ISOGLUCOSE
Introduction. Isoglucose is an alternative sweetener made from starch
(principally from maize). Its use in the USA (where it is known as High
Fructose Corn Syrup (HFCS)) expanded rapidly in the early 1980s, where its
principle use was as a cheaper sweetener to sugar in soft drinks. This article
provides an introduction to how isoglucose is made and the extent of its
current use in the EU. It then considers how we can expect the isoglucose
market to develop once the current quota is removed in 2017.
The first step in the production of isoglucose (also commonly known as
High Fructose Corn Syrup; HFCS) is the breaking down of starch chains by
the addition of an enzyme to produce corn or glucose syrup. This isn’t as
sweet as typical sugar and some of the glucose is converted, using an
enzyme into fructose. The resultant glucose-fructose mix is isoglucose or
HFCS (Fig.1).
Starch chain
enzyme converts starch into
corn syrup (nearly 100%
glucose)
Corn (glucose)
syrup
(nearly 100%
glucose)
Corn syrup isn't as sweet as
sugar (sucrose) so some glucose
is converted to fructose
+ enzyme converts glucose into
fructose + glucose mixture
Glucose
Fructose
This is High
Fructose Corn
Syrup (HFCS) or
ISOGLUCOSE
Contains about 24%
water
Fig 1. Chemistry of isoglucose
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Isoglucose has individual glucose and fructose molecules that form the
preparation. Sugar (sucrose) on the other hand consists of a glucose and
fructose bond chemically joined together (Fig. 2).
Fig. 2. Differences between isoglucose and sugar (sucrose).
The advantages and disadvantages of isoglucose are shown in the table
(Fig. 3). Isoglucose is a very versatile ingredient and has proven particularly
popular in the US where it is predominantly used as a sweetener in soft
drinks. Disadvantages relate to taste differences resulting from isoglucose
and concerns over health (i.e. weight gain and obesity).
ADVANTAGES
DISADVANTAGES
Stable when used in acidic
It is a liquid - storage and transport
(carbonated soft drinks)
difficulties
Doesn't crystallize in food
Upto 25% water - effectively
transporting water
Imroves texture (e.g. chewy cereal
bars)
Doesn't add structure to food
Maintains constant moisture
Taste differences (e.g. Cola drinks in the
USA)
Helps food brown better when
cooked
? Health concerns
Fig. 3. Advantages and disadvantages of isoglucose.
Isoglucose is a broad term to describe several common mixes of fructose
and glucose. The higher the fructose content, the sweeter the resultant
mix. The most widely used is known as HFS 55 (55% fructose; 42% glucose;
3% other sugars) and is principally used in soft drinks. It has similar
characteristics to honey (and has been illegally used to ‘stretch’ or pass off
as honey). A lower fructose preparation (HFS 42) is used in isotonic drinks
(see Fig. 4).
Isoglucose mix table
Name
Fructose (%) Glucose (%)
Other sugars Principle uses
HFS 55
55%
42%
3%
Carbonated soft drinks
HFS 42
42%
53%
5%
Isotonic and fruit flavoured
(non carbonated) drinks
1%
Bakery preparations (and to
blend into HFS 55)
HFS 90
90%
9%
Fig. 4. Principal types of isoglucose.
Currently the majority of world isoglucose production is in the United
States where it is cheaper to produce than sugar. Production quotas and
import tariffs have kept internal prices high whereas maize prices (the
source of isoglucose) are low due to internal subsidies.
Isoglucose is used in 93% of soft drinks in the US. The major cola
manufacturers began using isoglucose in the late 1970s, with full
switchover complete by 1985. Sixteen percent of bakery items contain
isoglucose and in dairy products a quarter of those sweetened contain the
sweetener.
The mix of sweeteners used in the US is shown in Fig. 5.
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Fig. 5. Per capita consumption of sweeteners in the US since 1970.
Isoglucose consumption rose rapidly in the 1980s as a result from its
ubiquitous use in soft drinks, although since a peak in 2000 consumption,
as with all major sweeteners has begun to fall. This probably relates to
consumers switching to diet-type soft drinks.
ISOGLUCOSE: THE EU
Currently the EU places a production quota on isoglucose (0.67m tonnes
p.a.), which roughly equates to around 5% of the EU sugar quota of 13.3m
tonnes. It is used in about 14% of soft drinks. Production is from existing
starch factories that have not been constructed solely to produce the
sweetener. Only 10% of starch becomes isoglucose, with production
predominantly from the centre and south east of Europe (Hungary, Bulgaria
and Slovakia; Fig. 6). Belgium is another centre of manufacture.
ISOGLUCOSE COST CARD 1t Isoglucose
ISOGLUCOSE QUOTA PRODUCTION EU
Maize price (EUR / tonne)
€ 90.00
€ 120.00
€ 150.00
€ 180.00
Raw material cost (net of by-product income)
€ 78.02
€ 109.56
€ 141.10
€ 172.64
Production cost
€ 260.00
€ 260.00
€ 260.00
€ 260.00
Total production cost
€ 354.92
€ 388.04
€ 421.16
€ 454.27
> 200
Price (incl 8% mark-up)
€ 383.31
€ 419.08
€ 454.85
€ 490.61
> 100
Current EU sugar price
€ 453.00
€ 453.00
€ 453.00
€ 453.00
Tonnes p.a. (k)
50 - 100
0 - 50
Top producers
Hungary - Agrana (225k t)
Belgium - Tereos (120k t)
Bulgaria + Slovakia - Tate & Lyle (150k t)
Fig. 6 European isoglucose production.
The opportunity for growth in isoglucose production is dependent on three
principle factors:- (i). the price of maize as a raw material; (ii). the EU sugar
price and (iii). The availability and cost of investment capital of building
more isoglucose factories.
The table below (Fig. 7) shows how attractive isoglucose as an alternative
sweetener becomes given changes in the maize price. At a maize price of
€150 / t cost of production is approximately the same to the current sugar
price (Jan 2015). However, this ignores the significant investment required
to produce more isoglucose which is likely to be significant.
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MAIZE PRICE EUR / t
1.66 tonnes of maize makes 1 tonne of isoglucose
Fig. 7. Isoglucose costs of manufacture and comparison with sugar.
In summary, the following points summarise the key issues in regard to
isoglucose in a post quota environment:
- The current low EU sugar prices results in isoglucose being equal or
more expensive to produce
- The large amounts of capital needed to increase isoglucose
production are constrained in an environment of low sugar prices
(better return from other investments)
- Production is currently away from areas of potential demand (cost
of transport)
- Potential expansion of the EU beet crop provides excess capacity
(and low prices)
- A reduction in maize prices would alter this position (maize price is
rising)
- With so much cheap sugar around, demand is likely to be modest
In conclusion, the expected continuation of low world and EU sugar prices
is likely to halt any significant increase in isoglucose production. A growth
of 1m tonnes p.a. to around 1.75m tonnes p.a. is expected.