Due to the slow economic recovery and sluggish demand in year 2016, the growth rate of Chinese food ingredients market slowed down but recorded a slight increase. According to CCFA, food ingredients output and sales in China increased slowly in H1 while recovered remarkably in H2 2016. Chinese food ingredients output reached 10.56 million tons, increasing by 6%. Gross sales of food ingredient manufacturers recorded an increase of 5.8% to RMB 103.5 billion in 2016. During this period, food ingredients companies exported USD 3.75 billion, almost the same as that of year 2015.

1. Food Preservatives and Antioxidants
The output and sales of Food Preservatives and Antioxidants increased slightly in 2016, comparing with that in 2015. Benzoic Acid and Sodium Benzoate output and sales were basically same as last year. The market demand for Nisin, Natamycin and Polylysine increased. The Nisin output and export increased steadily while the Natamycin production volume increased remarkably by more than 20%. Sales value also increased by more than 15%. As a new preservative, Polylysine sales volume and value grew by more than 200%. Potassium Sorbate export volume and domestic sales volume were basically stable, but the market price fluctuated mainly due to the Sorbic Acid production cost increase for Potassium Sorbate suppliers and manufacturers. Total Sodium Dehydroacetate sales value increased by 10%-20%, and the price was still on the rise.
The international demand for Butylparaben, Ethylparaben, Methylparaben and Propylparaben were growing mainly in the personal care and cosmetics industries such as toothpaste and other products. In addition, the compound preservatives market also increased by more than 10% in this year. Most of SMEs had no strong technical force in the preservative formulation. They would like to use compound preservatives due to the synergies of complex products and the using convenience.

2. Sweeteners
During year 2016, the output and sales volume of Sweeteners in China decreased by about 8% over last year. The domestic sales of Glucose was almost the same as last year. Glucose export increased slightly due to the US consumption increase. The output and sales volume of Saccharin and Sodium Saccharin were flat year on year and the Sodium Saccharin price was stable. Sodium Cyclamate production had been affected by international oil prices. Its production cost reduced while the Sodium Cyclamate output and sales volume fell year on year. But the Sodium Cyclamate price was stable. Acesulfame Potassium output was also significantly affected by the demand decline. In end November, three Acesulfame Potassium suppliers and manufacturers were investigated by the United States International Trade Commission (USITC) in terms of Tariff Act 337. Acesulfame Potassium manufacturers‘ export was estimated to be affected continously. Profits and benefits of Acesulfame K suppliers declined. Aspartame price also declined this year. Sucralose production and export was affected by Chinses environmental inspection on Sucralose manufacturers. Sucralose output volume declined slightly while the Sucralose price increased due to less stock in Sucralose suppliers. During year 2016, the market prices of Xylitol, Xylose, Maltitol and Erythritol increased slightly due to the cost increase of raw material and labor. Their export volumes declined due to the sluggish demand. There were no no significant growth in their output and domestic sales volume.

3. Food Coloring
During this period, Chinese Food Coloring output declined by 8%, comparing with that in year 2015. Caramel Color, the largest food coloring, was facing a declining market demand due to sluggish food production situation. Furthermore, some soy sauce and vinegar manufacturers increased their own caramel color use, resulting in lower outsource volume. Total sales value decreased by about 15%, mainly due to the price decline of most natural food colorings. Food Coloring export volume increased by 5.8% and the export value increased remarkably by 22% to USD 220 million. Among them, caramel color output and sales volume decreased by 10% from year 2015. The output and sales volume of natural and synthetic colors were basically the same as last year. As for natural food coloring, the Chilli Red Pigment price increased slightly as the stock during the past three years had been disolved. The market prices of tagetes concrete and lutein declined by 10% due to their plantation area had increased significantly in 2016. Monascus Red, Monascus Yellow and Gardenia Yellow declined in output and market prices due to their over capacity.

4. Flavors Enhancers
In 2016, Chinese Flavour Enhancers market increased steadily while the growth rate came down. Flavour Enhancers sale volume and value registered an increase of 8%, comparing with that in year 2015. Flavour Enhancers export also increased slightly this year. Salty Flavors Enhancers output and sales volume increased but the growth rate is not large. Yeast extract output and sales volume increased remarkably during this year. The output and sales value of the largest yeast extract supplier increased by 10% and 15% respectively. This was mainly due to the blooming development of baking, fermented pasta and food seasoning industries.

5. Nutritional Supplements
Chinese Nutritional Supplements and functional ingredients markets have been increasing steadily due to the blooming development of downstream industries such as functional drink and dietary supplements. During year 2016, the output and sales volume of Nutritional Supplements and functional ingredients in China increased steadily. Chinese Nutritional Supplement manufacturers have dominated the world markets of Vitamin C, Vitamin E and Vitamin D3. As for Amino Acids, the output and sales volume of Lysine, Threonine and Methionine increased remarkably. Some Amino Acid suppliers and manufacturers started to expand their production capacities and overcapacity was expected to happen in the next few years.

6. Food Thickeners, Food Emulsifiers and Quality Improvers
During this period, the output and sales volume of Food Thickeners, Food Emulsifiers and Quality Improvers maintained a steady growth rate. However, production profits declined due to the in the raw material price increase and market price decline. Food Emulsifier output and sales volume increased by about 2.5% while the market price was basically the same as that in year 2015. Glycerol Monostearate output and sales volume were basically same as those in last year. Production profits of Glycerol Monostearate manufacturers declined slightly during this period. The output and sales volume of Sucrose Ester, Span and Tween were stable in this year, but the market prices were still low. Compound food bulking agents output and sales volume were basically same as last year.

Sinofi Ingredients is a leading Chinese food ingredient supplier and manufacturer serving global food, beverage, feed and pharmaceutical industries. We specialize in manufacturing and supplying all kinds of Food Ingredients, Food Processing Equipments, Food Processing Chemicals and Pharmaceutical Ingredients in terms of FDA, Food Chemicals Codex (FCC7), USP, BP, HACCP, Kosher, Halal, Iso, NSF, GMP and the customer’s or industry standards.

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Food Ingredients supplied and manufactured by Sinofi are strictly controlled to surpass the customer's quality standards or industry standards. Sinofi struggles to provide healthy food supply and reasonable prices for global food suppliers and manufacturers.


Sinofi Ingredients

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