June 6, 2006 – Recently released import statistics from USA Trade Online provides the clearest indication the enduring CoQ10 supply shortage has now been eradicated. Commodity pricing over the past few months has provided an early indication of a significant shift in supply positions from all suppliers. US Import statistics released in May 2006 reported product received to the US through March 2006. While Japanese imports of CoQ10 remained steady over the past several months at approximately 10MTs per month, imports from China achieved a record level of over 6MTs.
The CoQ10 supply shortage and resulting erratic pricing was reported to have begun in early 2003 and continued through early 2006. These latest import statistics provide substantiation of what the industry had already surmised - The level of CoQ10 supply capacity has surpassed current and expected near future demand. Most experts place the current annual US demand at approximately 150MTs, or approximately 80% of the current world demand. New legislation surrounding CoQ10 may provide additional market possibilities in Europe and China. Additionally, many manufacturers are now releasing a larger variety of CoQ10 products including affordable higher dosages, more combinations and more applications such as food and beverage.
Previous concerns regarding the singular Japanese supply of this ingredient has also now been erased as suppliers from other countries have clearly entered the marketplace with substantial and sustainable quantities. Kaneka, the largest CoQ10 supplier, has indicated a current capacity of 180MTs with another 100MT capacity coming available in 2006. Zhejiang Medicine Co. Ltd, (ZMC) China’s largest CoQ10 producer and globally the second largest supplier, has stated its current capacity at 60MTs with an expectation of 120MTs by 2007. Additionally, three other Japanese CoQ10 suppliers, Japan Bio, Asahi and Kyowa Hakko have indicated their intent to initiate or increase supply offerings.
In a request for comment, CoQ10 industry expert, Scott Steinford, President, Kougen USA, acknowledged the validity of these findings but added, “The CoQ10 market has gone through tremendous changes over the past decade. There was significant concern over how the CoQ10 market would fare through the supply shortage. As a result of the science and quality of the suppliers, the market continues to grow and consumers are becoming more aware of the benefits of CoQ10. Most importantly, the quality and value added to CoQ10 by the suppliers at both the beginning and end of the supply shortage are consistent. No compromise in quality has occurred to achieve this substantially greater level of supply, a fact that is important to both the industry and to the consumer. Secondly, supply and pricing stability has been achieved, which can now provide confidence to the manufacturer and the retailer to resume marketing efforts”.