Domestic HFCS industry: focus should be shifted from carbonated beverage Summary: Domestic HFCS producers should shift their focus from carbonated beverage industry in the future. Tags: HFCS, carbonated beverage, soft beverage, growth rate decrease of output It is suggested that demand for HFCS from domestic carbonated beverage industry is crucial for domestic HFCS producers. For example, according to Starch & Starch Sugar, a professional magazine published by China Starch Industry Association, about 42% of the total output of HFCS in China was used to produce carbonated beverage in 2011. Data from CCM’s newly-released monthly report, Sweeteners China News 1302, showed that China's output of HFCS in 2011 was 1.89 million tonnes, which means about 0.79 million tonnes of HFCS were consumed by domestic carbonated beverage industry. However, it is believed that domestic carbonated beverage industry was affected by the growth rate decrease of soft beverage output in 2012. According to the National Bureau of Statistics, it is estimated that China's output of soft beverage was 130.24 million tonnes in 2012, just increasing by 10.7% over 2011, about 7 percentage points lower than the growth rate of 2011. As a member of soft beverage industry, it is believed that carbonated beverage also witnessed growth rate decrease of output in 2012. It is predicted that more and more Chinese will choose healthier lifestyle. As a result, domestic total output of carbonated beverage may continue to increase in the next several years, but the increase rate may be small. Thus carbonated beverage industry may not be able to bring as many opportunities as it did in the past years for domestic HFCS industry in the future. In fact, most domestic HFCS producers excessively emphasized the beverage industry, especially carbonated beverage industry in China. Meanwhile, domestic HFCS producers are facing one serious problem, namely overcapacity. According to CCM's investigation, domestic capacity of HFCS was about 4.0 million t/a in 2012, while its national output was just about 2.2 million tonnes in 2012, which means the average operating rate of domestic HFCS producers was only 55% in 2012. Actually, HFCS can be added into many other downstream products, which means that development space of HFCS in China is still large. In order to explore new downstream market and release their large capacity, it is believed that domestic HFCS producers should pay more attention to the research of the downstream application of HFCS, such as canned food and baked food, and not just pay much attention to carbonated beverage industry or beverage industry. Table content of Sweeteners China News 1302: National Food Safety Standards of Sorbitol came into force on 25 Jan. 2013 Guilin Layn substantially modifies its net profit expectations Baolingbao acquires financial subsidy of USD1.98 million
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