Sugar Manufacturing in Australia Industry Market Research Report Now Updated by IBISWorld

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High world sugar prices and domestic sugar production volumes have helped boost industry revenue. For these reasons, industry research firm IBISWorld has updated its report on the Sugar Manufacturing industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Australian sugar manufacturers are subject to global market dynamics, with supply and prices largely determined by bigger sugar-producing nations such as Brazil and India.

Despite being subjected to volatile commodity prices and fluctuating weather patterns, players in the Sugar Manufacturing industry in Australia have 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. According to IBISWorld industry analyst Brooke Tonkin, “although 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. Australian sugar manufacturers are subject to global market dynamics, with supply and prices largely determined by bigger sugar-producing nations such as Brazil and India. A strong Australian dollar for the majority of the past five years has dented industry exports, but this decline has been partly offset by strong sugar consumption in South-East Asia. “The industry has gone through a number of mergers, acquisitions and other rationalisation activities over the past five years,” says Tonkin. Wilmar Sugar, MP Australia and Tully Sugar Limited have all been the subject of takeovers by overseas companies. These three companies are also at the centre of an export controversy. In 2014, they announced that they would split away from the traditional single desk export body – Queensland Sugar Limited (QSL) – in 2017. This prompted anger from canegrowers contracted to sell to these manufacturers, as they believe this move might start a price war between QSL and the new export bodies. In September 2014, the Senate announced an inquiry to determine any harmful effects on the industry from the planned split. Its findings are due for release in April 2015. The industry displays a high level of market share concentration. Major players include Wilmar Sugar Australia Limited, Mackay Sugar Limited, MP Australia Holdings Pty Ltd and Finasucre Investments (Australia) Pty Limited.

Fluctuations in global demand and supply, domestic sugar cane production and the outcome of the Senate inquiry will influence the Sugar Manufacturing industry's performance over the next five years. Output and demand from the two biggest global sugar producers, Brazil and India, will have the most significant influence on global supply and sugar prices. Any legislative changes resulting from the Senate inquiry also have the potential to influence the industry's performance.

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

Sugar manufacturers process sugar cane to create raw or refined sugar or molasses. These products are then exported or sold to domestic food manufacturers, grocery wholesalers and supermarket chains.

Follow IBISWorld on Twitter:!/ibisworldau

IBISWorld industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit or call (03) 9655 3886.

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Gavin Smith
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