Sweeteners China News Sample Issue

Copyright © CCM International Limited

Sweeteners China News

Vol.1 Issue 1 2011

Sweeteners China NewsVol.1 Issue 01 2011 Publication date: 20 June, 2011

The average cane sugar price in China on 15 June 2011 was USD1,114/t (RMB7,217/t), down 4% over the average price on 10 November 2010—when the price is the highest in the past several years, according to the China Sugar Index from www.yntw.com—a famous sugar website in China. However, the current price still stays at a high level, and it is estimated that the sugar price will remain at a high level this year, higher than USD1,080/t (RMB7,000/t).

Certainly, such market situation provides an opportunity for sweeteners—the sugar substitutes and most of them have lower unit sweetness price over sucrose. And the players in the industry are optimistic about the future development of sweeteners, especially high intensity sweeteners (HIS, which is one main focus in this issue): according to a survey from CCM which is also referred in the article below in this issue, most respondents believe that HIS will perform well in China and Asia Pacific in the next 3-5 years. Meanwhile, the recent dynamics of many processors, such as Anhui Jinhe, Mengzhou Huaxing and Gansu Puhua, also prove that they are optimistic about the HIS segment, which is an apparent signal for the industry.

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 [email protected].

CCM’s Market Reports Announcement

For more details, please contact CCM at [email protected]

CCM’s Market Reports Announcement


The Survey of Sorbitol in Asia Pacific Production and Market of Xylitol in ChinaProduction and market of Stevia Sweetener in China

Future of Functional Oligosaccharide Market in ChinaProduction and Market of Inulin in ChinaProduction and Market of Sucralose in China

CONTENTSWelcome to the June issue of Sweeteners China News, specially published by CCM International.

News in Brief1 Public notice on export quota bidding issued

1 Meilun Medical obtains government subsidy

1 CFIA holds a meeting of starch sugar in Beijing

1 Haizhina to build an organic maltose syrup project in Jiangxi

1 Problems hinder domestic HFCS development

1 Prices of corn starch and syrup may increase again in H2 2011

Market Dynamic2 Overview of production and market of sucralose

Company Dynamic3 Anhui Jinhe passes IPO examination and approval

4 Gansu Puhua to launch stevioside production lines

5 Guilin Layn to turn loss into gain

5 Mengzhou Huaxing launches trial production of aspartame production lines

6 Baolingbao smoothly expands erythritol capacity

Raw Material Supply7 GLG builds a breeding and cultivation centre of stevia

Price Update8 Ex-factory prices of Chinese sweeteners, June 2011

Import & Export Analysis9 Import & export analysis of Chinese saccharin in Jan.-Apr. 2011

10 Import & export analysis of Chinese cyclamate in Jan.-Apr. 2011

Consumption Trend & Competitiveness11 HIS believed to enjoy good development in the future

http://www.cnchemicals.com/Report/ReportMin.aspx?id=1859





Sweeteners China News Vol.1 Issue 01 2011

www.cnchemicals.com [email protected] CCM 1

Sweeteners China News at a glance

China's sucralose industry will continue to develop in the next few years.

Anhui Jinhe has successfully passed the IPO examination and approval on May 20th 2011.

Guilin Layn may turn loss into gain in H2 2011, thanks to its rapidly increasing sales of momordica glycosides.

Mengzhou Huaxing is putting its aspartame production lines into trial production.

Gansu Puhua may launch its stevioside production lines in H2 2011.

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 in June 2011.

The result of a survey by CCM shows that most respondents view the demand for high intensity sweeteners in China and Asia Pacific Area will enjoy a good development in the future.

News in brief

Public notice on export quota bidding

issued

In 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 and licorice products; those processors who meet the requirements in the notice can send their applications to the provincial office of MOC to bid for the export quota.

Meilun Medical obtains government

subsidy

In 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 million (RMB5 million) from the local government, because the company invested a lot and successfully launched a new production 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.

CFIA holds a meeting of starch sugar

in Beijing

On 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 the starch sugar industry. Most delegates believed that though the National Policy Adjustment of Corn Industry will bring some unfavourable factors to the starch sugar industry, the government will strongly support the new industries including the starch sugar industry in the future. That is to say, the starch sugar industry will face new challenges while enjoy new opportunities for development at the same time.

Haizhina to build an organic maltose

syrup project in Jiangxi

In 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.

Problems hinder domestic HFCS

development

Domestic High Fructose Corn Syrup (HFCS) Forum of Market and Development was held in Beijing on 19 May 2011. It is

reported that there are four problems that hinder the development of HFCS in the domestic market.

Firstly, HFCS capacity is growing too fast.Secondly, raw materials 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 requirements of environmental protection and energy saving.

Prices of corn starch and syrup may

increase again in H2 2011

Mr. Kong, President of Global Sweeteners Holdings Limited (Global Sweeteners), predicts that prices of corn starch and

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 with the capacity of 100,000t/a in Q1 2012 and expand its crystalline glucose capacity by 100,000t/a in the future.

News in Brief

1



Market Dynamic

Overview of production and market of sucralose

Current ly , wi th the increas ing overseas sucralose demand, Chinese

producers have been actively operating their sucralose production lines or expanding their sucralose capacity since domestic sucralose producers effectively won the No.337-TA-604 investigation launched by Tate & Lyle in the US on 6 April 2009. And the export volume of sucralose has a rapid growth after 2009.

JK Sucralose Inc. (JK Sucralose), the largest professional sucralose manufacturer in China and the second largest in the world, has finished the second phase project in June 2010 and has successfully achieved the expected capacity in May 2011. Meanwhile, in order to meet the increasing market demand for sucralose, JK Sucralose has started the third phase project which includes three production lines. It is estimated that the sucralose capacity will get 800t/a by the end of 2011, then to 1,000t/a by the end of 2012 and finally reach 4,000t/a by the end of 2018.

Changzhou Niutang Chemical Plant Co., Ltd. (Changzhou Nituang), one of the major domestic sucralose producers, has a subsidiary engaged in sucralose production, namely Nantong Changhai Food Additive Co., Ltd. (Nantong Changhai). In 2010, the sucralose capacity and output of Changzhou Niutang are 100t/a and 60 tonnes, while those of Nantong Changhai are 100t/a and 50 tonnes, respectively. W h a t ' s m o r e , i t i s r e p o r t e d t h a t Changzhou Niutang planned to expand its sucralose capacity by 1,000t/a. Then, it is estimated that the total capacity of Changzhou Niutang will reach 1,100t/a when the expansion is finished.

Techno (Fujian) Biotechnology Co., Ltd. (Fujian Techno), also one of the major domestic sucralose producers, is a subsidiary of Techno (Guangzhou) Biotechnology Co., Ltd. (Guangzhou Techno). In 2010, Fujian Techno's

sucralose capacity and output are 300t/a and 60 tonnes, respectively, and it has planned to further expand its sucralose capacity in the future, based on the currently increasing demand for sucralose.

The chart (FIGURE 1) shows that both the output and capacity of sucralose in China have increased from 2006 to 2010. And in 2010, the output of

sucralose is more than 600 tonnes, increasing by about 50% over 2009 thanks to the recovered demand from overseas market.

Currently, China has witnessed booming sucralose export. From 2006 to 2010, the export volume (FIGURE 2) showed a general trend of escalation, though in 2009 it decreased a little than that in 2008. Because of the 337 patent

FIGURE 1: Export volume of sucralose in China, 2006-2010

Source: CCM International

FIGURE 2: Sucralose production in China, 2006-2010


0

100

200

300

400

500

2006 2007 2008 2009 2010

Uni

t:to

nne

0

400

800

1,200

1,600

2,000

2006 2007 2008 2009 2010

Uni

t:to

nne

Capacity: t/a Output : tonne



investigation which hit China's sucralose market from 2008 to 2009, producers in China exported less sucralose. After Chinese producers won the investigation on 6 April 2009, domestic export has gradually recovered and a new export record is set in 2010. Since sucralose is widely used, the export is promoted with its increasing overseas demand.

Generally, it is estimated that China's sucralose industry will develop gradually in the future. When the processing construction projects of sucralose is finished and the

capacity utilization is raised, the total capacity of sucralose will increase a lot. Because the price of sugar in China still stays at a high level even though the government has already taken action to stabilize it, more and more food producers will prefer to choose high intensity sweeteners (HIS), which can significantly decrease the production cost compared with that of using sugar. Therefore, this situation is favorable to the consumption of HIS. With the development of sugar-free foods and the extensive application of HIS, the demand for sucralose both at home and abroad will grow in the next few years.

Company Dynamic

Anhui Jinhe passes IPO examination and approval

Anhui Jinhe Industrial Co., Ltd. (Anhui Jinhe), engaged in producing acesulfame-K, maltol and ethyl maltol,

has successfully passed IPO (Initial Public Offerings) examination and approval on May 20th 2011.

Anhui Jinhe plans to raise about USD111 million through IPO to expand its acesulfame-K capacity from 4,000t/a to 9,000t/a and to construct a new workshop of calcium ammonium nitrate with the capacity of 200,000t/a. Anhui Jinhe may formally issue its stocks at Shenzhen Stock Exchange before the end of 2011 thanks to the following advantages: steadily increasing assets, sufficient circulating funds, strong debt paying ability and excellent profitability forecast on the core businesses, especially acesulfame-K.

Major reasons for Anhui Jinhe's expansion in acesulfame-K capacity are as follows.

Demand for acesulfame-K has been increasing because of the fast growth of China's food industry especially the beverage industry in recent years.

As a safe sugar substitute, demand for acesulfame-K from above 100 million of domestic diabetics has also been increasing.

Anhui Jinhe has been investing in the improvement of

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 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 expects to expand the acesulfam-K capacity as soon as possible.

From 2006 to 2010, the capacity of acesulfame-K has increased from 13,620t/a to 20,520t/a with a CAGR of 10.79%, while the output has decreased from 7,325 tonnes to 4,185 tonnes with a CAGR of -13.06%. Before 2008, seeing the price increasing year by year, some producers poured in acesulfame-K production or excessively enlarged their production capacity. At that time, intense competition between producers and the impact from overseas rivals have led to the oversupply in the acesulfame-K industry, resulting in low operating rate and shrunken output. What's worse, the global financial crisis since 2008 has impacted the development of Chinese acesulfame-K industry; demand both at home and overseas is not as brisk as it was in previous years.

However, Anhui Jinhe will face some risks, such as much stricter supervision on food additives, fluctuating cyclamate price and RMB exchange rate.

TABLE 1: Basic information about major acesulfam-K producers in China, 2011

No. Company name Abbreviation Location Capacity '111 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



Gansu Puhua Stevioside Development Co., Ltd. (Gansu Puhua), engaged in stevioside production, may

launch its stevioside production lines in H2 2011.

Gansu Puhua with the total investment of about USD19 million was set up in July 2010 and its five investors include: Gansu Pharmaceutical Alkali Factory (Gansu Pharmaceutical Alkali), Gansu Agricultural Reclamation Group Co., Ltd. (Gansu Agricultural Reclamation Group), Chengdu Wagott Pharmaceutical Co., Ltd.(Chengdu Wagott), Gansu Yasheng Industrial (Group) Co., Ltd. (Gansu Yasheng) and Gansu Puli Health Products Co., Ltd. (Gansu Puli). Gansu Agricultural Reclamation Group is the controlling shareholder of both Gansu Pharmaceutical Alkali and Gansu Yasheng, and these three companies together hold 70% of Gansu Puhua's total shares. Moreover, Chengdu Wagott, engaged in production of plant extracts, holds 20% of Gansu Puhua's total shares and it is also a stevioside producer with a capacity of 200t/a. Gansu Puhua started the construction of stevioside production lines with total capacity of 1,000t/a at the end of July 2010. Currently, The company has completed the construction of stevioside production lines and may launch them in H2 2011. Meanwhile, Gansu Puhua has built a stevia planting base with the total building area of about 667 hectares, in order to provide steady and sufficient raw materials to its own stevioside production in the future.

Gansu Puhua will become one of the top six domestic s tev ios ide 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 sweetener producers in China by now. PureCircle (Jiangxi) Co., Ltd. is the biggest one, whose capacity and output reached 4,000t/a and 1,400 tonnes in 2010, accounting for 29.68% and 35.80% of the total domestic capacity and output of stevia sweetener, respectively. Moreover, China's stevia sweetener production is mainly concentrated in Jiangxi Province and Shandong Province.

As a natural kind of high intensity sweetener (HIS), stevia sweetener's usage has been approved by more and more countries and it has been becoming more and more popular in overseas market. Currently, China is the largest stevia sweetener supplier in the world, and around 80% of its total output of stevia sweetener is sold to overseas market. From 2006 to 2010, the capacity of stevia sweetener has increased from 5,160t/a to 13,475t/a with a CAGR of 27.12%. The booming domestic production is mainly driven by the rising demand from foreign countries; nowadays, foreigners prefer natural food additives to artificial ones. The US, Japan and South Korea are the most important stevia sweetener markets in the world. China's stevia sweetener is mainly exported to neighboring countries and North America in the past three years. Malaysia, the US, Mexico, South Korea and Japan are the most important export destinations of China's stevia sweetener.

Gansu Puhua to launch stevioside production lines

TABLE 2: Basic information about major stevioside producers in China, 2011

No. Company name Capacity '11 Location 1 PureCircle (Jiangxi ) Co., Ltd. 4,000 Jiangxi2 Dongtai Runyang Stevia High Tech Co., Ltd. 2,000 Jiangsu3 Shandong Huaxian Stevia Co., Ltd. 1,000 Shandong4 Qingdao Runde Biotechnology Co., Ltd. 1,000 Shandong5 Shandong Haigen Stevia Products Co., Ltd. 1,000 Shandong6 Gansu Puhua Stevioside Development Co., Ltd. 1,000 Gansu

Total 10,000 /


CCM’s Trade Analysis Announcement:


Stevia Export Analysis Neotame Export ReportSucralose Export AnalysisAspartame Export Analysis



Guilin Layn to turn loss into gain

Guilin 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 sales of momordica glycosides (a natural sweetener). Although it is estimated that Guilin Layn's amount of loss may reach about USD1-1.5 million in H1 2011 according to its financial report of the first quarter of 2011, Guilin Layn may successfully make a profit in light of the following factors. Natural sweeteners, such as momordica glycosides and stevia sweetener, have become more and more popular among consumers in some developed countries in recent years, such as the US, Japan and South Korea.

Compared with artificial high intensity sweeteners, natural sweeteners are safer to be used as food additives. With the enhancement of consumers' health awareness in the world, more and more foods and health products will use natural sweeteners as additives. Guilin Layn successfully got the GRAS (Generally Recognized as Safe) certification of momordica glycosides from FDA (Food and Drug Administration of the US) in April 2011, which is very helpful for Guilin Layn to enter the sweetener market in North America. Guilin Layn's

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, General Manager of Guilin Layn. Meanwhile, Guilin Layn has been preparing for the construction of a new branch named Layn USA Inc. located in the US since Oct. 2010, in order to efficiently promote the momordica glycosides in North America. It is predictable that Guilin Layn's sales value of momordica glycosides may obviously soar in H2 2011.

Moreover, Guilin Layn has completed the construction and started the trial running of new production lines in June 2010. Its processing capacity of raw materials will increase from 3,000t/a to 7,000t/a after the new production lines are formally launched in H2 2011.

Currently, Guilin Layn owns the extraction processes of about 200 kinds of plant extracts and 18 national invention patents. Especially, Guilin Layn has got a national invention patent of momordica glycosides extraction as early as 2004, which has laid the root for its currently leading position in Chinese momordica glycosides market. Moreover, Guilin is the major production area of grosvener siraitia and can provide Guilin Layn with sufficient raw materials to produce momordica glycosides.

Mengzhou Huaxing launches trial production of aspartame

production lines

Mengzhou Huaxing Co., Ltd. (Mengzhou Huaxing), a joint-stock enterprise engaged in the processing

of grain, is putting its aspartame production lines into trial production.

Mengzhou Huaxing began to construct the aspartame production lines with capacity of 6,000t/a and investment of about USD54 million at the end of Feb. 2010 and it completed the construction at the end of June 2011. Mengzhou Huaxing may become the largest aspartame producer in China after it launches the production lines in H2 2011. The company is very optimistic about the prospect of aspartame and it expects to gain annual revenue of about USD107 million from the aspartame production lines in the future. In China, the research on aspartame started in the early 1980s, but the industrial production had always been restricted by the shortage of raw material, i.e. L-phenylalanine (L-Phe), which is not relieved until the Twenty-First Century when the hydantoinase method for the synthesis of L-Phe became mature in China. There were mainly seven active aspartame producers

(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 32% of domestic total capacity. Moreover, Chinese aspartame production was mainly concentrated in Jiangsu Province.

From 2006 to 2010, domestic capacity of aspartame had increased from 10,250t/a to 14,545t/a. As the most popular HIS variety in the world, the demand for aspartame is increasing year by year, thus stimulating domestic aspartame production. Since it's approved by the FDA to be used in food and beverage in 1981 and 1983 respectively, aspartame has been approved in over 100 nations and used widely in candies, beverages and dairy products, etc. About 40% of aspartame is consumed in sugar-free candies and gum candies, 35% in beverages in the world. The US is the biggest aspartame production and consumption country in the world.

Moreover, the production of aspartame in China seems to be more concentrated in some big producers such as Jiangsu SinoSweet Co., Ltd., Jiangsu Changzhou Niutang Chemical Plant Co., Ltd., etc. Some small ones



have been gradually washed out of the market in recent years caused by the insufficient raw material supply and global financial crisis.

Based on the above facts, it can be predicted that the competitiveness among domestic aspartame producers 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 Jiangsu2 Jiangsu Changzhou Niutang Chemical Plant Co., Ltd. 3,000 Jiangsu3 Changzhou Yabang Kelong Co., Ltd. 2,500 Jiangsu4 Changmao Biochemical Engineering Co., Ltd. 2,000 Jiangsu5 Shaoxing Yamei Biochemistry Co., Ltd. 1,000 Zhejiang6 Beijing VitaSweet Co., Ltd. 1,000 Beijing7 Wujiang Dechang Food Additives Co., Ltd. 45 Jiangsu

Total 14,545 /Source: CCM International

Baolingbao smoothly expands erythritol capacity

Baolingbao Biology Co., Ltd. (Baolingbao), a leading Chinese producer of starch-based products and food

ingredients, has been expanding its erythritol capacity, and the total capacity will reach 4,000t/a by the end of August 2011, according to Mr. Fan, Manager of Baolingbao. Baolingbao decided to invest about USD13.28 million to expand its erythritol capacity to 4,000t/a at an extraordinary shareholders meeting in Feb. 2010. Then part of the erythritol expansion was finished in May 2010 and put into production in Aug. 2010. By the end of Dec. 2010, the construction of erythritol capacity expansion has been finished completely. It is estimated that the total erythritol capacity will reach 4,000t/a in Aug. 2011, which is four times of that in 2009. Baolingbao believes that the erythritol industry will develop well in the future and the demand for erythritol will also increase. Moreover, since the overseas consumption is more than the domestic one now, with the increasing overseas demand for erythritol, the domestic erythritol industry will keep on developing. There were mainly five active erythritol producers

(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 is 25.84%, about 11% less than that of 2009. From 2006 to 2010, the capacity of erythritol had grown rapidly, while the growth of output had fallen behind. Besides, there were four producers, namely Zibo Zhongshi Green Biotech Co., Ltd., Shandong Futaste Pharmaceutical Co., Ltd., Shandong Binzhou Sanyuan Biotechnology Co., Ltd., O'Laughlin Industries Co., Ltd., use glucose to produce erythritol in order to improve the production efficiency, while Baolingbao uses corn starch in its erythritol production, which is with lower cost compared with that of using glucose.

Moreover, in 2010, among the five main active erythritol producers (FIGURE 3), four are concentrated in Shandong Province; only one is located in Tianjin City. Because erythritol is a kind of sugar alcohol and the sugar alcohol industry develops well in Shandong, most of the erythritol producers choose to be located in Shandong.

All in all, it can be predicted that the erythritol industry in China will keep on developing in the future based on the facts above.

TABLE 4: Basic information about major erythritol producers in China, 2011

No. Company name Abbreviation Location Status, '11 Raw material1 Zibo Zhongshi Green Biotech Co., Ltd. Zibo Green Biotech Shandong Active Glucose2 Baolingbao Biology Co., Ltd. Baolingbao Shandong Active Corn starch3 Shandong Futaste Pharmaceutical Co., Ltd. Shandong Futaste Shandong Active Glucose4 Shandong Binzhou Sanyuan Biotechnology Co., Ltd. Shandong Sanyuan Shandong Active Glucose5 O'Laughlin Industries Co., Ltd. Tianjin O'Laughlin Tianjin Active Glucose




FIGURE 3: Distribution of erythritol production by output volume in China, 2010

Tianjin1.67%

Shandong98.33%


Raw Material Supply

GLG builds a breeding and cultivation centre of stevia

GLG 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. And this centre is a unique provincial engineering research centre which is focused on breeding, cultivation and the breed improvement of stevia. GLG is a world leader in the production of high-quality stevia, a zero-calorie and natural sweetener. Its vertically integrated operations include stevia seed breeding, propagation, growth and harvest, extraction, refining and formulation; its main business in China is breeding, propagation of stevia and production of high quality stevia sweetener. In light of the following two reasons, GLG believes that the stevia planting will develop well and the demand for stevia may keep increasing in the next several years, thus it has finally built this breeding and cultivation centre in Anhui. First, the export volume (FIGURE 4) of stevia sweetener has increased thanks to the growing overseas demand for it in recent years. Currently, China has already become the largest stevia sweetener supplier in the world, and around 80% of its total output of stevia sweetener is sold to overseas market. Therefore, it reveals that the output of stevia is also increasing since stevia sweetener is made from stevia, and that the stevia sweetener producers will need more stevia as raw material.

Moreover, the consumption volume of stevia sweetener in China has also gradually increased for the development of sugar-free foods and beverages in recent years. Take Zero Calorie as an example, which is a new brand of GLG, it has been launched in Chinese market in May 2011 and

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 the consumption volume of stevia sweetener will continue to increase along with the development of sugar-free foods and beverages. GLG builds the breeding and cultivation centre of stevia for the following two goals.

First, the centre will improve the breeding to get new stevia species which have higher steviol glycosides content in the leaves. And the major components in steviol glycosides are stevioside and rebaudioside A (RA). Those new species can help stevia sweetener processors produce high RA purity products. Moreover, the prices of high RA purity products such as RA 80%, RA 90% and RA 95% are much higher than that of stevioside, that is to say, the new species can bring GLG higher profits.

Second, the output of stevia will increase with the improving stevia planting level through education and training. What's more, the centre will help farmers learn new culture technique of stevia and prevent plant diseases and insect damage.

It is estimated that the planting industry of stevia will develop sustainably, then the output of stevia will also increase to ensure the supply. In fact, stevia is planted by native farmers and then sold as a raw material to the domestic stevia sweetener producers. On one hand, the increasing demand from stevia sweetener drives the producers to buy more stevia from farmers. On the other hand, local governments also try their best to promote



the planting industry of stevia, because it can increase the income of farmers. For example, Government of Anhui Mingguang held a purchasing meeting of stevia on 4 May 2010 which aims to help farmers sell their stevia at a reasonable price and also to help stevia sweetener producers buy high quality stevia in the harvest season. That is to say, both the sweetener producers and the government are promoting the planting industry of stevia.

FIGURE 4: Export volume of stevia sweetener in China, 2008-

2010

0

1,000

2,000

3,000

4,000

2008 2009 2010

Unit:

tonn

e


Price Update

Ex-factory prices of Chinese sweeteners, June 2011

No. Products Price in June 2011Sweetness

compared with sucrose

Price of unit sweetness

(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



Import & Export Analysis

Import & export analysis of Chinese saccharin in Jan.-Apr. 2011

Export analysis

Export volume

China'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 rate of domestic saccharin export volume reached about 19%. With domestic saccharin quality improving and the global economy recovering, it can be predicted that China's saccharin export may keep growing in the next several months in 2011.

Export price (TABLE 5)

China is an important saccharin producer and its average export price of saccharin reached about USD5,833 during Jan.-April 2011, which only increased by 4% year on year. It may keep increasing in a narrow range in H2 2011 due to the more and more serious inflation in China.

TABLE 5: Export volume, value and price of China's

saccharin,Jan.-Apr. 2011

Month Quantity, tonne Value, USD Price, USD/tJan-11 1,242 7,253,751 5,840 Feb-11 857 5,118,027 5,972 Mar-11 1,503 8,751,436 5,823 Apr-11 1,242 7,129,551 5,740 Total 4,844 28,252,765 5,833


Major export provinces (TABLE 6)

About 90% of the exported saccharin was exported from Tianjin City, Henan Province and Shanghai City during Jan.-April 2011.

TABLE 6: Export volume of major saccharin export

provinces/cities in China, Jan.-Apr. 2011

No. Province/City Quantity, tonne Value, USD1 Tianjin 1,918 10,615,254 2 Henan 1,519 8,443,119 3 Shanghai 920 6,468,802 4 Jiangsu 191 1,018,764 5 Shandong 98 630,079 6 Guangxi 71 366,363

Others 127 710,384 Total 4,844 28,252,765


Major export destinations (TABLE 7)

About 38% of China's saccharin for export was exported to Germany, South Korea, Brazil, the US and India during Jan.-April 2011. Among these five countries, Germany imported about 14% of the total China's exported saccharin during the same period.

TABLE 7: Major export destinations of China's saccharin,

Jan.-Apr. 2011

No. Destination Quantity, tonne Value, USD1 Germany 672 4,082,297 2 South Korea 385 2,212,497 3 Brazil 314 1,740,088 4 US 250 2,358,388 5 India 226 1,210,968 6 France 200 993,913 7 Indonesia 195 1,031,562 8 Netherlands 185 1,013,328 9 Japan 184 1,084,449 10 Thailand 174 1,009,322 11 UK 172 1,058,905 12 Spain 136 777,720 13 Mexico 131 779,420 14 Pakistan 122 627,460 15 South Africa 121 690,860

Others 1,377 7,581,588 Total 4,844 28,252,765


Import analysis

Import volume

China's total saccharin import volume was only about 83 tonnes in the first four months of 2011.

Import price (TABLE 8)

Compared with last year, China's average saccharin import price sharply declined from about USD11,752/t to about USD8,280/t in Jan.-April 2011, because of the recovery of domestic saccharin producers



TABLE 8: Import volume, value and price of China's

saccharin, Jan.-Apr. 2011

Month Quantity, tonne Value, USD Price, USD/tJan-11 34 276,911 8,144 Feb-11 2 19,215 9,608 Mar-11 43 312,572 7,269 Apr-11 4 78,580 19,645 Total 83 687,278 8,280


Major import destinations (TABLE 9)

About 90% of China's imported saccharin was imported by Jiangsu Province during Jan.-April 2011.

TABLE 9: Import volume of saccharin by main provinces

in China, Jan.-Apr. 2011

No. Country Quantity, tonne Value, USD1 South Korea 75 587,932 2 Germany 4 37,068 3 Singapore 2 6,845

Others 2 55,433 Total 83 687,278


Major import origins (TABLE 10)

About 89% of China's imported saccharin was from South Korea during Jan.-April 2011.

TABLE 10: Major origins of China's imported saccharin,

Jan.-Apr. 2011

No. Province Quantity, tonne Value, USD1 Jiangsu 73 531,103 2 Guangdong 4 20,378 3 Shandong 4 69,028

Others 2 66,769 Total 83 687,278


Import & export analysis of Chinese cyclamate in Jan.-Apr. 2011

Export analysis

Export volume

China'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 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.

Export price (TABLE 11)

The average export price of China's cyclamate has been fluctuating in a narrow range since 2010, and it reached about USD1,860/t during Jan.-April 2011.

TABLE 11: Export volume, value and price of China's

cyclamate, Jan.-April 2011

Month Quantity, tonne Value, USD Price, USD/tJan-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 Apr-11 2,041 4,002,779 1,961 Total 8,853 16,462,228 1,860


Major export provinces (TABLE 12) About 90% of China's cyclamate for export was exported by Jiangsu Province, Shanxi Province and Guangdong Province during Jan.-April 2011, among which the cyclamate export volume of Jiangsu Province accounted for about 50% of the nation's total.

TABLE 12: Export volume of major cyclamate export

provinces in China, Jan.-April 2011No. Province/City Quantity, tonne Value, USD1 Jiangsu 4,416 8,019,698 2 Shanxi 2,169 3,798,320 3 Guangdong 1,404 3,019,061 4 Shandong 497 927,098 5 Tianjin 239 440,048

Others 128 258,003 Total 8,853 16,462,228


Major export destinations (TABLE 13)

South Africa imported about 1,186 tonnes of cyclamate from China during Jan.-April 2011, which accounted for about 13% of China's total cyclamate export volume.



TABLE 13: Major export destinations of China's cyclamate, Jan.-April 2011

No. Destination Quantity, tonne Value, USD1 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


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.

HIS believed to enjoy good development in the future

High 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 3-5 years in China and Asia Pacific Area (AP) as most respondents believed.

HIS is an important class of sugar substitutes, and there are nine kinds of commonly-used HIS in AP (an important HIS production area in the world, whose total output accounts for over 50% of the global total as estimated), including saccharin, cyclamate, acesulfame-K (Ace-K), stevia sweetener, aspartame, sucralose, glycyrrhizin, alitame and neotame.

CCM conducted a survey in its report Survey of High Intensity Sweeteners in Asia Pacific launched in February 2011, which is based on opinions of respondents from HIS industry around the country, including HIS processors (taking up 70.83% of the total number of respondents), distributors (12.50%), downstream consumers (4.20%) and other insiders (12.47%, such as experts and media, etc.).

According to the survey, most respondents were optimistic

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 the production in 2010 and 62.56% of the consumption in 2009 in terms of volume respectively: amongst all the respondents, 70.83% of them believed that the demand for HIS will grow in the next 3-5 years, while only 29.17% believed that the demand will remain stable, and no respondent preferred the choice of "the demand will decrease".

With regard to the growth rate (FIGURE 5), 29.41% of respondents deemed that the rate will exceed 10%, followed by 47.06% for growth rate of 5-10%, 23.53% for 3-5%. The wider application field of HIS, domestic consumers' more attention to health food with low calorie and cost reduction for downstream clients are the three main drivers (FIGURE 6) for the increasing HIS demand in the future, taking up 27.08%, 27.08% and 16.67% of the total respectively, followed by 12.5% for the choice "aided by rapid development of China's economy", 8.33% for production cost decrease and 8.33% for consumers' better awareness about HIS.

Consumption Trend & Competitiveness



FIGURE 5: Industry’s opinions about the growth rate of

HIS development in China in the next 3-5 years

Growth rate of 10%+,29.41%

Growth rate of 5 - 10%,47.06%

Growth rate of 3 -5%,23.53%

Note: HIS means high intensify sweeteners, and the survey was conducted in 2011.Source: CCM International

FIGURE 6:Industry’s opinion about the drivers of HIS

development in China in the next 3-5 years

Productionexpansion andcost reduction,

8.33%

Consumers'better

awarenessabout HIS, 8.33%

Widerapplication field

of HIS, 27.08%Aided by China'srapid economydevelopment,

12.50%

Cost reductionfor downstreamclients, 16.67%

Domesticconsumers'

more attentionto health food

with low calorie,27.08%

Note: HIS means high intensify sweeteners, and the survey was conducted in 2011.


Export of high intensity sweeteners (HIS) is one main business of the respondents (mostly producers): 87.5% of them revealed that they exported HIS to foreign countries. And they are optimistic about the future development of HIS in Asia Pacific Area (AP): 79.19% of the respondents believed that the demand for HIS will grow in the next 3-5 years, while 20.83% for stable development and 0% for decreased demand. For the export growth rate (FIGURE 7), 21.05% of respondents believed that the rate will exceed 10%, while 26.32% for 5-10%, 31.58% for 3-5% and 21.05% 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

demand for HIS will increase.

The main drivers (FIGURE 8) for the increasing demand for HIS in AP were cited as the higher cost performance 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

HIS development in Asia Pacific in the next 3-5 years

Growth rate of5 - 10%, 26.32%



Growth rate of10%+, 21.05%

Note: HIS means high intensify sweeteners, and the survey was conducted in 2011. Source: CCM International

FIGURE 8: Industry’s opinions about the drivers of HIS

development in Asia Pacific in the next 3-5 years

Higher costperformance

compared withcane sugar,

29.09%

Foreignconsumers' diethabit for sweet

food, 12.73%

Others, 1.82%

Aided by rapidrecovery of

economy in AP,12.73%

Diet habit of low-calorie food,

29.09%

Promotion byASEAN FreeTrade Area,

14.55%

Note: HIS means high intensify sweetener, and the survey was conducted in 2011. Source: CCM International

Sweeteners China News

Guangzhou CCM Information Science & Technology Co., Ltd. www.cnchemicals.com

Choose Type of Subscription:

Your Details:

Single user license: 1 year CNY16,275/USD2,325/EURO1,500/GBP1,154

Corporate license: 1 year CNY 40,688/USD5,813/EURO3,750/GBP2,884

* The price is based on CNY. CCM reserves the right to adjust the rate of other currencies if the exchange ratefluctuation exceeds 3%.

First Name: Surname:

Job Title: Department:

Company:

Address:

Postcode/Zip Code: E-mail:

Telephone: Fax:

Wire Transfer

Payment Method:

Bank Account:

A/C NO.: 3602008109200235331BENEFICIARY NAME: CCMBANK NAME: ICBC GAOXIN SUB-BR

BANK ADDRESS:NO.41, West ZhongShan Ave, Tian He, Guangzhou, ChinaBANK SWIFT CODE: ICBKCNBJGDG

Please send your completed order to us byOnline at www.cnchemicals.com

Post to Guangzhou CCM Information Science & Technology Co., Ltd.: 17th Floor, Huihua Commercial & Trade Building,No.80, Xianlie Zhong Road, Guangzhou 510070, P.R.China

Tel: +86-20-37616606Fax: +86-20-37616968E-mail: [email protected]'s legal disclaimers

1. The legal effect of the filled order form is the same as that of a signed agreement.2. The newsletter provided by CCM International Limited (hereinafter "CCM") can only be used for subscribers'internal business decisions. Without CCM's prior written consent, the newsletter shall not be used for any otherpurpose.

3. Subscribers can alter the authorized & appointed email address during subscription period after informing CCMby prior written notice with explanation and obtaining CCM's written consent.

4. Single User License means that there shall be only ONE person for subscribers to receive, access and utilize thenewsletter. Subscribers can present the findings of the newsletter that marked the source from CCM to their internalcolleagues for their internal communication and usage, but cannot share the whole newsletter to the same audience.Any distribution, re-sell and disclosure of the newsletter as well as its partial content to any third party are prohibitedfor subscribers, including but not limited to their parent companies or subsidiaries.

5. Corporate License means that subscribers shall not distribute, re-sell or disclose the newsletter to any third partywithout CCM's prior written consent, except to subscribers' affiliates controlled by the subscribers with ownership ofmore than 50% of shares.

2 years CNY27,668/USD3,953/EURO2,550/GBP1,961

2 years CNY69,169/USD9,881/EURO6,375/GBP4,903

Signature :

Date:

Send

Print

CCM International Limited

Address: 17th Floor, Huihua Commercial & Trade Building, No.80 Xianlie Zhong

Road Guangzhou, 510070, P.R.China

Tel: +86-20-37616606

Fax: +86-20-37616968

Email: [email protected]

Journalist: Xingqiang Zhang, Yuwei LingEditor: Emily ChenChief Editor: Norman Lai, Hongxiang DuPublisher: CCM International Limited

Disclaimer:

1. CCM guarantees that the information contained in the report is accurate and reliable to

the best of its knowledge and its experience. CCM defines the report as a consulting product

to provide information and does not guarantee its content 100% equals the reality. CCM

shall not have any obligations to assume any possible damages or consequences that caused

by subscribers' any corporate decisions that related to subscribers' own understanding and

utilization of the report.

2. Single User License means that there shall be only ONE person for subscribers to receive,

access and utilize the report. Subscribers can present the findings of the report that marked the

source from CCM to their internal colleagues for their internal communication and usage, but

cannot share the whole report to the same audience. Any distribution, re-sell and disclosure

of the report as well as its partial content to any third party are prohibited for subscribers,

including but not limited to their parent companies or subsidiaries.

3. Corporate License means that subscribers shall not distribute, re-sell or disclose the report to

any third party without CCM's prior written consent, except to subscribers' affiliates controlled

by the subscribers with ownership of more than 50% of shares.

If you have ANY questions on the report, please feel free to contact us through the ways listed

below. Any comments from you is well appreciated.

Date post:	17-May-2015
Category:	Business
Upload:	ccm-intelligence
View:	1,435 times
Download:	5 times

Sweeteners China News Sample Issue

Business