Explore COFCO Biotech’s 2026 investment plan focusing on sugar industry expansion, functional sugars, and pharmaceutical excipients…
On April 22, COFCO Biochemical Co., Ltd. (COFCO Biotech, SZ: 000930) officially released its 2026 annual investment plan.
According to the announcement, the company plans to invest in 18 fixed-asset projects and 1 equity project in 2026, with total project investment reaching RMB 5.86 billion and annual planned investment of RMB 1.76 billion. Reserve projects represent an additional RMB 2.20 billion in total investment.
Among the five strategic investment priorities outlined, “Unwavering commitment to advancing the sugar business” was placed at the top of the list. This positioning—combined with the heavy weighting of sugar-related projects in the detailed pipeline—makes the plan a critical signal for tracking the strategic direction of China’s leading starch-based sweetener producer.
The following analysis represents the personal views of the ynsugar research team, offering an interpretation of the industrial logic behind the plan.
1. Sugar as the “Anchor”: Strategic Weight
Placing the sugar business at the top of the five priorities was no accident. Across all three project categories—ongoing, newly proposed, and reserve—sugar-related initiatives run through the entire pipeline:
- Ongoing projects: Taicang 550,000-ton/year starch sweetener project; Northwest project
- Newly proposed projects: Ma’anshan β-cyclodextrin project; co-production of glucosamine and inositol; Yushu crystalline sugar project
- Reserve projects: Gongzhuling maltodextrin project; acquisition of a tapioca starch facility in northeastern Thailand
This “ongoing + newly proposed + reserve” three-tier structure indicates that the company’s capital expenditure rhythm in sugar will span at least the next three to five years, following a clear pattern of phased, rolling continuity.
2. The Taicang Project: A Pivotal Move
The Taicang 550,000-ton/year starch sweetener project is the central axis of this round of sugar investment.
According to background information, COFCO Biotech disclosed in April 2025 that the project carries a total investment of RMB 981 million, including RMB 837 million in construction investment, RMB 14.51 million in interest during construction, and RMB 129 million in working capital.
More importantly, the market logic is compelling.
The company’s announcement noted that the East China market features high concentration and abundant customer resources. COFCO Biotech currently operates 350,000 tons of starch sweetener capacity in East China, holding roughly 20% market share. Once Taicang is online, market share is expected to rise significantly, further consolidating the company’s industry position in this key region.
A simple calculation: 350,000 tons + 550,000 tons of new capacity = nearly a threefold increase in East China starch sweetener capacity. Given that East China is the densest downstream market in China for beverages, baked goods, condiments, and pharmaceutical formulations, the strategic intent of “proximity to end customers + scale advantage” is unmistakable.
Based on tender information reviewed by the ynsugar team, the project is located in the Taicang Port Economic and Technological Development Zone, with planned facilities including starch sugar workshops, fructose evaporation units, flavored sugar workshops, tank farms, and washing-and-filling workshops, totaling approximately 37,000 m² of building area. Supervisory tendering and equipment procurement began rolling out in 2025, and 2026 is expected to be the critical year of construction execution.
3. Climbing the Value Chain: Functional Sugars and Pharmaceutical Excipients
If Taicang represents the “scaling-up of traditional starch sweeteners,” the true highlight of the 2026 plan is the company’s explicit goal: “Expanding from traditional fructose syrup and maltose syrup businesses into functional sugars and pharmaceutical excipients to extend the value chain.” This ambition is reflected in three newly proposed projects.
3.1 Ma’anshan β-Cyclodextrin Project — Entering the Pharmaceutical Excipient Blue Ocean
For sugar industry professionals less familiar with the chemistry: β-cyclodextrin (β-CD) is not a sugar in the traditional sense. It is a cyclic oligosaccharide composed of seven glucose units linked by α-1,4-glycosidic bonds.
Its value lies in its unique molecular structure—a hydrophilic exterior with a hydrophobic interior cavity—which allows it to form inclusion complexes with hydrophobic molecules. In pharmaceuticals, this improves drug solubility, stability, and bioavailability while masking unpleasant tastes. In food, it functions as a stabilizer, emulsifier, and antioxidant. It is also widely used in cosmetics, agrochemicals, and environmental protection.
On the demand side, pharmaceuticals are the dominant end-market. As an emerging excipient, β-CD masks bitterness, mitigates side effects, and enhances drug stability—making it valuable in oral oncology drugs, antiviral agents, hormonal therapies, and traditional Chinese medicine formulations. As research deepens and technology advances, the application scope continues to broaden, fueling rising demand.
Even more important is the derivatives pathway. β-CD itself is merely the “ticket of entry”; the real high-margin opportunity lies in pharmaceutical-grade derivatives such as hydroxypropyl-β-cyclodextrin (HP-β-CD) and sulfobutylether-β-cyclodextrin (SBE-β-CD).
If the Ma’anshan project executes successfully, it will mark a leap for COFCO Biotech along the “raw materials → sugar → pharmaceutical excipient” value chain—shifting from bulk food ingredients into a higher-barrier, higher-margin segment.
That said, China’s β-CD industry has reached a mature stage, with numerous producers and intense competition. Whether COFCO Biotech can leverage its scale and brand strength to break through remains to be seen.
3.2 Co-Production of Glucosamine and Inositol — Functional Ingredients for Health & Wellness
Glucosamine is a core raw material for joint-health supplements, while inositol sees stable demand across infant formula, neuro-nutrition, and animal feed.
Despite different raw material routes, both can originate from glucose/corn-based sugar feedstocks via fermentation or chemical synthesis, creating a foundation for synergistic co-production. This approach reflects engineering optimization in raw material utilization and energy efficiency, aligning closely with the company’s “functional sugar” strategy.
3.3 Yushu Crystalline Sugar Project — Upgrading the Northeast Corn Belt
The Yushu facility is located in the heart of Jilin’s corn-producing region. Compared to traditional syrup products, crystalline sugars (crystalline fructose, crystalline glucose, etc.) offer higher purity, easier transportation, longer shelf life, and broader application scenarios—and command higher gross margins. The project signals a clear move at the company’s Northeast feedstock base toward premiumization, solid-form products, and brand-driven offerings.
4. Reserve Projects: Maltodextrin and the Thai Tapioca Play
The announcement also highlighted two reserve initiatives worth watching:
Gongzhuling Maltodextrin Project. Maltodextrin is one of the most widely used intermediates across food, pharmaceuticals, and animal feed. It synergizes well with the company’s existing corn deep-processing business and would further broaden the sugar product portfolio.
Acquisition of a Tapioca Starch Facility in Northeastern Thailand. As a reserve project, the company plans an opportunistic acquisition of a Thai tapioca starch plant with annual production capacity of 100,000 tons. The strategic significance is substantial: tapioca starch is a high-quality alternative feedstock for sugars, modified starches, and biodegradable materials. The deal would establish a “second feedstock pillar” beyond corn while securing direct access to upstream resources in Thailand—the world’s largest tapioca exporter.
Combined with the planned 30,000-ton/year erythritol project to be developed on land acquired through COFCO’s Thai subsidiary, Thailand is rapidly emerging as the central hub of the company’s overseas sugar strategy.
Erythritol has been one of the fastest-growing zero-calorie sweeteners in recent years and is a flagship ingredient in the global sugar-free beverage wave. A Thai footprint allows COFCO Biotech to leverage local tapioca and cane molasses cost advantages, serve growing Southeast Asian demand for healthy sweeteners, and circumvent certain trade barriers.
5. Three Strategic Threads, One Vision
Pulling it all together, COFCO Biotech’s 2026 sugar investments distill into three core threads:
Thread One — Scale: Reinforcing leadership in traditional starch sweeteners. Anchored by the Taicang project, the focus is on capturing high-value East China demand while leveraging Northwest and other regional projects to strengthen a nationwide capacity footprint.
Thread Two — Upgrade: Extending into functional sugars and pharmaceutical excipients. The trio of Ma’anshan β-cyclodextrin, glucosamine-inositol co-production, and Yushu crystalline sugar marks a structural shift from “selling syrups” to “selling functional ingredients and excipients,” with meaningful potential to expand margins and improve resilience across cycles.
Thread Three — Globalization: Thailand as the overseas pivot. The erythritol project paired with the reserved tapioca acquisition builds an integrated overseas chain spanning “raw materials → products → markets.”
The strategic intent is unmistakable: against a backdrop of decelerating growth and intensifying homogenization in China’s domestic starch sweetener industry, COFCO Biotech is reshaping its second growth curve through a three-engine model—scale barriers, category upgrade, and global resources. This not only reflects the company’s own development roadmap but also aligns with the announcement’s opening statement on expanding effective investment and driving business transformation.
6. Closing Thoughts from the ynsugar Team
For China’s sugar industry, the keywords for the next decade will almost certainly include those highlighted in this investment plan: functional sugars, pharmaceutical excipients, zero-calorie sweeteners, and overseas feedstocks.
From Taicang’s 550,000-ton flagship facility, to Ma’anshan’s β-cyclodextrin, to tapioca and erythritol in Thailand—what is taking shape is a sugar industry blueprint that is more precise, more multidimensional, more premium, and more global.
2026 will be the pivotal year in which COFCO Biotech’s blueprint moves from paper to reality.
Disclaimer: This article is based on the interpretation of publicly available information and corporate announcements from COFCO Biotech. The analysis and views expressed herein belong solely to the ynsugar research team and do not constitute financial or investment advice. Readers are encouraged to verify data through official regulatory filings.
