GLOBAL VITAMIN API MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

The global vitamin API Market was valued at US$ 451.1 Mn in 2023 and is expected to reach US$ 724.2 Mn by 2031, growing at a compound annual growth rate (CAGR) of 6.1% from 2024 to 2031.

Global Vitamin API Market- Regional Insights

North America has established itself as the dominant region in the global vitamin API market, accounting for a market share of 40.8%. The large presence of pharmaceutical companies and nutrition supplement manufacturers drives significant demand for vitamin APIs in the region. With the U.S. accounting for the bulk of the regional market, it serves as an important manufacturing and export hub. These factors have enabled North American companies to achieve economies of scale and optimize their supply chains over the years. As a result, they offer competitive prices to customers globally and have made the region a reliable sourcing partner.

One of the fastest-growing regional markets is Asia Pacific. In particular, India has emerged as a rapidly expanding market for vitamin APIs in recent years. A large population and growing health awareness have boosted domestic demand for nutrition supplements. At the same time, the presence of a large generic drug industry has led Indian companies to expand into manufacturing APIs and intermediate chemicals. The favorable business policies of the government have further encouraged investments in this sector. While the cost of production is relatively lower in Asia Pacific, quality standards are consistently improving as local firms invest in upgrading facilities. Supported by competitive costs and a skilled workforce, several Indian companies have also managed to export APIs across global markets. They leverage the region's pricing advantage and can reliably meet large volumes for multinational buyers. With Asia Pacific expected to see rising incomes and spending on healthcare in the long term, its significance in the global vitamin API chain is projected to increase substantially.

Figure 1. Global Vitamin API Market Share (%), By Region, 2023

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Analyst’s Views

The global vitamin API market is expected to witness stable growth over the forecast period. The increasing health consciousness among consumers is the major driver propelling the demand for vitamin supplements globally. Vitamins play a crucial role in maintaining overall health and wellness. Hence, the rising prevalence of nutritional deficiencies will fuel the adoption of vitamin API in the coming years. However, stringent regulations associated with the production and import of vitamin API may hamper the smooth growth of the market. Further, heavy dependence on China for raw material supply can negatively impact the market, especially during any supply chain disruption. Industry players need to focus on developing alternative regional sourcing strategies to mitigate such risks.

Overall, the long-term outlook for the global vitamin API market remains positive given the rising per capita healthcare expenditure and the adoption of preventive healthcare approaches globally.

Global Vitamin API Market- Drivers

• Growing Health Awareness: As people become more health conscious and aware of the importance of nutrition, demand for vitamin and mineral supplements is on the rise. There has been a significant increase in the focus on preventive healthcare and maintaining optimal vitamin levels. Consumers understand that obtaining the necessary vitamins and minerals through diet alone can be challenging, and supplements provide an easy solution. Vitamin deficiencies can lead to various health issues if left untreated. The busy modern lifestyles and stressful jobs leave little time for proper nutrition, which is contributing to the growth of nutritional deficiencies. Supplements containing vitamin APIs help fulfill the daily requirements and promote overall well-being. The growing elderly population, prone to deficiencies due to conditions like malabsorption, is also driving the need for supplements. Further, people affected by conditions like anemia are heavily relying on supplements. This rising consumer demand is encouraging pharmaceutical companies and supplement brands to develop diverse product ranges containing various vitamin APIs. They are introducing high-quality supplements in innovative formats like gummies, powders and, chewable to attract different consumer groups.
• Physical Activity and Lifestyle Changes: The lifestyle transitions occurring globally are another important driver. More people are embracing an active lifestyle involving exercises, yoga, sports, etc. Regular physical activity puts extra demand on the body's stores of essential nutrients. Vitamins and minerals are required in larger quantities to supplement this additional strain and aid faster recovery. Significant micronutrient deficiencies can impair physical performance. Athletes and fitness enthusiasts understand the role of specific vitamins like B, C, D, etc. in building stamina and muscles. They are major consumers of supplements, containing these vitamin APIs. Protein supplements which most health-conscious individuals consume, also include vitamin and mineral blends.
• Increasing preventive healthcare adoption: The global adoption of preventive healthcare practices is contributing significantly to the growth of the vitamin API market. More and more people are focusing on maintaining good health through proper nutrition and lifestyle habits. As populations are aging worldwide and healthcare infrastructure is improving across several developing economies, disease prevention is gaining priority over treatment. Vitamins play a crucial role in supporting overall health and wellness. Supplementing diets with specific vitamins as per requirements has proven beneficial in reducing the risks of various lifestyle diseases and improving immunity. This awareness regarding the role of vitamins is driving increased consumption of supplements. Manufacturers are able to obtain vitamin extracts in their pure, isolated form as active pharmaceutical ingredients from the vitamin API market for developing supplements.

Global Vitamin API Market- Opportunities

• Emerging markets in Asia Pacific and Latin America: Emerging markets in Asia Pacific and Latin America present significant growth opportunities for the global vitamin API market. These regions encompass developing economies that are experiencing rising incomes and growing health awareness. As living standards improve in countries like India, Indonesia, Brazil, and Mexico, more people can afford nutrition supplementation and preventive healthcare. This translates to increasing demand for affordable vitamin and mineral supplements, driving volumes for active pharmaceutical ingredients. Some of the key factors that will support the growth trajectory of vitamin APIs in these regions include rapidly growing populations, urbanization, changing lifestyles, and dietary patterns.
• Development of multi-vitamin formulations: The development of multi-vitamin formulations can provide significant opportunities in the global vitamin API market. With longevity increasing and on-demand lifestyles becoming more prevalent, consumers are increasingly looking for vitamins and supplements that provide added convenience and target multiple wellness areas. Multi-vitamin formulations allow consumers to meet their daily micronutrient needs through a single intake rather than having to plan multiple individual supplements. They offer a one-stop solution and compliance is improved as users do not have to remember taking multiple pills. Additionally, the COVID-19 pandemic has accelerated the focus on health, immunity, and preventive care. There is growing demand for products that offer multi-dimensional benefits and help support overall well-being. Multi-vitamin formulations containing customized blends of vitamins, minerals, and other micronutrients can potentially meet the requirements of the growing health-conscious demographic. They allow companies to develop innovative, specialized products catering to the unique wellness needs of different customers and age groups. Products with immune-boosting or energy and focus-enhancing blends are seeing increased popularity.
• Investment in R&D of novel delivery systems: Investment in research and development of novel delivery systems could indeed provide great opportunities in the global vitamin API market. Developing innovative ways to deliver vitamins can help improve the absorption and bioavailability of these essential micronutrients. Traditional methods of delivery, such as tablets and capsules, work well for certain applications but have their limitations. Novel delivery mechanisms that protect vitamins from degradation in the stomach, help targeted release in the intestines, or facilitate transport across cellular membranes could boost the effectiveness of vitamin supplements.

Global Vitamin API Market- Trends

• Increased outsourcing of manufacturing: The increased trend of outsourcing manufacturing operations globally is having a significant impact on the vitamin API market. As pharmaceutical companies look to reduce costs and focus on core competencies like research, marketing, and sales, more vitamin API manufacturing is being outsourced to contract manufacturing organizations in different countries. This outsourcing allows brand owners to leverage low-cost manufacturing locations while freeing up resources to concentrate on other important activities. Countries like India and China have emerged as prominent outsourcing destinations for vitamin API production due to strengths in chemistry skills and a large talent pool of scientists and engineers.
• Rising demand for high-quality vitamin APIs: The rising demand for high-quality vitamin APIs is having a significant impact on the global vitamin API market. With consumers becoming increasingly health-conscious and focused on nutritional needs, the demand for high-potency and pure vitamin supplements has increased substantially in recent years. This growing consumer trend towards preventive healthcare and wellness has translated to higher demand for vitamins and other micronutrients in their most bioavailable and absorbable forms. Vitamin API manufacturers are responding to this demand by investing heavily in R&D to develop enhanced API varieties of popular vitamins. For example, companies are working on developing more stable and heat-resistant forms of vitamin C and carotenoids like lycopene and astaxanthin that retain their efficacy through processing and digestion. Additionally, firms are utilizing advanced technology like nanonization and micro-encapsulation to boost the absorption of fat-soluble vitamins like A, D, E, and K. These improved APIs allow supplement brands to offer more effective products at lower doses.

Global Vitamin API Market- Restraints

• Stringent regulatory requirements: Stringent regulatory requirements are posing a major challenge for the growth of the global vitamin API market. Various government agencies across the world have implemented strict norms and guidelines for the manufacturing, processing, packaging, and distribution of vitamin APIs. This is being done to ensure the safety and quality of vitamin supplements. The regulations differ significantly across different geographies. For vitamin API manufacturers, complying with the diverse regulatory standards of various countries has become a complex and costly affair. They are required to obtain different certifications, permits, and approvals to export their products. This increases their operating expenses and reduces margins. The approval timelines for new vitamin APIs have also increased substantially over the past few years.
• Availability of alternative treatment options: The availability of alternative treatment options is posing a significant challenge for the growth of the global vitamin API market. With rising healthcare costs and increasing awareness about natural remedies, many patients are exploring alternative therapies to meet their nutritional needs. Herbal supplements containing plant-based sources of vitamins and minerals have gained widespread acceptance in recent years. Furthermore, macro- and micro-nutrient rich foods such as grains, pulses, nuts, and dairy products meet most of the essential vitamin requirements of the general population. As per the Indian Council of Medical Research's (ICMR) dietary guidelines for Indians published in 2020, a balanced diet including locally available fruits and vegetables can sufficiently provide all vitamins except vitamins A and D in most cases. This reduces dependency on synthetic vitamin supplements and dietary minerals for filling nutritional gaps.

Global Vitamin API Market- Recent Developments

New Product Launches

• In October 2023, Guangdong Baida Biotechnology Co Ltd, a company focused on research, product development, manufacture, marketing, and service, launched a popping candy incorporating vitamin C, Bifidobacterium, and other nutraceutical ingredients.
• In September 2023, Vibrant Health, a family-owned company, announced the launch of Trilogy, a pioneering 3-in-1 multi-supplement. Trilogy is a one-of-a-kind product that combines a plant-based multivitamin, omega-3 fatty acid, and probiotic in one compact capsule, meeting the daily health needs of men and women aged 25 to 55.
• In March 2021, DSM, a purpose-led global science-based company, announced the launch of Ampli-D, a fast-acting form of vitamin D for dietary supplements in Australia. Ampli-D is a faster and more effective way for Australian consumers to boost vitamin D levels in the body in just days and weeks instead of months to support immune health. The availability of DSM’s ampli-D in Australia, the first market for its launch, follows regulatory approval by Australia’s Therapeutic Goods Administration (TGA) for its use in dietary supplements that do not require a doctor’s prescription.

Business Development Activities

• On January 23, 2024, Cymbiotika, a pioneering wellness company that provides superior nutritional supplements, announced a collaboration with The Vitamin Shoppe, the premier source for health and wellness solutions. As a part of this agreement, Cymbiotika products will now be accessible at The Vitamin Shoppe locations throughout the U.S.
• In June 2023, Edenred, a global company that specializes in specific-purpose payments, announced a partnership with Vous Vitamin, a personalized vitamin subscription service, to provide all-natural vitamin supplement products to employees who have incorporated Edenred's Lifestyle Spending Accounts (LSA) to their benefits package. Edenred has a line of novel products that provide clients with premium experiences and facilities. Vous Vitamin joins Edenred's broad partner catalog, which comprises partners of various natures within the LSA program's seven categories of costs.
• In April 2021, Nestlé, a global nutrition-focused company, and The Bountiful Company, a personal care product company, reached an agreement under which Nestlé would acquire The Bountiful corporation's principal brands for US$ 5.75 billion. The Bountiful Company is the world's leading pure-play in the lucrative and expanding vitamin, nutrition, and supplement sector.

Figure 2. Global Vitamin API Market Share (%), By Purity, 2023

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Top Companies in the Global Vitamin API Market

• DSM
• BASF
• BOC Sciences
• CSPC Pharmaceutical Group Limited
•  Lonza
• Zhejiang Medicine
• Jubilant Life Sciences
• Glanbia Nutritionals
• Aurorium
• Northeast Pharmaceutical Group Co., Ltd
• Abbott Laboratories
• Fermenta Biotech Ltd.

Definition: The term "vitamin API" refers to active pharmaceutical ingredients (APIs) that are vitamins. An API is a substance or mixture of substances used in the production of a pharmaceutical drug that becomes an active ingredient of the medication, providing health benefits. Therefore, a vitamin API is the actual vitamin component within a drug product that provides the intended nutritional or physiological effect when consumed. The "vitamin API market" encompasses the market segment dedicated to the production, demand, and supply of vitamin APIs. This market includes the sales of vitamin APIs to pharmaceutical companies, nutritional supplement manufacturers, and other related health sectors where vitamins play a critical role in formulations.