July 2, 2007

Growth on vitamins market seen on animal feed demand

Consistent demand by animal feed as well as food, cosmetics and pharmaceuticals is set to expand the vitamins market on a relatively steady growth with profits seen to reach by US$3.2 billion in 2010, according to a new report by Strategyr.

The animal feed additives market is the largest end-user of vitamins with over 48 percent share while cosmetics is projected to witness fastest growth through 2010. Europe is the largest market worldwide at an estimated US$967 million in 2007. United States is the second largest market followed by Japan. The US, Europe, and Asia-Pacific collectively accounted for more than 80 percent of the global vitamins market. Asia-Pacific holds the potential of being the fastest growing regional market over the review period 2000-2010. Vitamin E represents the leading product segment capturing over 30 percent of the market.

The global marketplace is highly concentrated with leading players accounting for three-fourths of the sales. However, the entry of Chinese companies has significantly transformed the production landscape. Market participants include Adisseo, Archer Daniels Midland, BASF AG, Boehringer Ingelheim Consumer Health Care, Cambrex, Cargill Inc, Cognis Corp, DSM Nutritional Products, Daiichi Pharmaceuticals, Degussa AG, Kuraray Company, Lonza Group, Pharmavite, Reilly Industries, Mitsui Chemicals, Solvay, Sumitomo and others.