One of the companies, Xinfa Pharmaceutical, is preparing to open a food-quality facility with a 2,000 ton capacity. The other facility in question will be opened by Hubei Guangji Pharmaceutical and Henan Golden Corn and would have a reported capacity of 2,500 metric tons, according to Nutraingredients.com. No time tables have been set for the opening of the facilities, but the global market is reportedly ripe for new competition in the supply chain. “Exchange rates are benefiting European and U.S. production, so the competitive advantage enjoyed by the Chinese in recent years is dwindling somewhat,” a spokesman for United Kingdom-based supply company Gee Lawson told Nutraingredients. “But vitamin B prices have been high for more than 12 months and so that is always going to attract new players.”
The global vitamin B consumer market generated annual sales in excess of 2.6 billion Euros, or approximately $3.4 billion, according to Euromonitor estimates. Consumer sales of vitamin B supplements were up nearly 10% in 2008, with sales in excess of $1.1 billion, according to preliminary NBJ estimates.
Related NBJ links:
Melamine-Tainted Milk Highlights Safety Issues in China's Supply Chain
Analysis of Raw Materials & Ingredient Supply (RMIS) Market for the U.S. Nutrition Industry
China Nutrition Market Report 2007