Summary: Cargill, an
American manufacturer, has filed a petition seeking anti-dumping and
countervailing duty investigations against Chinese erythritol products. Sanyuan
Biotechnologies, the world's largest erythritol producer, has previously faced
a similar probe in Europe. The popularity of sugar-free beverages has fueled
the growth of the erythritol market, but industry capacity expansion and
softening consumer demand have led to price declines and losses. Despite these
challenges, the market is showing signs of recovery, with Sanyuan
Biotechnologies' performance rebounding and erythritol prices trending upwards.
In recents, Cargill,
Incorporated, a prominent American manufacturer, has filed a petition with the
United States Department of Commerce and the United States International Trade
Commission, seeking the initiation of anti-dumping and countervailing duty
investigations against erythritol products originating from China.
This is not the first time that Sanyuan
Biotechnologies has faced an anti-dumping probe concerning erythritol. On July
19th of this year, the company disclosed another announcement, highlighting the
European Commission's findings which imposed a provisional anti-dumping duty of
156.7% on its involved products, namely erythritol, whether pure or mixed with
other products containing less than 10% of erythritol.
Erythritol, a naturally occurring sugar
alcohol sweetener widely distributed in nature, boasts characteristics such as
low caloric value, high tolerance, antioxidant properties, anti-caries effects,
non-digestibility by human enzymes, exclusion from glucose metabolism, and no
induction of blood sugar fluctuations. In recent years, the surge in popularity
of sugar-free beverages has significantly fueled the growth of the erythritol
market, with global production increasing from 51,000 tons in 2017 to 85,000
tons in 2019, marking a remarkable 66.67% surge. Against this backdrop, Sanyuan
Biotechnologies' performance has soared in tandem with the market's buoyancy.
Founded in 2007, Sanyuan Biotechnologies
stands as the world's largest producer in the erythritol industry. Since 2018,
amidst the sustained prosperity of the erythritol market, the company's revenue
has grown at an annual rate exceeding 60%, peaking at RMB 1.675 billion in
2021, representing a year-on-year increase of 113.91%, accompanied by
substantial net profit growth. However, with industry capacity expansion and a
softening consumer market, the company's erythritol revenue has declined since
2022, despite its foreign business income maintaining a share between 61.45%
and 72.67%, with a year-on-year drop of 63.33% in 2022 revenue.
According to CCM Market Data, the
highest quoted price for erythritol reached RMB 40,000 per ton in 2021 before
gradually declining. In the first half of 2023, erythritol prices plummeted to
RMB 9,500 per ton, leading to pervasive losses across the industry due to
cut-throat low-price competition.
Ex-factory Price of Erythritol in China (from CCM Price Forecast)
This year, the erythritol market has
shown signs of recovery, with Sanyuan Biotechnologies' performance gradually
rebounding. In recent months, the ex-factory price of erythritol in China has
been trending upwards. CCM Price Forecast projects that the mainstream
ex-factory price of erythritol in China will be approximately $2.1 per kilogram
by December 2024.
About CCM:
CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & feed and life science markets. Founded in 2001, CCM offers a range of content solutions, from price and trade analysis to industry newsletters and customized market research reports. CCM is a brand of Kcomber Inc.
For more information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailing econtact@cnchemicals.com or calling +86-20-37616606.