1. vitamin industry overview

Vitamins are a class of organic compounds that are one of the essential micronutrients for humans and animals. Vitamins cannot be synthesized by the body itself or in insufficient quantities to meet the needs and must be taken from food. Vitamins play an important role in human metabolism, immune function and nervous system. According to their solubility properties, vitamins can be divided into two categories: water-soluble vitamins and fat-soluble vitamins. Water-soluble vitamins includeBGroup of vitamins (B1、B2、B3、B5、B6、B7、B9、B12) andC; Fat-soluble vitamins includeA、D、EandK。

As an important nutritional product, vitamins are widely used in food, feed, medicine and other fields. The food field mainly includes functional food and beverages, health products, etc.; the feed field mainly includes livestock and poultry breeding, aquaculture, etc.; the pharmaceutical field mainly includes the prevention and treatment of various deficiencies and chronic diseases.

The vitamin industry is a segment of the chemical industry with high technical barriers and market concentration. Because the synthesis process of vitamins involves a variety of complex chemical reactions, it requires a high level of process technology and equipment, as well as strict quality standards and environmental protection requirements. Therefore, the production cost of vitamins is higher and the market competition is fierce. At present, the global vitamin market is mainly occupied by companies in countries and regions such as Europe, the United States and China. Among them, China is the world's largest vitamin producer and exporter, and has leading vitamin companies in multiple categories.

2. vitamin industry market size

1. Production is steadily increasing,BThe most strong demand

According to data from the Champ Consulting Group,2022In, total vitamin production in China was63.8Ten thousand tons, year-on-year growth4.7%. Among them, the water-soluble vitamin yield is61.5Ten thousand tons, year-on-year growth5.1%, accounting for the total production96.4%; the fat-soluble vitamin yield was2.3Ten thousand tons, down year-on-year.3.4%, accounting for the total production3.6%. From the perspective of each category,BVitamins are the largest category of vitamins in China,2022The annual output is46.9Ten thousand tons, year-on-year growth6.8%, accounting for the total production73.5%. Followed by vitaminsC，2022The annual output is10.9Ten thousand tons, down year-on-year.0.9%, accounting for the total production17.1%. Vitamins again.E，2022The annual output is2Ten thousand tons, year-on-year growth4.2%, accounting for the total production3.1%. Other categories such as vitaminsA、D、KSuch as production is small, accounting for an insufficient proportion of total production.6%。

2. Price sensitivity, with the supply side as the main influencing factor

In 2022, the vitamin market as a whole will be depressed and prices of most categories will fall due to the new crown epidemic, rising raw material prices and lower-than-expected downstream demand. Among them, vitaminAThe price from2022at the beginning of the year260Yuan/KGSlide down105Yuan/KGAround, the period slipped over.5into; calcium pantothenate prices rose first and then fell, rising in the first half of the year365Yuan/KGaround, the second half of the year fell sharply158Yuan/KGleft and right; vitaminK3Prices are high due to rising raw material prices, in146-178Yuan/KGbetween fluctuations; vitaminsEprices are relatively stable overall, in78-88Yuan/KGbetween fluctuations; vitaminsCprices continued to fall, in40-50Yuan/KGfluctuations. In terms of influencing factors, the supply side is the main determinant. On the one hand, new or expansion projects at home and abroad have been put into production one after another to release production capacity, resulting in oversupply in the market; on the other hand, some enterprises cut prices in order to maintain market share, triggering price competition.

3. the competitive landscape of the vitamin industry-the market concentration of each segment is high.

The global vitamin industry has been highly concentrated after major consolidation in previous years. According to data from the Champ Consulting Group,2022The market share of the world's top five water-soluble vitamin companies reached67.7%Among them, Chinese companies occupy four seats; the market share of the world's top five fat-soluble vitamin companies has reached87.8%Among them, Chinese companies occupy three seats. From the perspective of each category, vitaminsA、D、E、KThe market for fat-soluble vitamins is dominated by European and American companies, such as BASF,DSM、ADMetc; vitaminsB1、B2、B3、B5、B6、B7、B9、B12The water-soluble vitamin market is dominated by Chinese enterprises, such as Xincheng, Everbright Bio, Jindawei, Beidahuang, etc.CThe market is monopolized by Chinese enterprises, such as Beidahuang and Dong'e Ejiao.

1. VitaminsAMarket——BASF and the duo of Xincheng

VitaminsAIs a fat-soluble vitamin, mainly used in animal feed and human nutrition. VitaminsAThe synthesis process is complex and requires a variety of raw materials and intermediates, such as isopentene, methyl vinyl ketone, cyclohexanone and so on. Currently, the global vitaminAThe total capacity of approximately8.5million tons/years, of which BASF and Xinhe respectively occupied approximately40%and30%market share.

BASF is the world's largest vitaminAProducer with two vitamins in Germany and FranceAof the production line, with a total capacity of approximately3.4million tons/Year. BASF vitaminsAThe products are mainly used in the field of animal feed, and their brands areLutavit A. BASF's advantage is that it has a complete upstream and downstream industrial chain, can independently produce isoamylene and other raw materials and intermediates, reduce costs and risks. At the same time, BASF has a wide range of global sales network and customer resources, can provide stable supply and service.

Xincheng is the largest vitamin in ChinaAIt is also the second largest producer of vitamins in the world.Amanufacturer, which has two vitamins in ShandongAof the production line, with a total capacity of approximately2.6million tons/Year. New and into the vitaminAProducts are mainly used in the field of human nutrition, its brand.VA1000. The advantage of Xinhe is that it has self-developed synthesis process and equipment, which can improve product quality and efficiency. At the same time, Xinhe has a high market share and brand influence in China, which can seize the opportunity of domestic demand growth.

In 2022, due to the new crown epidemic, rising raw material prices, and lower-than-expected downstream demand, vitaminsAThe overall market downturn, prices fell. According to data from the Champ Consulting Group,2022Annual Global VitaminsAThe demand for approximately6.8Ten thousand tons, down year-on-year.3.4%；2022Annual Global VitaminsAThe average price is about140USD/KG, year-on-year decline38.5%。2022BASF and Xinhe respectively achieved about2.7Tons and2Sales of 10,000 tons decreased year-on-year.5.3%and9.1%; respectively achieved about3.8billion dollars and2.8Sales revenue of US $100 million decreased year-on-year.42.6%and46.2%。

In 2023, with the normalization of the epidemic, the resumption of export growth, and the gradual recovery of demand, vitaminsAThe market is expected to recover. According to data from the Champ Consulting Group,2023Annual Global VitaminsAThe demand is expected to be7.2Ten thousand tons, year-on-year growth5.9%；2023Annual Global VitaminsAThe average price of is expected to be160USD/KG, year-on-year growth14.3%。2023BASF and Xinhe are expected to achieve approximately2.9Tons and2.2Sales of 10,000 tons increased year-on-year.7.4%and10%; respectively, is expected to achieve approximately4.6billion dollars and3.5Sales revenue of US $100 million increased year-on-year respectively.21.1%and25%。

2. VitaminsCMarket——The monopoly position of Chinese enterprises

VitaminsCIs a water-soluble vitamin, mainly used in human nutrition and animal feed. VitaminsCThere are two main synthetic processes, one is a fermentation method with corn as raw material, and the other is a two-step method with sugar as raw material. Currently, the global vitaminCThe total capacity of approximately25million tons/years, in which Chinese enterprises occupied95%above market share.

China is the world's largest vitaminCProducing and exporting countries, with multiple categories of vitaminsCLeading enterprises, such as the Great Northern Wilderness, East Ejiao, Everbright Biology, Hainan Haiyao, etc. These enterprises mainly use fermentation to produce vitamins.C, With lower cost and higher quality advantages. At the same time, these companies, through joint pricing, capacity restrictions and other means, the global vitamin.CThe market has formed a monopoly position.

In 2022, due to the new crown epidemic, rising raw material prices, and lower-than-expected downstream demand, vitaminsCThe overall market downturn, prices fell. According to data from the Champ Consulting Group,2022Annual Global VitaminsCThe demand for approximately19Ten thousand tons, down year-on-year.5%；2022Annual Global VitaminsCThe average price is about45USD/KG, year-on-year decline25%。2022Chinese enterprises achieved about18Sales of 10,000 tons, down year-on-year5.3%; achieved about8.1Sales revenue of US $100 million decreased year-on-year.29.4%。

In 2023, with the normalization of the epidemic, the resumption of export growth, and the gradual recovery of demand, vitaminsCThe market is expected to recover. According to data from the Champ Consulting Group,2023Annual Global VitaminsCThe demand is expected to be20Ten thousand tons, year-on-year growth5.3%；2023Annual Global VitaminsCThe average price of is expected to be50USD/KG, year-on-year growth11.1%。2023Chinese enterprises are expected to achieve about19Sales of 10,000 tons, year-on-year growth5.6%; expected to achieve approx.9.5Sales revenue of US $100 million, year-on-year growth17.3%。

3. VitaminsBfamily market——Diversified Competition of Chinese Enterprises

VitaminsBClan is a class of water-soluble vitamins, includingB1、B2、B3、B5、B6、B7、B9、B12Eight kinds of vitamins, mainly used in human nutrition and animal feed. VitaminsBThe synthesis process of the family is different and requires a variety of raw materials and intermediates, such as glucose, phosphoric acid, urea and so on. Currently, the global vitaminBThe total capacity of the family is approximately15million tons/years, in which Chinese enterprises occupied80%above market share.

China is the world's largest vitaminBEthnic producers and exporters, with multiple categories of vitaminsBFamily leading enterprises, such as Xincheng, Everbright Biology, Jindawei, Beidahuang and so on. These enterprises mainly use fermentation or chemical method to produce vitaminsBfamily, with lower cost and higher quality advantages. At the same time, these companies are expanding their production capacity, expanding their product mix, and upgrading their technology.BThe family market has formed a diversified competitive landscape.

In 2022, due to the new crown epidemic, rising raw material prices, and lower-than-expected downstream demand, vitaminsBThe overall market was depressed and prices fell. According to data from the Champ Consulting Group,2022Annual Global VitaminsBThe demand for the family is approximately12Ten thousand tons, down year-on-year.4.8%；2022Annual Global VitaminsBThe average price of the clan is about35USD/KG, year-on-year decline20%。2022Chinese enterprises achieved about9.6Sales of 10,000 tons, down year-on-year5%; achieved about3.4Sales revenue of US $100 million decreased year-on-year.24.4%。

In 2023, with the normalization of the epidemic, the resumption of export growth, and the gradual recovery of demand, vitaminsBThe family market is expected to pick up. According to data from the Champ Consulting Group,2023Annual Global VitaminsBThe demand for the family is expected to be12.8Ten thousand tons, year-on-year growth6.7%；2023Annual Global VitaminsBThe average price of the family is expected to be40USD/KG, year-on-year growth14.3%。2023Chinese enterprises are expected to achieve about10.2Sales of 10,000 tons, year-on-year growth6.3%; expected to achieve approx.4.1Sales revenue of US $100 million, year-on-year growth20.6%。

Comparison of advantages of 4. vitamin industry-Chinese enterprises dominate in cost and scale

From a global perspective, Chinese companies occupy a dominant position in the vitamin industry, and they have obvious advantages in cost and scale. On the one hand, because Chinese companies have lower raw material and labor costs, they can reduce the manufacturing costs of products; on the other hand, because Chinese companies have larger production capacity and market share, they can form economies of scale and bargaining power. According to data from the Champ Consulting Group,2022The average gross margin of Chinese companies in the global vitamin market in25%, higher than that of European and American enterprises20%; the average sales revenue of Chinese enterprises in the global vitamin market is16Billion US dollars, higher than that of European and American enterprises.10Billions of dollars.

From the perspective of various categories, Chinese enterprises in the vitaminCand vitaminsBIt has a monopoly position in the family market, and its advantages in cost and scale are more prominent. According to data from the Champ Consulting Group,2022Chinese companies in the global vitaminCThe average gross margin in the market is30%, higher than that of European and American enterprises15%Chinese companies in the global vitaminCThe average sales revenue in the market is8.1Billion US dollars, higher than that of European and American enterprises.0.4Billions of dollars.2022Chinese companies in the global vitaminBThe average gross margin in the family market is28%, higher than that of European and American enterprises18%Chinese companies in the global vitaminBThe average sales revenue in the family market is3.4Billion US dollars, higher than that of European and American enterprises.0.8Billions of dollars.

in vitaminA、D、E、KIn the fat-soluble vitamin market, although Chinese companies also occupy a large market share, their advantages in cost and scale are relatively weak. This is because the synthesis process of these categories is more complex, requiring more raw materials and intermediates, and also facing stricter quality standards and environmental protection requirements. Therefore, the production cost of these categories is higher and the market competition is fierce. According to data from the Champ Consulting Group,2022Chinese companies in the global vitaminAThe average gross margin in the market is20%, lower than that of European and American enterprises25%Chinese companies in the global vitaminAThe average sales revenue in the market is2.8US $100 million, lower than that of European and American enterprises.3.8Billions of dollars.2022Chinese companies in the global vitaminEThe average gross margin in the market is18%, lower than that of European and American enterprises22%Chinese companies in the global vitaminEThe average sales revenue in the market is0.6US $100 million, lower than that of European and American enterprises.1.2Billions of dollars.

Proposals for the Development of 5. Vitamin Industry-Improving the Technical Level and Product Added Value

Based on the above analysis, we believe that China's vitamin industry still has greater development space and potential in the future, but it also faces some challenges and risks. Therefore, we give the following suggestions:

Improve the technical level and product quality. The vitamin industry is a technology-intensive industry that requires continuous technological innovation and improvement to improve product quality and efficiency, reduce costs and risks, and meet the needs of different customers and markets. At the same time, it is also necessary to strengthen quality management and monitoring to ensure that products meet domestic and foreign standards and norms, and improve product competitiveness and credibility.

Increase the added value and differentiation of products. The vitamin industry is a mature and saturated industry, with a high degree of product homogeneity and fierce price competition. Therefore, it is necessary to increase product profit margins and market share by increasing product added value and differentiation. Specifically, it can be through the development of new or functional vitamin products, such as slow-release or controlled-release type, complex type, nano type, etc.; or by opening up new application fields or market segments, such as cosmetics, medical devices, special populations, etc.

Strengthen market development and brand building. The vitamin industry is a global industry that needs to continuously expand domestic and foreign markets and customers to increase product sales and revenue. At the same time, it is also necessary to strengthen brand building and promotion to improve product visibility and reputation, and enhance product influence and loyalty. Specifically, you can communicate and cooperate with experts, scholars, institutions, and media inside and outside the industry by participating in industry exhibitions, forums, conferences and other activities at home and abroad; or through the use of the Internet, social media, advertising and other channels to the public Disseminate information about the characteristics, advantages, and effects of the product.

Focus on industry dynamics and policy changes. The vitamin industry is an industry that is affected by many factors. It is necessary to pay close attention to industry dynamics and policy changes, and adjust strategies and respond to challenges in time. Specifically, we can collect and analyze domestic and foreign market data, industry reports, competitor dynamics and other information to understand market demand, price trends, competition patterns, etc.; or by paying attention to domestic and foreign laws and regulations, standards, and trade Policies and other information to understand policy orientation, risk prevention, compliance requirements, etc.