DSM-Firmenich provides an update on the global vitamin market, shedding light on supply disruptions and pricing changes that are impacting the industry. The current state of the global vitamin market is a complex one, with various factors such as supply chain vulnerabilities, potential strikes, price pressures, new tariffs, and emerging competitors reshaping the landscape. As we navigate through these challenges, it is evident that both buyers and suppliers need to be prepared for a dynamic year ahead.
In recent months, the vitamin market has experienced significant disruptions, starting with an explosion at a major German facility that has had ripple effects on the Vitamin E and Vitamin A markets. Production for Vitamin E is expected to remain halted until July 2025, leading to uncertainties in the supply chain. While Q4 needs have been secured and prices have softened slightly, the market remains stable on the producer’s side, with buyers exercising caution in securing Q1 volumes. Environmental regulations in Zhejiang province, China, further compound concerns, potentially leading to production cuts and exacerbating supply issues.
Similarly, the Vitamin A market is facing challenges due to the closure of the same facility, delaying production until April 2025. Prices are currently softening, but the entry of a new competitor into the Chinese market by late 2024 could introduce price pressures in the near future. The Vitamin D3 market is also under strain, grappling with global supply chain issues and EU import restrictions. Limited availability and firm prices add to the complexity, with rumors of further price increases from Chinese producers looming.
Vitamin B1 and B3 are experiencing tight supply conditions, with increasing prices driven by limited production and consistent demand. Vitamin C producers in China are operating on reduced schedules, leading to constrained volumes and rising prices. Premium forms like DSM’s Stay-C 35 and C-EC offer stability amidst the market challenges, providing a reliable option for buyers seeking alternatives.
On the other hand, vitamin K3 prices have temporarily softened due to excess inventory being offloaded by traders. However, this reprieve is expected to be short-lived, with higher input costs, transport expenses, and limited production likely to drive prices higher again. The vitamin B2 market in Europe is witnessing price increases due to reduced availability and delivery delays from key competitors. Vitamin B5 prices are beginning to see slight increases as well, driven by higher freight costs and adjustments by Chinese suppliers.
Vitamin B6 and B9 are following the trend of firming prices, with further increases expected in the coming months. Vitamin B7 prices are currently at all-time lows, prompting traders to stockpile while keeping price increases at bay. Vitamin B12 market is characterized by tight supply and stabilized prices at higher levels in Europe, with only two primary sources— DSM-Firmenich and NHU—dominating the market.
In conclusion, the global vitamin market is facing a period of uncertainty and volatility, with supply disruptions and pricing changes reshaping the industry landscape. As we navigate through these challenges, it is crucial for stakeholders to adapt to the evolving market conditions, make informed decisions, and explore opportunities for growth and resilience in the face of adversity. DSM-Firmenich remains committed to providing updates and insights to help industry players navigate through these turbulent times and emerge stronger on the other side.