China
Supply restrictions cause sucralose prices to spike
Recently, Chinese producers were unable to take new orders due to production constraints from stricter environmental laws affecting waste disposal and water purification. Further restricting supply, Tate and Lyle, one of the world’s leading sucralose producers, recently permanently shut its Singapore plant.
The high prices were also supported by lower sugar exports from Brazil, the largest producer and exporter, due to currency fluctuations.
Derived from common table sugar or sucrose, and extensively used as a sweetener in the food and beverage industry, sucralose is is 600 times sweeter than sugar and contains no calories.
Sucralose manufacturing has a high entry barrier due to the level of capital investment and technology required. Even with new capacity being added to the market, prices are expected to remain at high levels in the short-term.
