China’s
methionine demand is rising faster than the global average, due to the growing
demand for China’s wealthy middle class for meat products. However, in the
first quarter of 2017, China’s methionine business remained on a flat level,
since the outbreak of bird flues as well as environmental protection
measurements have caused limitation on demand.
Source: Pixabay
In
the year 2015, the global methionine market has reached over USD4.5 billion.
According to experts’ view, with an annual CAGR of about 6.9%, the market value
will even surpass USD7.3 billion by the end of 2022. The enormous growth can be
explained by the surging demand for animal feed, used in livestock and farming
industries, which have the main task to feed a growing global population with
huge appetite for meat.
It
is worth mentioning, that several outbreaks of animal diseases are increasing
the awareness for healthy animal feed and further boosting the demand for the
important amino acid methionine.
Asia-Pacific
is the leading market for methionine, with huge populated countries like India
and China, which growing middle classes are thriving the need for meat, and
hence methionine for the production of feed.
While
the global annual growth rate for methionine demand has been about 6% since the
year 2013, China’s growth rate in demand is rising even higher. After all, the
demand is rising annually by about 7% up to 10%.
The
L-methionine markets in China have been remaining stable in the first quarter
of 2017 but on a low level. The new production method, used by an increasing
number of manufacturers, namely the fermentation process, enables the
production under less costs. Hence, the demand will be higher for L-methionine
compared to the more expensive product DL-methionine.
However,
the weak demand in Q1 in China combined with the outbreaks of avian influenza
has caused a flat market situation, according to market intelligence firm CCM.
The outbreak of several bird flues has caused severe damage to the domestic
livestock industry in China and hindered high demand for feed products.
Due
to the avian influenza outbreaks, not only affected livestock companies were
forced to limit or stop business, but also non-affected companies were ordered
by the government to reduce their business in order to avoid the spread of the
flu to humans.
As
a result of the production limitations, the prices of chicken and eggs have
dropped significantly in the last months. The low demand for feed then have
reduced the price for methionine by almost USD 100 per tonne.
Besides
the significant impact of avian influenza, the methionine industry in China has
been impacted by two more factors, which play an important role in the
development.
The
environmental pressure is still acute for China’s manufacturers in the heavy polluting
industries, which the methionine business belongs to. According to CCM, the
environmental pressure and measurements have the biggest impact on the domestic
methionine business in China. Manufacturers are ordered by the government to
obey strict waste disposal and pollution requirements and often need to limit
or even stop the production if the regulations can’t be achieved.
The
other factor with massive impact is a threat of methionine overcapacity in
China. The profitable methionine business in China and worldwide has led many
manufacturers to expand their production and install new projects. Hoping for
higher revenue out of the new product lines, the danger of methionine
oversupply is getting acute. Big enterprises like Shandong NHU and Bluestar
Adisso, and Evonik have announced production expansions, which may exceed the
growing demand for methionine.
Especially
Bluestar Adisso, one of the world largest producers of animal nutrition
like methionine, has recently announced the establishment of a production line
capable to produce methionine in powder form. The company aims with this
strategy to meet the growing meat demand, especially in China.
Looking
at the high fluctuations of prices for animal feeds, companies like Adisso are
searching for more stable solutions with high safety and quality to ensure a
healthy market condition.
All
in all, China’s methionine manufacturers are looking forward into the near
future, expecting a continuing increasing demand for methionine as well as
witnessing enhanced production techniques. However, the thread of the bespoken
points needs to be observed, as they will have an effect on the
development.
About methionine
Methionine
is a major amino acid, which helps the organism to break down fat. As it is
classified as one of the essential amino acids, that can’t be produced by the
body itself, it is important that methionine is ingested by the consumption of
food.
About CCM
CCM
is the leading market intelligence provider for China’s agriculture, chemicals,
food & ingredients and life science markets.
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