Vitamin Industry Has Experienced A Recovery Period, And New Momentum For Industrial Development Has Emerged

The 2024 China Vitamin Industry Development High-level Forum was held as scheduled. The forum report believes that after experiencing the price bottom, the price of the vitamin industry continued to fall in 2023, and the industry's losses expanded; in 2024, under the main strategy of manufacturers to determine production based on sales and reduce quantity to maintain prices, the prices of most vitamin products will be out of the bottom range, and the industry's profits will be restored. At the same time, some new changes are also taking place in the industry.

Based on the long-term and continuous tracking and research of the vitamin industry, and on the basis of extensive listening to the opinions of senior experts, entrepreneurs, and professional managers in the industry, the New Element Bio vitamin Project Research Group made the following analysis and suggestions, hoping to provide valuable information and insights for industry participants and jointly promote the healthy development of the industry：

 

-Focuses on analyzing the characteristics of the vitamin industry, specifically the market situation, import and export pattern, raw material cost, and competition trends of 14 vitamin monomer products such as vitamin A, vitamin E, vitamin D, vitamin C, vitamin K, and vitamin B group;

-The application scenarios and key changes, the proportion and trend of application structure in feed;

-The outlook for the global and Chinese industries, global livestock product consumption and vitamin feed consumption and overall supply and demand pattern changes;

-The observation and analysis of key events of the year.

 

The main challenges facing the global vitamin industry in 2023 are increased supply capacity, dispersed industry concentration, and expanded industry losses. Against this background, we have insight into some changes in the vitamin industry in 2024:

 

1, Compoany's cash flow has improved and profitability has been restored.

Companies have made positive efforts in cost reduction and efficiency improvement, product positioning, etc., especially the profitability of leading vitamin companies has improved significantly.

2, The supply chain and value chain have been optimized and improved.

The adjustment of global vitamin production capacity has further concentrated vitamin supply in China, such as vitamin K3, vitamin B6, vitamin A and E; DSM-Firmenich's vitamin business has been restructured, BASF plans to lay off employees, and overseas cost reduction measures have been continuously promoted. Chinese companies are more inclined to take the initiative to face the decline in profits caused by overcapacity. For example, vitamin B1, vitamin D3, vitamin C and other companies have set production based on sales to achieve value chain and supply chain optimization.

3, New momentum for industrial upgrading has emerged.

In recent years, the impact of the release of new capacity of vitamin products on the market has not yet fully appeared, the trade risks in the international market have increased, and the alternation of new and old capacity will make market competition more intense. On the other hand, under the pressure of competition, the company's new technologies, new processes, new equipment and other innovative technologies will be widely used in the conversion of new and old capacity, becoming a new quality productivity to promote industrial integration and upgrading.

 

The international environment is severe, the industrial environment is complex, and the challenges faced in the process of industry competition and integration have put forward new requirements for enterprises. Improving quality and efficiency is a long-term goal, and the conversion of new and old momentum and development and innovation are the top priorities. In addition, it is necessary to pay attention to the impact of changes in the EU's carbon tariff policy and international trade barriers on the export competitiveness of Chinese products.

 

The New Element Bio vitamin Project Research Group estimates that China's vitamin production will reach 420,000 tons in 2024, a year-on-year decrease of 3.6%, accounting for 85.9% of global production; China's vitamin market value is expected to be approximately US$3.79 billion in 2024, a year-on-year increase of 1.4%; China's vitamin exports are expected to reach 332,000 tons in 2024, a year-on-year increase of 5.6%, and the export value is expected to reach US$3.0 billion, a year-on-year increase of 11.1%.

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