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Sugar Manufacturing Industry Profile Excerpt
| SIC Codes: 2061, 2062, 2063 NAICS Codes: 31131 Page Length: 10-12 Last Quarterly Update: 8/18/2008 View Sample Industry Profile |
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The US sugar manufacturing industry consists of 52 companies with combined annual revenue of $7 billion. Large companies include American Crystal Sugar, Imperial Sugar, US Sugar, and Florida Crystal. The industry is highly concentrated: the 50 largest companies account for nearly 100 percent of industry revenue.
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 industry is highly automated: average annual revenue per worker is over $400,000.
US sugar consumption fell in the last two decades as domestic food manufacturers switched from sugar to lower cost sweeteners, such as high fructose corn syrup. Candy and pastry makers continue to use refined cane sugar.
PRODUCTS, OPERATIONS & TECHNOLOGY
The major product of sugar manufacturers is refined sugar (sucrose) 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 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 ...
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