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China Vitamin Market Report, 2007-2008

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The period from 2003 to the end of 2006 had witnessed the rapid development of Chinese vitamin manufacturers, they had together played an important role in the international vitamin market via effective means like expansion and integration, during this period, the vitamin price has been steady. The export value of raw vitamin materials amounted to USD819 million in 2006, accounting for 11.5% of the total export medical products, up 8% year-on-year, moreover, the a export volume was 132,000 tons, up 4.25% year-on-year.

China had exported vitamin to 130 countries and regions in 2006, especially to EU and North America, followed by Asia. Since Sep, 2006, the price of calcium pantothenate, riboflavin and vitamin C had increased firstly; they were also the top three products with largest growth margin in 2007. Driven by the VE price increase since 2007, the price of VH had also rapidly grown, from RMB88/kg in Sep, 2007 to about RMB160/kg in Oct 2007, followed by the VA price increasing in Oct 2007.

The following reasons had caused vitamin price growth: price fixing power of manufacturers, the increase in oil price caused production cost grown; manufacturers had no more low-price competition strategy, environment protection and RMB appreciation.

Promoted by the dramatic price growth of VA, VE and niacinamide, the gradually rational vitamin market had fluctuated again in 2008. As early as Jun 8, 2007, DSM had increased its VE quotation in Europe by 15%, more and more manufacturers followed. Again, DSM increased its VA50 quotation to RMB350/kg on May 5, 2008, and increased VE quotation to RMB260/kg on Jul 2, 2008.

Meanwhile, the price of niacinamide, applied widely in the feedstuff additives, was increased to RMB150/kg in May 2008 from RMB80/kg at the beginning of 2008. In addition, the price of VC power was increased to RMB135/kg at the end of June 2008 from RMB65/kg at the beginning of 2008. However, in the first half of 2008, due to over-output and fierce competition, the price of VB2 and calcium decreased. Till the end of June 2008, the price of VB2 and calcium pantothenate was RAMB140/kg and RMB60/kg respectively.

This report made a depth analysis on the development of China medical industry and vitamin market, a specific introduction to the development of VA, VE, VC, VB, multi-vitamin and foodstuff vitamin in China, vitamin import and export statistics as well as the operation of key domestic and foreign manufacturers, and forecasted the development trend of China vitamin market.

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