China's xylitol: 17 percent rise YoY in exports in January-October 2015 03-21-2016

In January-October 2015, China’s exports of xylitol increased YoY, mainly due to the increasing demand abroad, the improved market position and the excess production capacity at home.


According to China Customs, China exported 21,145.25 tonnes of xylitol during January-October 2015, up by 17% YoY. This can be mainly attributed to:


- Increasing demand abroad. Thanks to its prevention of dental caries and its catabolism independent of insulin adjustment, xylitol is widely applied in sugar-free products, such as sugar-free chewing gum, which makes up 50% in the overall chewing gum market. Now the demand for xylitol abroad is increasing continuously, by 15% year on year.


- Improved market position. China is gradually growing into the largest xylitol producer in the world, capacity given at about 125,000 t/a and sales occupying 50%+ of the global figure. Such a fairly high market position helps increase the foreign demand for China-made xylitol.



According to statistics, China’s exports to most of the destinations are increasing constantly. Particularly to the EU, the exports reached about 6,500 tonnes in January-October 2015, up by 66% YoY, of which the figure in Poland recorded the largest rise, by 704% YoY (434.90 tonnes in the same period of 2014) to 3,495.40 tonnes.


- Overcapacity. According to CCM’s monitoring, the domestic production capacity of xylitol is about 125,000 t/a in 2015, whilst the output is estimated to hit around 70,000 tonnes (capacity utilisation rate <60%). During 2013-2015, the consumption increased by a CAGR of only 5%, to about 60,000 tonnes in 2015 (estimated). 


Under this circumstance, the producers are strategically expanding the exports.


In addition, the domestic xylitol producers are involved in price competition for a long time. This leads to the declines in export price and further drives up the exports. According to China Customs, the figure averaged USD2,739/t during January-October, down by 9% YoY.


                                         China's xylitol export, January 2014-October 2015


Source: CCM

 

 

                                          China's top 10 export destinations for xylitol, January-October 2015


Source: China Customs & CCM

 

In view of exporter (by manufacturer), Zhejiang Huakang Pharmaceutical Co., Ltd. exporting about 6,600 tonnes of xylitol (up by 28% YoY) was the largest one, about 30% of the national figure. Meanwhile, Danisco Sweeteners (Anyang) Co., Ltd. was the producer with the biggest rise, by around 108% YoY to 1,400 tonnes (vs. 700 tonnes in January-October 2014).

 


About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta.

 

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Tag: xylitol



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