RIBOFLAVIN MARKET ANALYSIS

Fluctuating prices of raw materials can pose challenges for market players. Riboflavin is derived from various natural sources such as eggs, meat, dairy products, and others. The prices of these raw materials tend to fluctuate frequently depending on various factors such as crop yields, demand and supply forces, weather conditions, global trade restrictions, and others. Any significant increase in the prices of raw materials puts an added cost pressure on riboflavin manufacturers. It becomes difficult for them to maintain stable profit margins in such a scenario. Manufacturers are forced to periodically increase the prices of riboflavin as well to offset the impact of rising raw material costs. Such price fluctuations can negatively impact the demand from price-sensitive end-use segments. The manufacturers have to constantly work on raw material procurement strategies and alternative sourcing options to mitigate this risk.

Market Opportunity- Development of new application areas

Riboflavin market can witness growth opportunities due to ongoing development of new application areas. Some of the notable application areas that are currently being explored include skin disease treatment, infertility treatment, cataract treatment, treatment of metabolic disorders, and others. For example, as per the recent studies conducted by Ministry of Science and Technology, India, riboflavin could be effectively used as a bio-fortification for staple crops to combat micro-nutrient deficiencies, which afflict over 2 billion people globally, according to the UN Food and Agriculture Organization. Rising demand for fortified foods due to increasing health consciousness can present a major tailwind for riboflavin producers. The companies operating in the riboflavin space need to dedicate more resources towards research collaborations with medical institutes and clinical research to explore new use cases. This will help boost the growth prospects of the market.