Chinese Expert Mr. Yu: International Market Development Solutions Proposal

Chinese export Yu Wanling from Tradesparq analyzed the food ingredients industry on current industry trends, focusing on international market development solutions proposal. Firstly, taking citric acid and sodium citrate products as the example for analysis, Mr. Yu gave an general analysis on the food ingredients industry. Then the speech analyzed the industry situation base on China’s export status.

Chinese export Yu Wanling from Tradesparq analyzed the food ingredients industry on current industry trends, focusing on international market development solutions proposal. Firstly, taking citric acid and sodium citrate products as the example for analysis, Mr. Yu gave an general analysis on the food ingredients industry. Then the speech analyzed the industry situation base on China’s export status.

I. A wide variety of food additives

>> Antioxidants

>> Artificial sweeteners

>> Emulsifiers

>> Food acids

>> Colours

>> Humectants

>> Flavour enhancers

>> Preservatives

>> Other food additives

II. Taking citric acid and sodium citrate products as the example for analysis

China's citric acid is usually the target of anti-dumping measures in other countries. The specific case is that in November 2016, Brazil decided to conduct an anti-dumping investigation, and in October 2016, Ukraine temporarily imposed a 130% anti-dumping duty on China's citric acid. The United States even began to return to the first anti-dumping investigation against China in 2000. The weak overseas demand for citric acid in China has caused export weakness in recent years, but while exports of many active pharmaceutical ingredients have declined, citric acid exports have remained relatively high in the same category.

Summary: global citric acid market

It is estimated that by the end of 2022, the global citric acid market will grow at a compound annual growth rate of around 6.2%. Growth factors will drive market value in excess of $4 billion.

According to market experts, in the near future, Europe (annual trend) will be the main market for citric acid. The need to promote the food and beverage industry as well as the pharmaceutical and personal care industries is supporting this trend. However, demand from emerging countries has soared, such as the demand for packaged food in India and China, which is the fastest growing market performance in the Asia Pacific region.

III. Procurement trends and export status

Through the figures, we can see that China's current citric acid products are mainly exported via Jinan Customs, Qingdao Customs, Shanghai Customs and Nanjing Customs; At present, the main production sites of such commodities in China are located in Weifang, Rizhao, Yixing, Handan, Laiwu, Qingdao, Chaoyang District, Hefei, etc.; mainly concentrated in Shandong Province, Jiangsu Province, Anhui Province, Henan Province, Hubei Province, production The land is relatively concentrated, with Shandong accounting for 80% of the total production area.

IV. Current status of China's chemical industry

1. Raw materials are rising, competition is intensifying, and the competitive advantage of citric acid export prices is weakened;

2. The scale of the enterprise is generally small and the ability to resist risks is poor;

3. The risk of overcapacity;

4. Anti-dumping investigation is the biggest obstacle;

5. The renminbi continues to rise, and the losses of export enterprises are not smal

6. Industrial policy risks are intensified (energy saving and emission reduction).