High fructose corn syrup (HFCS) is a type of sweetener made from corn starch, which is processed by glucose isomerase to help convert glucose into fructose. HFCS was first marketed by Clinton Corn Processing Company with the Japanese Agency of Industrial Science and Technology in the 1970s, and was first discovered in 1965.
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HFCS is used as a sweetener over granulated sugar, as it is relatively easier to handle and more cost-effective than sugar. The United States Food and Drug Administration approved HFCS as a safe ingredient for food and beverage manufacturing. The demand for HFCS is thus increasing, in turn, boosting growth of the global high fructose corn syrup market.
However, overconsumption of added sugar in any form, including HFCS, is a major health concern, resulting in the onset of obesity. The World Health Organization recommends that people limit their consumption of added sugars to 10% of calories. However, according to experts typical consumption of empty calories is nearly twice that level in the U.S. As HFCS has a profile similar to sugar and costs lesser than sugar lower price, it is illegally used to stretch honey. These factors pose as a major restraints for growth of the high fructose corn syrup market. Furthermore, HFCS is associated with other health complications and should be avoided by those suffering from fructose malabsorption.
Several manufacturers operating in the high fructose corn syrup market are adopting various inorganic strategies such as mergers, acquisitions, and geographic expansion to enhance overall growth.
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Tate & Lyle, in January 2018, announced expansion and relocation of its food application laboratory and customer-facing facilities in Mexico, and released a new sweetener for the Mexican market. The company claims that this will allow manufacturers in the dairy, beverage, bakery, soup, and sauce sectors to develop and trial new ingredients and formulas to cater to the growing demand of customers.
In April 12, 2018, Tate & Lyle announced that it has expanded its product portfolio in Latin America, with the introduction of a new sweetener called Dolcia Prima Allulose. This is a low-calorie sweetener with 70% of the sweetness of sucrose.
Furthermore, in March 2018, Tate & Lyle doubled the size of its food application laboratory in Shanghai, China and included new customer-facing facilities.
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