Scientia Agricultura Sinica ›› 2013, Vol. 46 ›› Issue (22): 4829-4836.doi: 10.3864/j.issn.0578-1752.2013.22.021

• AGRICULTURAL ECONOMY & MANAGMENT • Previous Articles     Next Articles

Competitive or Complementary? The Adoption Trend of Starch-Based Syrups and Sugar in Food and Beverage Manufacturing

 SI  Wei-1, ZHU  Hai-Yan-12   

  1. 1.College of Economics and Management, China Agricultural University, Beijing 100083
    2.School of Economics and Management, Qingdao Agricultural University, Qingdao 26619, Shandong
  • Received:2013-05-03 Online:2013-11-15 Published:2013-07-23

Abstract: 【Objective】 The objective of this paper is to investigate the likely adoption rate of starch-based syrups (SBS) in food and beverage manufacturing, project the demand growing trend of SBS and assess its economic implications for major sweetener industry participants. 【Method】 The logistic growth model that is based on the theory of innovation adoption was emploged to investigate the time pattern of adoption for SBS, and the demand model was used to project the demand for sugar and SBS. 【Result】 China’s sugar and sweetener demand are still at an expanding phase. The market shares of SBS would continue to increase rapidly about ten years with a lower growth rate compared to the previous decade. The growing SBS consumption will decrease the growth rate of demand for sugar, and change the caloric sweetener market structure which is dominated by sugar. The results also show that the decreased manufacturing costs due to the use of SBS should be passed to consumer in lower retail prices. This would make sugar demand more elasticity. The impact account for increasing adoption SBS in food and beverage manufacturing on corn market will be small. 【Conclusion】 The consumption growth of SBS ultimately depends on decreased manufacturing costs due to the use of SBS. Under current market conditions, SBS and sugar are complementary to some extent, rather than simply competitive.

Key words: starch-based syrups , sugar , food and beverage manufacturing , trend project

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