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MARKET TRENDS

MARKET TRENDS UPDATE By Tony Xue | General Manager, ingredientsonline.com Shanghai

ASCORBIC ACID SERIES

CHOLINE BITARTRATE

Due to the price increase of corn and coal, facility maintenance and environmental control for reducing pollution that started in the middle of 2016, Vitamin C prices continued to increase until the end of 2016. The market price is currently stable at historically high levels from the past five years. Most Vitamin C manufacturers believe prices will be stable at current levels. There is still a huge production capacity in China and we remain cautious about the Vitamin C market of 2017. In the next few months, the price of Vitamin C derivatives (Sodium Ascorbate, Calcium Ascorbate and AA DC97 Granular) may still continue to increase due to price increases of raw Ascorbic Acid Powder from the past six months.

In the first half of 2016, the price was stable but started to increase in the second half. This trend is still going on and the cost increase is a result of increased energy costs. Also, the chemical starting material increased by 30-50% per one of the major factories. With more and more investment to reduce the pollution, the price will stay firm or increase in 2017.

BCAA As a mainly feather duck/hair hydrolyzed amino acid, the L-Leucine Regular (animal source) price has increased since the middle of 2016 due to the government’s environmental control restrictions. For now, prices have stopped increasing and are stable. Due to very high production costs, we believe the price of L-Leucine Regular may be stable at current level. Now, the price of L-Leucine (fermentation, corn source) is almost the same as animal source L-Leucine. L-Valine and L-Isoleucine prices are very stable, so Instant BCAA prices are also very stable.

BERBERINE EXTRACT More and more brands in U.S. market have started to put this ingredient into their product line. The price is adjusted based on harvest and season. In the winter, it will hit the high end, and in summer, it will turn back to normal. Overall, the price is stable. This ingredient has been used as traditional Chinese medicine for centuries and new studies are carried out for new benefits continuously. The U.S. demand will continue to increase in the coming years.

BLACK RICE EXTRACT 25% ANTHOCYANIN The demand has increased by 30-40% annually. The price was stable from 2014 to 2016, but due to the large demand in 2017 and the limited harvest in 2016, the price is predicted to increase by 20-30%.

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INGREDIENTSONLINE.COM • SPRING 2017

CHONDROITIN SULFATE The slaughter scale this spring is far less than last winter which leads to a shortage of starting material for chondroitin. One of the major factories has been shut down by the government and required to improve their pollution treatment. The quote from the major output area is rising and we believe this trend will remain for the first half of 2017.

CREATINE MONOHYDRATE On one side, the starting material cost has increased. On the other side, a new production facility has come into the market and tries to gain market share with low prices. So, there is some difference in price from different manufacturers, but generally, prices are stable.

DHEA Cost of yam diosgenin (the mainly raw material of DHEA) is increasing and the price of DHEA (yam origin) has also started to increase moderately. Another mature production technology of DHEA is by wood or soy sterol; the price of this kind of DHEA remains stable.

GABA In the past few months, supply was short due to pollution control requirements from the government. However, a major Chinese manufacturer has improved their facility and now meets the governments environmental control requirements, so the supply will continue to improve.


GAMMA ORYZANOL The cost of the raw material will increase, so prices of Gamma Oryzanol will also increase moderately.

JINAN JIUAN ESTER CHEMICAL CO., LTD

GLUCOSAMINE The price of glucosamine has been stable in recent years with some of the factories shut down due to pollution control, however, some of the large-scale factories are doing well. The starting material can be obtained domestically and abroad, and the supply is stable. As a very mature product for joint health, the supply and production are balanced and most factories believe the trend will be stable in 2017.

LEADING SUPPLIER OF HIGH QUALITY Choline, Betaine, DMAE Bitartrate and Pyruvate Products

INOSITOL The price is at historically low levels thanks to usage cost reduction and increase in market demand. Due to abundant supply, prices may be hard to increase through Q2, 2017.

INULIN Dietary fiber foods are very popular in the U.S. and worldwide, and Inulin is a hot dietary fiber and prebiotics ingredient. One of the most reputable manufacturers says market demand of Inulin keeps increasing in recent years and they expect demand will keep increasing in 2017. Prices will keep stable as factories have great supply capability.

Betaine Anhydrous Betaine Citrate Betaine HCL Betaine Monohydrate Calcium Pyruvate Choline Bitartrate (L&DL) Choline Chloride

Choline Dihydrogen Citrate Creatine Pyruvate DMAE Bitartrate (L&DL) Potassium Pyruvate Pyruvic Acid Sodium Pyruvate

L-ARGININE AND L-ARGININE ALPHA KETO GLUTARATE Since the major factories are shut down in China, the supply and price has increased since the middle of 2016. The supply right now has slightly improved due to some Daseng origin arginine that has stepped into the Chinese market. This has helped, and keeps the arginine derivatives market from going crazy, but just hot and firm. The hydrolyzed arginine production is still on hold without resuming schedule.

L-CARNITINE Market demands of L-Carnitine series products are still increasing steadily; attributed to the demand increase in weight loss products and infant formula milk powder. New factories have stepped into production in the past two to three years, increasing supply. Prices have continued to fall and current prices have reached the lowest point in recent years. However, facing the increasing pressures of the cost of raw materials, and labor and pollution control, L-Carnitine prices may rebound in the first half of 2017.

L-CITRULLINE Currently, the supply ability is still less than past years due to the unstable production status of two major manufacturers. However, supply and demand are at a balanced status. These two manufacturers may recover in the next few months, so the L-Citrulline market may go back to weak, and price may start to drop.

R&D and technical support from Chinese Academy of Sciences and Shandong University ISO9001, ISO 22000 and FSSC 22000 Compliant Kosher and Halal with GMP workshop

Please email sales@pengbobio.com directly for products not listed at jiuan.ingredientsonline.com


MARKET TRENDS

L-LYSINE MONO HCL GRANULAR

MELATONIN

Price of feed grade L-Lysine has dropped, so L-Lysine Mono HCL Granular Food Grade has also dropped, and the supply is abundant.

The pollution caused by Melatonin production is great; therefore supply is influenced by the Chinese government’s environmental control policy and actions. For now, manufacturers still have many orders on hand and lead-time is longer. We predict that price will keep increasing in 2017.

L-METHIONINE The L-Methionine and DL-Methionine markets are stable. As more and more factories are able to produce L-Methionine by fermentation, the cost has been substantially reduced. We believe the DL-Methionine demand will shrink step by step and L-methionine will be the preferred form. The L-Methionine cost is also much better compared to the last two years.

MSM The price of raw material (DMSO) continues to increase as does the market demand of joint health products. Prices of MSM will be on a steady rise.

LUO HAN GUO EXTRACT

PEA PROTEIN

Price was stable from 2014 to 2016 but generally is still on a downward trend. The market demand is increasing but the production capacity has increased even more. It is predicted that the price will keep stable but may come down step by step with more advanced extract technology applied.

As a newer kind of plant-source protein, the demand of Pea Protein remains hot. The price has increased slightly due to one of the major exporters having issues with exporting before the Chinese New Year but now there is no sign that the price will come down. With the increasing demand and popularity over the market, factories are planning to expand the production and we believe the price will remain firm in 2017.

MACA EXTRACT The market demand is growing steadily but the price is coming down step by step over the years due to sufficient starting material harvest. Some new extract facilities and planting areas are still under way and we believe the price will come down a little in the coming months.

PURPLE SWEET POTATO PIGMENT This is a new natural colorant and the demand is stable from 2014 to 2016. The factory advises that prices will increase a little bit due to

TAICANG XINYUE CHEMICAL CO., LTD.

MAIN PRODUCTS:

Creatine Monohydrate 80/200 Mesh Creatine Monohydrate Granular Creatine Ethyl Ester HCL Creatine Nitrate Creatine HCL MSM Taicang Xinyue Chemical Co., Ltd is a well-known Creatine Monohydrate factory have almost twenty years of experience in this space. Taicang is certified by ISO9001:2008, ISO14001:2004 and STAR-K Kosher.


MARKET TRENDS

increased costs but they will try to keep the production efficient to keep costs competitive and stable.

• Some manufacturers are not running well, some have stopped production due to financial problems and some are changing their marketing strategy, aiming at a high-end market with little success.

RASPBERRY/BLACKCURRANT/ BLUEBERRY/CRANBERRY POWDER

SPIRULINA

These ingredients are developed for use in dietary supplements, infant foods, solid drinks, ice cream, instant food, diary product, etc. The demand is increasing, yet prices are currently stable for these fruit powders.

The cost to grow Spirulina keeps increasing. The package and transport costs have also increased by 20% for which the factories are trying to absorb on their own. The supply is still good to meet the demand.

RIBOFLAVIN 5 SODIUM PHOSPHATE

STEVIA

The price of Riboflavin is stable for now, so we anticipate that Riboflavin 5 Sodium Phosphate may remain at current levels in next few months.

Stevia is more and more applied to the traditional food chain as well as dietary supplements. As an herbal extract, the price is highly related to the leaves harvested. From 2014 to 2015, the supply was tight and the price was firm. In 2016, the harvest was normal and we believe the price will be stable in the first half of 2017 and stay firm or increase a little bit for the remainder of the year.

SOY PROTEIN ISOLATE 90% The market of Soy Protein Isolate is very mature and stable. The influence factors for market change are from the supply side and the price may keep increasing for the following reasons: • The current price of soy in China has increased by 10% compared to Oct. 2016, and the supply is still tight. • Production costs continue to increase due to pollution control required by the Government.

SUCRALOSE Currently, Sucralose pricing is still on the high end with a stable supply. With the shortage taking place during the latter half of 2016, the price went up too quickly. We believe the market will come back to a rational level step by step.

JILIN BEISHA

HUBEI QIANJIANG HUASHAN

AQUATIC FOOD AND PRODUCT CO., LTD.

Glucosamine HCL 20 Mesh GlucosamineHCL 40 Mesh Glucosamine HCL 80 Mesh

PHARMACEUTICAL CO., LTD.

PRODUCTS

Vitamin E 50% Powder Feed Grade DL-Alpha-Tocopherol Acetate

Glucosamine Sulfate 2KCL 40 Mesh Glucosamine Sulfate 2KCL 80 Mesh Hubei Qianjiang Huashan Aquatic Food And Product Co., Ltd is a company which mainly produces and exports freshwater products, Chitin and its derivations (GAH, Chitosan, Chitosan oligosaccharide, etc). The mainly advantage: have the completely product chain from shrimp to Glucosamine. Certifications: HALAL ISO 220000

HACCP BRC

huashan.ingredientsonline.com

Jilin Beisha Pharmaceutical Co., Ltd. always

adheres to the aim of “Quality utmost,

Reputation based”, and has created

an outstanding enterprise management regulation and quality management system. This system includes advanced analytical laboratories, ISO9001 & ISO2200 certifications and the required FAMI-QS certification for feed additives. Jilin Beisha’s advantage is continuous technological innovation and excellent cost control, which provide the capability to focus on the aspects of animal health and nutrition, food additives, as well as the chemical and pharmaceutical industries. This focus allows Jilin Beisha the ability to deliver premium products and service to global customers.


MARKET TRENDS

SWEET TEA EXTRACT

TURMERIC EXTRACT (CURCUMIN 95%)

The price was on a rise from 2014 to 2015 due to starting material cost increases but started to decrease in Q3 of 2016. The price is highly related to the harvest that is currently unstable.

The supply of raw materials will be short in 2017. The harvest is poor in the major planting area in India and Burma. India suffered from severe drought in 2016, so output of turmeric is much less than before. Burma is still under civil war which influences export quantity of turmeric. There is a great possibility for price increase of Turmeric Extract series products in 2017.

TAURINE Current Taurine prices have reached their highest point in the past five years due to reduced supply. Some factories have shut down in the past two to three years and actual output from all manufacturers is well controlled to match market demand. Production costs continue to increase (raw material, labor, pollution control) but one main Taurine manufacturer predicted the price for 2017 should remain stable.

THEOBROMINE The price of caffeine (the major starting material of Theobromine) tends to be stable, so the price of Theobromine is also stable. We predict the price will keep stable at least in the first half of 2017. One of the major Chinese caffeine manufacturers is establishing a new facility, so supply capacity will increase in future.

XYLITOL A new environmental control policy has led to a short supply of D-Xylose (the direct raw material of Xylitol), so the supply of Xylitol is also short and the price keeps increasing since Q3, 2016. This trend may continue until the middle of 2017, so prices will continue to increase in the coming months.

OTHER VITAMINS Thiamine, Niacin, Niacinamide, D-Calcium Pantothenate and Pyridoxine HCl are currently stable at a high level and on the same trend with our last report.

Disclaimer: The forecast information is speculation and opinion only. ingredientsonline.com is providing this as a complimentary service and is not responsible for the information contained in this document.

ZHENGZHOU TUOYANG INDUSTRIAL CO.,LTD. PRODUCTS:

Ascorbic Acid 40-80 Mesh Ascorbic Acid 100 Mesh INTRODUCTION: Zhengzhou Tuoyang Industrial Co.,Ltd. was established in 1993, Tuoyang is a famous professional manufacturer specialized in food additive and medical medium in the world. It has ISO, HACCP, OHSAS18001, Kosher, BRC certifications.

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ingredientsonline.com™ Market Trends | Spring 2017  

ingredientsonline.com™ Market Trends | Spring 2017