Synthetic Vitamins

Synthetic Vitamins Global Market Outlook

• Post covid-19, there has been a significant rise in health awareness, which has become a leading factor behind the surge in demand for vitamin-rich functional foods. On the other hand, an increase in concern towards disease outbreaks in livestock is driving the demand of vitamin-rich animal feed globally

• The global vitamin figures are estimated to be at 364.4 Thd MT in 2021/2022. China is the top producer, which has a surplus export volume. The US, the EU, and India, even though they produce relative volume, they are not major exporters, due to internal demand

Market Outlook (2023)

• Vitamin C is the largest produced vitamin by volume; however, by sales, vitamin E is the largest, due to its demand from the animal feed industry

• Vitamin B is expected to surge with demand than previous year. The production and demand both were observed to be lean, due to China’s lockdown. However, the situation is bouncing back

Global Vitamin Trade Dynamics

China is the largest exporter of vitamins in the world. They occupy a market share of 41 percent (Vitamin D, C and B complex) by exports; however, the export volume dropped by 23.5 percent last year, due to political instabilities with the US. The recent lockdowns to overcome surging cases in China will stress the supply.

• The upcoming countries for procuring vitamins are Australia and India

• It is believed that China ties up with companies in Australia, exports take place and are then re-exported to the US with a different country of origin label and company

Porter’s Five Forces Analysis on Synthetic Vitamins Industry

The suppliers have better negotiation power, as they are fragmented players for most of the vitamins and volumes are at risk due to increased demand. The intensity of rivalry is medium to high in the vitamin industry, based on the type of vitamin and their grades.

Supplier Power

• The suppliers have higher negotiation power than buyers, as the market supply is tight and demand is high

• The suppliers are fragmented and volumes are smaller from each buyer

Barriers to New Entrants

• Vitamin factories require technology, capital and equipment. History of presence is well noted here and hence, the barriers to new entrants are high

Intensity of Rivalry

• Vitamin is mainly used in human consumption and animal feed. The supply of vitamin is generally stable. However, trends and political terms might influence the prices

• The rivalry in the vitamin industry is low to medium, as there are no alternate substitutes

Threat of Substitutes

• Vitamins are essential to human and animal health and cannot be replaced by anything else

• There is no threat for vitamins in the near future

Buyer Power

• The buyers of vitamins are the food, pharmaceutical companies, and animal feed companies

• All these three categories have been hugely impacted by COVID-19 and has seen increased production

• This has led to increase in demand for vitamin based products