China's Vitamin C Raw Material Production Capacity Exceeds 300,000 Tons, And The Export Scale Reaches 950 Million US Dollars

Vitamin C, also known as L-ascorbic acid, is an essential water-soluble vitamin that helps improve the body's immune system and participates in the synthesis of collagen, intercellular substance and neurotransmitters. In the food industry, vitamin C is often used as an antioxidant for food preservation. At the same time, vitamin C also has anti-oxidation, anti-free radical, inhibit the formation of tyrosinase, so as to achieve the effect of whitening and lightening.

1. The scale of production capacity continues to expand

Roughly calculated, my country's vitamin C production capacity will reach 350,000 tons in 2021; especially since the outbreak of the global epidemic in 2020, the sales of vitamin C have increased significantly, and the demand for downstream products has shown a continuous and stable growth, and it is generally believed that this demand will be in the future. become a habit. Therefore, domestic vitamin C raw material manufacturers have seized the opportunity and expanded their production one after another. The production capacity of CSPC alone has reached 80,000 tons. At present, it is estimated that the global demand for vitamin C raw materials is 240,000-250,000 tons. The next 2-3 years will be the time when the current production expansion effect is beginning to show. The demand will increase by 5-6% on average, and it will probably reach 300,000 tons after 2025.

The supply of vitamin C raw materials has been tight in the past two years, and the market price will remain stable in 2021, and will decline slightly in the fourth quarter. Over the years, the price of vitamin C raw materials has been low for a long time under the background of overcapacity. Is the price increase due to the epidemic sustainable? In fact, the price rose sharply in 2017-2018 to $5.9/KG, and the average price in 2019-2020 was only $3.6 /KG, the average market price in 2021 is US$4.8/KG, and there are still uncertainties in the market price in 2022, but after years of fluctuations and adjustments, at least demand is the strongest support.

2. The average growth rate of export volume in the past five years is 7.66%

In the past 10 years, my country's vitamin C export volume has maintained steady growth. By 2020, the growth rate will reach 32%, entering a "big step". The total export volume in 2021 is still close to 200,000 tons, and it can be seen from the trend of the average export price. , many years of low prices, plus a two-year "jump" in 2021, the price seems to have reached a balance, and the monthly average price is also maintained throughout the year. In 2022, as the market changes, production companies may adjust their prices slightly.

3. There is still room for growth in future demand

From January to December 2021, my country's vitamin C exports totaled 198,100 tons, with a total export value of about US$946 million and an average price of US$4.77/KG. The single month of December accounted for the largest export volume of the year; the annual export volume decreased slightly, and the export volume decreased slightly. The volume decreased by 3% year-on-year, while the export value increased by 26.53% year-on-year. It can be seen that the average price level this year remains high. Among them, the two major export regions are Shandong and Hebei, with a total of more than 110,000 tons; the two major export regions are the United States and Germany, accounting for 21.39% and 10.59% respectively, involving a total of 161 countries and regions. It is expected that export demand will still increase slightly in 2022.

Under the huge global demand for vitamin C, the domestic vitamin C industry structure is still in slight turbulence, including the expansion of leading enterprises, the steady development of new enterprises, and the improvement of the industrial chain, which are of great significance to future market changes. In the future, the impact of the environment and fluctuations in the price of basic raw materials will bring uncertainties to the market; at the same time, the company's ability to resist risks and supporting facilities will further consolidate its status as a supplier.