Overview of Gourmet Powder Industry in China, 2017-2021
Gourmet powder is a kind of condiment and mainly made of glutamic acid. It is mainly used to enhance the flavor of food and is widely used in soup and sauces in East Asian cuisine.
Gourmet powder is produced by fermented method. This industry is a kind of processing industry using starch and molasses as major raw materials.
With the stable development of Chinese economy, people's living conditions are improving. Individual consumers eat out and purchase processed food more frequently. The rapid development of catering and food processing industry stimulates the consumption of industrial and catering gourmet powder. Meanwhile, as consumers pay more attention to flavors of food products, the consumption of household gourmet powder increases.
In recent years, substitution effect of condiments rises following the intensifying trend of consumption upgrading, leading to decreased demand for gourmet powder in catering industry and households. Meanwhile, condiments, such as soy sauce and chicken essence, increase rapidly, leading to a rising demand for gourmet powder in food processing industry. Overall, the demand for gourmet powder keeps stable. According to CRI market research, from 2011 to 2016, the annual demand remained over 2 million tons in China's gourmet powder industry.
Gourmet powder industry has undergone three rounds of restructurings. Entry barriers get higher due to government policies. Its annual growth rate remains stable, leading to fierce industrial competition and a oligopoly structure. CRI market research shows that Fufeng Group, Meihua Biological Technology Group Co., Ltd., Ningxia EPPEN Biotech Co., Ltd., Lotus Health Industry Holding Group Company and Shandong Shenghua Group took up more than 80% of the total annual output volume of gourmet powder in China in 2016.
China is the largest producer of gourmet powder in the world. Most condiments contain gourmet powder. With the increasing export of Chinese condiment and fermentation products, the demand for gourmet powder will also increase. Notice on Adjusting the Export Tax Refund Rates of Certain Products was issued by China's Ministry of Finance in 2014, which regulated to increase export rebates of some high added-value products, processed products of corns, textiles and garments. The export rebate of gourmet powder increased from 0 to 13%, which was implemented on January 1, 2015 and promoted the import of gourmet powder in China.
Corns and coals occupy the largest portion of the total cost in gourmet powder manufacturing in China. Generally speaking, the price of corns is steady while that of coals fluctuates much due to factors of economic cycles and market speculation. In addition, gourmet powder manufacturing industry faces increasing costs of environment protection and labor. Generally speaking, the production costs and price of gourmet powder both present an upward trend in China.
The downstream industries of gourmet powder are concentrated in food processing industry, catering industry and household consumption. The proportions are respectively around 5:3:2. In recent years, because of the rising resident income, the consumption upgrading and also the nationwide saga about gourmet powder harmful to human health, the demand from catering industry and households for gourmet powder decreases, while the demand for soy sauce and chicken essence increases. In fact, gourmet powder is also one of the main raw materials of soy sauce and other condiments. The development of other condiment industries and snack food industry in China increase the market demand for gourmet powder, enhancing the stable growth of gourmet powder industry.
Readers Can Obtain the Following Information or More Through This Report:
Development Environment of Gourmet Powder in China
Production and Demand Status of Gourmet Powder in China
Competition in Gourmet Powder Market in China
Import and Export Status of Gourmet Powder in China
Top 5 Gourmet Powder Manufacturers in China
Major Driving Forces and Market Opportunities in Gourmet Powder Industry in China, 2017-2021
Threats and Challenges in Gourmet Powder Industry in China, 2017-2021
Forecast on Supply and Demand of Gourmet Powder in China, 2017-2021
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