Sugar Manufacturing
Description
Companies in this industry produce raw sugar from sugar cane, refine raw cane sugar, and produce refined beet sugar from sugar beets. Major companies include Amalgamated Sugar, American Crystal Sugar, Florida Crystals of Fanjul Corp, Imperial Sugar, and US Sugar (all based in the US); as well as Cosan and Copersucar (both in Brazil); Nippon Beet Sugar Manufacturing (Japan); Nordzucker and Südzucker (both in Germany); Royal Cosun (Netherlands); Tereos (France); and Tongaat Hulett (South Africa).
The world produces about 180 million metric tons of sugar annually, according to Statista. The US produces about 8 million metric tons of sugar annually. The largest producers are Brazil, India, the European Union (EU), China, and Thailand.
The US sugar manufacturing industry consists of about 80 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $10 billion. Key growth opportunities include new packaging for products and commercial uses for byproducts.
COMPETITIVE LANDSCAPE
Demand is driven by domestic sugar consumption and government controls on imports and pricing. The profitability of individual companies depends on efficient operations and cost controls. Large companies have economies of scale in production and distribution. Small companies can compete effectively by serving local markets. The US industry is highly concentrated: the twenty largest companies account for about 95% of industry revenue.
Sugar manufacturers compete with makers of lower-cost sweeteners such as high fructose corn syrup.
PRODUCTS, OPERATIONS & TECHNOLOGY
The major product of sugar manufacturers is refined sugar (sucrose) which is for industrial and consumer use. Sugar is produced in various forms, including granulated, powdered, liquid, brown, and molasses. The basic production method is to dissolve sucrose out of those plants that concentrate it naturally in their stem or roots, and then remove impurities and water. Sugar cane and sugar beets are the major plants used. Sugar beets and sugar cane each account for about half of total US sugar production. Sugar cane grows mainly in subtropical and tropical regions, sugar beets in colder climates.
Sugar cane is crushed in sugar mills, producing a syrup that is concentrated to raw sugar by evaporators and centrifuges. The raw sugar is processed further in refineries, using various chemical methods to precipitate out the remaining impurities. The final products are refined white sugar, brown sugar, and molasses. Processing from sugar beets is similar, with stages for soaking sucrose out of sliced beets, chemical removal of impurities, and concentration and drying of the final product using evaporation and centrifuges.
Large sugar cane mills can process more than 40,000 tons of cane per day. Large beet processing installations can process 15,000 tons of beets per day. Bagasse, the fibrous material left behind after sucrose is separated from the cane, is used as fuel. Sugar beet waste is used as animal feed, or can be burned to provide energy.
While some sugar refiners buy raw material from independent farmers, some also own agricultural operations that produce a portion of their needs. Sugar cane refiners typically buy raw cane sugar from a number of suppliers. Supply contracts specify quantities but prices are typically tied to market prices, which can vary substantially. Since sugar refining is energy-intensive, manufacturers have supply contracts for natural gas, fuel oil, or coal if they need more energy than they can produce from burning waste.
The world produces about 180 million metric tons of sugar annually, according to Statista. The US produces about 8 million metric tons of sugar annually. The largest producers are Brazil, India, the European Union (EU), China, and Thailand.
The US sugar manufacturing industry consists of about 80 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $10 billion. Key growth opportunities include new packaging for products and commercial uses for byproducts.
COMPETITIVE LANDSCAPE
Demand is driven by domestic sugar consumption and government controls on imports and pricing. The profitability of individual companies depends on efficient operations and cost controls. Large companies have economies of scale in production and distribution. Small companies can compete effectively by serving local markets. The US industry is highly concentrated: the twenty largest companies account for about 95% of industry revenue.
Sugar manufacturers compete with makers of lower-cost sweeteners such as high fructose corn syrup.
PRODUCTS, OPERATIONS & TECHNOLOGY
The major product of sugar manufacturers is refined sugar (sucrose) which is for industrial and consumer use. Sugar is produced in various forms, including granulated, powdered, liquid, brown, and molasses. The basic production method is to dissolve sucrose out of those plants that concentrate it naturally in their stem or roots, and then remove impurities and water. Sugar cane and sugar beets are the major plants used. Sugar beets and sugar cane each account for about half of total US sugar production. Sugar cane grows mainly in subtropical and tropical regions, sugar beets in colder climates.
Sugar cane is crushed in sugar mills, producing a syrup that is concentrated to raw sugar by evaporators and centrifuges. The raw sugar is processed further in refineries, using various chemical methods to precipitate out the remaining impurities. The final products are refined white sugar, brown sugar, and molasses. Processing from sugar beets is similar, with stages for soaking sucrose out of sliced beets, chemical removal of impurities, and concentration and drying of the final product using evaporation and centrifuges.
Large sugar cane mills can process more than 40,000 tons of cane per day. Large beet processing installations can process 15,000 tons of beets per day. Bagasse, the fibrous material left behind after sucrose is separated from the cane, is used as fuel. Sugar beet waste is used as animal feed, or can be burned to provide energy.
While some sugar refiners buy raw material from independent farmers, some also own agricultural operations that produce a portion of their needs. Sugar cane refiners typically buy raw cane sugar from a number of suppliers. Supply contracts specify quantities but prices are typically tied to market prices, which can vary substantially. Since sugar refining is energy-intensive, manufacturers have supply contracts for natural gas, fuel oil, or coal if they need more energy than they can produce from burning waste.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
Search Inside Report
Pricing
Currency Rates
Questions or Comments?
Our team has the ability to search within reports to verify it suits your needs. We can also help maximize your budget by finding sections of reports you can purchase.