Sugar Manufacturing
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 capital-intensive: average annual revenue per worker is about $630,000.
Opportunities
New Packaging Products - Although sugar is seen as a commodity, manufacturers can develop value-added, innovative packaging for use by consumers and food manufacturers. Examples are stand-up pouches, re-closeable...
Business Challenges
Dependence on Government Support - The sugar manufacturing industry depends on price supports from the federal government, which keeps the US sugar price about twice as high as the world...