The domestic glucose syrup industry performed poorly in 2012, which could be reflected from the decrease of its national output. In detail, the national output of glucose syrup was about 1.12 million tonnes in 2012, decreasing by about 8% YoY, according to CCM's latest report, Sweeteners China News 1304.
It is believed that this decrease was due to the decrease of its domestic consumption volume in 2012. Actually, the domestic market is always crucial for the domestic glucose syrup industry. For example, the domestic consumption volume of glucose syrup accounted for over 90% of its total output in 2008 - 2012. At the same time, the consumption volume of glucose syrup in China showed an uptrend in the past five years, from 0.89 million tonnes in 2008 to 1.15 million tonnes in 2011. However, its consumption volume decreased by about 10% YoY to 1.05 million tonnes in 2012.
The volume of glucose syrup consumed by the domestic crystalline glucose producers decreased sharply from 0.40 million tonnes in 2011 to 0.30 million tonnes in 2012. In fact, glucose syrup can be used to produce crystalline glucose, and the volume consumed by the domestic crystalline glucose industry was the largest in 2011. But due to the decreasing price of domestic sucrose (the competitor of glucose syrup), the demand of glucose syrup from the crystalline glucose industry weakened in 2012. For example, according to the 2012 annual report of Global Sweeteners Holdings Limited (Global Sweeteners), a main producer of glucose syrup as well as crystalline glucose in China, the sales volume of crystalline glucose decreased by 55.5% YoY to 65,000 tonnes in 2012. Thus, its consumption volume was only 164,000 tonnes in 2012, down by 42% compared with the 281,000 tonnes of 2011.
At the same time, it is estimated that the competitiveness of glucose syrup will decrease compared with other starch sugar products like high fructose corn syrup (HFCS). For example, the consumption volume of glucose syrup in the domestic beverage industry was about 68,000 tonnes in 2012, decreasing by about 41% compared with the one in 2008. It is showed that the domestic glucose syrup industry enjoyed a small benefit from the development of the domestic beverage industry in recent years.
In 2013, it is predicted that the consumption volume of glucose syrup will increase, but the growth rate may not be large.
On one hand, it is predicted that the domestic sucrose price in 2013 will decrease compared with that in 2012, but not largely, because of the protection from government policies. Based on the stable price of sucrose in China, it is predicted that the demand for crystalline glucose will keep stable or even increase in 2013, which means that the demand of glucose syrup may also increase at the same time.
On the other hand, though the competitiveness of glucose syrup in some downstream industries has weakened in recent years, the demand of glucose syrup from some other downstream industries will still increase. For example, about 0.39 million tonnes of glucose syrup were consumed by the domestic candy industry, increasing by about 3% YoY. If the growth rates of glucose syrup in these downstream industries in 2013 can keep stable like in 2012, the consumption volume of glucose syrup may increase at the same time, which wil also help to increase its national output in 2013.
Table Contents of Sweeteners China News 1304:
National Bureau of Statistics: the output of Chinese sucrose is 2.9 million tonnes in Feb. 2013
Xinfu Pharm delays its trial operation of sucralose project until April 2013
QHT to purchase banks' wealth investment products
PureCircle holds promoting meeting on stevia
COFCO Tunhe: the net profit decreases by 2,374.89% in 2012
Poor performance of domestic sorbitol industry in 2012
Opinion solicitation for Standards for Use of Food Additives ongoing
Challenges and opportunities coexist in the Chinese starch sugar industry in 2013
National output of glucose syrup decreases by 8% in 2012
Luzhou Bio-chem has a poor sales performance in the starch sugar business in 2012
Performance overview of QHT's products in 2012
Starch sugar business of China Starch performs well in 2012
Xiwang Sugar reports a loss in 2012
Shandong Longlive invests in ecological agriculture
Baolingbao to enter the crystalline fructose, GOS and trehalose market
Export overview of some sweeteners and raw materials in China, Feb. 2013
2012/2013 Guangxi Sucrose Trade Meeting held in March 2013
Concentrated downstream application of Chinese mannitol products
Ex-factory prices of Chinese sweeteners in March 2013
Sweeteners China News, issued by CCM on 5th every month, offers timely update and close follow-up on market and company dynamics based on China’s sweeteners industry. It also releases the latest information on raw material supply, price update, import & export analysis as well as consumption trend & competitiveness.
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