High Fructose Corn Syrup Market Is Estimated To Witness Significant Growth Owing To Rising Demand For Processed Foods And Beverages
The high fructose corn syrup market is estimated to be valued at USD 9.21 Billion in 2024, exhibiting a CAGR of 1.8% over the forecast period (2024-2031). The market is driven by the increasing consumption of packaged food products and beverages. Furthermore, high fructose corn syrup offers cost advantages over regular sugar for food manufacturers and soft drink companies.
Rising demand for processed food products and increasing consumption of beverages, firstly, the food processing industry has been growing rapidly over the past few decades owing to rising disposable incomes and urbanization in developing regions. High fructose corn syrup is widely used as a sweetener in packaged food items like bread, biscuits, breakfast cereals, etc. due to its low cost. Secondly, the global beverage industry has also witnessed strong growth with increasing health awareness. High fructose corn syrup is the primary sweetener used in carbonated soft drinks and fruit juices due to its long shelf life and stability compared to regular sugar.
Rising demand for low-cost sweeteners drives the high fructose corn syrup market
One of the major drivers of the high fructose corn syrup market is the rising demand for low-cost sweeteners globally. high fructose corn syrup is significantly cheaper to produce than other sweeteners like sugar as it is derived from corn which is abundantly available and inexpensive. This makes it an attractive option for food and beverage manufacturers looking to reduce production costs. HFCS is commonly used as a sugar substitute in soft drinks, baked goods, fruit juice, and other processed foods. As consumers demand more affordable food products, the use of HFCS as a cheap sweetener alternative continues to rise, positively impacting the market growth.
Growing consumption of processed and packaged foods drives the HFCS demand
Another key driver is the rising global consumption of processed and pre-packaged food products. high fructose corn syrup is widely used as a sweetener and preservative in these foods due to its low cost and long shelf life. The fast-paced modern lifestyle has increased the demand for convenient, ready-to-eat packaged foods which rely heavily on the use of HFCS. Developing economies are witnessing growing urbanization and rising disposable incomes leading to the proliferation of supermarkets and convenience stores selling processed foods. This expanding market for packaged foods acts as a consistent driver for the high fructose corn syrup market.
Consumer health concerns restrain the high fructose corn syrup market growth
One major restraint is the numerous health concerns linked to excessive consumption of HFCS. Several studies have indicated HFCS may contribute to obesity, type 2 diabetes and other health issues due to its unnaturally high fructose content. This has led many health-conscious consumers to curb HFCS intake or switch to alternative natural sweeteners. Many countries have introduced taxes and marketing restrictions on HFCS-heavy sodas and foods. Food companies are facing pressure to reduce or remove HFCS from products due to changing consumer preferences for healthier options. These health and regulatory issues pose a significant threat to the future prospects of the high fructose corn syrup market.
Strong growth of sugar substitutes restrains the market growth
Another constraint is the rapidly growing market for sugar substitutes that can directly compete with HFCS. Stevia, monk fruit, allulose, and other zero-calorie natural sweeteners are gaining popularity as healthier sugar alternatives and are increasingly replacing HFCS in foods and drinks. Sugar alcohols like erythritol are also competing for shelf space. Many global food giants are investing in expanding their sugar substitute offerings. The strong performance of these alternatives is a challenge to the high fructose corn syrup market as it could dampen demand growth over time. Their lower-calorie and ‘natural’ positioning may damage HFCS' public image further.
Expanding beverage industry offers opportunities
One key opportunity lies in tapping the expanding global beverage industry. Soft drinks remain one of the largest applications of HFCS and the booming bottled water, energy drink, fruit juice, and other beverage segments in developing nations provide vast scope to boost HFCS consumption. Beverage giants are innovating new flavors and varieties, from sparkling waters to vitamin drinks, suited to local tastes. This vibrant sector presents tremendous potential to introduce more HFCS-containing formulations and increase market penetration in emerging territories where per capita beverage consumption is rising exponentially.
Innovation in HFCS production methods presents opportunities
Developing novel production methods could open up new opportunities. For example, HFCS manufacturers are experimenting with enzymatic and fermentation technologies to modify starch substrates and alter the fructose profile of HFCS. This allows tailoring HFCS properties like sweetness, texture, and browning behavior for specific applications. Innovation also aims to enhance yields and reduce agricultural dependence on corn. New production strains and extraction techniques to utilize alternative feedstocks present avenues to lower costs, expand supplies and boost the versatility of HFCS. Technological progress helps overcome criticisms around corn subsidies and agricultural footprint, strengthening the market position of HFCS.
Link: https://www.coherentmarketinsights.com/market-insight/high-fructose-corn-syrup-market-1227
Key Developments
- In 2023, Mintec announced the launch of new delivered benchmark prices for High Fructose Corn Syrup (HFCS), Dextrose, and Sugar. These new benchmark prices are designed to provide market participants with greater transparency and more accurate pricing information for these key commodities.
- In 2022, Archer Daniels Midland Company (ADM), a leading player in the nutrition and sustainable solutions industry, announced that it will significantly expand starch production at its facility in Marshall, Minnesota, United States.
- In 2021, Archer Daniels Midland Company (ADM), a global leader in nutrition and agricultural origination and processing, completed the acquisition of Sojaprotein, a leading European provider of non-genetically modified organism (non-GMO) soy ingredients.
- In 2021, Archer Daniels Midland Company (ADM), a global leader in nutrition and agricultural origination and processing, completed the acquisition of Deerland Probiotics & Enzymes, a trusted global provider of dietary supplements using probiotic, prebiotic, and enzyme technology.
Key Players
AGRANA Beteilgungs AG, Archer Daniels Midland Company, Cargill Inc., COFCO Rongshi Bio-technology Co. Ltd, Global Sweeteners Holdings Limited, Ingredion Incorporated, Japan Corn Starch Co., Ltd., Kerry Group Plc, Roquette Freres, Showa Sangyo and Tate & Lyle Plc., Sinofi, and Gateway Food Products
