2. Sweeteners China News
Vol.1 Issue 01 2011 Publication date: 20 June, 2011
CONTENTS Welcome to the June issue of Sweeteners
China News, specially published by CCM
International.
News in Brief
1 Public notice on export quota bidding issued
The average cane sugar price in China on 15 June 2011 was
1 Meilun Medical obtains government subsidy
USD1,114/t (RMB7,217/t), down 4% over the average price
1 CFIA holds a meeting of starch sugar in Beijing
on 10 November 2010—when the price is the highest in
1 Haizhina to build an organic maltose syrup project in Jiangxi
the past several years, according to the China Sugar Index
1 Problems hinder domestic HFCS development
from www.yntw.com—a famous sugar website in China.
1 Prices of corn starch and syrup may increase again in H2 2011
However, the current price still stays at a high level, and it
Market Dynamic is estimated that the sugar price will remain at a high level
2 Overview of production and market of sucralose this year, higher than USD1,080/t (RMB7,000/t).
Company Dynamic
3 Anhui Jinhe passes IPO examination and approval Certainly, such market situation provides an opportunity
4 Gansu Puhua to launch stevioside production lines for sweeteners—the sugar substitutes and most of them
5 Guilin Layn to turn loss into gain have lower unit sweetness price over sucrose. And the
5 Mengzhou Huaxing launches trial production of aspartame production lines players in the industry are optimistic about the future
6 Baolingbao smoothly expands erythritol capacity development of sweeteners, especially high intensity
Raw Material Supply sweeteners (HIS, which is one main focus in this issue):
7 GLG builds a breeding and cultivation centre of stevia according to a survey from CCM which is also referred in
the article below in this issue, most respondents believe
Price Update
8 Ex-factory prices of Chinese sweeteners, June 2011
that HIS will perform well in China and Asia Pacific in the
next 3-5 years. Meanwhile, the recent dynamics of many
Import & Export Analysis processors, such as Anhui Jinhe, Mengzhou Huaxing and
9 Import & export analysis of Chinese saccharin in Jan.-Apr. 2011
Gansu Puhua, also prove that they are optimistic about the
10 Import & export analysis of Chinese cyclamate in Jan.-Apr. 2011
HIS segment, which is an apparent signal for the industry.
Consumption Trend & Competitiveness
11 HIS believed to enjoy good development in the future If there are any specific topics you would like us to cover
or investigate any of the subjects covered in more details,
please contact us by +86-20-37616606, or econtact@
cnchemicals.com.
Future of Functional Oligosaccharide Market
CCM’s Market Reports in China
Announcement
Production and Market of Inulin in China
For more details, please contact CCM at Production and Market of Sucralose in China
econtact@cnchemicals.com
CCM’s Market Reports The Survey of Sorbitol in Asia Pacific
Announcement Production and Market of Xylitol in China
For more details, please contact CCM at
Production and market of Stevia Sweetener
econtact@cnchemicals.com in China
3. Sweeteners China News
Vol.1 Issue 01 2011
Sweeteners China News at a glance CFIA holds a meeting of starch sugar
China's sucralose industry will continue to develop in the next few
years.
in Beijing
Anhui Jinhe has successfully passed the IPO examination and
approval on May 20th 2011. O n 19 May 2011, China Fermentation Industry Association (CFIA)
held a meeting of starch sugar in Beijing. The Secretary General
of CFIA explained some national policies which are concerned with
Guilin Layn may turn loss into gain in H2 2011, thanks to its the starch sugar industry. Most delegates believed that though
rapidly increasing sales of momordica glycosides.
the National Policy Adjustment of Corn Industry will bring some
Mengzhou Huaxing is putting its aspartame production lines into unfavourable factors to the starch sugar industry, the government
trial production. will strongly support the new industries including the starch sugar
Gansu Puhua may launch its stevioside production lines in H2 industry in the future. That is to say, the starch sugar industry will
2011. face new challenges while enjoy new opportunities for development
at the same time.
Baolingbao has been expanding its erythritol capacity, which will
reach 4,000t/a by Aug. 2011.
GLG has built a breeding and cultivation centre of stevia in Anhui Haizhina to build an organic maltose
in June 2011.
The result of a survey by CCM shows that most respondents view
syrup project in Jiangxi
the demand for high intensity sweeteners in China and Asia Pacific
Area will enjoy a good development in the future. I n late May 2011, Yiwu Haizhina Bioengineering Co., Ltd.
(Haizhina), a producer and seller of rice protein, has signed a
preliminary agreement with Wanzai Government which is located
in Jiangxi Province. According to the agreement, Haizhina plans
to invest USD23.19 million to build the first organic maltose syrup
project in China; the organic maltose syrup capacity of the company
will reach 20,000t/a when the project is finished.
News in Brief Problems hinder domestic HFCS
News in brief development
D omestic High Fructose Corn Syrup (HFCS) Forum of Market
and Development was held in Beijing on 19 May 2011. It is
Public notice on export quota bidding reported that there are four problems that hinder the development of
HFCS in the domestic market.
issued
Firstly, HFCS capacity is growing too fast.Secondly, raw materials
I n late May 2011, the Ministry of Commerce (MOC) issued a public
notice, according to which, from June 2011, the government would
issue a bidding announcement about 2011's export quota of licorice
of HFCS are lacking in supply.Thirdly, downstream application is
limited.Finally, government toughens the policies on environmental
protection, so producers need to make more efforts to meet the
and licorice products; those processors who meet the requirements requirements of environmental protection and energy saving.
in the notice can send their applications to the provincial office of
MOC to bid for the export quota.
Prices of corn starch and syrup may
Meilun Medical obtains government increase again in H2 2011
subsidy
M r. Kong, President of Global Sweeteners Holdings Limited
(Global Sweeteners), predicts that prices of corn starch and
I n early June 2011, Tianjin Meilun Medical Co., Ltd. (Meilun
Medical), a private pharmaceutical company based in Tianjin,
revealed that the company obtained a subsidy of about USD0.77
syrup will both increase again in H2 2011, since the purchase price
of corn may increase by 15% in 2011. Besides, Global Sweeteners
plans to build a new production line of 55% high fructose corn syrup
million (RMB5 million) from the local government, because the with the capacity of 100,000t/a in Q1 2012 and expand its crystalline
company invested a lot and successfully launched a new production glucose capacity by 100,000t/a in the future.
system which can produce premium stevioside. The company’s
premium stevioside includes two types: one type is with glucoside
content and stevioside A (Reb-A) content of 99%+ and 95%+
respectively, and the other is with glucoside content and Reb-A
content of 95%+ and 90%+ respectively.
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1
4. Sweeteners China News
Vol.1 Issue 01 2011
Market Dynamic
Overview of production and market of sucralose
C urrently, with the increasing
overseas sucralose demand, Chinese
producers have been actively operating
FIGURE 1: Export volume of sucralose in China, 2006-2010
2,000
their sucralose production lines or
expanding their sucralose capacity since
domestic sucralose producers effectively 1,600
won the No.337-TA-604 investigation
launched by Tate & Lyle in the US on 6
Unit:tonne
1,200
April 2009. And the export volume of
sucralose has a rapid growth after 2009.
800
JK Sucralose Inc. (JK Sucralose),
the largest professional sucralose 400
manufacturer in China and the second
largest in the world, has finished the
second phase project in June 2010 and 0
has successfully achieved the expected 2006 2007 2008 2009 2010
capacity in May 2011. Meanwhile, in Capacity: t/a Output : tonne
order to meet the increasing market
demand for sucralose, JK Sucralose has Source: CCM International
started the third phase project which
includes three production lines. It is
estimated that the sucralose capacity will FIGURE 2: Sucralose production in China, 2006-2010
get 800t/a by the end of 2011, then to
1,000t/a by the end of 2012 and finally
500
reach 4,000t/a by the end of 2018.
400
Changzhou Niutang Chemical Plant Co.,
Ltd. (Changzhou Nituang), one of the
Unit:tonne
300
major domestic sucralose producers,
has a subsidiary engaged in sucralose
200
production, namely Nantong Changhai
Food Additive Co., Ltd. (Nantong 100
Changhai). In 2010, the sucralose
capacity and output of Changzhou 0
Niutang are 100t/a and 60 tonnes, 2006 2007 2008 2009 2010
while those of Nantong Changhai are
100t/a and 50 tonnes, respectively.
What's more, it is reported that Source: CCM International
Changzhou Niutang planned to expand
its sucralose capacity by 1,000t/a. Then,
sucralose capacity and output are sucralose is more than 600 tonnes,
it is estimated that the total capacity of
300t/a and 60 tonnes, respectively, increasing by about 50% over 2009
Changzhou Niutang will reach 1,100t/a
and it has planned to further expand its thanks to the recovered demand from
when the expansion is finished.
sucralose capacity in the future, based overseas market.
on the currently increasing demand for
Techno (Fujian) Biotechnology Co.,
sucralose. Currently, China has witnessed booming
Ltd. (Fujian Techno), also one of the
sucralose export. From 2006 to 2010,
major domestic sucralose producers,
The chart (FIGURE 1) shows that both the export volume (FIGURE 2) showed
is a subsidiary of Techno (Guangzhou)
the output and capacity of sucralose a general trend of escalation, though
Biotechnology Co., Ltd. (Guangzhou
in China have increased from 2006 in 2009 it decreased a little than that
Techno). In 2010, Fujian Techno's
to 2010. And in 2010, the output of in 2008. Because of the 337 patent
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5. Sweeteners China News
Vol.1 Issue 01 2011
investigation which hit China's sucralose market from capacity utilization is raised, the total capacity of sucralose
2008 to 2009, producers in China exported less sucralose. will increase a lot. Because the price of sugar in China
After Chinese producers won the investigation on 6 April still stays at a high level even though the government has
2009, domestic export has gradually recovered and a new already taken action to stabilize it, more and more food
export record is set in 2010. Since sucralose is widely producers will prefer to choose high intensity sweeteners
used, the export is promoted with its increasing overseas (HIS), which can significantly decrease the production
demand. cost compared with that of using sugar. Therefore, this
situation is favorable to the consumption of HIS. With
Generally, it is estimated that China's sucralose industry the development of sugar-free foods and the extensive
will develop gradually in the future. When the processing application of HIS, the demand for sucralose both at home
construction projects of sucralose is finished and the and abroad will grow in the next few years.
Company Dynamic
Anhui Jinhe passes IPO examination and approval
A nhui Jinhe Industrial Co., Ltd. (Anhui Jinhe), engaged
in producing acesulfame-K, maltol and ethyl maltol,
has successfully passed IPO (Initial Public Offerings)
acesulfam-K's quality in recent years, which strengthens its
competitiveness in the acesulfame-K market. Meanwhile,
Anhui Jinhe had increased its acesulfame-K capacity from
examination and approval on May 20th 2011. 1,800t/a in 2008 to 4,000t/a in 2009. In order to expand
the market share of acesulfame-K in sweetener market,
Anhui Jinhe plans to raise about USD111 million through Anhui Jinhe expects to expand the acesulfam-K capacity as
IPO to expand its acesulfame-K capacity from 4,000t/a soon as possible.
to 9,000t/a and to construct a new workshop of calcium
ammonium nitrate with the capacity of 200,000t/a. Anhui From 2006 to 2010, the capacity of acesulfame-K has
Jinhe may formally issue its stocks at Shenzhen Stock increased from 13,620t/a to 20,520t/a with a CAGR of
Exchange before the end of 2011 thanks to the following 10.79%, while the output has decreased from 7,325 tonnes
advantages: steadily increasing assets, sufficient circulating to 4,185 tonnes with a CAGR of -13.06%. Before 2008,
funds, strong debt paying ability and excellent profitability seeing the price increasing year by year, some producers
forecast on the core businesses, especially acesulfame-K. poured in acesulfame-K production or excessively enlarged
their production capacity. At that time, intense competition
Major reasons for Anhui Jinhe's expansion in acesulfame-K between producers and the impact from overseas rivals
capacity are as follows. have led to the oversupply in the acesulfame-K industry,
resulting in low operating rate and shrunken output.
Demand for acesulfame-K has been increasing because What's worse, the global financial crisis since 2008 has
of the fast growth of China's food industry especially the impacted the development of Chinese acesulfame-K
beverage industry in recent years. industry; demand both at home and overseas is not as
brisk as it was in previous years.
As a safe sugar substitute, demand for acesulfame-K from
above 100 million of domestic diabetics has also been However, Anhui Jinhe will face some risks, such as
increasing. much stricter supervision on food additives, fluctuating
cyclamate price and RMB exchange rate.
Anhui Jinhe has been investing in the improvement of
TABLE 1: Basic information about major acesulfam-K producers in China, 2011
No. Company name Abbreviation Location Capacity '11
1 Suzhou Hope Technology Co., Ltd. Suzhou Hope Jiangsu 10,000
2 Anhui Jinhe Industrial Co., Ltd. Anhui Jinhe Anhui 4,000
3 Shandong Minghui Food Co., Ltd. Shandong Minghui Shandong 2,500
4 Zhejiang Hangzhou Sanhe Food Co., Ltd. Hangzhou Sanhe Zhejiang 2,000
5 Beijing VitaSweet Co., Ltd. Beijing VitaSweet Beijing 1,200
6 Jiangsu Suzhou Peacock Food Additive Co., Ltd. Suzhou Peacock Jiangsu 1,500
7 Jiangxi Beiyang Food Addiitive Co., Ltd. Jiangxi Beiyang Jiangxi 1,000
8 Shandong Zibo Golden Science Industry & Trade Co., Ltd. Zibo Golden Shandong 200
9 Guangdong L&P Food Ingredient Co., Ltd. Guangdong L&P Guangdong 120
Total 22,520
Source: CCM International
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6. Sweeteners China News
Vol.1 Issue 01 2011
Gansu Puhua to launch stevioside production lines
G ansu Puhua Stevioside Development Co., Ltd. (Gansu
Puhua), engaged in stevioside production, may
launch its stevioside production lines in H2 2011.
Gansu Puhua will become one of the top six domestic
stevioside producers (TABLE 2) each with the
capacity of above 1,000t/a in China after it launches
its production lines. There are mainly 25 active stevia
Gansu Puhua with the total investment of about USD19 sweetener producers in China by now. PureCircle
million was set up in July 2010 and its five investors (Jiangxi) Co., Ltd. is the biggest one, whose capacity
include: Gansu Pharmaceutical Alkali Factory (Gansu and output reached 4,000t/a and 1,400 tonnes in 2010,
Pharmaceutical Alkali), Gansu Agricultural Reclamation accounting for 29.68% and 35.80% of the total domestic
Group Co., Ltd. (Gansu Agricultural Reclamation Group), capacity and output of stevia sweetener, respectively.
Chengdu Wagott Pharmaceutical Co., Ltd.(Chengdu Moreover, China's stevia sweetener production is mainly
Wagott), Gansu Yasheng Industrial (Group) Co., Ltd. concentrated in Jiangxi Province and Shandong Province.
(Gansu Yasheng) and Gansu Puli Health Products Co.,
Ltd. (Gansu Puli). Gansu Agricultural Reclamation As a natural kind of high intensity sweetener (HIS),
Group is the controlling shareholder of both Gansu stevia sweetener's usage has been approved by more
Pharmaceutical Alkali and Gansu Yasheng, and these and more countries and it has been becoming more and
three companies together hold 70% of Gansu Puhua's more popular in overseas market. Currently, China is
total shares. Moreover, Chengdu Wagott, engaged in the largest stevia sweetener supplier in the world, and
production of plant extracts, holds 20% of Gansu Puhua's around 80% of its total output of stevia sweetener is sold
total shares and it is also a stevioside producer with a to overseas market. From 2006 to 2010, the capacity
capacity of 200t/a. of stevia sweetener has increased from 5,160t/a to
13,475t/a with a CAGR of 27.12%. The booming domestic
Gansu Puhua started the construction of stevioside production is mainly driven by the rising demand from
production lines with total capacity of 1,000t/a at the foreign countries; nowadays, foreigners prefer natural
end of July 2010. Currently, The company has completed food additives to artificial ones. The US, Japan and South
the construction of stevioside production lines and may Korea are the most important stevia sweetener markets
launch them in H2 2011. Meanwhile, Gansu Puhua has in the world. China's stevia sweetener is mainly exported
built a stevia planting base with the total building area to neighboring countries and North America in the past
of about 667 hectares, in order to provide steady and three years. Malaysia, the US, Mexico, South Korea and
sufficient raw materials to its own stevioside production Japan are the most important export destinations of
in the future. China's stevia sweetener.
TABLE 2: Basic information about major stevioside producers in China, 2011
No. Company name Capacity '11 Location
1 PureCircle (Jiangxi ) Co., Ltd. 4,000 Jiangxi
2 Dongtai Runyang Stevia High Tech Co., Ltd. 2,000 Jiangsu
3 Shandong Huaxian Stevia Co., Ltd. 1,000 Shandong
4 Qingdao Runde Biotechnology Co., Ltd. 1,000 Shandong
5 Shandong Haigen Stevia Products Co., Ltd. 1,000 Shandong
6 Gansu Puhua Stevioside Development Co., Ltd. 1,000 Gansu
Total 10,000 /
Source: CCM International
Stevia Export Analysis
CCM’s Trade Analysis
Announcement: Neotame Export Report
Sucralose Export Analysis
For more details, please contact CCM at
econtact@cnchemicals.com Aspartame Export Analysis
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7. Sweeteners China News
Vol.1 Issue 01 2011
Guilin Layn to turn loss into gain
G uilin Layn Natural Ingredients Corp. (Guilin Layn),
engaged in production of plant extracts, may turn
loss into gain in H2 2011, thanks to its rapidly increasing
total sales value of stevioside has reached about USD100
million in 2010 after FDA granted stevia sweetener
the GRAS certification in 2009, according to Mr. Liao,
sales of momordica glycosides (a natural sweetener). General Manager of Guilin Layn. Meanwhile, Guilin Layn
has been preparing for the construction of a new branch
Although it is estimated that Guilin Layn's amount of loss named Layn USA Inc. located in the US since Oct. 2010,
may reach about USD1-1.5 million in H1 2011 according in order to efficiently promote the momordica glycosides
to its financial report of the first quarter of 2011, Guilin in North America. It is predictable that Guilin Layn's
Layn may successfully make a profit in light of the sales value of momordica glycosides may obviously soar
following factors. in H2 2011.
Natural sweeteners, such as momordica glycosides and Moreover, Guilin Layn has completed the construction
stevia sweetener, have become more and more popular and started the trial running of new production lines
among consumers in some developed countries in recent in June 2010. Its processing capacity of raw materials
years, such as the US, Japan and South Korea. will increase from 3,000t/a to 7,000t/a after the new
production lines are formally launched in H2 2011.
Compared with artificial high intensity sweeteners,
natural sweeteners are safer to be used as food additives. Currently, Guilin Layn owns the extraction processes
With the enhancement of consumers' health awareness of about 200 kinds of plant extracts and 18 national
in the world, more and more foods and health products invention patents. Especially, Guilin Layn has got a
will use natural sweeteners as additives. national invention patent of momordica glycosides
extraction as early as 2004, which has laid the root for
Guilin Layn successfully got the GRAS (Generally its currently leading position in Chinese momordica
Recognized as Safe) certification of momordica glycosides glycosides market. Moreover, Guilin is the major
from FDA (Food and Drug Administration of the US) in production area of grosvener siraitia and can provide
April 2011, which is very helpful for Guilin Layn to enter Guilin Layn with sufficient raw materials to produce
the sweetener market in North America. Guilin Layn's momordica glycosides.
Mengzhou Huaxing launches trial production of aspartame
production lines
M engzhou Huaxing Co., Ltd. (Mengzhou Huaxing),
a joint-stock enterprise engaged in the processing
of grain, is putting its aspartame production lines into
(TABLE 3) in China by the end of 2010. Jiangsu
SinoSweet Co., Ltd. (Jiangsu SinoSweet) was the biggest
one with the capacity of 5,000t/a, accounting for about
trial production. 32% of domestic total capacity. Moreover, Chinese
aspartame production was mainly concentrated in
Mengzhou Huaxing began to construct the aspartame Jiangsu Province.
production lines with capacity of 6,000t/a and
investment of about USD54 million at the end of Feb. From 2006 to 2010, domestic capacity of aspartame
2010 and it completed the construction at the end had increased from 10,250t/a to 14,545t/a. As the
of June 2011. Mengzhou Huaxing may become the most popular HIS variety in the world, the demand for
largest aspartame producer in China after it launches aspartame is increasing year by year, thus stimulating
the production lines in H2 2011. The company is domestic aspartame production. Since it's approved by
very optimistic about the prospect of aspartame and the FDA to be used in food and beverage in 1981 and
it expects to gain annual revenue of about USD107 1983 respectively, aspartame has been approved in
million from the aspartame production lines in the over 100 nations and used widely in candies, beverages
future. and dairy products, etc. About 40% of aspartame is
consumed in sugar-free candies and gum candies,
In China, the research on aspartame started in the 35% in beverages in the world. The US is the biggest
early 1980s, but the industrial production had always aspartame production and consumption country in the
been restricted by the shortage of raw material, i.e. world.
L-phenylalanine (L-Phe), which is not relieved until the
Twenty-First Century when the hydantoinase method Moreover, the production of aspartame in China seems
for the synthesis of L-Phe became mature in China. to be more concentrated in some big producers such
as Jiangsu SinoSweet Co., Ltd., Jiangsu Changzhou
There were mainly seven active aspartame producers Niutang Chemical Plant Co., Ltd., etc. Some small ones
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8. Sweeteners China News
Vol.1 Issue 01 2011
have been gradually washed out of the market in recent Based on the above facts, it can be predicted that the
years caused by the insufficient raw material supply and competitiveness among domestic aspartame producers
global financial crisis. may become more intense with Mengzhou Huaxing
launching its aspartame production lines in the future.
TABLE 3: Basic information about major aspartame producers in China, 2010, t/a
No. Company name Capacity'10 Location (Province/City)
1 Jiangsu SinoSweet Co., Ltd. 5,000 Jiangsu
2 Jiangsu Changzhou Niutang Chemical Plant Co., Ltd. 3,000 Jiangsu
3 Changzhou Yabang Kelong Co., Ltd. 2,500 Jiangsu
4 Changmao Biochemical Engineering Co., Ltd. 2,000 Jiangsu
5 Shaoxing Yamei Biochemistry Co., Ltd. 1,000 Zhejiang
6 Beijing VitaSweet Co., Ltd. 1,000 Beijing
7 Wujiang Dechang Food Additives Co., Ltd. 45 Jiangsu
Total 14,545 /
Source: CCM International
Baolingbao smoothly expands erythritol capacity
B aolingbao Biology Co., Ltd. (Baolingbao), a leading
Chinese producer of starch-based products and food
ingredients, has been expanding its erythritol capacity,
(TABLE 4) in China by the end of 2010, with total
capacity and output of 18,500t/a and 4,780 tonnes in
2010, respectively. The average operating rate of them
and the total capacity will reach 4,000t/a by the end is 25.84%, about 11% less than that of 2009. From 2006
of August 2011, according to Mr. Fan, Manager of to 2010, the capacity of erythritol had grown rapidly,
Baolingbao. while the growth of output had fallen behind. Besides,
there were four producers, namely Zibo Zhongshi Green
Baolingbao decided to invest about USD13.28 million Biotech Co., Ltd., Shandong Futaste Pharmaceutical
to expand its erythritol capacity to 4,000t/a at an Co., Ltd., Shandong Binzhou Sanyuan Biotechnology
extraordinary shareholders meeting in Feb. 2010. Then Co., Ltd., O'Laughlin Industries Co., Ltd., use glucose to
part of the erythritol expansion was finished in May 2010 produce erythritol in order to improve the production
and put into production in Aug. 2010. By the end of Dec. efficiency, while Baolingbao uses corn starch in its
2010, the construction of erythritol capacity expansion erythritol production, which is with lower cost compared
has been finished completely. It is estimated that the with that of using glucose.
total erythritol capacity will reach 4,000t/a in Aug. 2011,
which is four times of that in 2009. Moreover, in 2010, among the five main active erythritol
producers (FIGURE 3), four are concentrated in
Baolingbao believes that the erythritol industry will Shandong Province; only one is located in Tianjin City.
develop well in the future and the demand for erythritol Because erythritol is a kind of sugar alcohol and the sugar
will also increase. Moreover, since the overseas alcohol industry develops well in Shandong, most of the
consumption is more than the domestic one now, with erythritol producers choose to be located in Shandong.
the increasing overseas demand for erythritol, the
domestic erythritol industry will keep on developing. All in all, it can be predicted that the erythritol industry
in China will keep on developing in the future based on
There were mainly five active erythritol producers the facts above.
TABLE 4: Basic information about major erythritol producers in China, 2011
No. Company name Abbreviation Location Status, '11 Raw material
1 Zibo Zhongshi Green Biotech Co., Ltd. Zibo Green Biotech Shandong Active Glucose
2 Baolingbao Biology Co., Ltd. Baolingbao Shandong Active Corn starch
3 Shandong Futaste Pharmaceutical Co., Ltd. Shandong Futaste Shandong Active Glucose
4 Shandong Binzhou Sanyuan Biotechnology Co., Ltd. Shandong Sanyuan Shandong Active Glucose
5 O'Laughlin Industries Co., Ltd. Tianjin O'Laughlin Tianjin Active Glucose
Source: CCM International
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9. Sweeteners China News
Vol.1 Issue 01 2011
FIGURE 3: Distribution of erythritol production by output volume in China, 2010
Shandong
98.33%
Tianjin
1.67%
Source: CCM International
Raw Material Supply
GLG builds a breeding and cultivation centre of stevia
G LG Life Tech Corporation (GLG) has built a breeding
and cultivation centre of stevia jointly with Anhui
Science and Technology University in Anhui in June 2011.
it is the first product that uses stevia sweetener instead of
cane sugar. In addition, the stevia sweetener used in Zero
Calorie is also produced by GLG. So it is predictable that
And this centre is a unique provincial engineering research the consumption volume of stevia sweetener will continue
centre which is focused on breeding, cultivation and the to increase along with the development of sugar-free foods
breed improvement of stevia. and beverages.
GLG is a world leader in the production of high-quality GLG builds the breeding and cultivation centre of stevia
stevia, a zero-calorie and natural sweetener. Its vertically for the following two goals.
integrated operations include stevia seed breeding,
propagation, growth and harvest, extraction, refining First, the centre will improve the breeding to get new
and formulation; its main business in China is breeding, stevia species which have higher steviol glycosides content
propagation of stevia and production of high quality stevia in the leaves. And the major components in steviol
sweetener. In light of the following two reasons, GLG glycosides are stevioside and rebaudioside A (RA). Those
believes that the stevia planting will develop well and the new species can help stevia sweetener processors produce
demand for stevia may keep increasing in the next several high RA purity products. Moreover, the prices of high RA
years, thus it has finally built this breeding and cultivation purity products such as RA 80%, RA 90% and RA 95% are
centre in Anhui. much higher than that of stevioside, that is to say, the new
species can bring GLG higher profits.
First, the export volume (FIGURE 4) of stevia sweetener
has increased thanks to the growing overseas demand for Second, the output of stevia will increase with the
it in recent years. Currently, China has already become improving stevia planting level through education and
the largest stevia sweetener supplier in the world, and training. What's more, the centre will help farmers learn
around 80% of its total output of stevia sweetener is sold new culture technique of stevia and prevent plant diseases
to overseas market. Therefore, it reveals that the output and insect damage.
of stevia is also increasing since stevia sweetener is made
from stevia, and that the stevia sweetener producers will It is estimated that the planting industry of stevia will
need more stevia as raw material. develop sustainably, then the output of stevia will also
increase to ensure the supply. In fact, stevia is planted
Moreover, the consumption volume of stevia sweetener in by native farmers and then sold as a raw material to the
China has also gradually increased for the development domestic stevia sweetener producers. On one hand, the
of sugar-free foods and beverages in recent years. Take increasing demand from stevia sweetener drives the
Zero Calorie as an example, which is a new brand of GLG, producers to buy more stevia from farmers. On the other
it has been launched in Chinese market in May 2011 and hand, local governments also try their best to promote
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10. Sweeteners China News
Vol.1 Issue 01 2011
FIGURE 4: Export volume of stevia sweetener in China, 2008-
2010
the planting industry of stevia, because it can
increase the income of farmers. For example, 4,000
Government of Anhui Mingguang held a
purchasing meeting of stevia on 4 May 2010 3,000
Unit:tonne
which aims to help farmers sell their stevia
at a reasonable price and also to help stevia 2,000
sweetener producers buy high quality stevia
in the harvest season. That is to say, both the 1,000
sweetener producers and the government are
promoting the planting industry of stevia. 0
2008 2009 2010
Source: CCM International
Price Update
Ex-factory prices of Chinese sweeteners, June 2011
Sweetness
Price of unit
No. Products Price in June 2011 compared with
sweetness
sucrose
(USD/t) (RMB/t) (USD/t)
1 Sucrose 1,115 7,225 1 1,115
2 Steviol glycosides (RA95) 162,120 1,050,000 450 360
3 Sucralose 102,676 665,000 600 171
4 Acesulfame-K 8,183 53,000 200 41
5 Aspartame 15,600 101,038 200 78
6 Glycyrrhizin (Tripotassium Glycyrrhinate) 13,896 90,000 150 93
7 Saccharin 5,200 33,679 300 17
8 Cyclamate (NF13) 2,470 16,000 30 82
9 Neotame 100,230 650,000 8,000 13
10 Erythritol 5,188 33,600 0.70 7,411
11 Mannitol 3,011 19,500 0.60 5,018
12 Maltose syrup (80%) 478 3,100 0.90 531
13 Sorbitol (70%) 644 4,178 0.70 920
14 Xylitol (68%, Liquid) 918 5,953 0.90 1,019
15 HFCS (Fructose: 42%) 509 3,300 1 509
16 HFCS (Fructose: 55%) 647 4,200 1.10 588
17 Crystal Isomaltitol 4,639 30,100 0.55 8,435
18 Maltodextrin 647 4,200 0.90 719
19 Maltitol (75%, Liquid ) 727 4,718 0.90 808
20 Anhydrous glucose (Food grade) 848 5,500 0.74 1,146
21 Glucose Monohydrate 632 4,100 0.74 854
Note: The data of price are collected on 13 June 2011, which are valid till 27 June 2011.
Source: CCM International
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11. Sweeteners China News
Vol.1 Issue 01 2011
Import & Export Analysis
Import & export analysis of Chinese saccharin in Jan.-Apr. 2011
Export analysis Major export destinations (TABLE 7)
About 38% of China's saccharin for export was exported
Export volume to Germany, South Korea, Brazil, the US and India during
Jan.-April 2011. Among these five countries, Germany
C hina's total saccharin export volume reached about
4,844 tonnes in the first four months of 2011.
Compared with the same period of last year, the growth
imported about 14% of the total China's exported saccharin
during the same period.
rate of domestic saccharin export volume reached about
19%. With domestic saccharin quality improving and the TABLE 7: Major export destinations of China's saccharin,
global economy recovering, it can be predicted that China's Jan.-Apr. 2011
saccharin export may keep growing in the next several
months in 2011.
No. Destination Quantity, tonne Value, USD
1 Germany 672 4,082,297
Export price (TABLE 5) 2 South Korea 385 2,212,497
3 Brazil 314 1,740,088
China is an important saccharin producer and its average 4 US 250 2,358,388
export price of saccharin reached about USD5,833 during 5 India 226 1,210,968
Jan.-April 2011, which only increased by 4% year on year. 6 France 200 993,913
It may keep increasing in a narrow range in H2 2011 due to 7 Indonesia 195 1,031,562
the more and more serious inflation in China. 8 Netherlands 185 1,013,328
9 Japan 184 1,084,449
TABLE 5: Export volume, value and price of China's 10 Thailand 174 1,009,322
saccharin,Jan.-Apr. 2011 11 UK 172 1,058,905
Month Quantity, tonne Value, USD Price, USD/t 12 Spain 136 777,720
Jan-11 1,242 7,253,751 5,840 13 Mexico 131 779,420
Feb-11 857 5,118,027 5,972 14 Pakistan 122 627,460
Mar-11 1,503 8,751,436 5,823 15 South Africa 121 690,860
Apr-11 1,242 7,129,551 5,740 Others 1,377 7,581,588
Total 4,844 28,252,765 5,833 Total 4,844 28,252,765
Source: CCM International Source: CCM International
Major export provinces (TABLE 6) Import analysis
About 90% of the exported saccharin was exported from Import volume
Tianjin City, Henan Province and Shanghai City during
Jan.-April 2011. China's total saccharin import volume was only about 83
tonnes in the first four months of 2011.
TABLE 6: Export volume of major saccharin export
provinces/cities in China, Jan.-Apr. 2011 Import price (TABLE 8)
No. Province/City Quantity, tonne Value, USD
1 Tianjin 1,918 10,615,254 Compared with last year, China's average saccharin import
2 Henan 1,519 8,443,119 price sharply declined from about USD11,752/t to about
3 Shanghai 920 6,468,802 USD8,280/t in Jan.-April 2011, because of the recovery of
4 Jiangsu 191 1,018,764 domestic saccharin producers
5 Shandong 98 630,079
6 Guangxi 71 366,363
Others 127 710,384
Total 4,844 28,252,765
Source: CCM International
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12. Sweeteners China News
Vol.1 Issue 01 2011
TABLE 8: Import volume, value and price of China's Major import origins (TABLE 10)
saccharin, Jan.-Apr. 2011
Month Quantity, tonne Value, USD Price, USD/t About 89% of China's imported saccharin was from South
Jan-11 34 276,911 8,144 Korea during Jan.-April 2011.
Feb-11 2 19,215 9,608
Mar-11 43 312,572 7,269 TABLE 10: Major origins of China's imported saccharin,
Apr-11 4 78,580 19,645 Jan.-Apr. 2011
Total 83 687,278 8,280 No. Province Quantity, tonne Value, USD
Source: CCM International 1 Jiangsu 73 531,103
2 Guangdong 4 20,378
Major import destinations (TABLE 9) 3 Shandong 4 69,028
Others 2 66,769
About 90% of China's imported saccharin was imported by Total 83 687,278
Jiangsu Province during Jan.-April 2011. Source: CCM International
TABLE 9: Import volume of saccharin by main provinces
in China, Jan.-Apr. 2011
No. Country Quantity, tonne Value, USD
1 South Korea 75 587,932
2 Germany 4 37,068
3 Singapore 2 6,845
Others 2 55,433
Total 83 687,278
Source: CCM International
Import & export analysis of Chinese cyclamate in Jan.-Apr. 2011
Export analysis Major export provinces (TABLE 12)
Export volume About 90% of China's cyclamate for export was exported
by Jiangsu Province, Shanxi Province and Guangdong
C hina's total cyclamate export volume reached about
8,853 tonnes in the first four months of 2011.
Although the export volume of cyclamate reduced by about
Province during Jan.-April 2011, among which the
cyclamate export volume of Jiangsu Province accounted
for about 50% of the nation's total.
321 tonnes over the same period of last year, it may slowly
increase in H2 2011 thanks to the increasing demand for
cyclamate in the global market. TABLE 12: Export volume of major cyclamate export
provinces in China, Jan.-April 2011
Export price (TABLE 11) No. Province/City Quantity, tonne Value, USD
1 Jiangsu 4,416 8,019,698
The average export price of China's cyclamate has been 2 Shanxi 2,169 3,798,320
fluctuating in a narrow range since 2010, and it reached 3 Guangdong 1,404 3,019,061
about USD1,860/t during Jan.-April 2011. 4 Shandong 497 927,098
5 Tianjin 239 440,048
Others 128 258,003
TABLE 11: Export volume, value and price of China's Total 8,853 16,462,228
Source: CCM International
cyclamate, Jan.-April 2011
Month Quantity, tonne Value, USD Price, USD/t
Major export destinations (TABLE 13)
Jan-11 2,747 4,952,046 1,803
Feb-11 1,611 2,964,567 1,840
Mar-11 2,454 4,542,836 1,851 South Africa imported about 1,186 tonnes of cyclamate
Apr-11 2,041 4,002,779 1,961 from China during Jan.-April 2011, which accounted for
Total 8,853 16,462,228 1,860 about 13% of China's total cyclamate export volume.
Source: CCM International
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13. Sweeteners China News
Vol.1 Issue 01 2011
TABLE 13: Major export destinations of China's cyclamate, Jan.-April 2011
No. Destination Quantity, tonne Value, USD
1 South Africa 1,186 2,188,790
2 Brazil 905 1,701,830
3 Argentina 765 1,390,667
4 Pakistan 752 1,288,490
5 Germany 676 1,347,116
6 Turkey 602 1,060,517
7 Myanmar 572 993,505
8 Russia 342 608,300
9 Netherlands 341 707,508
10 Vietnam 260 465,884
11 Indonesia 244 421,298
12 Taiwan Province 217 371,389
13 Malaysia 215 401,297
14 Bangladesh 187 332,179
15 Bolivia 183 379,520
Others 1,406 2,803,938
Total 8,853 16,462,228
Source: CCM International
Import analysis
China's total cyclamate import volume was less than one tonne during Jan.-April 2011, thanks to the sufficient cyclamate
supply in the domestic market.
Consumption Trend & Competitiveness
HIS believed to enjoy good development in the future
H igh intensity sweetener (HIS) industry has enjoyed
a good development in the past years, and a survey
by CCM highlights that the trend will continue in the next
about the development of high intensity sweeteners
(HIS) in China—the largest production and consumption
country in Asia Pacific Area (AP), taking up 71.51% of
3-5 years in China and Asia Pacific Area (AP) as most the production in 2010 and 62.56% of the consumption
respondents believed. in 2009 in terms of volume respectively: amongst all the
respondents, 70.83% of them believed that the demand
HIS is an important class of sugar substitutes, and there for HIS will grow in the next 3-5 years, while only 29.17%
are nine kinds of commonly-used HIS in AP (an important believed that the demand will remain stable, and no
HIS production area in the world, whose total output respondent preferred the choice of "the demand will
accounts for over 50% of the global total as estimated), decrease".
including saccharin, cyclamate, acesulfame-K (Ace-K),
stevia sweetener, aspartame, sucralose, glycyrrhizin, With regard to the growth rate (FIGURE 5), 29.41%
alitame and neotame. of respondents deemed that the rate will exceed 10%,
followed by 47.06% for growth rate of 5-10%, 23.53%
CCM conducted a survey in its report Survey of High for 3-5%. The wider application field of HIS, domestic
Intensity Sweeteners in Asia Pacific launched in February consumers' more attention to health food with low calorie
2011, which is based on opinions of respondents from HIS and cost reduction for downstream clients are the three
industry around the country, including HIS processors main drivers (FIGURE 6) for the increasing HIS demand
(taking up 70.83% of the total number of respondents), in the future, taking up 27.08%, 27.08% and 16.67% of the
distributors (12.50%), downstream consumers (4.20%) total respectively, followed by 12.5% for the choice "aided
and other insiders (12.47%, such as experts and media, by rapid development of China's economy", 8.33% for
etc.). production cost decrease and 8.33% for consumers' better
awareness about HIS.
According to the survey, most respondents were optimistic
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14. Sweeteners China News
Vol.1 Issue 01 2011
FIGURE 5: Industry’s opinions about the growth rate of demand for HIS will increase.
HIS development in China in the next 3-5 years
Grow th rate of 3 -5%,
The main drivers (FIGURE 8) for the increasing demand
23.53% Grow th rate of 10%+, for HIS in AP were cited as the higher cost performance
29.41% compared with cane sugar (29.09%), the diet habit of low-
calorie food (29.09%) and the promotion by ASEAN Free
Trade Area (AFTA, 14.55%) , followed by the rapid recovery
of economy in AP (12.73%) and the foreign consumers' diet
habit of sweet food (12.73%).
FIGURE 7: Industry’s opinions about the growth rate of
Grow th rate of 5 - 10%, HIS development in Asia Pacific in the next 3-5 years
47.06%
Note: HIS means high intensify sweeteners, and the survey was
Grow th rate of Grow th rate of
conducted in 2011. 1 - 3%, 21.05% 10%+, 21.05%
Source: CCM International
FIGURE 6:Industry’s opinion about the drivers of HIS
development in China in the next 3-5 years
Consum ers'
Production better
expansion and aw areness Wider Grow th rate of
cost reduction, 3 - 5%, 31.58% Grow th rate of
about HIS, 8.33% application field
8.33% 5 - 10%, 26.32%
of HIS, 27.08%
Aided by China's
rapid econom y
developm ent, Note: HIS means high intensify sweeteners, and the survey was
12.50% conducted in 2011.
Source: CCM International
Cost reduction Dom estic
for dow nstream consum ers'
clients, 16.67% m ore attention
FIGURE 8: Industry’s opinions about the drivers of HIS
to health food
w ith low calorie, development in Asia Pacific in the next 3-5 years
27.08%
Note: HIS means high intensify sweeteners, and the survey Foreign
Higher cost
was conducted in 2011. consum ers' diet
Others, 1.82% perform ance
Source: CCM International habit for sw eet
com pared w ith
food, 12.73%
cane sugar,
Aided by rapid 29.09%
Export of high intensity sweeteners (HIS) is one main
recovery of
business of the respondents (mostly producers): 87.5% of
econom y in AP,
them revealed that they exported HIS to foreign countries. 12.73%
And they are optimistic about the future development of
HIS in Asia Pacific Area (AP): 79.19% of the respondents Prom otion by
ASEAN Free Diet habit of low -
believed that the demand for HIS will grow in the next 3-5 calorie food,
Trade Area,
years, while 20.83% for stable development and 0% for 29.09%
14.55%
decreased demand.
For the export growth rate (FIGURE 7), 21.05% of Note: HIS means high intensify sweetener, and the survey was
respondents believed that the rate will exceed 10%, conducted in 2011.
while 26.32% for 5-10%, 31.58% for 3-5% and 21.05% Source: CCM International
for 1-3%. Indonesia, India and Japan, as the three main
consumption countries in AP besides China, are deemed
to consume more HIS in the future, taking up 12.75%,
14.71% and 10.78% of the total number of respondents,
while 14.71% of respondents took the view that Malaysia's
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15. Sweeteners China News
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