Assessment of China's Market for Biofuels
BEIJING- January 4, 2011 – GCiS China Strategic Research has published a study of the China market for biofuels, an emerging alternative energy. Covering both ethanol and biodiesel, this study provides an in-depth look at the trends, participants and forecasts for the industry from 2009 to 2015.
The study finds a large size and growing biofuels market, much of which is due to government mandated ethanol-only areas of northeast and central China and accounts for 20 percent of China’s automotive fuel consumption. But the biofuel supply to these areas is a state sanctioned monopoly conferred upon three of China’s largest State-owned enterprises: Sinopec, CNPC and the Cofco group. Further, the grain used as a fuel stock in nearly two-thirds of biofuels has been banned in new projects amidst concerns of domestic food price inflation.
In some ways, the biodiesel and ethanol markets sharply contrast each other. Biodiesel suppliers are mostly privately owned, whereas all but one ethanol supplier is state-owned. The ethanol fuel industry is the result of careful state planning and control, while biodiesel is organic and its suppliers are typically opportunistic makers of chemicals.
But both types of biofuels are caught between rising raw material pricing and restrictions and the fixed (and artificially low) pricing of diesel and gasoline, to which biofuels must be pegged. The Chinese government has provided subsidies and tax breaks to both suppliers, although anecdotally, state owned enterprises are favored. Many admit that without such support, biofuels would be a loss-making venture.
Biofuels are officially recognized as a part of China’s long term energy security. Opportunities exist for those with the technology to wean China off grain-based ethanol and onto more sustainable feedstocks like cellulosic fiber; for those with the insights into which trends will shape the industry and how select companies will perform; and for those with the patience to see this embryonic, yet potent market come of age.
About the GCIS China Biofuels Study
This GCiS market study draws on a three month, in-depth primary survey of over 90 of the market’s supply side, channel players and end-users. It is essential reading for any professional needing accurate and detailed strategic information on this market. Major areas covered include: market size and shares, five-year projections, market structure, pricing trends, distribution, consumption, an assessment of key suppliers and more.
The study finds a large size and growing biofuels market, much of which is due to government mandated ethanol-only areas of northeast and central China and accounts for 20 percent of China’s automotive fuel consumption. But the biofuel supply to these areas is a state sanctioned monopoly conferred upon three of China’s largest State-owned enterprises: Sinopec, CNPC and the Cofco group. Further, the grain used as a fuel stock in nearly two-thirds of biofuels has been banned in new projects amidst concerns of domestic food price inflation.
In some ways, the biodiesel and ethanol markets sharply contrast each other. Biodiesel suppliers are mostly privately owned, whereas all but one ethanol supplier is state-owned. The ethanol fuel industry is the result of careful state planning and control, while biodiesel is organic and its suppliers are typically opportunistic makers of chemicals.
But both types of biofuels are caught between rising raw material pricing and restrictions and the fixed (and artificially low) pricing of diesel and gasoline, to which biofuels must be pegged. The Chinese government has provided subsidies and tax breaks to both suppliers, although anecdotally, state owned enterprises are favored. Many admit that without such support, biofuels would be a loss-making venture.
Biofuels are officially recognized as a part of China’s long term energy security. Opportunities exist for those with the technology to wean China off grain-based ethanol and onto more sustainable feedstocks like cellulosic fiber; for those with the insights into which trends will shape the industry and how select companies will perform; and for those with the patience to see this embryonic, yet potent market come of age.
About the GCIS China Biofuels Study
This GCiS market study draws on a three month, in-depth primary survey of over 90 of the market’s supply side, channel players and end-users. It is essential reading for any professional needing accurate and detailed strategic information on this market. Major areas covered include: market size and shares, five-year projections, market structure, pricing trends, distribution, consumption, an assessment of key suppliers and more.
CHAPTER 1: INTRODUCTION
I. INTRODUCTION
LPS Overview
Sections of the Study
Sampling
Figure 1.1: Total Sampling by Target Group
Supplier and Channel Samplings
Figure 1.2: Interviewed Suppliers, by Size
Figure 1.3: Interviewed Suppliers, by Ownershi
II. DEFINITIONS AND PROCESS
Key Definitions of Terms Used in this Report
Figure 1.4: Glossary of English / Chinese Terms
GCiS China Segmentation
Figure 1.5: GCiS Standard China Geographic Segmentation
Locations by Tier in China
Figure 1.6: Overview: The Pearl River Delta
Figure 1.7: Overview: The Yangtze River Delta
Figure 1.8: Overview: The Bohai Rim
About Limited Publication Studies
CHAPTER 2: TOTAL ANALYSIS
I. EXECUTIVE SUMMARY
Market in Sum
Figure 2.1: Summary of Key Market Figures- China Biofuels (2010)
Figure 2.2: China Synthetic Coating Resins Market Breakdown
Figure 2.3: Key Benchmark Data - China Biofuels Market
Figure 2.4: Snapshot of Key Market Entry Issues
Key Findings
Market Drivers, Inhibitors
Figure 2.5: Drivers and Inhibitors – Chart
Grain Supply
Figure 2.6: China Dalian Grain Futures Closing Prices
Regulatory Factors
Figure 2.7: Relevant Government Bodies and Non-Government Associations
Corporate and Regulatory News
Market Opportunities
Figure 2.8: GCiS China Market Opportunities Assessment (by Market Segment)
Figure 2.9: Market Opportunity Matrix for Biofuels Suppliers by Industry
Figure 2.10: Opportunities Ratings, by Industry (1 to 10, with 10 highest)
Figure 2.11: Market Opportunity Matrix for Biofuels Suppliers by Product
Figure 2.12: Opportunities Ratings, by Product (1 to 10, with 10 highest)
Expert Views
Recommendations
II. MARKET FIGURES
Key Findings
Market Figures Overview
Figure 2.13: China Biofuels Market Breakdown by Product – Chart
Figure 2.14: China Biofuels Market Breakdown by Product
Market Breakdown
Figure 2.15: China’s Domestic Biofuels Market Breakdown
Supplier Revenues and Output
Figure 2.16: China Industry Revenues by Biofuel Type
Figure 2.17: Total Revenues by Industry Segment
Figure 2.18: Proportion of Industry Sales by Biofuel Type
Figure 2.19: Proportion of Biofuel Sales by Type by Industry
Figure 2.20: Revenue Breakdown by Region (2010) – Total Chart
Figure 2.21: Regional Consumption by End-user Industry
Figure 2.22: Regional Consumption by End-user Industry
Figure 2.23: China Biofuels Market Shares by Revenues
Figure 2.24: China Biofuels Market Shares by Revenues – Chart
Figure 2.25: China Biofuels Market Shares by Output
Figure 2.26: China Biofuels Market Shares by Output–Chart
Figure 2.27: High-end Pricing by Product Segment (RMB / Ton)
Figure 2.28: Average Price by Product
Figure 2.29: Reported Pricing Trends – Supplier Data (Biofuels)
Growth Rates and Forecast
Figure 2.30: Weighted Growth Rate by Biofuel Type (2009)
Figure 2.31: 2009 to 2015 Biofuels Market Size (Bn RMB)
Figure 2.32: 2009 to 2015 Biofuels Market Size - Chart
Figure 2.33: Downstream Market Growth (2005 Index)
Figure 2.34: Year-on-Year Growth Rates for Projection Period
III. COMPETITIVE ANALYSIS
Key Findings
Market Structure
Figure 2.35: Concentration of Power Converter Suppliers (Mn RMB)
Figure 2.36: Marketing Activity By Product
Figure 2.37: China Biofuels Market by Foreign and Domestic Ownership
Capacity
Figure 2.38: Used Inverter and Converter Capacity in 2009
Figure 2.39: Used Inverter and Converter Capacity with Growth Rates in 2009
Figure 2.40: Details of Capacity Expansion Investment (Tons / yr)
Portrait of State Owned Interests
Qualitative Summary of Power Converter Suppliers
Key Strategic Indicators
Figure 2.41: Key Strategic Indicators of Top Suppliers
Five-Forces Analysis
Figure 2.42: Five Forces Analysis
IV. DOWNSTREAM ANALYSIS
Key Findings
Market Penetration
Figure 2.43: Downstream Markets by Total Revenue (Bn RMB)
Figure 2.44: Biofuels Penetration by Market Segment
Output by Industry
Figure 2.45: Downstream Markets by Total Output
Number of Customers
Figure 2.46: Customers by Geographical Location
Figure 2.47: Customers by Geographical Location (Con
Key Comments – Biodiesel
Key Comments – Ethanol
CHAPTER 3: SEGMENT ANALYSIS
I. ETHANOL
Key Findings
Figure 3.1: Revenues, Output, Growth and Pricing by Market Tier – Ethanol
Supplier Overview
Figure 3.2: 2009 Market Leaders – Ethanol
Figure 3.3: Total Market Revenue Streams – Biodiesel
Figure 3.4: 2009 TSPC Revenues by Region (Mn RMB)
Figure 3.5: Ethanol Revenues by Region – Chart
Figure 3.6: Ethanol Market Size and Share by Raw Materials Segment
Figure 3.7: Ethanol Suppliers Revenue Breakdown by Fuel Type
Figure 3.8: 2010 Ethanol Revenues by End-user Application (Mn RMB)
Figure 3.9: Ethanol Sales Revenues by End-user Application (2009) - Chart
Figure 3.10: 2010 Ethanol Revenues by End-user Application and Type (Mn RMB)
Figure 3.11: 2010 Ethanol Revenues by End-user Application and Type (Mn RMB)
Channels to Market
Figure 3.12: Ethanol Market Channel Breakdown by Revenues
Figure 3.13: Ethanol Market Flow - Chart
Market Shares
Figure 3.14: 2010 Ethanol Market Shares by Revenue
Figure 3.15: 2010 Ethanol Market Shares by Revenue - Chart
Figure 3.16: 2010 Ethanol Market Shares by Output
Figure 3.17: 2010 Ethanol Market Shares by Output – Chart
Figure 3.18: Market Shares by Revenue and Output – Ethanol
Pricing Policy
Figure 3.19: 2010 Gasoline Pricing Pricing in China by Region
Figure 3.20: Ethanol Suppliers’ Gross Margin Estimates
Figure 3.21: Capacity, Output and Pricing – Ethanol
Figure 3.22: Used and Spare Capacity – Ethanol
Figure 3.23: 2009 - 2015 Market Forecasts (Bn RMB) – Ethanol
Figure 3.24: Perceived Pricing Trends
Figure 3.25: Opportunity Ratings by End-user Industry
II. BIODIESEL
Key Findings
Figure 3.26: Revenues, Output, Growth and Pricing by Market Tier – Biodiesel
Supplier Overview
Figure 3.27: 2009 Market Leaders – Biodiesel
Figure 3.28: Total Market Revenue Streams – Biodiesel
Figure 3.29: Biodiesel Revenues by Region (Mn RMB)
Figure 3.30: Biodiesel Revenues by Region – Chart
Figure 3.31: Biodiesel Market Size and Share by Raw Materials Segment
Figure 3.32: Proportion of Biodiesel Suppliers’ Feedstock Utilization by Type
Figure 3.33: Biodiesel Revenues by End-user Application (Mn RMB)
Figure 3.34: Biodiesel Sales Revenues by End-user Application - Chart
Figure 3.35: Biodiesel Revenues by End-user Application and Type (Mn RMB)
Figure 3.36: Biodiesel Revenues by End-user Application and Type (Mn RMB)
Channels to Market
Figure 3.37: Biodiesel Market Channel Breakdown by Revenues
Figure 3.38: Market Flow for Biodiesel
Market Shares
Figure 3.39: Biodiesel Market Shares by Revenue
Figure 3.40: Biodiesel Market Shares by Revenue - Chart
Figure 3.41: Biodiesel Market Shares by Output
Figure 3.42: Biodiesel Market Shares by Output - Chart
Figure 3.43: Market Shares by Revenues and Output – Biodiesel
Figure 3.44: Capacity, Output and Pricing – Biodiesel
Figure 3.45: Used and Spare Capacity – Biodiesel
Pricing Policy
Figure 3.46: 2010 Diesel Pricing Pricing in China by Region
Figure 3.47: Biodiesel Suppliers’ Gross Margin Estimates
Growth and Projections
Figure 3.48: 2009 - 2015 Market Forecasts (Bn RMB) – Biodiesel
Figure 3.49: Perceived Pricing Trends – Biodiesel
Figure 3.50: Biodiesel Feedstock and Mean Price by Supplier
Figure 3.51: Opportunity Ratings by End-user Industry
APPENDIX I: SUPPLIER PROFILES
LIST OF CONTACTS
I. INTRODUCTION
LPS Overview
Sections of the Study
Sampling
Figure 1.1: Total Sampling by Target Group
Supplier and Channel Samplings
Figure 1.2: Interviewed Suppliers, by Size
Figure 1.3: Interviewed Suppliers, by Ownershi
II. DEFINITIONS AND PROCESS
Key Definitions of Terms Used in this Report
Figure 1.4: Glossary of English / Chinese Terms
GCiS China Segmentation
Figure 1.5: GCiS Standard China Geographic Segmentation
Locations by Tier in China
Figure 1.6: Overview: The Pearl River Delta
Figure 1.7: Overview: The Yangtze River Delta
Figure 1.8: Overview: The Bohai Rim
About Limited Publication Studies
CHAPTER 2: TOTAL ANALYSIS
I. EXECUTIVE SUMMARY
Market in Sum
Figure 2.1: Summary of Key Market Figures- China Biofuels (2010)
Figure 2.2: China Synthetic Coating Resins Market Breakdown
Figure 2.3: Key Benchmark Data - China Biofuels Market
Figure 2.4: Snapshot of Key Market Entry Issues
Key Findings
Market Drivers, Inhibitors
Figure 2.5: Drivers and Inhibitors – Chart
Grain Supply
Figure 2.6: China Dalian Grain Futures Closing Prices
Regulatory Factors
Figure 2.7: Relevant Government Bodies and Non-Government Associations
Corporate and Regulatory News
Market Opportunities
Figure 2.8: GCiS China Market Opportunities Assessment (by Market Segment)
Figure 2.9: Market Opportunity Matrix for Biofuels Suppliers by Industry
Figure 2.10: Opportunities Ratings, by Industry (1 to 10, with 10 highest)
Figure 2.11: Market Opportunity Matrix for Biofuels Suppliers by Product
Figure 2.12: Opportunities Ratings, by Product (1 to 10, with 10 highest)
Expert Views
Recommendations
II. MARKET FIGURES
Key Findings
Market Figures Overview
Figure 2.13: China Biofuels Market Breakdown by Product – Chart
Figure 2.14: China Biofuels Market Breakdown by Product
Market Breakdown
Figure 2.15: China’s Domestic Biofuels Market Breakdown
Supplier Revenues and Output
Figure 2.16: China Industry Revenues by Biofuel Type
Figure 2.17: Total Revenues by Industry Segment
Figure 2.18: Proportion of Industry Sales by Biofuel Type
Figure 2.19: Proportion of Biofuel Sales by Type by Industry
Figure 2.20: Revenue Breakdown by Region (2010) – Total Chart
Figure 2.21: Regional Consumption by End-user Industry
Figure 2.22: Regional Consumption by End-user Industry
Figure 2.23: China Biofuels Market Shares by Revenues
Figure 2.24: China Biofuels Market Shares by Revenues – Chart
Figure 2.25: China Biofuels Market Shares by Output
Figure 2.26: China Biofuels Market Shares by Output–Chart
Figure 2.27: High-end Pricing by Product Segment (RMB / Ton)
Figure 2.28: Average Price by Product
Figure 2.29: Reported Pricing Trends – Supplier Data (Biofuels)
Growth Rates and Forecast
Figure 2.30: Weighted Growth Rate by Biofuel Type (2009)
Figure 2.31: 2009 to 2015 Biofuels Market Size (Bn RMB)
Figure 2.32: 2009 to 2015 Biofuels Market Size - Chart
Figure 2.33: Downstream Market Growth (2005 Index)
Figure 2.34: Year-on-Year Growth Rates for Projection Period
III. COMPETITIVE ANALYSIS
Key Findings
Market Structure
Figure 2.35: Concentration of Power Converter Suppliers (Mn RMB)
Figure 2.36: Marketing Activity By Product
Figure 2.37: China Biofuels Market by Foreign and Domestic Ownership
Capacity
Figure 2.38: Used Inverter and Converter Capacity in 2009
Figure 2.39: Used Inverter and Converter Capacity with Growth Rates in 2009
Figure 2.40: Details of Capacity Expansion Investment (Tons / yr)
Portrait of State Owned Interests
Qualitative Summary of Power Converter Suppliers
Key Strategic Indicators
Figure 2.41: Key Strategic Indicators of Top Suppliers
Five-Forces Analysis
Figure 2.42: Five Forces Analysis
IV. DOWNSTREAM ANALYSIS
Key Findings
Market Penetration
Figure 2.43: Downstream Markets by Total Revenue (Bn RMB)
Figure 2.44: Biofuels Penetration by Market Segment
Output by Industry
Figure 2.45: Downstream Markets by Total Output
Number of Customers
Figure 2.46: Customers by Geographical Location
Figure 2.47: Customers by Geographical Location (Con
Key Comments – Biodiesel
Key Comments – Ethanol
CHAPTER 3: SEGMENT ANALYSIS
I. ETHANOL
Key Findings
Figure 3.1: Revenues, Output, Growth and Pricing by Market Tier – Ethanol
Supplier Overview
Figure 3.2: 2009 Market Leaders – Ethanol
Figure 3.3: Total Market Revenue Streams – Biodiesel
Figure 3.4: 2009 TSPC Revenues by Region (Mn RMB)
Figure 3.5: Ethanol Revenues by Region – Chart
Figure 3.6: Ethanol Market Size and Share by Raw Materials Segment
Figure 3.7: Ethanol Suppliers Revenue Breakdown by Fuel Type
Figure 3.8: 2010 Ethanol Revenues by End-user Application (Mn RMB)
Figure 3.9: Ethanol Sales Revenues by End-user Application (2009) - Chart
Figure 3.10: 2010 Ethanol Revenues by End-user Application and Type (Mn RMB)
Figure 3.11: 2010 Ethanol Revenues by End-user Application and Type (Mn RMB)
Channels to Market
Figure 3.12: Ethanol Market Channel Breakdown by Revenues
Figure 3.13: Ethanol Market Flow - Chart
Market Shares
Figure 3.14: 2010 Ethanol Market Shares by Revenue
Figure 3.15: 2010 Ethanol Market Shares by Revenue - Chart
Figure 3.16: 2010 Ethanol Market Shares by Output
Figure 3.17: 2010 Ethanol Market Shares by Output – Chart
Figure 3.18: Market Shares by Revenue and Output – Ethanol
Pricing Policy
Figure 3.19: 2010 Gasoline Pricing Pricing in China by Region
Figure 3.20: Ethanol Suppliers’ Gross Margin Estimates
Figure 3.21: Capacity, Output and Pricing – Ethanol
Figure 3.22: Used and Spare Capacity – Ethanol
Figure 3.23: 2009 - 2015 Market Forecasts (Bn RMB) – Ethanol
Figure 3.24: Perceived Pricing Trends
Figure 3.25: Opportunity Ratings by End-user Industry
II. BIODIESEL
Key Findings
Figure 3.26: Revenues, Output, Growth and Pricing by Market Tier – Biodiesel
Supplier Overview
Figure 3.27: 2009 Market Leaders – Biodiesel
Figure 3.28: Total Market Revenue Streams – Biodiesel
Figure 3.29: Biodiesel Revenues by Region (Mn RMB)
Figure 3.30: Biodiesel Revenues by Region – Chart
Figure 3.31: Biodiesel Market Size and Share by Raw Materials Segment
Figure 3.32: Proportion of Biodiesel Suppliers’ Feedstock Utilization by Type
Figure 3.33: Biodiesel Revenues by End-user Application (Mn RMB)
Figure 3.34: Biodiesel Sales Revenues by End-user Application - Chart
Figure 3.35: Biodiesel Revenues by End-user Application and Type (Mn RMB)
Figure 3.36: Biodiesel Revenues by End-user Application and Type (Mn RMB)
Channels to Market
Figure 3.37: Biodiesel Market Channel Breakdown by Revenues
Figure 3.38: Market Flow for Biodiesel
Market Shares
Figure 3.39: Biodiesel Market Shares by Revenue
Figure 3.40: Biodiesel Market Shares by Revenue - Chart
Figure 3.41: Biodiesel Market Shares by Output
Figure 3.42: Biodiesel Market Shares by Output - Chart
Figure 3.43: Market Shares by Revenues and Output – Biodiesel
Figure 3.44: Capacity, Output and Pricing – Biodiesel
Figure 3.45: Used and Spare Capacity – Biodiesel
Pricing Policy
Figure 3.46: 2010 Diesel Pricing Pricing in China by Region
Figure 3.47: Biodiesel Suppliers’ Gross Margin Estimates
Growth and Projections
Figure 3.48: 2009 - 2015 Market Forecasts (Bn RMB) – Biodiesel
Figure 3.49: Perceived Pricing Trends – Biodiesel
Figure 3.50: Biodiesel Feedstock and Mean Price by Supplier
Figure 3.51: Opportunity Ratings by End-user Industry
APPENDIX I: SUPPLIER PROFILES
LIST OF CONTACTS
