High Fructose Corn Syrup (HFCS) industry in Chinais enjoying sound development at present, which is estimated to have a promising future.According to CCM International's survey, the capacity of HFCS is expected to increase from about 1,200,000t/a in 2008 to 3,000,000t/a in 2011, with a compound annual growth rate (CAGR) of 35.72%. There are two reasons to drive the development of HFCS.
On one hand, demand of HFCS is increasing. HFCS is a perfect substitute for sucrose, because of HFCS' great taste and similar sweetness as sucrose. When price of sucrose goes up, HFCS becomes the first beneficiary. As the market price of sucrose is much higher than that of HFCS, more and more downstream producers chose HFCS to replace sucrose, which boosts the increasing demand for HFCS. HFCS manufacturers begin to expand capacities of the product.
On the other hand, consumption increase also drives the development of HFCS. HFCS is mainly used in food, especially beverages and confectionery. In recent three years, Chinese beverage and confectionery industries have been growing rather fast, promoting the consumption of HFCS. According to statistics from National Bureau, the output of soft drinks reached about 66.9 million tonnes in the first seven months of 2011, up 23.36% over the same period last year. Besides, the output of confectionery rose to 1.07 million tonnes in the first seven months of 2011, up by 19.10% over the same period last year. Booming growth of the two industries greatly pushes forward the consumption of HFCS.
The promising future of HFCS attracts investment of five major producers, including Luzhou Bio-chem Technology Co., Ltd. (Luzhou Bio-chem), Shandong Xiangchi Group Co., Ltd., GBT-Cargill High Fructose (Shanghai) Co., Ltd., Wuhan COFCO Food Technology Co., Ltd. and Star Lake Bioscience Co., Ltd. (Star Lake Bioscience) All of them will be engaged in the production of F55, a major kind of HFCS.
The above is extracted from Sweeteners China News 1111. Please check below for more News:
-It is estimated that the rice starch sugar industry will develop better in the future, but its market share in the whole starch sugar industry may keep stable.
-Five High Fructose Corn Syrup (HFCS) projects will be launched soon, which may lead to the price decrease of HFCS in H2 2012.
-So far, many domestic producers of sucralose improve their production technology actively, which may lead to competitiveness rise and price decrease.
-In recent three years, domestic alitame industry developed slowly due to small capacity and high price, and the situation is estimated to continue in the next several years.
-On 5 October, ACT announced its new partnership with Sinosweet, aiming to develop the UK and Irish markets of aspartame.
-In October 2011, Shengxiangyuan puts its stevia sweetener production line with a total capacity of about 750t/a into trial production in Qufu City, Shandong Province, suggesting its business expansion ambition thanks to the increasing demand from the downstream.
-According to Suzhou Economic and Technological Development Zone, Anhui VitaSweet launches an acesulfame-K project with capacity of 5,000t/a in October 2011.
-On 15 October 2011, Layn published a notice to revise its performance in the first three quarters of 2011, which explains that the the company's net profit gets worse than expected.
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(Guangzhou China, November 15, 2011)
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