China controls 70% of world vitamins supply, so what's next

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China Controls 70% of World Vitamins Supply, so What's Next Email: sale@qyresearch.com

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Global Diabetes Care Devices Market Research Report 2022

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Author: Lujing, Canary

Company: QYResearch Vitamins are organic compound that an organism requires in limited amounts. An organic chemical compound (or related set of compounds) is called a vitamin when the organism cannot synthesize the compound in sufficient quantities, and it must be obtained through the diet; thus, the term vitamin is conditional upon the circumstances and the particular organism. For example, ascorbic acid (one form of vitamin C) is a vitamin for humans, but not for most other animal organisms. Vitamins have many types, Including VA, VB1, VB2, VB5, VB6, VE, VD3, VK3, VC, etc. Technical barrier of each type of Vitamin is high, since each Vitamin type have its own manufacture process and market value. Basically, the industry is monopolized by several oligarchs. 3-5 manufacturers control the supply of Vitamins. Table Market Status of Major Vitamin Products Vitamin Type

Major Manufacturer

Vitamin A DSM (Netherlands) NHU (China)

BASF(Germany)

Other Manufacturer

Market Concentration

Kingdomway (China)

Big Four

DSM (Netherlands)

Big Three

ZMC (China)

Bluestar Adisseo (China) Vitamin B1

Brother Enterprises (China) Huazhong Pharma (China)

GWG(China)

Zhejiang Tianxin (China) China Controls 70% of World Vitamins Supply, so What's Next

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Vitamin B2

Guangji Pharma (China)

DESANO (China)

Big Three

Vertellus (USA)

One dominant player

BASF(Germany)

Big Two

DESANO (China)

One dominant player

DESANO (China)

Big Two

Nepharm (China)

North China Pharmaceutical (China)

Fragmented

Kingdomway (China)

ZMC (China)

One dominant player

Multiple Players

Big Four

BASF(Germany) DSM (Netherlands)

Vitamin B3

Vitamin B5

Lonza (Switzerland) Brother Enterprises (China) Evonik (Germany)

Yifan Pharma (China) Shandong Xinfa (China)

Vitamin B6

Zhejiang Tianxin (China)

Vitamin B7

NHU (China)

Vitamin C

Vitamin D3

Vitamin E

DSM (Netherlands) ZMC (China) DSM (Netherlands) CSPC Weisheng (China) NHU (China)

DSM (Netherlands)

Zhejiang Garden (China) DSM (Netherlands) BASF(Germany) NHU (China) ZMC (China)

China Controls 70% of World Vitamins Supply, so What's Next

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Vitamin K Brother Enterprises (China)

Multiple Players

Big Two

Dirox (Uruguay) Oxyvit (Turkey)

Source: Public Info, QYR Chemical & Material Research Center, June 2017

Global Production of Vitamin by Region in 2016

Source: Public Info, QYR Chemical & Material Research Center, June 2017

From the research conducted by QYResearch. in 2006, the production of Vitamin in China was 150 KMT, while in 2016, the volume has hiked up to 280 KMT, with CAGR reached to 6.44%. Currently, China takes more than 70% of world Vitamin supply.

China Controls 70% of World Vitamins Supply, so What's Next

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Figure Key Factors in Pricing of Vitamin Products

Source: QYR Chemical & Material Research Center, June 2017

There are several factors determines the market status:

1 Market Concentration determines competitive landscape.

2 Competitive landscape determines production volume and pricing 3. Production volume determines supply and inventory.

4 supply determines market price, inventory ratio determines price fluctuation period. Upstream of Vitamin industry is petrochemical industry, its bargaining power is weak. Vitamin industry downstream application main is feed (70%), medicine, cosmetics and food. In the feed application, the cost for vitamin accounted for only 2-3% of the cost of feed, so the vitamin industry to the downstream bargaining power is strong.

China Controls 70% of World Vitamins Supply, so What's Next

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Figure 2010-2016 Yearly Gross Profit of Kingdomway Vitamin A

Source: Kingdomway, QYR Chemical & Material Research Center, June 2017

Kingdomway is a leading supplier of Vitamin A in global market. The gross profit of Vitamin A had been modesty during 2010-2014 period, while dropped in 2015. Since 2016, the market has gone back to be thriving. While the global market has minor influence to Vitamin supply market, especially to Chinese suppliers, main reason for the warm back of profit in 2016 can be attributed to the long-term industry competitive consolidation, also the environmental policy guidance from local government. In the long run, the main trigger for the market growth would still be supply and demand relationship, while environmental issue is going to play an increasingly important role in industry structure. However, from current competitive landscape, there are still no rival players from emerging market (namely India, SE Asia, etc.) that can compete with Chinese players. Consequently, it is predicted by QYResearch that the competitive landscape of general Vitamin industry would be stable in the coming years. More info from QYR Chemical & Material Research Center China Controls 70% of World Vitamins Supply, so What's Next

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Vitamin A: http://www.qyresearch.com/english/goods.php?id=583217

Vitamin B1: http://www.qyresearch.com/english/goods.php?id=549167 Vitamin B2: http://www.qyresearch.com/english/goods.php?id=548412 Vitamin B3: http://www.qyresearch.com/english/goods.php?id=124718 Vitamin B5: http://www.qyresearch.com/english/goods.php?id=548414 Vitamin B6: http://www.qyresearch.com/english/goods.php?id=548416 Vitamin B7: http://www.qyresearch.com/english/goods.php?id=582621 Vitamin C: http://www.qyresearch.com/english/goods.php?id=521038

Vitamin D2: http://www.qyresearch.com/english/goods.php?id=407860 Vitamin D3: http://www.qyresearch.com/english/goods.php?id=237058 Vitamin E: http://www.qyresearch.com/english/goods.php?id=548422

Vitamin K: http://www.qyresearch.com/english/goods.php?id=589404

Vitamin H: http://www.qyresearch.com/english/goods.php?id=552451

Ask a sample Contact Analyst: lujing@qyresearch.com, canary@qyresearch.com

This article was first released by QYResearch analyst, if reproduced, please indicate the source.

China Controls 70% of World Vitamins Supply, so What's Next

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