Vitamin growth figures in 2020/2021 is forecasted to be higher compared to 2019/2020, due to the impact by COVID-19
Majority of the vitamins are manufactured in synthetic form, as they are cost efficient and yield higher
The global vitamin figures are estimated to be at 364.4 Thd MT in 2019/2020. China is the top producer, which has surplus export volume. The US, EU and India, even though they produce relative volume, they are not major exporters, due to internal demand
Prices of vitamins traded higher due to COVID-19. Production of these derivatives was also hampered, as many manufacturing units faced raw material supply disruptions and shipment delays. However, prices are expected to witness a slight increase, owing to slow demand rise
Although major suppliers, like China and the US, have not announced any lockdowns, countries such as India and EU are expected to be ideal, supporting sourcing destinations, due to sustainability issues in the future.
Major suppliers in the US and Europe are facing challenges, owing to supply chain disruption and labor shortage. Suppliers in Asia are comparatively better placed, due to relaxed lockdown restrictions.
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.
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
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
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