CCM Data & Primary Intelligence
Production, Market and Benchmarking of Xanthan Gum in China The first edition
Researched & Prepared by:
Guangzhou CCM Information Science & Technology Co., Ltd. Guangzhou, P. R. China
April 2010
Copyright by Guangzhou CCM Information Science and 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
Website: http://www.cnchemicals.com Tel: +86-20-3761 6606
Email: econtact@cnchemicals.com Fax: +86-20-3761 6968
CCM Data & Primary Intelligence Description: The report is the latest one available to provide good understanding about xanthan gum and to find out the situation of China’s xanthan gum industry. China has twenty four years history in the production of xanthan gum, and has witnessed fast development in the past few years, playing an increasing important role in global xanthan gum supply. And China has become one of the largest xanthan gum production bases in the world since 2005. For China xanthan gum manufacturers, export plays an important role, accounting for 70% of total output. Currently, increasing demand for xanthan gum in domestic market attracts more big scale producers. The demand for xanthan gum in domestic market has kept 10% growth rate in recently five years. Export tax rebate rate has increased from original 11% to 13% in July 2009, many xanthan gum manufacturers have stopped production due to the global financial crisis which caused the declining demand and lower price of xanthan gum, as well as high production cost, especially for some small-scale manufacturers in China. However, some xanthan gum manufacturers still expands theirs capacity attracted by low production cost. Besides, Chinese xanthan gum manufacturers have migrated to some rich corn starch and coal areas like Inner Mongolia, Shandong, etc. Facing current situation, how will Chinese manufacturers adjust their strategies to cope with the intense competition? What are the potential commercial opportunities in China's xanthan gum industry? According to CCM’s investigation, xanthan gum consumption in oil-drilling may maintain at a stable level as the launch of environment products will limit oil consumption. However, in China, its demand from food, cosmetics and pharmaceuticals, etc. has large potential to increase with the living standard improving. What are the xanthan gum consumption situation and development trend in China by now? Two top of China xanthan gum manufactures, playing an important role in China xanthan gum industry, even take up over 80% of total output in China in 2009, with an upward trend though suffered from the global financial crisis. What are the advantages for them? It costs them how much cost for per xanthan gum? Through explorations in the above key aspects, you can find the answers to the following questions in the updated report. - What is the production situation of China's xanthan gum in the past few years and in 2009? - Who are the major manufacturers and exporters of xanthan gum? - What are the price trends of China's xanthan gum? - What's the import and export situation of xanthan gum? - What are the commercial opportunities in China's xanthan gum industry?
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CCM Data & Primary Intelligence - What are the key factors influencing the development of xanthan gum industry? - What are the xanthan gum consumption situation and development trend in China by now? - What are the development trends of xanthan gum in the following five years, breakdown by output and demand? - What are advantages for China's two top xanthan gum? It costs them how much for per xanthan gum? CCM has carried out in-depth research and analysis on each active producer, as well as the whole industry to figure out the future development trend. The following aspects have been updated: - Import and export analysis in 2008 and 2009 - Latest consumption situation in China - Industry competition and structure analysis - Latest first-hand data of each producer For deeper research and analysis, CCM has also focused on: - Export/Import trend - Domestic consumption trend - Raw material supply and price trend in the past five years - Production situation and future development trend - Cost and benchmarking for China's two top xanthan gum manufactures With the information covered in the report, readers can see the general production and consumption situation, benchmarking for two top xanthan gum manufacturers in China. It is recommended that cooperating with related enterprises in China to develop xanthan gum and reduce production cost is a good way.
Main content:
No.
Content
Page
Executive summary
1
Methodology
3
I
Development environment
5
I-1
Macro-economy environment in China
5
I-2
Policy environment in China
9
II
History of China’s xanthan gum
12
II-1
Introduction to xanthan gum
12
II-1.1
Properties
12
II-1.2
Quality standards for xanthan gum in China
13
II-2
Development history
13
III
Supply and demand situation in the world
14
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CCM Data & Primary Intelligence IV
Market overview in China
15
V
Supply situation
17
V-1
Production in latest five years data and detailed current situation
17
V-2
Regional distribution of xanthan gum production
18
V-3
Summary of xanthan gum manufacturers in China
19
V-4
Competitiveness analysis
22
VI
Consumption situation
25
VI-1
Consumption pattern
25
VI-2
Consumption in end-user sectors
26
VI-2.1
Oil industry
26
VI-2.2
Food and beverage industry
28
VI-2.3
Pharmaceutical industry
31
VII
Export analysis in 2008 and 2009
33
VII-1
Monthly export in 2008 and 2009
33
VII-2
Export destinations in 2008 and 2009
34
VII-3
Exporters of xanthan gum in China in 2008 and 2009
35
VII-4
Xanthan gum export volume of major manufacturers in 2008 and 2009
37
VIII
Forecast on demand and production in China to next 5~10 years
39
VIII-1
Key factors and driving forces
39
VIII-2
Forecast on world demand
40
VIII-3
Forecast on China’s demand
41
VIII-4
Forecast on China’s production
44
VIII-5
Forecast on China’s export
44
VIII-6
Commercial opportunities in short/long term
45
IX
Technology introduction
46
IX-1
Technology adoption and development in China
46
IX-2
Research institutes
49
IX-3
Introduction to key patents
50
X
Theoretical models for cost analysis
51
XI
Cost & profit analysis of key manufacturers
52
XI-1
Shandong Fufeng
52
XI-1.1
Financial analysis of Shandong Fufeng in 2009
54
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CCM Data & Primary Intelligence XI-1.2
Estimation on production cost
56
XI-1.2.1
Estimation on manufacturing cost
56
XI-1.2.2
Estimation on management cost
59
XI-1.2.3
Estimation on total production cost
59
XI-1.3
Estimation on profit
60
XI-2
Shandong Deosen Corporation (Shandong Deosen)
61
XI-2.1
Estimation on production cost
62
XI-2.1.1
Estimation on manufacturing cost
62
XI-2.1.2
Estimation on management cost
64
XI-2.2
Estimation on profit
65
XI-3
SWOT analysis of top 2 manufactures in China
65
XII
Key factors influencing production cost
67
XIII
Forecast on production cost to the next five years
71
XIV
Competitiveness of China’s xanthan gum
74
XV
Conclusion and recommendations
76
XVI
Profiles of key producer
78
Executive summary: China’s xanthan gum industry has been existed for twenty four years since the first xanthan gum manufacturer, xx entered xanthan gum market in 1986. And China has become one of the largest xanthan gum production bases in the world since 2005, and its xanthan gum output has increased from xx in 2005 to xx in 2009, with CAGR of xx% % in 2005 ~ 2009. At present, many well-known xanthan gum brands have been built, mainly including Shandong Deosen, Shandong Fufeng, Zibo Cargill and so on. Brand has become important intangible asset to some well-known xanthan gum manufacturers. Xanthan gum industry does harm to environment due to its high pollution, high energy consumption (coal) and large corn consumption. With stricter environmental policies on xanthan gum industry, small-scale xanthan gum manufacturers with the capacity less than xx t/a, who invest little in environmental protection, have gradually been phased out from the market, especially in latest x years. However, it is beneficial for largest-scale xanthan gum manufacturers with advantages of lower production cost and advanced technologies to dominate domestic xanthan gum market. In recent years, xanthan gum production bases have been shifting from Southeast and Mid China to North China where is rich in raw material, namely corn starch. With industry integration progressing, China now has only xx active xanthan gum manufacturers distributed in five provinces, including Shandong, Hebei, Henan, Shanghai and Inner Mongolia with their total capacity reaching xx in 2009,
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CCM Data & Primary Intelligence accounting for xx% of the world total. Raw materials of xanthan gum are mainly corn starch, soybean in China. And corn starch is the most widely used for xanthan gum production, while a small amount of soybean is used as nitrogen. Coal is the most important utilities material to produce electricity and steam for xanthan gum production. It also takes up xx% of xanthan gum production cost, causing some key xanthan gum manufactures to migrate to the areas with lower coal cost. Fermentation is the most important step in xanthan gum production in China. Most domestic xanthan gum manufacturers adopt fermentation with appropriate sub-type biotin pathway with a yield rate of xx%-xx%. Because of intense competition in xanthan gum industry in China, xanthan gum industry has gained lower profit due to the declining xanthan gum price and higher cost for raw material in recent years. Xanthan gum price has declined slightly in last 2 years in China main due to the global financial crisis and intense competition. The average net profit rate of Xanthan gum industry was about xx% in 2009, down xx% compared with last year. China’s xanthan gum was mainly exported to Asian, North America and Europe countries. In 2009, China’s xanthan gum export has decreased by xx% over the previous year, with export volume of about xx tonnes. Average export price of xanthan gum also had a slight declined from xx in 2008 to xx in 2009. With the improving people's living standard and change of dietary structure, xanthan gum prevails in food and pharmaceuticals industry in China. And the total xanthan gum demand has increased from xx tonnes in 2005 to xx tonnes in 2009, with CAGR of xx% in 2005 to 2009. It is expected to have a bright market for xanthan gum in the future.
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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……………… V-2 Regional distribution of xanthan gum production With the rapid xanthan gum industry integration, xanthan gum production is distributed in five provinces in China now. All large-scale xanthan manufacturers with capacity of over XX tonnes are located in Shandong province, accounting for XX% of xanthan gum in China. With abundant raw material like corn, all xanthan gum manufactures are distributed in North China. It is worth noting that xanthan gum production has been slowly shifting to Inner Mongolia where enjoys lower cost in corn starch and coal. For instance, Fufeng Group Co., Ltd. has begun to build its xanthan gum production factory with capacity of XX t in Inner Mongolia since 2007, and Inner Mongolia Jianlong Biochemical Co., ltd. also has launched the xanthan gum production line with capacity of XX t/a in the first phase of its whole capacity expansion project in 2008. ………………. VIII-3 Forecast on China’s demand The forecasts or projections (including the following forecasts on production and export volume) are based on three scenarios of economic growth during 2010-2020 in China, which are: 9
Low growth: annual economic growth rate is assumed to be XX %;
9
Expected growth: annual economic growth rate is assumed to be XX %;
9
High growth: annual economic growth rate is assumed to be XX %;
Also the following data have been employed: 9
Market data of the xanthan gum industry and its end use segments during 2005-2009;
9
Understanding of the xanthan gum industry and its major end use segments in China;
9
Major segments discussed include: food, oil-drilling and pharmaceuticals.
In the low-, expected- and high-growth scenarios, the corresponding CAGR (2010-2014) of total demand for xanthan gum is XX %, XX % and XX % separately; the corresponding CAGR (2010-2020) of total demand for xanthan gum is XX %, XX % and XX % separately.
…………….