Behind the 75% Surge in Taurine Prices

Taurine prices have been soaring in recent weeks, with reports indicating that international market quotations have exceeded $10 per kilogram, triggering panic across the industry.

According to pricing data, taurine was trading at RMB 14,250 per ton in early April, rising to RMB 15,000 per ton by mid-month. By late April, some suppliers were quoting as high as RMB 25,000 per ton - representing a staggering 75% surge within a single month. Currently, food-grade taurine prices from producers in Shandong and Hubei hover between RMB 14,000 and 16,000 per ton, while one Shanghai-based supplier is reportedly offering food-grade taurine at RMB 25,000 per ton.

On the demand side, taurine sees widespread use across energy drinks, pet food, and pharmaceuticals. It is typically classified into industrial-grade, food-grade, and pharmaceutical-grade. Industrial-grade taurine is mainly used in feed additives and cosmetics; food-grade taurine is added to food products to enhance nutritional and functional value; and pharmaceutical-grade taurine is used in drug manufacturing for its heart-protective and antioxidant properties, among other medical benefits.

Global demand for taurine is estimated at 160,000 tons annually, while existing production capacity stands at just 140,000 tons - creating a shortfall of approximately 20,000 tons. China accounts for over 90% of global taurine production capacity, with leading producers including Yongan Pharmaceutical, Shengyuan Environmental Protection, and NHU (Xinhua Pharmaceutical). Yongan Pharmaceutical, the world's largest taurine manufacturer, currently has an annual capacity of 58,000 tons, with plans to expand to 98,000 tons. Shengyuan Environmental Protection operates with 30,000 tons/year and is expected to bring an additional 40,000 tons of food-grade capacity online in the second half of the year. NHU is set to commission 20,000 tons of new capacity by Q4 2025, alongside 30,000 tons of feed-grade capacity. Total taurine production capacity in China currently stands at roughly 110,000 tons.

Yongan Pharmaceutical's core taurine products are widely used in health supplements (40% of sales), food and beverages (30%), and pet food (20%). In 2024, exports accounted for 75% of the company's revenue, with 35% of that heading to the U.S. In 2023, delays in FDA review caused Yongan's U.S. orders to drop by 15%. However, after gaining FDA approval in Q1 2025, the company saw a 25% year-on-year rebound in U.S. exports.

Tightening environmental regulations in China have recently constrained production, coinciding with rising downstream demand from energy drinks and pet food. The global energy drink market is growing at an annual rate of 7%, while China's pet food market is expanding at over 20% per year. Between April and September - typically peak stocking season for energy drinks - taurine spot prices usually rise 5–8%. This year, however, the ongoing U.S.-China tariff battle has added another layer of complexity. Taurine was not included in the tariff exemption list, and according to rumors, some major suppliers claim the added costs are being passed on to importers - further fueling the price spike.