CCM Data & Primary Intelligence
Production, Market and Manufacturing Cost of Sugar Alcohols in China The First Edition
Researched & Prepared by:
Guangzhou CCM Information Science & Technology Co., Ltd. Guangzhou, P. R. China
June 2010
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CCM Data & Primary Intelligence Description: Great changes of China’s sugar alcohol market takes place in recent years. Currently, China’s manufacturers of sugar alcohols who are suffering from high production cost gain nearly no profit due to rising cost of raw materials. As the price of main sugar alcohols’ raw materials, corncob and cornstarch, has been soaring recently, especially the former, reaching USD109.81/t in May 2010 from USD46.85/t in 2008. Sugar alcohols are usually used in food, pharmaceutical and daily-care products; about 70% of sugar alcohols are used in production of Vitamin C, toothpaste, brand & cake, candy, sugar-free chewing gum and parental solutions in 2009. There is a consumption uptrend of sugar alcohols in food products, especially healthcare foods. The market share by volume of sugar alcohols in food field grows from about 18% to 22%. With the improving living standard in China, more and more people choose functional food that is processed by sugar alcohols, like sugar-free chewing gums, cakes & candies with low calories, etc. Therefore, the future of sugar alcohols is bright and infinite for that’s an inevitable choice. Besides the situation mentioned above, what other changes took place during 2005 to 2009? What is the development trend of sugar alcohols’ production and consumption in China? Based on these questions, CCM will tell you the details in this report.
- Strong point This report provides readers with a handbook service, comprising of comprehensive & detailed & systematic data on each side of sugar alcohol market in China, including: Benchmarking of nine leading sugar alcohol manufacturers in China, and analysis of manufacturers in aspects of products, production technology, sales & clients, manufacturing cost, financial statement analysis, etc; Production, by capacity, output and price, divided by different sugar alcohols, in each manufacturers, change trend in the last 4-5 years and future 5 years; Trade situation, by export volume and import volume, divided by different sugar alcohols, in each manufacturers, change trend in the last 4-5 years and future 5 years; Manufacturers: latest capacity and output, raw material, price, manufacturing cost, etc; Consumption: detailed and systematic data on every consumption segments of the sugar alcohol market, and forecast the consumption situation of sugar alcohol in the next five years in China; - What is covered? Production situation of sugar alcohols: sorbitol, xylitol, maltitol, mannitol and erythritol are included in the analysis of output, capacity, prices, and values of sugar alcohol industry;
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CCM Data & Primary Intelligence Manufacturers: major active manufacturers of sugar alcohols in China are introduced by latest capacity, output and raw material last year. Profiles of sugar alcohol manufacturers are available in this report; Consumption and end use segments: the consumption structure is illustrated and the end use segments include Vitamin C, food, daily health products, pharmaceuticals and others; Import and export analysis introducing trade situation in China; Technology and supply of raw material source in different sugar alcohols are introduced concisely; Benchmarking: site-visiting with nine leading companies in sugar alcohol industry in China. - Credibility 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 manufacturers, traders, consumers and researchers of sugar alcohol industry; Questionnaires were sent to many sugar alcohol manufacturers to ask for their opinions; On-line chat tool adopted to communicate with traders/manufacturers in China; Import and Export analysis to demonstrate the trade situation and also help analyze the production and consumption situation; Site-visiting with nine leading sugar alcohol manufacturers including Shandong Futaste, Roquette China, Guangxi Khalista, etc. to analyze the situation and cost of production and their financial statement; Series of internal discussions in order to analyze the data and draw conclusions; 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.
Main content: No.
Content Executive summary
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Page 1
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CCM Data & Primary Intelligence Methodology & sources
3
I
Overview of sugar alcohol industry in China
5
I-1
Major sugar alcohols and their properties
5
I-2
Sugar alcohol industry in China
5
I-3
Policies on sugar alcohol industry in China since 2005
6
II
Overview of sugar alcohol industry in the world
8
II-1
Supply situation of sugar alcohols in the world
8
II-2
Demand situation of sugar alcohols in the world
9
III
Production of major sugar alcohols in China, 2005-2009
10
III-1
Overview of sugar alcohols' production
10
III-2
Output/capacity volume in the past five years
11
III-3
Major producer’s information
17
III-4
Newly-built plants' information
22
III-5
Analysis of production distribution in China
23
IV
Raw material analysis
25
IV-1
Major raw materials’ output volume in the past five years
25
IV-1.1
Cornstarch
25
IV-1.2
Corncob
26
IV-1.3
Glucose
26
IV-1.4
Xylose
27
IV-2
The share of major Raw materials in sugar alcohol industry
28
IV-3
Planting area of corn in China
30
IV-4
Relevant policy
32
V
Technology
33
V-1
Sorbitol
34
V-1.1
Production technology of sorbitol in China
34
V-1.2
Technology innovations
35
V-1.3
Introduction to key patents
36
V-2
Xylitol
36
V-2.1
Production technology of xylitol in China
36
V-2.2
Technology innovations
38
V-2.3
Introduction to key patents
41
V-3
Maltitol
42
V-3.1
Production technology of maltitol in China
42
V-4
Mannitol
43
V-4.1
Production technology of mannitol from kelp in China
44
V-4.2
Production technology of mannitol by synthetic method in China
45
V-4.3
Technology innovations
46
V-4.4
Introduction to key patents
47
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CCM Data & Primary Intelligence V-5
Erythritol
48
V-5.1
Production technology of erythritol in China
48
V-5.2
Technology innovations
49
V-5.3
Introduction to key patents
50
VI
Price analysis, 2005-2009 (including sorbitol, xylitol, maltitol, mannitiol, erythritol)
51
VI-1
Price change in the past five years and latest price dynamics
51
VI-2
Influencing factors for price change
53
VI-3
Forecast on price
55
VII
Market analysis of sugar alcohols in China (including sorbitol, xylitol, maltitol,
58
VII-1
Market size of different types of sugar alcohols
58
VII-2
Market size by volume and growth rate analysis in the past five years
59
VIII
Consumption pattern of Chinese sugar alcohols, 2005-2009
64
VIII-1
Overview of sugar alcohols’ consumption pattern
64
VIII-2
Brief introduction to end-use segments
65
VIII-2.1
Vitamin C
65
VIII-2.2
Toothpaste
67
VIII-2.3
Food
70
VIII-2.3.1
Sugar-free chewing gum
70
VIII-2.3.2
Candy
72
VIII-2.3.3
Baking food
74
VIII-2.4
Parenteral solution
77
VIII-2.5
Others
79
IX
Import & export analysis of sugar alcohols, 2005-2009 (including sorbitol, xylitol,
80
IX-1
Export and import analysis of sorbitol in 2005-Mar. 2010
80
IX-1.1
Export situation of price, volume and value
80
IX-1.2
Export situation of destinations
84
IX-1.3
Export situation of exporters
90
IX-1.4
Export situation of producers
91
IX-1.5
Import situation of price, volume and value
92
IX-1.6
Import origins of sorbitol in China
95
IX-1.7
Import situation of importers
98
IX-2
Export and import analysis of xylitol in 2005-Mar. 2010
100
IX-2.1
Export situation of price, volume and value
100
IX-2.2
Export situation of destinations
104
IX-2.3
Export situation of exporters
110
IX-2.4
Export situation of producers
111
IX-2.5
Import situation
112
IX-3
Export and import analysis of maltitol in 2005-Mar. 2010
112
IX-3.1
Export situation of price, volume and value
112
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CCM Data & Primary Intelligence IX-3.2
Export situation of destinations
116
IX-3.3
Export situation of exporters
118
IX-3.4
Export situation of producers
119
IX-3.5
Import situation
120
X
Forecast on sugar alcohols' development in China, 2010-2014
121
X-1
Key factors influencing sugar alcohols' development
121
X-2
Forecast on sugar alcohol industry
124
X-2.1
Forecast on capacity & output of sugar alcohols
124
X-2.2
Forecast on import and export of sugar alcohols
131
X-2.3
Forecast on consumption of sugar alcohols
135
XI
Conclusion and recommendation
143
XI-1
Conclusion
143
XI-2
Suggestion & recommendation
143
XII
Benchmarking analysis of leading players
145
XII-1
Shandong Yucheng Lvjian Biological Technology Co., Ltd. (Yucheng Lvjian)
145
XII-1.1
Product information
145
XII-1.2
Estimation on manufacturing cost of crystalline xylitol
145
XII-1.3
Estimation on manufacturing cost of crystalline maltitol
147
XII-2
O’Laughlin Industries Co., Ltd. (Tianjin O’Laughlin)
150
XII-2.1
Product information
150
XII-2.2
Estimation on manufacturing cost of crystalline xylitol
150
XII-3
Zhejiang Huakang Pharmaceutical Co., Ltd. (Zhejiang Huakang)
153
XII-3.1
Product information
153
XII-3.2
Estimation on manufacturing cost of crystalline xylitol
153
XII-3.3
Estimation on manufacturing cost of crystalline maltitol
155
XII-4
Shandong Longlive Bio-technology Co., Ltd. (Shandong Longlive)
158
XII-4.1
Product information
158
XII-4.2
Estimation on manufacturing cost of crystalline xylitol
158
XII-5
Roquette China Pharmaceutical Co., Ltd. (Roquette China)
161
XII-5.1
Product information
161
XII-5.2
Estimation on manufacturing cost of syrup sorbitol
161
XII-5.3
Estimation on manufacturing cost of crystalline maltitol
163
XII-6
Shandong Futaste Pharmaceutical Co., Ltd. (Shandong Futaste)
166
XII-6.1
Product information
166
XII-6.2
Estimation on manufacturing cost of crystalline xylitol
166
XII-7
Shandong Luzhou Bio-Chem Technology Co., Ltd. (Luzhou Group)
169
XII-7.1
Product information
169
XII-7.2
Estimation on manufacturing cost of crystalline maltitol
169
XII-8
Shandong Tianli Pharmaceutical Co., Ltd. (Shandong Tianli)
172
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CCM Data & Primary Intelligence XII-8.1
Product information
172
XII-8.2
Estimation on manufacturing cost of syrup sorbitol
172
XII-9
Guangxi Khalista (Liuzhou) Chemical Industries Ltd. (Guangxi Khalista)
175
XII-9.1
Product information
175
XII-9.2
Estimation on manufacturing cost
175
XII-9.3
Estimation on manufacturing cost of crystalline maltitol
177
XII-10
Financial statement analysis
180
XII-10.1
Yucheng Lvjian
180
XII-10.2
Tianjin O’Laughin
183
XII-10.3
Zhejiang Huakang
186
XII-10.4
Shandong Longlive
189
XII-10.5
Roquette China
192
XII-10.6
Shandong Futaste
195
XII-10.7
Luzhou Group
198
XII-10.8
Shandong Tianli
201
XII-10.9
Guangxi Khalista
204
XII-10.10
Comparison of financial state in different companies in 2009
207
XIII
Profile
208
XIII-1
Jilin Changchun Dacheng Industrial Group Company Ltd.
208
… XIII-20
0 Shandong Binzhou Sanyuan Biotechnology Co., Ltd.
237
Executive summary: Sugar alcohols produced in China mainly include sorbitol, xylitol, maltitol, mannitol and erythritol.China is one of the largest sugar alcohol producers in the world, with total output of xx tonnes in 2009, accounting for xx of global output, rising slightly compared with that of 2008. However, global financial crisis and less developed market for sugar alcohol held back the growth; some producers even suspended or stopped production. Currently there are about xx major active producers in China according to the market situation in May 2010. Raw¬ material In sugar alcohol’s production, there are mainly three raw materials, namely cornstarch, corncob and xylose. To be specific, most producers choose the first two as raw materials; some with advanced technology prefer solid glucose instead of cornstarch. Solid glucose often comes from starch producers. There are two kinds of raw materials for xylitol production: xylose and cornstarch. As to cornstarch, China as the second largest cornstarch producer in the world has abounded resources of corn with output of xx tonnes in 2009 next to the US. In addition, China is the second largest corn production country following the US in the world. Total output of glucose reaches to xx in
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CCM Data & Primary Intelligence 2009. As to xylose, China also ranks first in xylose production in the world with total output of xx tonnes in 2009. Consumption situation¬ In China, sugar alcohols are mainly used in products like food, daily-care products and pharmaceuticals. About xx of sugar alcohols in China are consumed in food, oral health products and medicines in 2009. In particular, Vitamin C, oral health products, bread & cake, candy and parental solution are main downstream sections of sugar alcohols. Currently, about xx of total sugar alcohols’ consumption is used for Vc, and xx for food as sweeteners. The consumption volume of sugar alcohols in China sees a slight increase in 2009 compared with that the previous year by only xx tonnes. Production¬ technology Currently, there are mainly two methods to produce sugar alcohols in China: traditional chemical method with glucose hydrotreating and biotechnological method through fermentation with corncob as raw material. Traditional method with glucose to be hydrotreated at the presence of catalyst to produce sugar alcohols can easily help realize industrial production of large scale. Bioproduction method is only used in xylitol, mannitol and erythritol’s production, including microbial fermentation and enzyme process. Bioproduction is still immature for other sugar alcohols in China. Import¬ & export More and more global buyers intend to import sugar alcohols from China in recent years for lower price and better quality, export volume of sugar alcohols has witnessed an uptrend. In 2009, China imported only xx tonnes sugar alcohols, while xx tonnes sugar alcohols are exported, which slightly decreases compared with that of 2008 due to the impact of global financial crisis. The US, Europe and Southeast Asia are the major exporting destinations.
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.
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III-3 Major producer’s information 9
Sorbitol
According to CCM’s investigation, 27 enterprises produce or ever produced sorbitol in China. By the end of May 2010, -
6 producers stopped;
-
2 producers are idle;
-
19 producers are active.
At present, there are 2 types of sorbitol in China, 70% syrup sorbitol and crystalline sorbitol. Because transportation cost of syrup sorbitol is high and it’s easily freezing in winter, the production of 50% syrup sorbitol has stopped recently. About 15 producers use cornstarch, a major raw material of sorbitol production. For others, 2 producers use sorbitol syrup and the other 2 use glucose and tapioca.
9
Mannitol
Currently, there are 8 active mannitol producers in China, among which 7 adopt chemical synthesis method with glucose, only one producer still adopt the traditional method. Hebei Huaxu Pharmaceutical Co., Ltd. is the top producer of mannitol in China with capacity of 15,000 t/a, whose output reaches 12,000 tonnes in 2009. Jiangsu Lianyungang Zhongda Seaweed Industrial Co., Ltd. (Lianyungang Zhongda) is the only producer adopting traditional method with an annual capacity of 800 tonnes in 2009. More and more companies choose synthesis method. The output of mannitol produced by traditional method will be less and less till it is completely replaced by synthetic method with glucose. Some companies stopped mannitol production for insufficient capital to pass GMP certification, and mannitol production is strictly limits by national requirements. These companies include Qingdao Gather Great Ocean Seaweed Industry Co., Ltd., Lianyungang Huarui Chemical Co., Ltd., Jiuyang Alga Industry Bio-engineering Co., Ltd. and so on. Only 8 active producers have gained GMP certificate. Lianyungang Zhongda and Shandong Lianmeng are claimed to pass GMP certification in August 2007. Henan Jincheng doesn’t pass GMP certification, and it can only supply mannitol to these food consumers or for export.
Table III-3.4 List of China’s mannitol producers, 2010 No.
Producer
Raw
Capacity,
Output, 2009
material
2010 (t/a)
(t)
Status
Price (USD/t) Food grade: 2,932 3,500
1
600
Shandong Qingdao Bright Moon Seaweed Industry
grade:
Co., Ltd.
Active
Glucose
Hebei Huaxu Pharmaceutical Co., Ltd.
Active
Glucose
Ltd.
Active
Glucose
4
Shandong Jiejing Group Corporation
Active
5
Yucheng Lvjian Biological Technology Co., Ltd.
6
Shandong Lianmeng Chemical Group Co., Ltd.
2
Medicine
2,493 15,000
12,000
1,833
3,000
2,400
2,933
Glucose
3,500
2,000
2,493
Active
Fructose
5,000
3,000
2,493
Active
Glucose
10,000
8,000
1,620
800
800
3,666
Co., Ltd.
Active
Glucose
Yantai Xinwang Seaweed Industry Co., Ltd.
Active
Starch
2000
550
2,053
Guangxi Nanning Chemical & Pharmaceutical Co., 3
Jiangsu Lianyungang Zhongda Seaweed Industrial 7 8
Source: CCM International