Food Additive Industry Favored by Venture Capital in China

By CnAgri2012-09-18 13:33:06 Print

Since 2002, there have been 15 cases of VC/PE financing in the food additive industry in China, involving a total amount of investment of $70.99 million. Futaste Pharmaceutical Co., Ltd., a sugar alcohol producer located in Shandong, received $20 million investment from UK 3i Group in 2008, the largest amount of investment in the food additive industry.

So far, seven food additive producers, mainly phytoextraction companies are listed in China’s A-Share Market. Qujing Bohao, a colorant producer and Yiduoli, an enzyme producer, are seeking IPO in the stock market.

Stimulated by food and beverage producers’ robust demand for food additives, food additive industry promises a vast potential growth. Most of the additive producers are small in scale, creating a good opportunity for VC/PE institutions or enterprises.

From "China Food Additives Market Monthly Report"