Thursday, December 20, 2012

Foreign investment to offer more opportunities for China’s sweetener industry

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.

Source: Sweeteners China News 1212

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
… …

If you are interested in CCM’s September issue of Sweeteners China News, please do not hesitate to contact us by +86-20-37616606, or email us at

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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