CATEGORY
Aspartame
Neotame is a growing market and China has new suppliers entering the market. Huasweet is one of the largest manufacturer with total annual capacity of 1000 MT.
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Aspartame Industry Benchmarks
Savings Achieved
(in %)
The average annual savings achieved in Aspartame category is 5.30%
Payment Terms
(in days)
The industry average payment terms in Aspartame category for the current quarter is 75.6 days
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Aspartame market report transcript
Global Market Outlook on Aspartame
The global HIS market is expected to grow at an average rate of 5.8 percent until 2020 driven by the increasing consumer awareness, cost-effective substitution and continuous availability
Growth in demand is expected to be high in Asia Pacific. China, India and Australia will drive the demand for HIS, especially in the beverage industry
Aspartame - Production Landscape
- China is the largest manufacturer of aspartame with 7 players in the market.
- Sinosweet is the largest player in the market with an annual capacity of 10,000 MT
Neotame - Production Landscape
- Total Neotame production is nearly 500 - 600 MT
- Nutrasweet (US) and Huasweet (China) are the key manufacturers of Neotame
Global Aspartame Production Landscape
The overall global market demand of aspartame is nearly 30,000 MT with China being the key manufacturing base. However, the actual production is about 35,000-38,000 MT. There are about 10 major manufacturers of aspartame in the world and of which seven are located in China. Ajinomoto Group, Hyet Sweeteners and Daesang Corporation are the other large players outside China.
Aspartame Trade Analysis
China is the largest exporter of aspartame and has been selling low-priced aspartame to EU since 2010-11. Upon investigation in 2016, EU has imposed anti-dumping duties on Chinese players of aspartame as high as 55-60 percent.
Anti-Dumping Duty on Aspartame from China
- China exported nearly 4,000 MT of aspartame to EU in 2015 which is nearly 25 percent of the China's total exports in 2015
- Since 2011 and until 2015, there has been a gradual decline in the export price of China to EU. Price has fallen from $14 per kg in 2012 to $11 per kg in 2015
- While there was decline in EU aspartame demand in the past five years due to gain in popularity of sucralose, the decline in domestic price is mainly due to exports of lower priced aspartame from China
- In trade investigations during 2015, it was revealed that Chinese manufacturers are dumping lower-priced aspartame China in EU
- EU has thus imposed anti-dumping duty rates individually on all Chinese manufacturers of aspartame as per the dumping margins earned by them before the investigation
End-use Industry Analysis - Sweeteners
End-use Industry Analysis - Aspartame
- In Beverages, aspartame is used as sweetening agent. Carbonated diet soft drinks uses aspartame in large amount
- Food industry application includes, confectionary and chewing gums, consuming 5 percent of the total production
- In the US, most popular brands of table top sweeteners are “Equal” – aspartame based sweetener and “Splenda” – sucralose based sweetener
- Market share of “Equal” is less than 10% and “Truvia” is another growing sweetener brand
- Sucralose and Acesulfame K posses a substitute threat to Aspartame in the High Intensity sweetener market
- Africa and Asia-Pacific have the lowest per capita consumption of aspartame
End-use Industry Analysis - Neotame
- More than 70 percent of Neotame is produced and consumed in China. The US stands second in the production and consumption
- Neotame is used largely in feed in order to improve the palatability of feed.
- In feed of young pigs, neotame will increase the intake and help in their growth, as pigs are more sensitive than human palate
- Neotame do not absorb moisture that makes it suitable for usage in table top sweeteners
- Similarly, it can be used in Jelly, canned foods, high temperature low time food products, beverage products to reduce cost and improve flavor and taste
- Neotame is a good substitute for Aspartame in beverages, however, Neotame starts to degrade slowly in carbonated drinks