CCM Data & Primary Intelligence
Future of White Biotechnology in China
The Second Edition
Researched & Prepared by:
Guangzhou CCM Information Science and Technology Co., Ltd Guangzhou, P. R. China
Sep. 2009 Copyright by Guangzhou CCM Information Science & Technology Co., Ltd. (P. R. China) Any publication, distribution or copying of the content in this report is prohibited. Website: http://www.cnchemicals.com Tel: +86-20-3761 6606 Fax: +86-20-3761 6968 Email: econtact@cnchemicals.com
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CCM Data & Primary Intelligence Description: Description of Future of White Biotechnology in China The first edition of this report was finished in April 2008, with 310 pages length in Word Form. The second edition, with content improved and more insightful views, will come out soon this year. The report is the only one and the latest one available in the world to provide good understanding about the white biotechnology in China and to find out the business opportunities in this field. - 4 reasons to carry out thisν research White biotechnology developing fast in China Short supply of energy and fossil materials Government supports WB industry Huge opportunities Major achievements in White Technology inν China in recent years Fuel ethanol produced from non-food renewable materials Super yeast with higher ethanol tolerance (15%~17% ethanol concentration), used in fuel ethanol production Pilot production of fuel ethanol using cellulosic materials Biomaterials, such as PHA and PLA, were introduced into the market Some bio-based chemicals, such as di-acids, 1,3-PDO, acrylamide and xanthan gum have been developed. Technology of some bio-based chemicals was greatly improved, especially that of vitamins. - What is covered? Policies and regulations on renewable feedstock, WB products, environmental protection, subsidies, incentives, etc. Renewable feedstock planting and supply situation in China. Over 15 major renewable feedstock essential to white biotechnology including the categories of main-food materials, non-food materials, vegetable oils and cellulosic materials are summarized. Market info of key WB products. The market data, major players, technical suppliers, technologies or R&D situations are included. Over 30 WB-related products are summarized falling into the categories of bio-fuels, bio-materials, bio-products and bio-based chemicals. Overview of white biotechnology. Latest market value estimation breakdown by category, cutting-edge technology developments, development environments analysis, SWOT analysis.
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CCM Data & Primary Intelligence Future prospects of white biotechnology, supply and demand forecasts on major products or categories, prospects on potential WB products, key drivers, bottlenecks, and opportunities. Driven forces and key factors for the development of white biotechnology. Opportunities in white biotechnology and recommendations. Profiles of the major players, researching institutes, top scientists. Supporting materials like water, energy, labor cost in different locations in China. What are the benefits of the report? Gain a clear understanding of the industry landscape and the latest developments in R&D, production, technology advances and future trends in industrial biotechnology in China Know the development stages and international status of key WB products of China based on basic data and latest info Get reasonable and constructive suggestions on the market opportunities in WB fields in China Understand the overall situation of renewable materials supply situation in China based on comprehensive and integrated data Get a thorough analysis of the market place for industrial biotechnology in China, the current trend and future growth prospects Learn more about the latest advances in commercialization of WB products within China and how policies and incentives that can encourage growth Know more about how innovative players and research groups are driving innovation, collaboration and achieving commercial success in China -
What’s new in this edition?
The updated edition will be strengthened over the last edition mainly from the aspects of: ● Volume and value of market size, production, etc. will be presented. ● Estimates on the market size of white biotechnology in China will be provided, and breakdown by major categories. ● Forecasts will be more detailed. ● Overview of the cutting-edge technology developments, SWOT analysis, and development environments of China’s white biotechnology will be provided. Besides, some other significant differences from the previous version are listed as follows: Table 1 Differences between new edition and the previous edition Items
New edition Previous edition
Methodology: questionnaire survey Chapter III: Overview … Products: Di-acid, PHA
Yes
Yes
No
No
Existing commercial Emerging commercial
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CCM Data & Primary Intelligence Products: Acrylamide, PLA Existing commercial
No
Products: antibiotics No (*) Existing commercial * It will be described in the coming planned reports Red Biotechnology in China and Green Biotechnology in China provided by CCM -
Methodologies and approaches
Scientific methodologies and varieties of data sources are adopted to ensure the credibility. Major steps adopted to formulize this report: Desk research Telephone interviews with WB players and researchers through telephone Questionnaires were sent to many WB players to ask for their opinions Import and Export analysis to demonstrate the trade situation and also help analyse the production and consumption situation Series of internal discussions in order to analyse the data and draw conclusions from it Forecasting Report generation The data collected and compiled were sourced from: Published articles from periodicals, magazines, journals, the third database Government statistics Primary info obtained by Tel-interviews, on-line chats, emails, questionnaires, etc. Comments from industrial experts Import and export data from customs CCM’s database Third-parties’ database Information from the Internet Data from various channels has been combined and cross-checked to make this report as precise and credible as possible. Who needs to subscribe this report? Biotechnology companies Update your knowledge and notice the latest developments of theω market, R&D and applications in China Discover the potentialω opportunities for white biotechnology in China Benefit from a thoroughω review of new applications for bio-based products and assess the potential for the further growth of your company Chemicals and plastic companies Learn how white biotechnologies and renewable raw materials willω change the status quo of this industry and its future Keep informed ofω recent developments of white biotechnology in China End users of bio-based products Website: http://www.cnchemicals.com Tel: +86-20-3761 6606
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CCM Data & Primary Intelligence Know what superior and novel WB products you can get from Chinaω and then create more value to your customers and present commercial opportunities for you Research organizations and academies Know theω latest technical developments and the newest scientific breakthroughs Identify the most significant commercial opportunities toω steer future research Main content: No.
Content
Page
Executive summary
1
Introduction and methodology
4
I
Governmental regulations on white biotechnology
7
I-1
Regulations on white biotechnology, feedstock and products
7
I-2
Environmental regulations
16
I-3
Subsidies and incentives
20
I-4
Other regulations (industry standards, etc.)
25
I-5
Entry barriers/regulations
27
II
Renewable feedstock supply in China
29
II-1
Overview of renewable feedstock planting and supply
29
II-2
Introduction to each renewable feedstock
32
II-2.1
Food feedstock
32
II-2.1.1
Corn
32
II-2.1.2
Sugar
41
II-2.1.3
Wheat
47
II-2.1.4
Rice
52
II-2.2
Non-food feedstock
56
II-2.2.1
Cassava
56
II-2.2.2
Molasses
61
II-2.2.3
Sweet potato
66
II-2.2.4
Sweet sorghum
67
II-2.3
Vegetable & animal oils
69
II-2.3.1
Soybean oil
69
II-2.3.2
Rapeseed oil
75
II-2.3.3
Animal oil
79
II-2.4
Lignocellulosic raw materials
80
II-2.4.1
Corn cob
80
II-2.4.2
Corn stover
87
II-2.4.3
Wheat/rice straw
89
II-2.4.4
Wood wastes
90
III
Overview of white biotechnology industry in China
91
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CCM Data & Primary Intelligence III-1
Market value estimation brokendown by category
91
III-2
Cutting-edge technology development
92
III-3
Development environment analysis
93
III-4
SWOT analysis of China’s white biotechnology
94
IV
Key WB products
96
IV-1
Existing commercial products
96
IV-1.1
Bio-products
96
IV-1.1.1
Yeast
96
IV-1.1.2
Enzymes
102
IV-1.1.2.1
α-Amylase
102
IV-1.1.2.2
Gluco-amylase
107
IV-1.1.2.3
Lipase
111
IV-1.1.2.4
Pectinase
115
IV-1.2
Bio-fuels
119
IV-1.2.1
Fuel ethanol
119
IV-1.2.2
Bio-diesel
123
IV-1.3
Bio-based fine chemicals
131
IV-1.3.1
Lactic acid
131
IV-1.3.2
Amino acids
139
IV-1.3.2.1
MSG
139
IV-1.3.2.2
Lysine
145
IV-1.3.3
Nucleic acid
149
IV-1.3.4
Polysaccharides
153
IV-1.3.5
Vitamins
157
IV-1.3.5.1
Inositol
157
IV-1.3.5.2
Vitamin C
162
IV-1.3.5.3
Vitamin B
169
IV-1.4
Bio-based chemicals
173
IV-1.4.1
Acrylamide
173
IV-1.4.2
Di-acids
177
IV-1.4.3
Itaconic acid
183
IV-1.4.4
Butanol
189
IV-1.4.5
Acetone
192
IV-1.5
Bio-materials
195
IV-1.5.1
PHA
195
IV-1.5.2
PLA
202
IV-2
Emerging commercial products
206
IV-2.1
Bio-products
206
IV-2.1.1
C5/C6 yeast
206
IV-2.1.2
Lignocellulosic enzyme
210
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CCM Data & Primary Intelligence IV-2.2
Bio-based chemicals
214
IV-2.2.1
1,3-PDO
214
IV-2.2.2
Succinic acid
219
IV-3
Potential products
226
IV-3.1
C3 platform
226
IV-3.1.1
Acrylic acid
226
IV-3.1.2
3-HPA
235
IV-3.2
Caprolactam
241
V
Key WB players and researchers
251
V-1
Top 5 SOC players
251
V-2
Top 5 private companies
262
V-3
Top 5 MNC players
268
V-4
Startup players
275
V-5
Key WB research groups, technical suppliers and top researchers
282
VI
Future prospects
293
VI-1
Drivers and barriers
293
VI-1.1
Drivers
293
VI-1.2
Barriers
295
VI-2
Future prospects
297
VI-2.1
Supply & demand forecast breakdown by category to next 5~10 years
298
VI-2.2
Prospects on the potential products to be commercialized in future
307
VII
Conclusion and recommendation (SWOT analysis for each recommendation)
308
VII-1
Conclusion
308
VII-2
Recommendation
310
VIII
Appendix
313
VIII-1
Water, energy and labor cost in different areas of China
313
VIII-1.1
Water cost in different areas of China
314
VIII-1.2
Energy cost in different areas of China
315
VIII-1.3
Labor cost in different areas of China
316
Executive summary: White biotechnology (WB) industry, which is often referred to the third wave in biotechnology, is one of the most promising new approaches to pollution prevention, resource conservation, and cost reduction around the world. Eying the huge economic benefit, environmental benefit and social benefit from WB industry, China has paid great attention to WB industry development. In the last two decades, WB industry in China has developed at a rapid clip. Chinese government has paid a crucial influence on WB industry by providing various supports, including monetary incentives and preferential taxation policies on feedstock, supply and demand of WB products, etc. Great achievement has been made in WB industry, especially in bio-energy and
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CCM Data & Primary Intelligence chemical industries. For instance, China has enhanced its global status to the third largest ethanol producer and the second largest producer of chemicals across the world. The great achievement in China has generated huge profit. In XX, the market value of China’s WB industry reached USDXX billion, including market value of USDXX billion accounting for around XX% of the total from bio-based fine products, the largest WB category in China. As for WB technology development, China has accomplished the breakthrough in major technologies including strain engineering, optimization of fermentation technology, immobilized enzyme and cell technology, separation and extraction technology, and optimization of bioreactors in China. Application of fermentation and bio-catalysis technology in high-value and low-volume products in China has seen great success in the past few decades. Thanks to the technoogy development, the number of biotechnology industrial products has increased significantly and their production scales have been enlarged a lot. Major WB products in China are traditional fermentation products, such as enzymes, vitamins, amino acids, organic acids, starch derivatives, etc. For brand-new WB products, such as PHA, 1,3-PDO, di-acids and bio-energy, are all at introduction stage. Based on the previous experiences of successful technology application, more WB products are likely to be commercialized in the future in China. Feedstock supply has been one of the focuses of Chinese government’s efforts to boost WB industry development. Renewable feedstock supply in China can basically meet domestic demand from WB insustry at present. Food feedstock, such as corn, sugar, wheat and rice, is the most widely adopted in WB industry as the supply of food feedstock is abundant and the production technology of their downstream products have been mature. But China’s huge population and limited arable land determines that the use of food feedstock will not be encouraged for food security concern. Hence, China has issued many relevant policies on the use of food feedstock for industrial purpose. And the use of non-food feedstocks such as cassava, Jatropha curcas L., etc, have been actively promoted in China now. Character of CCM' Report: The aim of this report is to provide powerful assistance to the strategy group and the management team in making correct decision as how to penetrate the ever-increasing China market and how to catch the maximum commercial opportunities. The report is formulated independently by CCM’s professional market researchers, based on the first-hand and primary data which are analyzed by scientific methodology, confirmed with both manufacturers/end users/traders and legal authorities, and presented in a logic way.
Sample pages:
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………... -
Industry standards
………… Most of the WB products in China have their own industry standard. The industry standards for main WB products mentioned in this report are shown as Table I-4.1 Table I-4.1 Industry standards for main WB products No.
Product
Industry standard
1
MSG
XX
2
Vitamin C
XX
3
Vitamin B1
XX
4
α-Amylase
XX
5
Gluco-amylase
XX
6
Pectinase
XX
7
Lipase
XX
8
Itaconic acid
XX
9
Acetone
XX
10
Butanol
XX
11
Lactic acid
XX
12
Denatured fuel ethanol
XX
13
Ethanol Gasoline
XX
Source: CCM International
…………… III Overview of White Biotechnology industry in China III-1 Market value estimation breakdown by category ………….. WB industry has been one of the emerging biotechnology industries in China. WB industry took up XX% of the market size of biotechnology industry in China in 2008, from XX% in 2004. Table III-1.1 Market value of WB industry broken down by categories in China, million USD, 2004-2008 White biotechnology Year
Biotechnology
Bio-based Bio-fuel
Bio-based fine product
Biomaterial
Bio products
Total
chemicals 2004
XX
XX
XX
XX
XX
XX
XX
2005
XX
XX
XX
XX
XX
XX
XX
2006
XX
XX
XX
XX
XX
XX
XX
2007
XX
XX
XX
XX
XX
XX
XX
2008
XX
XX
XX
XX
XX
XX
XX
Source: CCM International
………… III-4 SWOT analysis of China’s white biotechnology ………… By analyzing strength, weakness, opportunity and threat of WB industry in China, a clear picture of the future prospect for WB industry can be gained. Figure III-4.1 SWOT analysis of China’s white biotechnology
WB
Weakness
Source: CCM International
………….
Threat
Strength
Opportunity
Table VII-1.1 Situation of major WB products in China Industrial stage
Products
Market
Environment
Status in the
protection requirement
world
Technology barrier
XX
Domestic
Low
Modest
Equal
XX
Domestic
Low
Modest
Equal
XX
Domestic
High
High
Equal
XX
Domestic
Low
Modest
Equal
XX
Oversea
Modest
Modest
Leading
XX
Oversea
High
Modest
Leading
XX
Oversea
High
Modest
Leading
XX
Domestic
High
Modest
Leading
XX
Oversea
Modest
Low
Equal
XX
Domestic
Modest
Low
Equal
XX
Domestic
Low
Modest
Equal
XX
Domestic
High
Low
Draggled
XX
Oversea
Low
Low
Leading
XX
Domestic
High
Modest
Equal
XX
Domestic
Low
Low
Draggled
XX
Domestic
Modest
Low
Draggled
XX
Domestic
Modest
Modest
Equal
XX
Domestic
Modest
Modest
Equal
XX
Oversea
High
Modest
Equal
XX
Oversea
High
Modest
Equal
XX
Oversea
High
Low
Equal
XX
Oversea
High
Low
Leading
XX
-
High
-
Draggled
XX
-
High
-
Draggled
XX
Domestic
Modest
Modest
Draggled
Little research
XX
-
High
-
Draggled
No research
XX
Domestic
High
Modest
Draggled
Maturity
Growth
Introduction
Developing
Source: CCM International