Saturated market: The industry has been hit hard by the sharp fall in EU sugar prices

The industry processes sugar beet and sugar cane into sugar, sugar substitutes and related products that are used by a wide range of downstream industries. The industry is an oligopoly, dominated by two producers. British Sugar, a beet refiner, is the largest company in the industry and processes all of the sugar beet grown in the United Kingdom. Since Tate & Lyle sold its UK sugar refineries to the ASR Group in October 2010, the latter’s subsidiary, T&L Sugars, has been the only other dominant producer. The company still sells sugar under the Tate & Lyle name and only processes sugar cane. These two firms account for more than 97% of industry more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Revenue plummeted after the announcement that sugar quotas would be abolished
  • The announcement that quotas would be abolished caused sugar prices to tumble, negatively affecting revenue
  • Although the removal of quotas will allow firms to increase production, it will also raise competition
  • Industry Report - Industry Analysis Chapter

    Shifts in European sugar supply and demand, as well as policy changes, have caused the Sugar Production industry to contract for much of the past five years. European sugar prices fluctuated independently of world prices, influenced by a complex system of production quotas and trade tariffs, which used to be regulated by the European Commission under the Sugar Regime. EU sugar prices rose steeply during 2011 and remained high until changes to the quota system regulating EU sugar production were announced in 2013. Following the announcement, the EU market price of sugar fell sharply, causing a knock-on effect on producers’ revenue, which contracted by more than 20% for two consecutive years through 2015-16. As ...purchase to read more.

    Additional Insights for the Sugar Production Industry

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

  • Proximity to key markets
  • Proximity to key suppliers
  • Optimum capacity utilisation
  • IBISWorld analysts also discuss how external factors such as Demand from chocolate and confectionery production and Real effective exchange rate in the Sugar Production industry impact industry performance..

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    What's in this report

    What is the Sugar Production Industry?

    This industry covers the manufacture or refining of sugar (sucrose) and sugar substitutes from the juice of cane, beet, maple and palm. It also includes the production of sugar syrups, molasses, maple syrup and raw sugar. The manufacture of glucose, glucose syrup and maltose is excluded from the industry.

    Industry Products
  • Crystalline sugar
  • Liquid sugar
  • Molasses and black treacle
  • Beet pulp and other by-products
  • Industry Activities
  • Producing and refining cane sugar
  • Producing and refining beet sugar
  • Producing and refining palm sugar
  • Producing and refining coconut sugar
  • Producing sugar syrups
  • Producing molasses
  • 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 chocolate and confectionery production
  • Real effective exchange rate
  • Demand from soft drink production
  • Health consciousness
  • World price of sugar

  • Current Performance
  • Foreign production
  • Bitter regulation
  • Prices tumble
  • Growing nations
  • Sweetness and light
  • Chart: Revenue Growth

  • Industry Outlook
  • A different beet
  • Sugar tax
  • Uprooted funding
  • Table: Sugar Production Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Ice Cream Production
  • Bread & Bakery Goods Production
  • Biscuit Production
  • Chocolate & Confectionery Production
  • Beer Production
  • Soft Drink Production
  • Pharmaceutical Preparations Manufacturing
  • Supermarkets

  • Key Selling Industries
  • Vegetable Growing

  • Products & Services
  • Crystalline sugar
  • Liquid sugar
  • Beet pulp and other by-products
  • Molasses and black treacle
  • Chart: Sugar Production Industry Products and Services Segmentation

  • Demand Determinants
  • Health concerns

  • Major Markets
  • Food manufacturers
  • Retailers
  • Drinks manufacturers
  • Pharmaceuticals manufacturers and other
  • Chart: Major Market Segmentation for the Sugar Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesUtilities, depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Sugar Production

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Sugar Production Industry

  • Industry Globalization
    British Sugar plc, T&L Sugars Ltd,
  • Table: British Sugar plc - financial performance
  • Table: T&L Sugars Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Sugar Production 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 Production Industry
  • 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
  • A residual fibre that is burnt as a fuel to supply steam and electricity for the milling process.
  • Bioethanol
  • A fuel obtained from sugar cane.
  • Molasses
  • A by-product of processing sugar cane, grapes or sugar beet into sugar.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Sugar Production market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

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

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