Sugar Processing in the US Industry Market Research Report from IBISWorld Has Been Updated
If the industry is able to expand this into other sectors of the economy, sugar processing may be pushed forward into its growth phase. For these reasons, industry research firm IBISWorld has updated a report on the Sugar Processing industry in its growing industry report collection.
New York, NY (PRWEB) March 21, 2014
The Sugar Processing industry produces and refines sugar from sugar beet and sugar cane. The industry has benefited from increased per capita consumption of refined sugar since 2010, when public opinion of high-fructose corn syrup fell due to studies from the National Institutes of Health that connected the sugar substitute to diabetes and obesity. “However, the low world sugar price in 2012 and 2013 combined with the high level of duty-free imports from Mexico hurt industry revenue during the past two years,” according to IBISWorld Industry Analyst Lucas Isakowitz. Revenue for the industry is estimated to grow at an average annual rate of 4.2% over the five years to 2014, to $10.1 billion, including 1.0% growth in 2014.
The US government provides loans, sets marketing allotment quotas and determines tariff rate quotas to keep domestic sugar prices inflated. Without these regulatory measures, sugar import levels would be higher, and revenue for the industry would decline. The 2014 Farm Bill assures that these policies will remain unchanged through 2018.
Rising import levels are expected to limit revenue and profit growth for sugar processors. “Since 2008, open trade relations between the United States and Mexico have allowed a high volume of low-priced Mexican goods to come into the domestic market,” says Isakowitz. Regulatory measures by the US government have mitigated import growth, decreasing imports' share of domestic demand since 2011. However, import values have grown 6.0% per year on average over the past five years and are expected to continue growing over the five years to 2019. A higher value of imports will force price competition among US producers and mitigate revenue growth for the industry.
Alternative energies may be able to push industry revenue and profit up during the next five years. Bagasse, a by-product of sugarcane refining, is currently being used as an electricity source for refineries. If the industry is able to expand this into other sectors of the economy, sugar processing may be pushed forward into its growth phase. However, IBISWorld forecasts many of the current trends to continue into the next five years. World sugar prices will remain low, and low-cost imports will continue to hurt the industry.
For more information, visit IBISWorld’s Sugar Processing in the US industry report page.
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IBISWorld industry Report Key Topics
The Sugar Processing industry comprises establishments primarily engaged in manufacturing raw sugar, liquid sugar and refined sugar from sugarcane, raw cane sugar and sugar beets. This industry acquires its raw material from sugarcane growers. Sugar refiners also buy raw sugar from millers. This raw material is processed into a range of sugar products for industrial and consumer uses.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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 every US 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 http://www.ibisworld.com or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/2014/03/prweb11689373.htm