(1) Isoglucose will become a rather competitive
product. The EU sugar industry will have to give up about
40% of its current processing and profit margin in order
to sell sugar at the same price as isoglucose will be traded;
(2) Once industrial sugar users move to isoglucose, they will
tend to be “hooked-in,” giving the sugar industry a strong
incentive to defend its market share; and (3) Since only
about 30% of the current sugar market is able to switch to
isoglucose, the sugar industry has the option to practice a
mixed calculation. In an extreme scenario, the industry may
even opt to cross-subsidize sales. Therefore it’s not clear
whether investors in isoglucose will be able to gain a major
market share in Europe.