Vitamin B

Vitamin B Global Market Outlook:

MARKET OVERVIEW

Global market size of Vitamin B1 – $692 Million (2023) Expected to grow at a CAGR of 4.5-5.5 percent to $830 Million by 2027

• Demand for Vitamin B6 has increased across the globe, due to the increasing awareness to improve overall health and immunity

• Vitamin B12 or Cyanocobalamin market has been growing mainly due to growing health concern and changing lifestyle and dietary habits

Market Overview: Vitamin B1

High dependence on China for Vitamin B1 could be a threat, if there is a sudden change of events, like the COVID-19 situation. Buyers are currently looking for other alternatives outside of China.

• Vitamin B1 or thiamine is majorly manufactured for the use in pharma or dietary supplements industry. Part of the global supply also goes into the manufacturing of food and feed

• Market for Vitamin B1 is highly concentrated in China, just like many other vitamins. DSM is the major manufacturer of Vitamin B1 outside China. However, most of their production is to meet their captive demand

• Domestic vitamin manufacturers held off resuming production after being impacted by COVID-19, resulting in lower output and blocked transportation. China's vitamin exports suffered due to COVID19 restrictions and lockdowns. Vitamin activities and exports have returned as companies progressively started production. China's vitamin exports increased in May-June 2022, owing to increased production and supply, as well as improved transportation. In June 2022, 821,126 kgs of Vitamin B1 & its Derivative were exported from China.

• Vitamin B1 increased growth rate of more than 70% YoY, its volume increased to 1,500 tons from the 800 tons in the previous year.

Market Overview: Vitamin B6

Demand for Vitamin B6 has increased across the globe, due to the increasing awareness to improve the overall health and immunity.

• The global capacity of Vitamin B6 was estimated to be 12–15 KT in 2019, Chinese manufacturers hold the largest market shares by volume

• There are several applications for Vitamin B6 in various fields, such as animal nutrition, food & beverage industry, pharmaceutical industry, and others

• Vitamin B6 is among the various vitamins, whose demand has increased, due to COVID-19. Sanofi has particularly reported the sales of these Vitamin B, C, and E increasing considerably in China

• China's vitamin exports increased in May 2022, owing to increased production and supply, as well as improved transportation. In June 2022, 782, 078 kgs of Vitamin B6 & its Derivative were exported from China.

Market Overview: Vitamin B12

Vitamin B12 or the cyanocobalamin market has been growing, mainly due to growing health concern and changing lifestyle and dietary habits.

• Vitamin B12 is the most expensive API compared to other vitamins because of its complex production process

• Several studies have claimed that Vitamin B12 can reduce the rate of progression of COVID-19, and this has triggered a surge in the demand for Vitamin B12

• Vitamin B12 witnessed the largest growth in volume from 30 tones to 62 tons, up by more than 90% in Jan–Feb 2020

• China's vitamin exports increased in June 2022, owing to increased production and supply, as well as improved transportation. In June 2022, 2,252 kgs of Vitamin B12 & its derivative were exported from China.

Cost Structure Analysis : Vitamin B

• Raw material cost contributes to nearly 65-70 percent of the total production cost of Vitamins. Prices of raw materials like Aminopropionitrile and Acetamidine Hydrochloride have increased due to environmental pressures in China

• Fixed cost is expected to increase in future since all Chinese manufacturers of vitamins will be forced to install green technologies in their manufacturing process

• Labour costs around 4–5 percent of the total cost of production. In 2022, the labour cost has grown up to 3-4 percent in China. This drives the production cost of the vitamin.

• Regulatory approval from several regulatory bodies is one of the cost drivers for manufacturing vitamins. These are nutraceutical components and require stringent regulatory approval

• Chinese manufacturers of vitamins will be forced to install green technologies in their manufacturing process. Majority of the companies are contributing to the sustainability initiatives such as sourcing of raw materials and reducing emission in manufacturing.

• Manufacturing of vitamins using chemical technology or fermentation involves technical expertise which adds up to the R&D cost

• Increasingly strict environmental rules has compelled the facilities to invest in upgradation that drives the cost of production