Not so sweet: Demand for industry products will decline as health-conscious consumers avoid sweeteners

The High Fructose Corn Syrup Production industry expanded only slightly over the past five years as it encountered multiple challenges. As health-conscious consumers move away from sodas toward fresh and unprocessed foods, the industry experienced decreased demand and has subsequently lowered annual production. Nevertheless, HFCS is still considered a low-cost substitute for sugar, maintaining its ubiquitous presence in US sodas and confectionery goods. The High Fructose Corn Syrup Production industry is expected to grow over the next five years. Marketing efforts will work to negate the stigma that HFCS is less healthy than traditional sugar. Operators also benefit from corn subsidies, enabling operators to access low-cost corn in bulk...purchase to read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 12-17
0.3%
Forecast Growth 17-22
Profit
Employment
2,601
Businesses
53

Industry Threats & Opportunities

  • Due to limited consumer demand, industry product sales have dropped
  • The price of corn has ultimately decreased, lowering industry input costs
  • Changes in consumer preferences will shape demand for products that contain HFCS
  • Industry Report - Industry Locations Chapter

    Industry establishments are generally concentrated in regions where key ingredients are grown. As a result, the Plains region accounts for an estimated 36.4% of industry establishments. This region of the United States contains 50.0% of the nation's corn farmers. As corn is the principle input required to manufacture HFCS, the Plains region is a highly popular location for HFCS manufactures. Iowa, in particular, makes up an estimated 18.2% of establishments, despite the fact that it holds only 1.0% of nation's population.The Great Lakes region accounts for an estimated 19.7% of establishments, and it has a stronghold on the industry due to its prime location. Not only does the region contain 30.0% o...purchase to read more.

    Additional Insights for the High Fructose Corn Syrup Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the High Fructose Corn Syrup Production Industry are

  • Supply contracts in place for key inputs
  • Economies of scale
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Per capita sugar and sweetener consumption and Per capita soft drink consumption in the High Fructose Corn Syrup Production industry impact industry performance..

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    What's in this report

    What is the High Fructose Corn Syrup Production Industry?

    Operators in this industry manufacture high fructose corn syrup (HFCS), a sweetener made from milled corn, which is used as a major input for downstream food production of items such as soft drinks, baked goods and syrups.

    Industry Products
  • HFCS-55 (55.0% Fructose, 45.0% Glucose)
  • HFCS-42 (42.0% Fructose, 53.0% Glucose)
  • HFCS with higher fructose content
  • Industry Activities
  • Manufacturing HFCS-42
  • Manufacturing HFCS-55
  • Manufacturing HFCS-90
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita sugar and sweetener consumption
  • Per capita soft drink consumption
  • Price of corn
  • Price of sugar
  • Trade-weighted index

  • Current Performance
  • Perceptional influence
  • Input commodities
  • International trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Sweeter deals
  • International trade
  • Table: High Fructose Corn Syrup Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - High Fructose Corn Syrup Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Cereal Production
  • Candy Production
  • Bread Production
  • Cookie, Cracker & Pasta Production
  • Snack Food Production
  • Syrup & Flavoring Production
  • Soda Production
  • Juice Production

  • Key Selling Industries
  • Corn Farming
  • Corn, Wheat & Soybean Wholesaling

  • Products & Services
  • HFCS-55 (55.0% Fructose, 45.0% Glucose)
  • HFCS-42 (42.0% Fructose, 53.0% Glucose)
  • HFCS with higher fructose content
  • Chart: High Fructose Corn Syrup Production Industry Products and Services Segmentation

  • Demand Determinants
  • Downstream demand
  • Sweetener substitutes

  • Major Markets
  • Beverage manufacturers
  • Other processed food manufacturers
  • Exports
  • Cereal and bakery producers
  • Dairy product producers
  • Confectionery producers
  • Chart: Major Market Segmentation for the High Fructose Corn Syrup Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs High Fructose Corn Syrup Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the High Fructose Corn Syrup Production Industry

  • Industry Globalization
    Archer Daniels Midland Company, Cargill Inc., Tate & Lyle PLC, Ingredion,
  • Table: Archer Daniels Midland Company - financial performance
  • Table: Cargill Inc. - financial performance
  • Table: Tate & Lyle PLC - financial performance
  • Table: Ingredion - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the High Fructose Corn Syrup Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the High Fructose Corn Syrup Production Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Per capita sugar and sweetener consumption (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Economies Of Scale
  • The increase in efficiency of production as the number of goods being produced increases.
  • Hfcs-42
  • HFCS-42 is composed of 42.0% fructose, 53.0% glucose and 5.0% percent other sugars/polysaccharides.
  • Hfcs-55
  • HFCS-55 is composed of 55.0% fructose, 42.0% glucose and 3.0% percent other sugars/polysaccharides.
  • High Fructose Corn Syrup (Hfcs)
  • Sweet syrup derived via an enzymatic process to convert its naturally occurring glucose into fructose.
  • Vertical Integration
  • Owning different parts of the supply chain, either in the form of forward integration (owning upstream suppliers) or backward integration (owning downstream buyers).
  • What Our Customers Say

    Why buy this report?

    The High Fructose Corn Syrup Production Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on High Fructose Corn Syrup Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The High Fructose Corn Syrup Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on High Fructose Corn Syrup Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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