By: Saravanan V -- Customer Success Lead
01 January, 2017
The European sugar industry wason the verge of being liberalized with the expiry of the existing quota regime in September 2017. Themove was expected to unleash capacity expansions and increase plant utilization in the starch sweeteners market, particularly in the sugar and isoglucose industry. The new regime is likely to ease sugar production limits,relax regional trade restrictions and may prompt substitution, by buyers of sugar with isoglucose. Up to this point, isoglucose, a starch sweetener primarily produced from maize, has accounted for fewer than 5percentof the European starch sweeteners market due to quota-based production. This is far lower than >30percent penetration inother major consumption centers such as the U.S. and China.
Liberalization of starch sweetener market along with
I.Increase in maizesupply
II.Scope for price differenceof 50-100EUR/MT between isoglucose and sugarprices in the coming years based on raw material price
III.Scope for awareness amongconsumersIV.Expansion plans, mainly inHungary
European sugar production is likely to be impacted by several changes post liberalization of the sector. In particular: