Vitamin C

Vitamin C Global Market Outlook:

MARKET OVERVIEW

Global market size – $1.28 Billion (E-2023) Expected to grow at a CAGR of 5–6 percent to $1.7 Billion by 2028

China is the leading producer of Vitamin C and most of the other vitamin as well.

• The global Vitamin C is estimated 1.28 billion in 2023 and is expected to reach 1.7 billion by 2028, growing at a CAGR of 5-6 percent

• China is the leading producer of Vitamin C and most of the other vitamin as well. There is increased dependence on China which could act as a threat in situations like COVID-19

• Market for Vitamin C is mainly driven by strong application scope in cosmetics, pharmaceutical, animal feed, and processed food industries

• Vitamin C is required for collagen biosynthesis and involved in protein metabolism. It prevents CVD disease, reduces harmful chemotherapy effects, and destroy tumours

Cost Structure Analysis : Vitamin C

• Raw material, i.e., Sorbitol, potassium permanganate, and acetone are the major raw materials used in the manufacture of vitamin C. It accounts to 73 percent of the total production cost

• The indirect cost, which includes SG&A and depreciation, accounts for 10–15 percent of the cost

• Raw material cost is the primary cost driver in the production of vitamin C, which contributes to around 70–75 percent of the total cost of production.

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

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

• Fixed cost is expected to increase in the future, since all 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.

• Cornstarch is an upstream raw material in the production of Vitamin C. Cornstarch price in domestic market started to rise due to Russia-Ukraine conflict and faced drastic volatility.

Key Market trends : Vitamin C

To boost immunity drivers, the overall market. Companies are investing in R&D activities to launch enhanced and innovative products using vitamin C.

High Demand for Ingredients Associated with Immunity

• Consumers seem to have increased purchases of everything from fortified breakfast cereal to fortified plant-based milk, there is also active seeking out for supplements and foods with ingredients they associate with immune health

• Demand has increased for ingredients, such as Vitamin C, Zinc, Vitamin D, Vitamin B12, B6 and Vitamin E. Omega-3 fatty acids are also seeing a surge in demand, since they are well known for supporting healthy heart and brain function

Supply Chain Options being Reviewed

• Price of Vitamin C has been increasing significantly, due to the growing demand and the increased dependence on China. When there is increased dependence on one location or supplier for a particular raw material, it results in severe price hike in situations like this. Therefore, companies are re-evaluating their supply chain for Vitamin C and are looking at options outside of China. It is a difficult task to scout for suppliers outside China in the current situation as DSM is the only big supplier outside China who has facilities in Europe for Vitamin C

Suppliers investing R&D activities

• As there is a surge in demand for vitamin C, the suppliers are focusing on R&D activities to launch enhanced and innovative products using vitamin C. Also, the players are also focusing on making products that have fewer side effects and are easily available access to the customers globally through a strong distribution network