Saint Vincent and the Grenadines has a small industrial sector, but one that has grown in importance in recent years. Most manufacturing revolves around food processing, such as rice milling and flour production, for the local and regional market. The major producer is the East Caribbean Group of Companies. There is also large-scale production of chicken feed and polypropylene bags, while the local brewery, the Saint Vincent Brewery Ltd., which produces beer and soft drinks, accounts for approximately 30 percent of total industrial production. The other industrial sector is geared towards exports into the North American market and includes a handful of assembly plants producing garments and sports goods, especially tennis rackets.
Saint Vincent's industrial growth (there is no industry on the Grenadines) is hampered by several factors, including poor infrastructure, relatively high wages, and fierce competition from lower-wage areas elsewhere in the Caribbean and Latin America. Increasingly, Saint Vincent's industrial output has been directed towards other territories in the Eastern Caribbean.