Global market outlook on Vitamin D
Quality, supply base, and consistent supplies can be the key negotiating levers for industry.
Alternatives to Making the Deal
- Engaging with integrated player can help buyers to minimize raw material quality and supply risk, thereby enabling consistent supplies
- Margins of Vitamin D are healthy and hence, engaging with large manufacturers can give better negotiation for buyers
- Positioning high spend on low-price suppliers and reduce spend on supplier with high prices can enable savings
Value Chain Analysis of Vitamin D
Vitamin D is predominantly produced from natural sources (Lanolin and Yeast) with microbe and vegan-based sources are preferred for Vitamin D2 production process
Product Development Issues
- Formulators see a challenge in developing vitamin D3 and D2 to over come the off flavors and aromas.
- Manufacturer must address product development issues, that could efficiently impact nutrient delivery or customized end -product
- The US has been fortifying their food with Vitamin D3 for a long time while EU have taken major steps towards Vitamin D fortification.
- It is been found that EU can save EUR 19.8 billion health care cost over the next five years when fortification with Vitamin D is practiced
Global Supply and Demand – Impact Analysis
High demand for Vitamin D should drive the supply market as well. Increasing investment for development and commercialization of various accurate, innovative, and easy-to-use tests by various market players and governments is likely to drive the market growth in the nutraceutical sector.
- The global market for Vitamin D is expected to be close to USD 0.53 Billion in 2018 and its expected to grow at a CAGR of 10 percent
- The annual production is slightly expected to increase with increasing demand from the food industry, owing to compulsory fortification of selected food products in the US and some member states in the EU. The cosmetics industry, though relatively small, in terms of the percentage share, is emerging as a key end-user with a CAGR of 4.6 percent
Development in pharmaceutical industry along with easy regulations for Vitamin D ingredients globally bolster the growth of Vitamin D demand. D3 segment is likely to register a growth of 12 percent, while D2 segment is expected to witness a growth of 8 percent (CAGR in next five years). The powder form is expected to grow at 12 percent, while oil form is likely to grow at 10 percent in the next five years.