Stevia Corp (STEV)

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The Importance of Stevia in Asia

Sugar substitutes, sweeteners’ development can be boosted by the insufficient supply of sugar. Take high intensity sweeteners (HIS, an important class of sugar substitutes) as an example, there are nine kinds of commonly-used HIS in Asia Pacific Area (AP, an important HIS production area in the world, whose total output account for over 50% of the global total as estimated), including saccharin, cyclamate, acesulfame-K (Ace-K), stevia sweetener, aspartame, sucralose, glycyrrhizin, alitame and neotame. All of them are 30 times at least sweeter than sucrose and have lower unit sweetness price over sucrose. Besides, much less sweetener is required, thus the transportation cost can be reduced.

Therefore, downstream food and beverage processors can decrease their production costs if they use HIS, which is an important advantage for HIS, especially when China suffers inflation currently.



Chart shows room for massive growth opportunity against other more frowned upon sweeteners.

China is the biggest HIS production and consumption country in AP; the country produces about 80,844 tonnes of HIS in 2010, accounting for 71.51% of AP’s total; while the market size and market value in China reach about 24,740 tonnes and USD136 million in 2009, accounting for 62.56% and 55.29% in AP respectively. Such figures also imply an export volume of HIS reaching 56,104 tonnes, mainly including 23,800 tonnes of cyclamate, 1,990 tonnes of acesulfame-K, 8,330 tonnes of aspartame, 2,441 tonnes of stevia sweetener, 219 tonnes of sucralose, 330 tonnes of glycyrrhizin, etc.

As an important HIS production, consumption and exporting country in the world, China has large influence on HIS industry in the world. Therefore, paying close intention to China’s HIS industry is important.