The Future of High Intensity Sweeteners in China
A Unique Market Study by
Guangzhou CCM Information Science and Technology Co., Ltd . Guangzhou, P. R. China
Feb. 2008
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: www.cnchemicals.com Tel: +86-20-3761 6606 Fax: +86-20-3761 6968 Email: econtact@cnchemicals.com
CCM Data & Primary Intelligence Description: Sweeteners are the Food Additives used to sweeten food products, i.e., the food additives listed as Sweeteners in China’s national standard GB2760-1996 (Hygienic Standards for uses of Food Additives, including supplements). There have been totally 20 sweeteners permitted to be used in food by the end of 2007. There are totally 13 HIS listed in GB 2760 (including supplements to the end of 2007). They are all 100 or more times sweeter than sugar except cyclamate and calcium cyclamate, which are both 30~80 times sweeter than sugar. In this report we are emphasized in these HIS: - Aspartame - Ace-K - Saccharin - Cyclamate - Sucralose - Stevioside As the major competitors of HIS, sugar and sugar alcohol industry in China is introduced in brief in the aspects like: production, demand and trade. Why you should buy this report Obtain the latest infoλ about the production and market of HIS, and the deep analysis on this industry. Calculate the impact of food additives guideline andλ legislation. Get insight into the latest consumers trends and market dataλ for HIS in China Gain vital business intelligence out of China ahead of theλ competition Find out where the Chinese HIS market could go next and howλ your business can get involved Keep briefed on your competitor activitiesλ in Chin Report highlights Each of the major HIS in China has all expanded in output value in recent years. The fastest is sucralose, then aspartame, growing by 240% and 42% annually from 2002~2006, in spite that the price of sucralose and aspartame are both declining in recent years. The output value of saccharin and cyclamate also grows by 3.1% and 4.6% although their output volume has shrunk. China’s the major HIS provider to the world, about 70% of China’s HIS by volume is exported in recent years; while little HIS is imported. The import volume peaked 216 tonnes in 2004, and among all the HIS, the largest imported one is aspartame. In recent 3 years, China’s import volume of HIS is lower than 100 tonnes, accounting for less than 0.5% of HIS consumption in the Website: http://www.cnchemicals.com Tel: +86-20-3761 6606
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CCM Data & Primary Intelligence domestic market. China’s total consumption of HIS by volume decreased from 34.8 kt in 2002 to 23.3 kt in 2006, declining by CAGR 9.5%. This decline in consumption volume is attributed to China’s HIS consumption structure change in recent years. The HIS with lower unit sweetness has shrunk and the HIS with higher sweetness has expanded. For example, the consumption volume of cyclamate decreased by 14.1% from 2002 to 2006 annually. From 2002 to 2006, the total sweetness consumption in China grows by 6.6% annually. For sugar and starch sugar, they grows by CAGR 4.9% and 25.6% from 2002~2006 respectively. However, for HIS, it declines by 0.6% annually from 2002~2006. Obviously, HIS is not the strong competitor against sugar and starch sugar, although the unit sweetness price is just 1/10 around of that of sugar and starch sugar. Food & beverage industry is the major consumption area for HIS in 2007, about 75% of HIS by volume are consumed thereto, and the percentage is 81% by value. For aspartame, ace-K and sucralose, the figure is much higher. Except saccharin, over 80% of the rest HIS is consumed in food & beverage industry.
Main content: No.
I I-1 I-2
I-3
I-4 I-5 I-6 II II-1 II-2
Content Executive summary Introduction and methodology Sweetener overview in China Classification and major categories of sweetener in China Sugar industry in China - Planting situation of sugar cane and sugar beet in China - Production of sugar and its distribution - Trade of sugar - Demand of sugar Sugar alcohols industry - Production of sugar alcohols and its distribution - Trade of sugar alcohols - Demand of sugar alcohols Eating habit of sweetener in China Government policies and their influence on sweetener Development trend of sweetener in China Brief Introduction to HIS industry in China Classification and major categories of HIS in China Development History of HIS Industry in China
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Page 10 21 23 23 25 25 26 31 32 35 35 40 42 45 49 49 49 49 50
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CCM Data & Primary Intelligence III III-1 III-2 III-2.1 III-2.2 III-2.3 III-2.4 III-2.5 III-2.6 III-2.7 III-3 III-4 III-5 III-5.1 II-5.1.1 II-5.1.2 II-5.1.3 II-5.1.4 II-5.1.5 II-5.1.6 II-5.1.7 III-5.2 II-5.2.1 II-5.2.2 II-5.2.3 II-5.2.4 II-5.2.5 II-5.2.6 II-5.2.7 III-5.3 III-5.3.1 III-5.3.1.1 III-5.3.1.2 III-5.3.1.3 III-5.3.1.4 III-5.3.1.5 III-5.3.1.6 III-5.3.1.7 III-5.3.1.8 III-5.3.1.9 III-5.3.2 III-5.3.2.1 III-5.3.2.2
Production and Market of HIS in China Production Situation of HIS in China Brief Introduction to the Major HIS in China Aspartame Acesulfame-K Saccharin Cyclamate Sucralose Stevioside Others Pricing of HIS Import & Export Situation of HIS in Recent Years Demand for HIS in China Market size and share of each major HIS in China (by volume and by value) Market size of total HIS Market size of aspartame Market size of Ace-K Market size of saccharin Market size of cyclamate Market size of sucralose Market size of stevioside Consumption pattern of HIS in China Total HIS Aspartame Ace-K Saccharin Cyclamate Sucralose Stevioside Brief introduction to major end use segments Food industry - Confection - Tabletop sweetener - Jelly - Glace fruit - Canned food - Pickles - Seasonings - Bakery food (cake, bread, biscuit, toasted seeds and nuts) - Health food Beverage industry - Soft beverage - Solid beverage
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54 55 63 63 66 69 72 75 82 86 87 91 97 97 98 100 101 102 103 104 105 106 106 107 108 108 109 111 112 113 114 114 118 121 122 124 125 126 128 129 130 130 137
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CCM Data & Primary Intelligence III-5.3.2.3 III-5.3.2.4 III-5.3.3 III-5.3.4 III-5.3.5 III-5.4 III-6 IV
IV-1.1 IV-1.2 IV-1.3 IV-1.4 IV-2 IV-2.1 IV-2.2 IV-2.2.1 IV-2.2.2 IV-2.2.3 IV-2.2.4 IV-2.2.5 IV-2.2.6 IV-2.2.7 IV-2.2.8 IV-2.2.9 IV-2.2.10 IV-2.2.11 IV-2.2.12 IV-2.2.13 IV-2.2.14 IV-2.2.15 IV-2.2.16 IV-2.2.17 V VI VI-1 VI-1.1 VI-1.2
- Dairy product - Alcohol drinks Pharmaceuticals Personal care products (Toothpaste, lipstick, etc.) Others (feed, chemical, plating, etc.) Consumption character of HIS in China Growing Points and Hot Spots in China Future Forecast Key Factors and Driven Forces for the Development of HIS Industry in China Intrinsic factors Competitors End use segments Micro-economy and policies Future Forecast on the demand for HIS in Next 10 Years Introduction Market forecast: HIS in major segments, 2008~2017 Gummy candy Tabletop sweeteners Jelly Glace fruit Canned food Pickles Soy sauce Bakery foods Carbonated beverage Juice beverage Tea beverage Milk beverage Instant coffee Yogurt Ice cream Distilled spirit Toothpaste Conclusion, Recommendation Appendix Profile of major HIS producers in China Aspartame producers Ace-K producers
VI-1.3
Saccharin producers
VI-1.4
Cyclamate producers
IV-1
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138 142 145 146 147 148 152 154 154 154 155 156 159 163 163 165 165 167 169 171 174 176 178 180 182 185 187 189 191 194 196 198 200 203 204 204 204 208 0 213 0 216 0
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CCM Data & Primary Intelligence VI-1.5
Sucralose producers
VI-1.6
Stevioside producers
VI-2 VI-2.01
Profile of major HIS end users in China Fujian Yake Food Co., Ltd.
VI-2.14
Guangdong Foshan Haitian Flavoring & Food Co., Ltd.
219 0 222 0 233 233 0 244 0
Executive summary: (Note: The following summary is based on the situation in 2008 and maybe different to what it is nowadays. Please be noted.) Sugar industryυ Chinese sugar industry has experienced a fast development in the past 50 years. China’s planting area of sugar plants, increased from 1,862,000 acres in 1949 to xxxx acres in 2003. Among the total sugar planting areas, which, the sugar cane planting area increased to xxxx acres from xxxx acres, the sugar beet planting increased to xxxx acres from xxxx acres. ……… Sugar alcoholυ industry Sugar alcohols approved as food additives in China includes sorbitol, xylitol, maltitol, isomaltitol (palatinose), mannitol, lactitol and erithritol. ……… Since 2005, China has become a net export country of sugar alcohols and its net import volume of sugar alcohols has kept declining rapidly. The consumption of sugar alcohols in China grows steadily from xxxx kilotonnes in 2000 to xxxx kilotonnes in 2006, with the CAGR of 15%, a faster growth rate than the GDP growth rate (8~11%) but only half of China’s sugar alcohol output growth rate (29%). Production Situation of HIS in Chinaυ The production capacity of major HIS in China reached xxxx kilotonnes with xxxx active manufacturers in 2007. The operation rate was xxxx % in 2006 for the six most popular HIS in China, namely, aspartame, Ace-K, saccharin cyclamate and stevioside.
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CCM Data & Primary Intelligence The output value of HIS in China reached RMB xxxx billion in 2006 and it is estimated to be about RMB xxxx million in 2007. ….. υ Market size and share of each major HIS in China If by volume, the cyclamate ranks the first, occupying xxxx % of the market, followed by saccharin, xxxx % of the market. The others only accounted for xxxx % of the consumption volume of HIS. If by sweetness, saccharin ranks the first, followed by cyclamate, Ace-K and aspartame, the first 4 accounted for xxxx %. However, if the market value is considered, aspartame is the biggest one, accounting for xxxx %, followed by aspartame, cyclamate, saccharin, Ace-k and stevioside. Consumption pattern of HIS in Chinaυ HIS is mainly consumed in food & beverage in China. In 2007, xxxx tonnes are consumed in food & beverage, accounted for xxxx % of HIS total consumption. By value it is RMB xxxx million, xxxx % of the total. The major end use segments include: Glace fruit: xxxx tonnes (xxxx %), RMB xxxx million (xxxx %) Bakery food: xxxx tonnes (xxxx %), RMB xxxx million (xxxx %) Milk containing drink: xxxx tonnes (xxxx %), RMB xxxx million (xxxx %) Carbonated beverage: xxxx tonnes (xxxx %), RMB xxxx million (xxxx %) Juice beverage: xxxx tonnes (xxxx %), RMB xxxx million (xxxx %) Ice cream: xxxx tonnes (xxxx %), RMB xxxx million (xxxx %) Market forecast toυ 2018 Market forecast of HIS is made in about twenty major consumption segments to 2017. Based on these demand forecasts, the total demand of enzyme in China to 2017 is obtained. In the low, expected and high growth scenarios, the HIS demand to 2012 will grow by xxxx %, xxxx % and xxxx %. To 2017, the growth will be xxxx %, xxxx % and xxxx % respectively. 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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IV Future Forecast IV-1 Key Factors and Driven Forces for the Development of HIS Industry in China The key factors and driven forces for the development of HIS industry fall into four levels: (1) Intrinsic level: HIS features low-calorie, high intensity sweetness, different health effects and other characters, which basically determines the application of HIS. Consumer’s consciousness on the features of HIS will affect the food producers’ choice of HIS. (2) Competitive level: HIS as a kind of food additives used to sweeten foods faces the competition of other sweeteners, for example sugar alcohols, and other sweet food ingredients, such as sugar and starch sugar. (3) End use level: The development of end use segment of HIS directly affects the consumption of HIS and its competitors. (4) Micro economy development and policy: The situation of micro economy will influence the consumption of sweet foods, the development of end use industries, and the policies affecting the food producers to choose between HIS and its competitors in sweet foods. IV-1.1 Intrinsic factors -
Food safety
The safety is elemental for a certain HIS to be used in food. Generally, a certain HIS should be approved by the international institutes including FAO, WHO, and JECFA, then permitted in some countries, before it is introduced into the market of these countries. 5-10 years are necessary for a new HIS to be approved in the world and then to be introduced in the market. So the safety assessment is the first barrier and a hard step for a new HIS to get into the market of sweeteners. More or less, a certain HIS have some negative health effects or are disputed about for their safety, which will affect the consumers’ choice on the sweet foods, particularly for saccharin and cyclamate, which are both the cheapest and often reported in the newspapers about the violations in the use of them. For example, in 2004, cyclamate was seriously affected by the negative news. Some reporters didn’t know much about the characters of it, and described it as a carcinogenic or teratogenic substance, which directly caused the sharp shrinking cyclamate consumption, with consumers concern on the foods containing cyclamate. -
High sweet intensity
The high sweet intensity for HIS enables food producers to reduce the production cost by replacing sugar or other sweet ingredients with HIS. Many food manufacturers claim that production cost reduction is not the major factors for them to choose a suitable HIS. This is usually true when they choose a specific HIS from all the HIS, but it is not true when they are choose a certain HIS from all the available sweet ingredients including sugar and starch sugar. If a producer replaces HIS with sugar in a certain product without changing the grade and price of the original product, it will lose the ability to gain profit.
-
Low-calorie
The low-calorie or calorie-free character gives HIS the opportunity in the sugar-free foods for diabetics and obesity sufferer. Besides, it is a good reason for the people to choose the foods with HIS to avoid obesity, and a virtue for the food producers to promote the foods with HIS. There were 6 million diabetics in China early in 1990. The figure reached 14 million in 2000, and in 2007, it has exceeded 20 million. And at the same time, there are about 20 million IGT (impaired glucose tolerance) sufferers in China by 2007. Though the bad health effects have a negative effects on the consumption of HIS, their low-calorie character is good for the demand for HIS. From the eyes of consumers, the two aspects are the major factors that determine their attitude towards HIS containing foods. IV-1.2 Competitors The main sweet food ingredients include HIS, sugar and starch sugar. The market share of starch sugar is expanding in recent years while the shares of sugar and HIS are shrinking. The market share of HIS have decreased from 18.9% in 2002 to 14.3% in 2006 and it is estimated to be 12.8% in 2007. Table IV-1.2 -1 Market shares of HIS, sugar and starch sugar in China, Sweetness of starch Sugar, %
sugar, % (*)
Total sweetness,
Year
Sweetness of HIS, %
Total, %
2002
18.9%
69.0%
12.1%
100.0%
13,252,719
2003
16.6%
67.2%
16.1%
100.0%
14,872,313
2004
14.4%
68.8%
16.8%
100.0%
16,570,327
2005
14.0%
65.1%
20.8%
100.0%
16,124,379
2006
14.3%
62.5%
23.2%
100.0%
17,116,452
2007
12.8%
64.6%
22.6%
100.0%
19,344,880
* Starch sugar is 0.8 times sweet as sugar
Figure IV-1.2 -1 Sweetness consumption in China, 2002~2007, tonne
tonnes
From 2002 to 2006, the total sweetness consumption in China grows by 6.6% annually. For sugar and starch sugar, they grows by CAGR 4.9% and 25.6% from 2002~2006 respectively. However, for HIS, it declines by 0.6% annually from 2002~2006. Obviously, HIS is not the strong competitor against sugar and starch sugar, although the unit sweetness price is just 1/10 around of that of sugar and starch sugar. IV-1.3 End use segments Food & beverage industry is the major consumption area for HIS in 2007, about 75% of HIS by volume are consumed thereto, and the percentage is 81% by value. For aspartame, ace-K and sucralose, the figure is much higher. Except saccharin, over 80% of the rest HIS is consumed in food & beverage industry. Table IV-1.3-1 HIS consumption in food & beverage industry HIS
Consumption, tonne
Consumption, %
Aspartame
1,408
96.8%
Ace-K
1,647
96.1%
Saccharin
1,602
39.2%
Cyclamate
12,820
80.0%
Sucralose
59
98.2%
Stevioside
369
93.5%
17,913
75.0%
Total
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Situation of food & beverage industry in China
Food & beverage industry in China is constituted by beverage production industry, food production industry and food processing industry. The statistics of the National Bureau of Statistics shows that there are 4,042 beverage manufacturers, 6,227 food manufacturers and 16,983 food processors in 2007 in China. The economic performances of these 3 industries are shown in the following tables.
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