New
investments of foreign food producers in China could bring more
opportunities for domestic sweetener industry in the near future, according to CCM’s December issue of Sweeteners
China News.
On Nov. 22, 2012, one new
production factory of Wrigley, which is located in Guangzhou Yonghe Economic
& Technological Development District, was put into operation, as reported
by Guangzhou Daily. This factory has the most advanced technology among all of
Wrigley's factories in the world, and its investment in the first phase has
reached about USD172.52 million. It is believed that candy products such as
chewing gum will be produced in this factory, which will improve domestic sales
volume of some sweeteners, including aspartame, acesulfame-K and many sugar
alcohol products. Now the factory has already completed the first phase of the
factory, and it is predicted that after finishing the second and third phases
of the factory, the total capacity of Wrigley in China will increase by 60% in 2016
compared with its capacity at present.
Besides, a new joint-venture
factory of beverage, which belongs to PepsiCo and Tingyi (Cayman Islands)
Holding Corp. (Tingyi), one of the leading food and beverage companies in China, was opened in Zhengzhou City, Henan
Province on Oct. 25, 2012, which means the beverage output of PepsiCo will
improve in the near future. Half a month later, PepsiCo announced the opening
of a new food and beverage innovation center with total investment of more than
USD40 million in Shanghai.
The state-of-the-art facility, which is PepsiCo's largest research and
development center outside of North America, will serve as a hub of new
product, packaging and equipment innovation for PepsiCo's businesses throughout
Asia. The new R&D
Center will significantly increase the
pace of PepsiCo's innovation and put new ideas into use in Asia
market, as well as strengthen the company's ability to develop products suited
to the local markets.
The investments of foreign
beverage and candy producers in China
are based on the good prospect of China's
beverage and candy market, which means the consumption volume of sweeteners in China
would improve in the future. For example, PepsiCo pointed out that China and
other Asian countries are key components of PepsiCo's overall plan to drive
growth in emerging and developing markets globally, which could be shown from
its revenue in emerging and developing markets, from USD8 billion in 2006 to
USD22 billion in 2011. Meanwhile, Wrigley also expressed that it has confidence
in its futural market in China,
which is the second largest candy consumption market in the world.
"Currently, we have more than 848 million consumers in China, and Yonghe
Factory is playing an important role in our strategy in China, which can bring
more powerful supports to ensure our development in China," said Martin
Radvan, the global CEO of Wrigley.
It is also believed that the
investments of foreign beverage and candy producers in China will
benefit domestic sweetener industry. Though China
has the large consumption volume of beverage and candy now, per capita
consumption of sweeteners in China
is far lower than the internatioanl average, which means that there is much
room for improvement in the future. With consumers' rapidly enhancing health
attention and the improvement of people's living standards, the demand for
sweeteners will increase in the future.
Moreover, production technology
of domestic sweetener industry may also get benefit from the investments of
foreign food producers. These foreign food producers will have more and higher
requirements on sweetener products, and sweetener producers in China who want
to acquire more orders should improve their production technology. It is
believed that more and more domestic sweetener producers are willing to improve
their production technology.
Content of Sweeteners
China
News 1212:
National General Standard for
Starch Sugar Classification launched
Chenguang invests 1,000t/a stevia
sweetener project
Import and export of Chinese
sucrose in Jan.- Oct. 2012
Shandong Longlive's XOS,
L-arabinose and xylose project passes review
Nanning City plans to build national sucrose reserve base
Baolingbao awarded science &
technology progress prize in Shandong
Current situation and development
trend of stevia sweetener in China
Baolingbao shows some solutions
of some sweeteners to downstream products
Domestic HIS industry may
continue to develop under governmental pressure
Overview of regulations of
Ministry of Health on sweeteners in Jan.–Nov. 2012
Foreign investment to offer more
opportunities for China’s
sweetener industry
Overview of domestic saccharin
industry in Q3 2012
Xiwang Sugar invests in real
estate for low profit of starch sugar business
Net profit of Shandong Longlive
may decrease in 2012
Guangdong Huahai starts its
crystalline fructose project
Domestic minimum acquisition
price of sugarcane may decrease in 2012/2013
AN0C relaunches beverages in supermarket
Domestic consumption of HFCS
enters dull season
Ex-factory prices of Chinese
sweeteners in Nov. 2012
Export overview of some
sweeteners and raw materials in China,
Oct. 2012
… …
Sweeteners China
News is a monthly newsletter published by CCM International
Limited. Based on China market, CCM offers timely update and close follow up of
China’s various kind of sweeteners market dynamics, analyze the market data and
trends, Major columns include market dynamic, company dynamic, raw material
supply, price update, import & export analysis, Consumption Trend &
Competitiveness.
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