketed and exported has changed over the period, shifting supply chain arrangements and contributing to uncertainty. Industry revenue is expected to decline at an annualised 1.6% over the five years through 2017-18, to $3.0 billion. The domestic price of sugar has been high over the period, inflating industry input costs. World sugar prices have grown more slowly over the period, hampering industry profitability. Industry revenue is expected to decline by 12.5% in 2017-18 due to projected declines in domestic sugar output and world sugar prices. The industry derives a large share of its revenue from exports...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
-1.6%
Forecast Growth 18-23
Profit
Employment
4,514
Businesses
26

Industry Threats & Opportunities

  • The industry has faced volatile commodity prices and variable weather patterns over the period
  • The industry's reliance on exports means that its performance depends on world sugar prices
  • Output from major global producers, such as Brazil, will continue to heavily influence the market
  • Industry Report - Industry Key Buyers Chapter

    The industry is highly concentrated, with the four largest companies expected to account for more than 70% of industry revenue in 2017-18. The 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 of low sugar prices. Industry consolidation activity has gained momentum over the past decade, with leading sugar manufacturers increasing in size and capacity...purchase to read more.

    Additional Insights for the Sugar Manufacturing Industry

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

  • Optimum capacity utilisation
  • Supply contracts in place for key inputs
  • Ability to effectively manage risk
  • IBISWorld analysts also discuss how external factors such as World price of sugar and Demand from chocolate and confectionery manufacturing in the Sugar Manufacturing industry impact industry performance..

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    What's in this report

    What is the Sugar Manufacturing Industry?

    Companies in the industry primarily manufacture raw or refined sugar or molasses from sugar cane, raw cane sugar or sugar beet.

    Industry Products
  • White sugar
  • Brown sugar
  • Raw sugar
  • Cafe products
  • By-products
  • Other products
  • Industry Activities
  • Brown sugar
  • Cane syrup
  • Caster sugar
  • Icing sugar
  • Icing sugar mixture
  • Molasses
  • Sugar
  • Treacle
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of sugar
  • Demand from chocolate and confectionery manufacturing
  • Demand from soft drink manufacturing
  • Domestic price of sugar
  • Health consciousness

  • Current Performance
  • Export controversy
  • World sugar prices
  • Upstream production
  • Increased consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Export channels
  • Consumption outlook
  • World market trends
  • Industry structure
  • Table: Sugar Manufacturing Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Ice Cream Manufacturing
  • Cake and Pastry Manufacturing
  • Biscuit Manufacturing
  • Chocolate and Confectionery Manufacturing
  • General Line Grocery Wholesaling
  • Supermarkets and Grocery Stores
  • Soft Drink Manufacturing
  • Fruit Juice Drink Manufacturing
  • Restaurants

  • Key Selling Industries
  • Sugar Cane Growing

  • Products & Services
  • White sugar
  • By-products
  • Cafe products
  • Other products
  • Raw sugar
  • Brown sugar
  • Chart: Sugar Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Health concerns
  • Price

  • Major Markets
  • Exports
  • Other markets
  • Supermarkets
  • Wholesalers
  • Chart: Major Market Segmentation for the Sugar Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Sugar Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Sugar Manufacturing Industry

  • Industry Globalization
    Wilmar Sugar Australia Limited, Mackay Sugar Limited, MP Australia Holdings Pty Ltd, Tully Sugar Limited, Finasucre Investments (Australia) Pty Limited,
  • Table: Wilmar Sugar Australia Limited - financial performance
  • Table: Mackay Sugar Limited - financial performance
  • Table: MP Australia Holdings Pty Ltd - financial performance
  • Table: Tully Sugar Limited - financial performance
  • Table: Finasucre Investments (Australia) Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Sugar Manufacturing 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 Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bagasse
  • The residual fibrous pulp remaining from sugar cane processing.
  • Ethanol
  • An alcohol-based fuel produced from the fermentation of a range of plants, including sugar cane.
  • Molasses
  • A by-product from processing sugar cane or sugar beets into sugar.
  • Sugar Futures Market
  • Where sugar buyers and sellers enter agreements to trade a set amount of sugar at a predetermined price and date.
  • Treacle
  • Syrup produced during the sugar refining process.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Sugar Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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 Manufacturing:
    • 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 Manufacturing 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 Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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