A/Ethyl maltol production capacity continues to grow and the industry will face the problem of overcapacity

Maltol is a kind of flavor and fragrance, a type of flavor synergist, which mainly plays the role of increasing flavor, fixing flavor and sweetening. Maltol can be divided into methyl maltol and ethyl maltol. Among them, ethyl maltol is also called three types: pure aroma, light burnt aroma, and enhanced burnt aroma. It can make the overall aroma more unified, and has antibacterial, The antiseptic function has a wider application range and is used in cosmetics, cigarettes, beverages, ham, canned meat and other fields; methyl maltol is mainly used in bakery products and pharmaceutical fields.

Ethyl maltol is mainly used in the fields of food and beverage, tobacco and cosmetics, of which food and beverage and tobacco account for about 35%. Adding ethyl maltol to tobacco will add mellow flavor and reduce dryness and bitterness in the throat after inhalation. Since 2016, my country’s tobacco industry has implemented sideways reforms and inventory clearance, and cigarette production has gradually declined. With the completion of inventory clearance, my country’s cigarette production has shown a slight increase since 2019, reaching 2.37 trillion pieces, and will increase to 2.41 trillion pieces in 2020. With the rapid development of the tobacco industry, the market demand for ethyl maltol continues to rise, and the industry has developed rapidly.

According to the “2021-2025 A/Ethyl Maltol Industry In-depth Market Research and Investment Strategy Suggestions Report” released by the Industrial Research Center It shows that in 2016, affected by the tightening of environmental protection policies, some ethyl maltol manufacturers withdrew from the market and benefited from the rebound of the downstream cigarette industry. Therefore, my country’s new ethyl maltol production capacity has increased since 2018. At present, domestic ethyl maltol manufacturers include Jinhe Industrial, Tianlihai, Shaanxi Tangzheng, Zhaoqing Flavors, etc., with a production capacity of about 10,000 tons, among which Jinhe Industrial is the absolute leading enterprise. Jinhe Industrial is a leading company in the A/ethyl maltol industry. In the first half of 2021, it achieved revenue of 2.474 billion yuan, a year-on-year increase of 35.28%.

Jinhe Industrial currently has a production capacity of 5,000 tons of A/Ethyl Maltol, and the newly expanded 5,000 tons of production capacity has been completed by the end of 2021. With all production capacity put into operation, Jinhe Industrial will have a production capacity of 10,000 tons of A/Ethyl Maltol. ability. The 3,000 tons/year alpha/ethyl maltol project constructed by Xinhecheng has not yet achieved production, and the construction is currently delayed. In addition to the above companies, Zhaoqing Spices also has an expanded production capacity of 4,000 tons, and Wanxiang International has a production capacity of 6,000 tons under construction. With all the above production capacities put into operation, the alpha/ethyl maltol industry will face the problem of overcapacity and market competition will become increasingly fierce.

Industry analysts said that methyl/ethyl maltol is a kind of flavor and fragrance with a wide range of applications, such as food, beverages and cigarettes. The application demand in the field is high, and benefiting from the development of terminal industries, the market demand for a/ethyl maltol continues to rise. In terms of market competition, due to the withdrawal of some production capacity and the development of downstream industries, the market demand for alpha/ethyl maltol has shown a growth trend, attracting companies to expand production capacity. With the commissioning of new and expanded domestic production capacity, the alpha/ethyl maltol industry will face the problem of overcapacity and fierce market competition.