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High Fructose Corn Syrup Production in the US Industry Market Research Report Now Available from IBISWorld
  • USA - English


News provided by

IBISWorld

Jan 30, 2015, 12:00 ET

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New York, NY (PRWEB) January 30, 2015 -- Over the past five years, the High Fructose Corn Syrup Production industry has contracted due to a decline in consumers' per capita consumption of products containing high fructose corn syrup (HFCS). Many health-conscious individuals have become wary of consuming products with HFCS, due to the ongoing debate regarding whether products containing HFCS cause weight gain, diabetes and heart disease. Due to limited consumer demand, US production of HFCS declined between 2010 and 2013, according to the latest available US Department of Agriculture data.

While many operators have benefited from corn subsidies in the past, the industry will likely contend with strong grain prices reducing US subsidies over the next five years.

Post this

In 2015, industry revenue is expected to decline despite an uptick in HFCS production. Overall, growth in production can be attributed to the advent of new enzymes, which are expected to bolster the efficiency of converting starches into products like HFCS. According to IBISWorld Industry Analyst Sarah Turk, “While the inundation of new enzymes into the market will buoy industry operators' profitability, HFCS producers will still grapple with limited demand from some upstream industries.” Additionally, as the Soda Production industry, which accounts for much of the demand for HFCS, has become increasingly concentrated over the past five years, soda manufacturers have been better able to secure low HFCS prices, cutting into this industry’s revenue. During the five years to 2015, industry revenue and profitability are both expected to contract overall, despite investments in cost-cutting strategies such as the development of new enzymes.

“While many operators have benefited from corn subsidies in the past, which enabled operators to access low-cost corn in bulk, the industry will likely contend with strong grain prices reducing US subsidies over the next five years,” says Turk. This trend, which may be partly attributable to ethanol production supporting a rise in corn prices, may cut into the industry's access to low-cost cornstarch. Consequently, industry revenue is expected to continue its decline through 2020, albeit at a slower rate than during the previous five years.
For more information, visit IBISWorld’s High Fructose Corn Syrup Production in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

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, such as soft drinks, baked goods and syrups.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]

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