The global vitamin market is facing a challenging period as the fourth quarter of 2024 approaches. Supply chain disruptions, production halts, and escalating costs are creating significant volatility and uncertainty.

A recent fire at a major vitamin producer's plant in Germany on July 29 severely disrupted the production of vitamins A, E, and Carotenoids. The producer declared Force Majeure and estimates that production will not resume until January 2025 at the earliest. This has led to limited contract fulfillment and significant price surges for vitamins A and E, with severe shortages expected through early 2025. This volatility and uncertainty have led to increasing nervousness in the market in the last weeks, as vitamins remain the essential in animal nutrition with any reduction in inclusion levels or reliance on unverified alternatives having the potential to severely impact business profitability. In these turbulent times, dsm-firmenich, with its continued commitment to safety and reliability with production across nine locations, continues to offer its comprehensive vitamin portfolio.

Vitamin Market Overview

By August, vitamin E prices had reached their highest levels in nearly five years. Most customers managed to secure coverage for the third quarter, but the outlook for the fourth quarter is far more precarious. Tightening availability means securing vitamin E supplies could become increasingly difficult, and prices are expected to remain elevated well into 2025.

Already under constrained conditions, the vitamin A market faced further pressure after the force majeure, with the producer covering only a limited portion of contracts. Prices soared, and volatility became the new norm. Customers are scrambling for alternatives. The market's future depends on when production starts up again. With no relief expected before January 2025, high prices are likely to persist into the first half of 2025.

Global supply chain disruptions and EU import restrictions are creating a tighter market for vitamin D3, leading to rising prices and growing uncertainty. In North America, where availability is particularly tight, prices are increasing significantly. As we head into Q4, the situation remains uncertain, with availability still in question.

Amid market turbulence, vitamin C prices have stabilized after significant increases in recent months. Chinese producers, who dominate this segment, continue to quote limited volumes and face extended shutdowns, adding unpredictability. However, premium forms from dsm-firmenich, such as ROVIMIX® Stay-C 35, ROVIMIX^® C-EC, and ROVIMIX® Stay-C 50, remain steady.

For vitamin B1, supply remains tight, and prices continue to climb despite relatively low summer demand. There is little indication that this trend will reverse anytime soon.

Vitamin B2, in contrast, has remained relatively stable, unaffected by the force majeure that rattled other segments. Most customers had already secured coverage for the third quarter, and the supply outlook for the fourth quarter appears steady. 

The situation with vitamin B3(Niacin) is different; availability for prompt delivery is very low, with material at lower price levels unavailable. Prices are firming up as a consequence. With demand expected to pick up after the summer months, there is potential for further price increases.

Vitamin B5 (Calpan) prices have remained at historically low levels, though new offers from China are slightly higher. Rising freight costs are beginning to influence spot prices, and future market dynamics will depend on manufacturers' strategies to maintain market share. For vitamin B6, prices are rising, driven by Chinese manufacturers, and are expected to follow the upward trajectory seen in vitamin B1 due to overlap in production sources.

For Biotin, despite prices being at all-time lows, several traders had built up positions, leading to stockouts at producers. However, with most buyers already covered long-term, immediate price increases seem unlikely. vitamin B9 / Folic Acid prices had also stabilized, with limited movement. However, the looming threat of supply chain disruptions and rising freight costs could still exert upward pressure in the coming weeks.

Finally, vitamin B12 pricing has now stabilized at higher levels in Europe, with only two sources approved (dsm-firmenich and NHU) and supply expected to be tight until CSPC’s material is launched (expected by year-end). In North America, prices remain rather flat at lower levels.

Conclusion

As we head into the fourth quarter, the vitamin market is poised for continued volatility. A combination of supply disruptions, Force Majeure declarations, and global supply chain challenges has created an environment where securing coverage is becoming increasingly difficult and costly. While some vitamins, such as B2, have experienced relative price stability, others, particularly E and A, are facing steep price surges. For industry players, the key will be to remain agile, closely monitor market developments, and secure supply to navigate this challenging period. The path forward is filled with uncertainty, but those who stay informed and prepared will be best positioned to weather the storm.