Red Powder Colorant Production from

Monascus by Submerged Fermentation

A Market Study Presentation
by
CKS Industries
Baluyut. De Leon. Gines.

September 16, 2015

ChE Conference Room

OUTLINE
Objectives of the Study
Limitations of the Study
Introduction on colorants, Monascus purpureus and Monascus
colorants
Significance of the Study
The Main Product: Red Powder Colorant from Monascus purpureus
Market Study for colorants

Local Consumption and Market Segmentation

Supply and Demand Analysis
Projected Demand
Global Market Analysis

The Raw Materials

The Proposed Plant Design
Block Flow Diagram
Economic Potential
Plant Capacity and Location

OBJECTIVES OF THE STUDY

The objective of this study is to design a plant that
produces red powder pigment from Monascus
purpureus via submerged fermentation.

A feasibility study will also be conducted in order

to analyze the plant design in terms of engineering
and economic principles.
It is to be determined if the designed plant will be
profitable based on the feasibility study conducted.

LIMITATIONS OF THE STUDY

The plant to be designed will only produce red powder
biocolorant from the fungus Monascus purpureus using
submerged fermentation.
The plant will be able to perform both upstream (fermentation)
and downstream (harvesting, purification and packaging)
processes for the biocolorant under batch processing conditions.
All market data were obtained from the National Statistics Office
(NSO) and Euromonitor Journals.

All kinetic data and production data are from a source which we
cannot disclose as per mutual agreement from both parties.

INTRODUCTION

Colorants

Inorganic

Organic

Natural

Biocolorants

Synthetic

SIGNIFICANCE OF THE STUDY

The demand for natural source of natural color
and additives is increasing day by day because of
awareness of positive health benefit out of natural
compounds.
Many of the naturally derived colorants provide
health benefits; therefore, a replacement of
artificial food dyes with natural colorants is a
current marketing trend
Globally, consumption and demand for colorants
have increased in the past five years.

SIGNIFICANCE OF THE STUDY

Locally, the Philippines is heavily reliant on imports
when it comes to colorants.
In the Philippines, there is limited information as to
the number of manufacturers of commercial
biocolorants.
Synthetic colorants, although widely used, are
expensive.

THE MAIN PRODUCT

The main product
would be
red powder colorant
made from the fungus
Monascus purpureus

Product Grade
Technical, Food, Cosmetic
Production Rate (kg/run)*
80
Product Price (Php/kg)**
1,100
Product Impurities***
Name
value
Lead(Pb)
1 ppm
Arsenic(As)
1 ppm
Total plate
1000
count
cfu/g
Yeast
25 cfu/g
25 cfu/g
Mold
30 cfu/g
Coliform

THE MAIN PRODUCT - Competition

Red #3
Erythrosine

Red #40
Allura Red

Since there is limited

information on the
commercial
production of red
biocolorant, we focus
on the colors which
would be similar to
the product.

In the Philippines, companies such as Neco Philippines,

Inc., Hyco Laboratories Company, Inc. currently
manufacture these red colors.

THE MAIN PRODUCT - Competition

THE MAIN PRODUCT - Competition

LOCAL SUPPLY & DEMAND CHAIN

90000

80000

70000

60000

Metric Tons

Export
50000

Local consumption
Total local production
Import

40000

Total supply
Local demand
30000

20000

10000

0
2010

2011

2012

2013

2014

LOCAL SUPPLY & DEMAND ANALYSIS

Amount in MT

Philippine Supply and Demand Analysis for Colorants from

2010 to 2014 (NSO)
90000
85000
80000
75000
70000
65000
60000
55000
50000
2010

2011

2012
Year

Total Supply

Total Demand

2013

2014

PROJECTED DEMAND
Philippine Local Consumption of Colorants, % CAGR
(Euromonitor)
12
10.7166
10

y = 1.5511x - 2.0117
R = 0.8202

4
3.348178433
2
y = 1.9161x - 2.6961
R = 0.4735
0
2010-2011
-2

-4

2011-2012

2012-2013

2013-2014

2014-2015

2015-2016

2016-2017

2017-2018

PROJECTED DEMAND
Local Consumption of Colorants, 2010-2019
(Euromonitor)
9,000.00
8,207.30

8,000.00
7,077.80

7,000.00

Metric tons

6,000.00
5,000.00
4,000.00
3,000.00
2,000.00
1,000.00
0.00
2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

LOCAL MARKET SEGMENTATION

MARKET SEGMENTATION OF COLORANTS BY
APPLICATION, 2014 (EUROMONITOR)
Soft Drinks
77%

Beauty and Personal Care

6%

Other
12%

Packaged Food
6%

Pet Care
2%

Alcoholic Drinks
5%
Home Care
4%
Hot Drinks
0%

ASIA PACIFIC CONSUMPTION TREND

CONSUMPTION OF COLORANTS IN THE ASIA
PACIFIC REGION, 2014 (EUROMONITOR)
Japan, 26,573.50, 24%
Philippines, 7,077.80, 6%
India, 12,908.00, 12%

Thailand, 7,859.10, 7%

Singapore, 567.00, 1%

Other, 14,463.20, 13%

Taiwan, 3,088.30, 3%

South Korea, 3,515.80, 3%

China, 48,683.40, 44%

GLOBAL CONSUMPTION & SEGMENTATION

CONSUMPTION OF COLORANTS WORLDWIDE, 2014
(EUROMONITOR)
Western Europe, 51,793.30,
13%

Asia Pacific
110,272.90, 28%

Australia, 12,769.60, 4%

Latin America, 127.60, 0%

Middle East and Africa,

4,193.40, 1%
North America, 211,185.70,
54%

THE RAW MATERIALS

Raw Material
Name
Raw Material
Grade
MSDS Form
Number
Consumption
Rate
(kg/run)****
Raw Material
Price
(Php/kg)*****
Raw Material
Impurities******

Potato

Dextrose

Monosodium
glutamate

Technical, Food

Technical

Technical

CAS # 9005-25-8

CAS # 5996-10-1

CAS # 142-47-2

200

16

0.872

60

160

150

Name

(ppm)

Name

(ppm)

Name

(ppm)

THE RAW MATERIALS

THE BLOCK FLOW DIAGRAM

THE BLOCK FLOW DIAGRAM

THE BLOCK FLOW DIAGRAM

THE ECONOMIC POTENTIAL

Component

Consumption or
Price per unit
production per run
(Php/kg)
(kg/run)
200
60
16
160
0.872
150

Potato
Dextrose
MSG
Commercial
colorant
Monascus
colorant powder
Economic Potential

Cost per run

80

5000

80

1100
385309.2

12000
2560
130.8
400000
88000

PLANT CAPACITY & LOCATION

Site Information: Luisita Industrial Park, Tarlac City, Tarlac
Ambient Temperature
Daily Average (C)
Minimum Recorded (C)
Maximum Recorded (C)
Dew Point Temperature
Maximum Recorded (C)
Ambient Relative Humidity
Daily Average (%)

Precipitation

Wind Velocity
Site Elevation above Sea Level (m)

Minimum Recorded (%)

Maximum Recorded (%)
Daily Average (mm)
Minimum Recorded (mm)
Maximum Recorded (mm)
Maximum (m/s)

27
24
35
24
84.5
98
60
0
0
368
9
44

CONCLUSION
Based on the market data gathered and analyzed, there is an existing
opportunity in creating a red powder colorant production plant.

Based on the local production of colorants, there is an opportunity and

a need in creating a red powder colorant production plant to decrease
the reliance on imports.
Based on current research and development made by established
companies, there is a growing need and consequently, a demand, for
the production of biocolorants.

Based on the preliminary economic potential, it is economical to build

a red powder colorant plant in the Philippines.

Red Powder Colorant Production from

Monascus by Submerged Fermentation
A Market Study Presentation
by
CKS Industries
Baluyut. De Leon. Gines.

September 16, 2015

ChE Conference Room