2016 Chinese Food Additives Industry Overview-1
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2016 Chinese Food Additives Industry Overview-2

In 2016, Chinese food additives and ingredients industries kept smooth growth, although the over economic background and demand capacity was generally weak and soft. The overall production and revenue increase were slow in the first half of last year, however, the situation was improved in the following half year and both production and revenue had a fast pace of growth. Based on the analyses of major categories of food additives, the total production quantity of Chinese food additives in 2016 was almost 11 million metric tons, increased 6% compared to that of 2015; total revenue increased 5.8% and was about 104 billion yuan; export revenue was 3.8 billion U.S. dollars, which about the same as that of 2015. Below is more detailed analysis about food additives in different categories.

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Edible Flavors and Fragrances

Edible flavors and fragrances was upward in 2016 but the growth was not as fast as previous years, with about 8% growth rate of sales and slight better performance of export amount compared to 2015. Savory flavoring production and sales also had small amount of increase, however, yeast extract, among other savory flavoring stuff, had an outstanding 10% production and 15% sales increase. The development of Chinese domestic baked and fermented food, flavoring products provided a strong support to this category.

 

Food Preservative and Antioxidant

Production and sales of food preservative and antioxidant went up in 2016. Staple commodity toluic acid and toluic acid sodium had about the same production and sales volume compared to last year. The market demand of natural preservatives like nisin, natamycin and polylysine increased: production and export amount of nisin grew greatly and natamycin production had an over 20% increase, while the sales was over 15%. New product polylysine had more than 200% increase in terms of both production and sales amount. Global and domestic usage of potassium sorbate was steady as year of 2015, however the prices were volatile due to the higher cost of the raw material crotonaldehyde. Domestic sales of sodium dehydroacetates was boosted 10-20% and prices were upward. Parabens were greatly demanded in the global market, especially in personal care industry.

In 2016, the demand of compound preservatives was 10% more than before. Some small and medium scale companies don’t have strong technical ability, therefore they’re more rely on compound products. Product renovation and application of compound preservatives will be a trend in the future.

 

Sweetening Agents

High intensity sweeteners’ production amount was 8% lower in 2016. Domestic sales of stevioside was about the same as 2015 and slight increase for export sales because of the higher consumption and demand from the U.S. market. The production, revenue and sales price of saccharin were steady like last year. The cost of sodium cyclamate dropped as the international oil price changed, meanwhile, the production and sales also decreased. Acesulfame potassium was also effected by the lower demand of the market. The worse situation was in November 2016, when three major Chinese manufacturers were audited by the U.S., therefore the export and sales margin were not positive. Aspartame price was keeping low last year. Price of sucralose was going upward, however the production and export amount were low because of stringent environmental regulations. Sales prices of xylitol, xylose, maltitol and erythritol climbed in a small range due to the raw material price raise. The domestic demand was stable and export was soft.

 

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