Domestic
stevia sweetener market developed at a slow speed during past years, and it is
predicted that this trend will continue in the near future, according to CCM
International’s August issue of Sweeteners
China News.
In fact, China
is the biggest production country of stevia sweetener in the world, with
capacity and output coming to 20,400t/a and about 3,500 tonnes respectively in
2011. From 2007 to 2011, the capacity posted a CAGR up to 35.1%, and the output
also grew at a CAGR of 21.8% due to the rapidly developing oversea stevia
sweetener market. However, the domestic stevia sweetener market has not
developed as rapidly as expected. For example, the consumption volume of stevia
sweeteners was about 720 tonnes in China in 2011, only with a CAGR of
4.6% during 2007 to 2011. Moreover, the stevia sweeteners consumed in China
are low-purity in general, since their price is lower than that of high purity.
Three main reasons may explain why domestic
stevia sweetener market developed at a slow speed during the past years.
Actually,
because of the strong demand from abroad, many domestic stevia sweetener
producers focus on the oversea market, which can be reflected from the export
volume of stevia sweeteners: China
exported about 80% of its total output of stevia sweeteners in 2011. Besides,
some new players of stevia sweetener industry are also attracted by the strong
demand from abroad. For the latest example, Hunan Weijia Biotechnology Co.,
Ltd, a plant extract producer in China, signed up a stevia sweetener
project with capacity of 500t/a in March 2012. And the company expressed that
the project is for meeting the strong demand from overseas stevia sweetener
market. Thus, the promotion of stevia sweeteners from domestic stevia sweetener
producers isn't enough currently. And the popularity of stevia sweeteners is
low in downstream (food and beverage) companies and consumers in China,
which further leads to the small consumption.
Besides,
according to an insider from GLG Life Tech Corporation (GLG), one major stevia
sweetener producer in China,
domestic downstream companies tended to choose high intensity sweeteners (HIS)
with low price during the past years, such as cyclamate, acesulfame-K and
aspartame. In fact, according to CCM International's Price Update, the average
ex-factory price of steviol glycosides
(RA95) has been higher than those of other HIS in China, and its latest quotation was
USD133,363/t in June 2012. In addition, according to CCM International's
investigation, the total consumption of cyclamate, acesulfame-K and aspartame
was about 27,300 tonnes, accounting for 90.9% of the national HIS consumption
in 2011, while the consumption of stevia sweeteners was only about 700
tonnes.
At last,
the government hasn't attached great importance on the development of domestic
stevia sweetener industry. According to GLG, the company has enjoyed some
preferential policies issued by the government only because it is a high-tech
enterprise and owns patents of stevia seeds, while the government hasn't
launched any preferential policies specifically for stevia sweetener industry
during the past years. Thus, some small-scaled stevia sweetener producers may
even have no chance to enjoy the preferential policies at all.
In fact,
combined with consumers' growing awareness of natural and safe foods in many
countries, the room for stevia sweeteners' demand increase will be huge in
future. However, due to the demand from oversea market may continue to increase
and the price of stevia sweeteners may still be too high for domestic
downstream industry, the domestic stevia sweetener producers may remain their
focus on overseas market while neglect domestic market, which may go on
bringing negative impact to domestic stevia sweetener market in the near future.
Source: Sweeteners
China
News 1208
Content of Sweeteners China
News 1208
Yucheng City awarded as China Nutrition
and Health Industry City
Xinghua
Green to launch solution about no after taste of stevia sweetener (RA98)
QHT
formally changes its company name
Application
for issuing corporate bonds of Nanning Sugar approved
JK
Sucralose continues market expansion through IFT Food Expo 2012
Domestic
stevia sweetener market may develop slowly in future
Chinese
cyclamate enjoys good development abroad
National
policies have great influence on sweetener enterprises
Opportunities
and challenges coexist in Chinese maltose syrup industry
Guangdong
L&P's sucralose expansion project enters construction bidding phase
Shandong
Huayi puts crystalline glucose production lines into production
Anhui
Jinhe's new acesulfame-K project seems unpromising
Profit of
Baolingbao grows in H1 2012
Layn's
operating profit loss reaches about USD3.2 million in H1 2012
China's corn starch performs poorly in H1 2012
Ex-factory
prices of Chinese sweeteners in July 2012
Domestic
price of aspartame suffers decrease in H1 2012
Domestic
prices of three key sugar alcohols will increase in H2 2012
Export
overview of some sweeteners and raw materials in China, June 2012
Export
volume of sucralose rises 180% in Jan.-May 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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CCM
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