Global Sugar Manufacturing Industry Market Research Report from IBISWorld Has Been Updated

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The highly regulated Global Sugar Manufacturing industry has had a challenging five years as production and global sugar prices have seen large fluctuations, but the industry's outlook looks brighter as international trade and production increases and global sugar consumption grows. For these reasons, industry research firm IBISWorld has updated a report on the Global Sugar Manufacturing industry to its growing report collection.

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Global sugar consumption will grow as demand from developing regions increases.

It has been a challenging five years for the Global Sugar Manufacturing industry as operators have been with huge fluctuations in production and global sugar prices. “The recent restructuring of the industry in the European Union (EU), rising demand for sugar in ethanol production and adverse weather conditions caused frequent declines in global sugar production, strained global sugar stocks and caused frequent spikes in sugar prices,” according to IBISWorld industry analyst Lauren Setar. Overall, this has enabled industry revenue to grow at an annualized rate of 2.6% in the five years to 2013 to reach $61.4 billion. However, industry revenue is forecast to decline 24.5% during 2013 as world prices decline.

Rising energy prices during the past five years have prompted supply problems due to rising demand for alternative fuel such as ethanol, which is derived from sugarcane. There has been increasing pressure on the Global Sugar Manufacturing industry’s supplies due to more sugarcane being diverted to ethanol production as the global price of crude oil has risen as much as 28.9%, in 2010, and 30.6%, in 2011, during the past five years. “Government policies have intensified these factors, increasing the production and use of ethanol, especially in Brazil, where ethanol is a primary source of energy,” says Setar.

The Global Sugar Manufacturing industry is highly regulated in the United States and many other countries. The largest sugar-producing region is South America, with Brazil the world's largest sugar producer and exporter. Other important sugar producing regions include Europe, India and Central Asia. During the past five years, the dominance of South America in sugar production has increased. However, EU sugar production has declined due to reforms to sugar assistance, including a reduction of production quotas and increases in import volumes. India and China also increased production during this time.

The Global Sugar Manufacturing industry has a low level of market share concentration. However, different regions have varying levels of concentration. The European region of the industry has a high industry concentration. Changes in EU sugar policies have led to greater concentration in the industry as less efficient operators have exited. Australia and the US sugar manufacturing industries have a moderate level of concentration. During the past five years, industry concentration increased as many local operators looked to consolidate their operations. Major players include Sudzucker AG, Associated British Foods plc and American Crystal Sugar Company.

These factors are expected to influence industry performance over the next five years as well. Production is anticipated to grow as farmers increase yields to capitalize on high sugar prices. Global sugar reserves will be replenished as a result, but prices will decline in 2014 as production exceeds consumption. Increased production is expected to boost international trade over the next few years, and global sugar consumption will grow as demand from developing regions increases alongside income and population growth, boosting industry revenue over the next five years.

For more information, visit IBISWorld’s Global Sugar Manufacturing industry report page.

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IBISWorld industry Report Key Topics

Companies in the industry manufacture raw sugar, liquid sugar, refined sugar and molasses. Sugar and molasses can be derived from either giant grass called sugarcane or the root vegetable sugar beet. This raw material is processed into a range of sugar products for industrial and consumer uses. The final products are sold to grocery wholesalers and retailers, organic chemical manufacturers and food manufacturers.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on nearly every US and Global industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Gavin Smith
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