Recently, China's erythritol industry is under double trade pressure from the European Union and the U.S. On January 16, 2025, the European Commission issued a final announcement announcing the imposition of high anti-dumping duties on erythritol products originating from China, with Sanyuan Bio's products being subject to an anti-dumping duty rate of 156.7%. The measure came into effect on January 17, 2025, with an implementation period of up to five years. In the EU anti-dumping investigation of the storm has not yet subsided, the United States also on China's erythritol products to start anti-dumping, countervailing investigation.
Erythritol, as a natural sweetener, has shown continuous growth in demand in the global market in recent years, and is particularly widely used in the food and beverage industry. China is one of the world's major producers of erythritol, and its export market has been attracting international attention. However, the increasing trade friction has brought considerable challenges to the development of China's erythritol industry.
As the world's largest erythritol producer, Sanyuan Bio occupies a pivotal position in the global market. Previously, with advanced production processes and lower costs, its products have strong price competitiveness when exported, which makes it easier for the company to become the target of overseas trade investigations. In the face of trade pressure exerted by the EU and the US, Sanyuan Bio has acted proactively and taken a series of countermeasures. The company plans to strengthen its sales of compounded sugar in the EU market, vigorously promote its new product, high-quality stevia, and accelerate the production capacity of allulose, while actively exploring the domestic and emerging markets as a means of enhancing its own risk-resistant ability.
Reviewing the development history of China's erythritol industry, it has shown a good momentum of rapid development in recent years. in 2023, the output of China's erythritol industry is about 164,000 tons, while the demand is 105,000 tons. The rapid development of the industry is mainly due to the significant increase in consumer health awareness and the increasing demand for low-sugar and low-calorie foods. Against the backdrop of diabetes, obesity and other health issues becoming more prominent, erythritol, as a natural, low-calorie sweetener, is widely used in food, beverages, health care products and other fields, market demand continues to rise.
However, with the growing consumer demand for healthier products, erythritol and other sugar substitute products market demand was quickly ignited, triggering a round of industry expansion boom. This led to the market supply of erythritol exceeds demand, the price of the product fell sharply, once from the peak period of 3, 40,000 yuan / ton down to 9500 yuan / ton. As a result, the net profit of listed companies related to erythritol slipped sharply. But in 2024, with the erythritol market order gradually return to normal, market demand has also rebounded, Sanyuan Biological and BaoLingBao and other erythritol producers' performance are showing a rebound trend.
At the technical level, the technological progress of the erythritol industry is mainly reflected in the optimization and upgrading of the production process. Continuous improvement of the fermentation method can not only further increase the product yield and reduce the production cost, but also enhance the environmental protection in the production process. In addition, the promotion of green production concepts and the application of intelligent factories will further improve the industry's sustainability and production efficiency. With the continuous progress of technology, the production of erythritol will develop in the direction of more standardized and intelligent, promoting the whole industry to the goal of high quality and low cost.
Nutrition experts pointed out that, from the current research results, compared with the previous commonly used acesulfame, erythritol in the human body metabolism is more advantageous. Driven by the global trend of sugar substitutes, the expansion of the sugar substitute market is full of imagination. Especially in Europe and the United States, sugar substitutes and vegetarian diets and other industries behind the huge potential for development, weight loss and health-related segments of the industry is becoming a hot topic, the market has broad prospects.
China occupies an important position in the global erythritol market, in which Sanyuan Bio's production capacity and output are the largest in the world, and the market share is also the highest, with its market share reaching 35% in 2021. With Yufeng Group, Fengyuan Pharmaceuticals and other new enterprises to join, the global erythritol market competition pattern has undergone major changes, the production capacity of Chinese enterprises to further increase the proportion. It is foreseeable that the competition in the industry will become more and more intense in the future with the continuous growth of market demand.
Although the changes in trade policy on the export business of enterprises caused a certain impact, but also prompted enterprises to speed up the pace of market diversification layout, reduce the degree of dependence on a single market. The market generally believes that the global erythritol market will remain stable growth in the next few years. As consumer demand for healthy, natural products continues to rise, as well as continuous technological innovation, erythritol applications will be further expanded. Related research predicts that by 2031, China's erythritol market size will continue to expand, the industry value and growth rate is expected to maintain a high level.
In summary, erythritol industry in the market demand growth, technological progress and policy support and other factors, has a broad development prospects. However, enterprises must also be aware of the challenges brought about by changes in trade policies, and enhance their core competitiveness and risk-resistant ability through continuous technological innovation and optimization of market diversification layout, in order to achieve sustainable development.
Source:CCM
More information can be found at CCM Dairy Sugar&sweeteners China Monthly Report.
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