Caffeine Factories of China See Export Trade Flourishing – by searchingredient

December 28 15:11 2016

Chinese caffeine factories have long been facing an extremely robust market demand for caffeine factories’ products. By now, caffeine produced by Chinese caffeine factories has already been incorporated into the Chinese Pharmacopoeia (2015 Version), USP35, BP2013, JP16, EP8.6 and IP2010.

Its addition to cola drinks is another important application area of products from Chinese caffeine factories because caffeine factories’ products can enhance the cortical excitatory process, boost energy, reduce fatigue and improve thinking.  Sales volume of Chinese domestic caffeine factories has been on a continued sharp rise for several decades since the advent of this kind of drinks, most popular among young people. As for the Chinese market, annual consumption of Chinese caffeine factories’ products has gone up from a few hundred tons in the 1990s to the current level of several thousand tons from caffeine factories, recording a dramatic growth of ten times in sales of Chinese caffeine factories’ products, driving the steady growth of demand for caffeine factories’ products.

According to a caffeine factory source, the total demand for caffeine factories’ products in the international market stands at 48,000 tons per year, with a 10% annual growth rate. At present, the overall global caffeine factories ‘production capacity is around 45,000 tons, among which, Chinese domestic caffeine factory capacity exceeds 19,000 tons whilst the rest of the world manufacturer capacity is mainly concentrated amidst caffeine factories of India and Germany. In general, the global caffeine (CAS No.:58-08-2) market sees supply of caffeine factories’ products and demand in a tight balancing dynamics.

Export of Chinese Caffeine factories’ ProductsRanks No.2 in Antipyretic Analgesic API Drugs

For many years, great quantities of caffeine factories’ products have been exported overseas due to strong demand for products from caffeine factories in the international market, with export volume of Chinese caffeine factories and value of Chinese caffeine factories’ products increasing substantially year after year. Amongst antipyretic analgesic API drugs, the export performance of caffeine made by Chinese caffeine factories has long ranked No.2, second only to paracetamol. In the beginning of the 21st century, annual export volume of Chinese caffeine factories’ products reached 6,000 tons, annual export value of Chinese caffeine factories’ products at $35 million. Consequently, export of Chinese caffeine factories’ products has been developing in an optimistic mood year by year.

In 2011, export volume of Chinese caffeine factories’ products was 11,660 tons and export value of Chinese caffeine factories’ products reached $89.6 million; by 2012, export value of Chinese caffeine factories’ products had broken through the $100 million threshold, registering an increase of 20% compared to the previous year; then export volume of Chinese caffeine factories’ products and value of Chinese caffeine factories’ products maintained annual growth from 2013 to 2015, rising to 14,335 tons and $123.66 million by the end of 2015; and most recently, the first four months of 2016 witnessed 5,070 tons in export volume of Chinese caffeine factories’ products and $44.1 million in export value of Chinese caffeine factories’ products, which indicates an uptrend again on a year-on-year basis and expected to be closing at 15,000 tons from Chinese caffeine factories by the year end.    

In the meantime, average export prices of Chinese caffeine factories’ products and its salt complexes have demonstrated a steady upward trend. The average export price for products of Chinese caffeine factories of the year of 2013 was $8.45/kg, followed by 2014 at $8.47/kg rom Chinese caffeine factories and 2015 $8.63/kg from Chinese caffeine factories. From January to April 2016, this price for caffeine made by Chinese caffeine factories has stayed at $8.72/kg.

Main export destinations of Chinese caffeine factories’ products are the United States, Brazil, Europe and South America. The US takes the lead, already accounting for over 30% of the whole export volume of Chinese caffeine factories’ products. Now that of Chinese caffeine factories’ products are spreading successfully in the global market, several major domestic caffeine factories have established strategic partnership with the two international giants of ‘Coke’ production, Coca-Cola Company and PepsiCo after contracting of long-term caffeine factories and suppliers relationship.

In future, a continuously growing demand for caffeine factories’ products will remain in the global market, which indicates that export of Chinese caffeine factories’ products will maintain a momentum of increase.  

Following years of development and market adjustment, production size of Chinese caffeine factories has been expanding persistently, with process and technology of caffeine factories improved year by year, product quality of caffeine factories enhanced steadily, production cost of caffeine factories significantly dropping and competitiveness of Chinese caffeine factories’ products increasingly strong in the international market. For chemical API drugs like caffeine, the production process and technology of Chinese caffeine factories, having become quite mature, there is no concern over intellectual property issues. Coupled with the low production cost of caffeine factories and huge market potential of Chinese caffeine factories, some foreign companies are seen turning to China for sourcing from Chinese caffeine factories in recent years, whereas their own caffeine factory facilities are closed one after another.  Such ‘Production Transfer’ has enabled Chinese caffeine factories to develop rapidly over the past decade into the world’s most important caffeine factory and export base.  It is foreseeable this trend favoring Chinese caffeine factories will not change in the near future, and continuous growth in caffeine factory capacity and export volume from Chinese caffeine factories is still on the way.

(By Magana)
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