Food-Grade Silicon Dioxide Research Report: Strategic Insights and Market Opportunities (Optimized Version)

I. Company Profile: Deepening Technology, Global Layout

As a leading enterprise in China's high-end silicon dioxide sector, Shandong Zhonglian Chemical Co., Ltd. （ Zhongqi (Guangdong) Silicon Material Co., Ltd.）has focused on core business innovation since its establishment, building industry competitive barriers through technological breakthroughs. Currently, the company holds 16 core patents and has strategically deployed production bases in Shandong and Fujian provinces — with 2 nano-level production lines in Shandong and 2 standardized production lines in Fujian. Its annual production capacity reaches 30,000 tons of food and pharmaceutical-grade silicon dioxide and 20,000 tons of industrial-grade products, and its product export network covers more than 20 countries and regions worldwide, forming an international supply capacity.

Its subsidiary, Zhongqi (Guangdong) Silicon Material Co., Ltd. (Stock Code: 880747), was successfully listed in 2021. With its three major brands "Zhongqi", "Zhonglian" , the subsidiary has established strong market influence in segmented fields such as condiments, coffee powder and solid beverages relying on stable quality, becoming a preferred partner for downstream enterprises.

Development Milestones

• 2006: Zhongqi Powder was officially founded, laying the foundation for in-depth industry development;
• 2010: Shandong Zhonglian Chemical was registered and established, defining the core direction of "technology R&D-driven development";
• 2013-2015: Broke through the market access barriers of food additives, successively obtaining ISO22000 Food Safety Management System certification and HALAL certification;
• 2017: Recognized as a "National High-Tech Enterprise", and simultaneously passed OU Kosher certification, achieving product compliance covering major global markets;
• 2019-2023: Launched the dual-track initiative of capacity expansion and technological upgrading, including capacity expansion of the Guangdong base, iteration of Shandong's nano production lines and scale expansion of the Fujian base, realizing double growth in production capacity;
• 2021: The subsidiary Zhongqi (Guangdong) Silicon Material was successfully listed, accelerating global layout with the support of capital.

Adhering to the development concept of "Excellence, Win-Win, Safety and Health", the company strictly follows GMP (Good Manufacturing Practice) standards and ISO22000:2018 food safety system throughout the production process. Its workshops adopt a fully enclosed management model and are equipped with world-class hardware equipment to ensure "zero-defect" delivery of products from the production source.

II. Product Advantages: International Quality, Customized Solutions

As an efficient food anti-caking agent, food-grade silicon dioxide relies on its micro-particle structure, porous characteristics and strong adsorption capacity to fundamentally solve the problem of moisture absorption and caking of powdered food during storage and transportation. It is widely used in various fields such as flavors and fragrances, solid beverages, seasoning powders and non-dairy creamers. With stable chemical properties and non-toxicity, this product fully complies with the ≤2% addition limit standard specified by the U.S. FDA (Food and Drug Administration) and is included in the EU food additive list (No. E551), achieving compliance covering major global markets.

Detailed Core Advantages

1. Quality Surpassing International Brands: Taking the star product W-50B as an example, which is benchmarked against international brand model. Authoritative testing (Quality Inspection No.: P25021904) shows that it has lower moisture content, higher purity, 20% better fluidity than competitors, and superior anti-caking performance, enabling 100% substitution of international first-tier brands;
2. Full-Link Technical Support: Established a sound product model matching system (such as core models like ZLSIL-22S), which can customize exclusive solutions according to downstream application scenarios (fruit powder, non-dairy creamer, seasoning powder, etc.). Meanwhile, it has built a competitor parameter database to provide customers with accurate substitution references;
3. Certification and Production Guarantee: In addition to international certifications such as ISO22000, HALAL and Kosher, an automatic radar sensor door control system is introduced in the production process to manage material in and out, realizing full-process traceability from raw materials to finished products and further ensuring product safety and stability.

III. Sales Strategy: Focusing on High-Growth Tracks

(A) Flavors and Fragrances Market: Capturing High-End Share

1. Market Pattern

The global flavors and fragrances market has a high concentration, with the top 5 enterprises such as Givaudan and IFF (International Flavors & Fragrances) monopolizing 45% of the global market share. Although the market presents an oligopolistic pattern, the industry maintains steady growth. According to industry forecasts, the global market size will reach USD 45.89 billion by 2029, with a compound annual growth rate (CAGR) of 5.8%, and the demand for high-end markets will continue to release.

2. Core Application Scenarios

• Powdered Flavors (e.g., baking spices): Adding food-grade silicon dioxide to prevent caking while protecting the flavor of the fragrance from loss;
• Microencapsulated Flavors (e.g., for chewing gum): Solving the problem of surface stickiness of microcapsules and avoiding agglomeration during processing;
• Moisture-Sensitive Flavors (containing sugar/aldehyde components): Adsorbing excess moisture in the environment to prevent caking and deterioration of flavors due to moisture absorption;
• High-Value-Added Export Flavors: Ensuring product stability during long-distance transportation and long-term storage, and reducing transnational trade losses.

(B) Solid Beverages Market: Penetrating the Supply Chain of Giants

1. Industry Dynamics

The global solid beverages market is dominated by international giants such as Nestlé, Starbucks and Unilever. The market demand has rigid characteristics, with an annual growth rate stably maintained at 7%-8.2%. With the increase in consumers' demand for convenient beverages, the industry scale will continue to expand.

2. Application Scenarios and Solutions

• Instant Coffee: Adding food-grade silicon dioxide can effectively prevent coffee powder from absorbing moisture and caking, maintain good fluidity of the powder, and ensure uniform dispersion during brewing;
• Non-Dairy Creamer/Coffee Creamer: Adsorbing oil and moisture in non-dairy creamers to avoid bonding caused by stacking during storage;
• Soup Powder/Seasoning Powder (e.g., chicken essence, curry powder): Improving the dispersibility of the powder, solving the problem of "caking and difficult dissolution" during use, and enhancing consumption convenience;
• Milk Powder/Protein Powder: Adding during the processing to prevent caking of products due to vibration, temperature and humidity changes during storage and transportation;
• Cocoa Powder/Plant Protein Powder: Improving the fluidity of high-fiber powder, reducing powder agglomeration caused by static electricity, and improving production efficiency.

IV. Future Opportunities: Breaking Through in Blue Oceans and Global Layout

1. Strategic Pit Avoidance: Focusing on High-Value Fields

• Avoid the "red ocean" market with low-price competition, focus on rigid demand industries such as baking, coffee and high-end flavors, and ensure customer repurchase rate relying on product quality and technical services;
• Deepen the binding relationship with downstream enterprises, upgrading from "pure product sales" to "technical solution provider", and improving customer stickiness through customized services.

2. Industry Trend Driving: Grasping Demand Dividends

• Health-Oriented Transformation: With the increase in consumers' attention to food safety, food-grade silicon dioxide, as a non-toxic and residue-free anti-caking agent, is gradually replacing traditional products such as potassium ferrocyanide, and the market demand space continues to expand;
• Cost Advantage: The price of domestic food-grade silicon dioxide products is 30%-50% lower than that in European and American markets. Moreover, the addition amount in end products is ≤2%, which has little impact on the overall cost of customers and low price sensitivity, thus having strong market competitiveness.

3. Breaking Through High-End Markets in Europe and America: Seizing the Substitution Window

• Market Pattern Change: The global high-end food-grade silicon dioxide market has long been controlled by international giants such as Evonik and Solvay. However, Evonik has planned to close its fumed silica plant in Waterford (USA) and precipitated silica plant in Harvard Grace from 2025 to 2026, which will release a large amount of substitution space in the high-end market;
• "Whoever Captures Europe and America Captures the World": Through "strong alliances" with professional teams with international resources, penetrate into the supply chain of high-value-added customers in Europe and America, realize the leap in high-end market share, and establish global competitive advantages.

V. Implementation Plan: Three-Step Customer Development Strategy

Step 1: Demand Diagnosis

Clarify the customer's downstream application scenarios (such as anti-caking of spices, quality improvement of instant coffee) through in-depth communication, and accurately identify the core pain points of customers in product storage, processing and use, laying the foundation for subsequent program matching.

Step 2: Parameter Matching

Obtain the brand model and Certificate of Analysis (COA) of the products currently used by customers. Relying on the company's competitor parameter database, quickly match suitable models and provide clear alternative program comparisons (such as quality indicators, cost advantages, application effects), reducing the customer's decision-making cost.

Step 3: Customized Response

For customers' special needs (such as dedicated for microencapsulated flavors, high-purity food scenarios), invite customers to send samples for professional testing. Combine the test results with actual application scenarios to customize and develop exclusive products, ensuring the accurate implementation of solutions.

VI. Win-Win Cooperation: Professional Empowerment, Co-Creating a Global Landscape

With "technical heritage + sales resources" as its core competitiveness, Shandong Zhonglian Chemical is committed to building a deeply integrated win-win system with international partners:

• Solution-Oriented: Go beyond the traditional product sales model, provide partners with value-added services such as industry application experience sharing, competitor analysis and technical problem-solving, and help partners improve product competitiveness;
• Global Service Network: Rely on rich successful substitution cases in fields such as flavors and fragrances, and solid beverages to provide localized technical support and services for global partners, ensuring the efficient advancement of cooperation;
• Sustainable Ecosystem Construction: Through technological innovation and resource integration, work with partners to jointly explore high-end markets in Europe and America, promote the global food-grade silicon dioxide industry to develop in the direction of "high quality, high safety and high added value", and co-create a new future for the industry.