In recent two years, the concept of “Big
Health” has been well recognised. Many sweetener producers in succession have
carried out business activities for this business:
Source: Baidu
-
29 July - Shandong Longlive Bio-technology
Co., Ltd. (Shandong Longlive) finished acquisitions of Xiamen Kuaiyun
Information Technology Co., Ltd. and Winnerspring Union (Beijing) Technology
Development Co., Ltd., for its “Internet + Big Health” strategy
-
1 Aug. - Baolingbao Biology Co., Ltd.
(Baolingbao) established a subsidiary, to step into the market of food for
special medical purpose
Oligosaccharides play a key role in the
“Big Health” business. Now in China, oligosaccharide manufacturers include:
-
New Francisco Biotechnology Corporation
(NFBC): galacto oligosaccharide (GOS), capacity estimated at 15,000 t/a
-
Shandong Bailong Chuangyuan Bio-technology
Co., Ltd.: isomaltooligosaccharide (IMO), capacity given at 100,000 t/a for
liquids and 50,000 t/a for solids
-
Shandong Longlive: xylo oligosaccharide
(XOS), capacity given at 4,000 t/a
-
Baolingbao: IMO, capacity given at 50,000
t/a
-
Quantum Hi-tech Biological Co., Ltd. (QHT):
fructo oligosaccharide (FOS, 50,000 t/a) and GOS (10,000 t/a)
Oligosaccharides, as prebiotics, contribute largely to the proliferations of
bifidobacterium, improvement of gastrointestinal tract functions, blood lipid
reduction and immunity enhancement. They are widely applied in healthcare
products, dairy products and functional beverages.
It is expected that the output value of
"Big Health" business in China will exceed USD3.02 trillion (RMB20
trillion) in the next ten years. According to CCM's research, the development
of oligosaccharides business accordingly will be focuses on:
- Capacity expansion:
now the combined production capacity of oligosaccharides
surpasses 370,000 t/a (XOS: around 40,000 t/a, GOS: 30,000+
t/a, FOS: 100,000+ t/a, and IMO: 200,000+ t/a). Particularly thanks to the
aging population and the two-child policy, the demand for oligosaccharides will
increase. This will encourage manufacturers to expand the capacity and enhance
their competitiveness: Shandong Longlive is now commissioning its 6,000 t/a XOS
plant, expected to increase the total capacity to 10,000 t/a.
- Technology development:
1990s saw the start of the oligosaccharides business
in China. However at that time, the prices were high due to the technology
barriers. After years of development, the manufacturers now made achievements:
Shandong Longlive obtained several patents for its XOS production; QHT released
6 state-level fructo oligosaccharides (FOS) reference materials; NFBC launched
GOS of nearly 100% purity.
- Price fall:
Gradually mature technology will help cut down the production
costs. This, along with strategies to increase demand, will cause price falls.
In 2015, the averaged ex-works price of FOS was USD6,550/t (RMB43,412/t), down
by 13.37% YoY, and XOS down by 1.21% to USD35,558/t (RMB235,667/t).
- Product mix enrichment:
given oligosaccharides' functions and gradually
decreasing prices, downstream users will be inclining to applying
oligosaccharides and will develop more oligosaccharides related products. In
Feb. this year, CNSIC Kangjian (Beijing) Technology Co., Ltd. (affiliated
company to China National Salt Industry Corporation) launched low-sodium salt
containing prebiotics (suitable for the elder, infants, the pregnant and
hypertension patients); in late June, Hunan Xuetian Salt Technology Development
Co., Ltd. began marketing a prebiotics contained salt (especially suitable for
people having problems in intestines and stomach).
Now the "Big Health" business is at a stage of development, supported
by many government policies. For instance, in the China Food and Nutritionals
Development Outline (2014-2020), provisions on the intakes of nutrients and the
control over nutritional diseases are listed. In this context, CCM expects the
oligosaccharides business to sustain stable development and to benefit related
producers.
Ex-works prices of FOS and XOS in China,
2012-2015 & H1 2016
Source: CCM
This article comes from Sweeteners China News 1608, CCM
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Tag: sweetener oligosaccharide