ingredientsonline Market Update Spring 2017


By Tony Xue | General Manager, Shanghai

ASCORBIC ACID SERIES 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 fewmonths, 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. 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%. CHOLINE BITARTRATE 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. 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 rawmaterial 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.



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