Sweeteners China News

Welcome to Aug. issue of Sweeteners China News (Vol. 6 Issue 08 2016).

In H1, Chinese sweeteners companies showed very different financial performances: downs in sugar and functional sugar manufacturers and ups in HIS ones.

• Sugar & functional sugar

The rise in sugar price did not benefit the manufacturers; instead, the decrease in demand (caused by change in consumption habit) set back their performance. For instance, Nanning Sugar recorded a YoY fall of 52.25% in sales from sugar business, and COFCO Tunhe 20.52%.

Now people are inclining to healthy consumption habit. However, the domestic made functional sugar is still not well recognised, challenging the manufacturers largely. In this context, Shandong Longlive had a YoY fall of 0.04% in the sales of functional sugar. By contrast, Sanyuan Biotechnology strategically carried out marketing activities and sales promotions (participations into industry exhibitions / technology related seminar, construction of official website and advertising) and improved the recognition of its erythritol. In H1, the sales went up by 79% YoY.

• HIS

Such sweeteners now are growing maturely and stably. Anhui Jinhe, for instance, respectively achieved a YoY rise of 32.02% and 35.92% in sales volume and sales of ace-K. It also noted another key factor: the tight supply of raw material DK contributed to upturn of ace-K price.

Still functional sugar segment stands out amongst all sweeteners and boasts bright prospect. The “Big Health” business is also hoped to develop vigorously, which will be a contribution to the functional sugar business.  

The USD/RMB exchange rate in this report is USD1 .00=RMB6.6277 on 1 Aug., 2016, sourced from the People's Bank of China. All the prices mentioned in this report will include the VAT, unless otherwise specified.