Vitamins Market

Vitamins Market Analysis, Growth Opportunities, and Forecast(2023-2028)

The global vitamins market set to grow from $6.7 billion in 2023 to over $8.9 billion by 2028, with a CAGR of 6.0%. Vitamins are organic compounds that are required in minimal quantity for the proper functioning of the body. These cannot be synthesized internally. Hence needs to be consumed via food. Vitamins work as hormones, enzymes, and coenzymes in the human body. The change in consumers' food and lifestyle habits has led to vitamin deficiencies. These trends demand more vitamin supplements, fortified foods, and beverages, which fuels the vitamins market. According to the USFDA, most of the global population has vitamin deficiencies, and several government bodies around the world are taking precautionary actions to curb the growing micronutrient deficiency.

Consumers are increasingly accepting vitamin supplementation as a part of their daily diet due to the growing disposable income and the trend of caring for one's health. Tennessee Advisory Commission US said overall health expenditure increased to USD 3.6 trillion in 2018. Considering all the above factors, the vitamins market is expected to grow drastically in the upcoming years.

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Vitamins Market Dynamics

Driver: Growing demand for nutritionally enriched processed food products in the market

The major demand for vitamins is seen in food and beverage fortification. Consumers are more inclined towards packed and processed food, as they are convenient to use. To increase the shelf life, taste, texture, and appearance of the foods, it is heavily processed due to which various nutritive value as lost. Vitamins are required to fortify this food to restore the lost nutrients from the food. Additionally, supplements are available that are used as preventive care and to fulfill the daily Recommended Dietary Allowance (RDA) of the human body as per age. So, accordingly, to fulfill the regulatory sanction and make label claims, food companies are increasingly demanding vitamins for their products.

Restraint: Constrained supply of raw materials for natural vitamins coupled with high costs

Natural vitamins are sourced from naturally occurring fruits and vegetables in nature. Different foods have different vitamins in them, and there is an extensive process to extract these naturally occurring vitamins from them. Additionally, these raw materials are produced, transported, or exported to various manufacturing facilities to manufacture vitamins. The increase in supply chain constraining is due to raw material spoilage and high transportation cost to maintain the freshness of raw materials. The manufacturing finally adds to the existing cost. Due to all these factors, the cost of raw material procuring and cost constraints the vitamins market.

Opportunity: Sourcing of natural allergen-free vitamin E

Vitamin E is widely used in different personal care products as a powerful antioxidant. It is a fat-soluble vitamin that is available in several forms. However, alpha-tocopherol is the only one used by the human body. The RDA of vitamin E for males and females above 14 years of age is 15mg/day. For lactating women, more than 19mg/day is recommended. According to an article by Harvard Education, vitamin E deficiency could lead to impaired vision and improper body movements. There are many sources, like wheat germ, soybean, peanuts, etc., from which vitamin E is extracted for commercial use. However, these come with an issue of allergy in some individuals. Hence, other alternatives, like sunflower, avocados, spinach, almond, etc., are considered to obtain vitamin E naturally.

Challenge: Environmental impact resulting in changes in regulatory policies

According to Consumer Survey on Dietary Supplements 2019, supplements have reached an all-time high as most citizens consume dietary supplements. This has a potential impact on the environment. Most vitamins are available through natural means, like omega from fish oil, vitamin c from citrus fruits, vitamin E from seeds, etc. The extraction process is also, for instance, vitamin C pollution, wherein the vitamin C manufacturing company emits carbon. For omega manufacturing, cod liver oil is used, and 20% of the fish cultivated are not directly consumed. These have an impact on the environmental ecosystem, which poses a challenge in the vitamins market.

Vitamins Market Ecosystem

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Based on Type, Vitamin B is anticipated to dominate the market

Vitamin B helps regenerate complex tissue and has a major role in nerve repair. Different components are vitamin B, like used in manufacturing different cosmetic products, dairy products, dietary supplements, and pharmaceuticals products. Vitamin B is a crucial vitamin during pregnancy. These important and crucial applications of vitamins are set to boost their demand in the future.

The Healthcare segment of the vitamins market is projected to witness the highest CAGR during the forecast period.

Vitamins are required in small quantities by the body to function properly, and their deficiency can lead to serious condition. The growing cases of vitamin deficiency and the increasing need for fortification are leading to the growth of the vitamin market in the healthcare segment. Healthcare products such as multivitamins supplements, dietary supplements, infant foods, and supplements for special needs are fortified with different multivitamins according to the product to fulfill the dietary requirements.

Naturally sourced vitamins are growing at a strong pace owing to their rising use in food products

The naturally sourced vitamins are estimated to grow at the highest CAGR during the forecast period. Naturally sourced vitamins are obtained from whole foods. Naturally sourced vitamins are properly absorbed by the body and perform the proper function. This is because the vitamins are extracted from the natural source along with their enzymes and coenzymes, increasing their efficiency.

Asia Pacific holds the highest market share during the forecast period

Asia Pacific is the largest and fastest-growing market for vitamins. China is the major contributor, whereas Japan and India have the highest growth opportunities during the forecast period. China is the largest importer of vitamins for application in processed foods, feed, and personal care industries due to the hectic consumer lifestyle and changing consumer food preferences. End-user application segment is the major consumer of vitamins. Due to advanced manufacturing technologies across the region, many end-user manufacturing companies have their manufacturing facility in the Asia Pacific.

Key Market Players

Key players in this market include Koninklijke DSM NV (Netherlands), Glanbia PLC (Ireland), ADM (US), BASF (Germany), Lonza Group (Switzerland), Adisseo (France), Vitablend Nederland BV (Netherlands), SternVitamin GmbH (Germany), Farbest-Tallman Foods Corporation (US), The Wright Group (US), Zhejiang Garden Biochemical High-Tech Co., Ltd (China), NewGen Pharma (US), Rabar Pty Ltd. (Australia), Resonac (Japan), and BTSA BIOTECNOLOGÍAS APLICADAS SL (Spain).

Scope of the Vitamins Market Report

Report Segmentation

The study categorizes the Vitamins Market based on By Source, Type, Application, and Region.

Recent Developments

• In August 2022, MD Pharmaceuticals, a Singapore-based healthcare distributor, has developed a new vitamin D supplement known as Rapid-D with DSM. The collaboration will help expand the vitamin market for DSM in Asia Pacific and capture the customer base.
• In March 2022, Farbest-Tallman Brands was named ZMC's exclusive distributor of Beta Carotene 1% & 22% in North America. Farbest's North American exclusivity partnership with ZMC will extend to two specific products within the Beta Carotene portfolio. Beta-Carotene Oil features vitamin A content of 366,740 IU/g.
• In March 2021, DSM launched Ampli-D, developed as a fast-acting form of vitamin D for dietary supplements. The product is formulated with calcifediol or 25-hydroxyvitamin D3. Ampli-D helps DSM to sustain in the market by providing a unique and innovative product that meets customer requirements.
• ADM Ventures invested in Health for Life Capital (HFLC) Fund II in November 2020. HFLC, a Paris-based management company, is a leading venture capital fund dedicated to health, nutrition, microbiota, and digital health. This will help meet the long-term demand for the convergence of food & pharmaceuticals and bio-actives & nutrition for wellness solutions.

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