Amino acids play a vital role in health, food, and feed. In recent years, the world's amino acid market has been expanding, and by 2021, it has reached $26.19 billion, and is expected to reach $40 billion by 2027. China is the world's largest producer of amino acids, from the global amino acid production situation, the global amino acid industry production of more than 10 million tonnes in 2021, is expected to continue to grow to 2027, the global amino acid industry production will continue to grow to 13.8 million tonnes.
The steady development of the amino acid market reflects the increasing demand for nutrients. From the supply side, China's output of amino acid products grew from 4,399,700 tonnes in 2016 to 6,282,600 tonnes in 2022, with a CAGR of 6.12% during the period. As one of the world's largest producers of amino acids, China has technical strength and market advantages, and is still expected to maintain a stable growth momentum in the future. On the demand side, the demand for amino acid products has shown a fluctuating and changing trend in recent years, and the demand for amino acid products in China will be about 4.086 million tonnes in 2022, up 5.7% year-on-year. This indicates that although the industry is facing certain market cycle fluctuations, the overall development is still in a healthy direction.
As a key enterprise, Meihua Biological, which was formerly known as Hebei Meihua MSG Group Co., Ltd. established in 2002, completed the shareholding system transformation in 2009 and changed to Meihua Biotechnology Group Co. The company has strong capacity of strain cultivation, process optimisation, engineering design and application research and development, and has formed a business pattern of animal nutritional amino acids, fresh flavour products and human medical amino acids, colloidal polysaccharides and other advantageous products: amino acids as the leading products, and taking care of the development of multi-category products while lysine, threonine and monosodium glutamate products are becoming bigger and stronger.
As a company with a history of more than 20 years, it has been striving to become a pioneer in the world's amino acid industry. It has not only excelled in amino acid production, but has also shown great strength in the development of the technology behind it. In the first quarter of 2023, the company posted an operating income of RMB 6.95 billion, mainly attributed to the contribution of amino acids to feed, showing that the market demand remains strong.
The 'synthetic bio-chain' developed by Meihua Bio is the direction of future industrial change. Based on the previous work, this project has constructed a series of products of animal nutritional amino acids and human medicinal amino acids through genetic engineering technology and process optimisation. This diversified layout has won the first opportunity for the enterprise to compete.
Industry Outlook
China's amino acid industry is expected to gain more growth opportunities during 2025-2031, driven by policy support and technological advancements. The government has introduced a series of policies to improve manufacturing levels in the manufacturing sector and promote the market share of companies around the world. This has facilitated both technological innovation among Chinese companies and a large influx of foreign investment. However, there is still a need for the amino acid industry to remain highly alert to the cost pressures that the ups and downs in the prices of food and raw materials may put on companies. As uncertainties in the world economy continue to grow, companies must be flexible and resilient in order to cope with all possible risks.
Overall, China's amino acid industry is in a phase of continuous growth and innovation. With the harm of market demand and the continuous advancement of technology, the competition will be more intense in the future. Companies not only need to seize market opportunities, but also need to focus on innovation and sustainable development.
Source:CCM
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