QYResearch: Global L-Cysteine capacity utilization rate remained at around 80.62% in 2017
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Cysteine (abbreviated as Cys or C) is an ι-amino acid with the chemical formula HO2CCH(NH2)CH2SH. It is a semiessential amino acid, which means that it can be biosynthesized in humans. The thiol side chain in cysteine often participates in enzymatic reactions, serving as a nucleophile. The thiol is susceptible to oxidization to give the disulfide derivative cysteine, which serves an important structural role in many proteins. When used as a food additive, it has the E number E920. The majority of L-cysteine is obtained industrially by hydrolysis of animal materials, such as poultry feathers or hog hair. L-cysteine is produced by the hydrolysis of racemic 2-amino-Δ2-thiazoline-4-carboxylic acid using Pseudomonas thiazolinophilum.
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Currently, there are several companies in the world can produce l-cysteine product, mainly concentrate in China. The main market players are Wacker, Nippon Rika, Ajinomoto, CJ Group, etc. According to QYResearch, The production of l-cysteine increased from 2770 Tonnes in 2012 to 3402 Tonnes in 2017, with an average growth rate of 4.20%. Global l-cysteine capacity utilization rate remained at around 80.62% in 2017. In consumption market, the growth rate of global consumption is smooth relatively with the 4.56 % of average growth rate. China and Europe are still the mainly consumption regions due to the advanced production technology and rapid development of economy.
L-cysteine can be classified into three types: food grade l-cysteine, tech grade l-cysteine and pharmaceutical grade l-cysteine. Food grade l-cysteine is widely used in food industry, and fodder industry. Pharmaceutical grade l-cysteine is used in pharmaceutical industry. Tech grade l-cysteine is widely used in pesticide industry; it is a key raw material of cystine. Survey results showed that 47.13% of the l-cysteine market is food industry, 18.47% is cosmetics industry, 18.01% is pharmaceutical industry, 16.39% is feed industry. With the development of economy, these industries will need more lcysteine. So, l-cysteine has a huge market potential in the future.
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Currently, there are two kinds of commonly used production process of l-cysteine. It includes chemical synthesis and biological fermentation. Due to the different process, the major raw materials for l-cysteine are different. On the global market, supply of raw materials is full. Fluctuations in the price of the upstream product will impact on the production cost of l-cysteine industry. The price increases from 2016 to 2017, because of the increasing price of raw materials, and the decreasing production of the raw materials. QYResearch tend to believe this industry is an emerging industry, and the consumption increasing degree will show a smooth growth curve. For product prices, the slow downward trend in recent years will maintain in the future as competition intensifies. Besides, prices gap between different brands will go narrowing gradually. Also, there will be fluctuation in gross margin.
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