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http://www.marketresearch.com/Industry-Experts-v3766/

Published: July 2013Report Code: PH003 Pages: 166 | Charts: 111 Price: Sample

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“The report reviews, analyzes and projects the global market for Synthetic Vitamin E for the period 2010-2020”

A GLOBAL MARKET OVERVIEW

Synthetic Vitamin E – A Global Market Overview © Industry Experts, All Rights Reserved

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GLOBAL MARKET PERSPECTIVE

INTRODUCTION An increasing demand for livestock directly translates into increasing demand for animal feed and animal feed additives such as vitamins. Synthetic vitamin E is the key ingredient used in global animal feed industry today. It is obvious that demand for synthetic vitamin E for animal feed applications would continue to grow as demand for livestock also grows, more so in the developing regions of Asia, Africa and Latin America. Countries, such as Brazil, China, Russia and other Asian and African regions have been on a catching up mode as they are increasingly adopting modern animal production systems to keep abreast of enhancing domestic demand.

Another important factor that may drive demand for synthetic vitamin E is, specifically in dietary supplements, sky rocketing prices of natural source vitamin E. Several dietary supplement manufacturers may shift-back to synthetic vitamin E in the future if the prices of natural vitamin E continue to rise. This trend may help demand for synthetic vitamin E in the supplements industry.

Global consumption of synthetic vitamin E, in terms of volume stood at xxxx thousand metric tons valued at US$x.xx million in 2012, is further expected to maintain a volume CAGR of x.x% between 2012 and 2020 to reach a projected xxx.x thousand metric tons in 2020, while value CAGR is anticipated to be x.x% over the same period that would enable in boosting up demand for synthetic vitamin E to US$x.x billion in 2020. Animal feed is the largest application area with a volume share of about xx.x%, translating into xx.x thousand metric tons, and value share of xx.x% equating to US$xxx.x million in 2012. Further, consumption of synthetic vitamin E by the animal feed industry is also expected to record the fastest 2012-2020 CAGR of x.x% in reaching a projected xxx.x thousand metric tons in 2020 in terms volume and projected to reach US$x.x billion by 2020 at a CAGR of x.x% over 2012-2020 in terms of value.

The synthetic vitamin E growth in animal feed industry is mainly attributed to the animal feed industry’s growth in developing world. The demand for livestock products such as meat, poultry etc. is increasing rapidly in developing nations. The main attributes for this growth would be population growth, urbanization and especially growing household incomes in these countries. General patterns of food consumption and specific demand for livestock products are greatly shaped by levels of urbanization and growth in income. As a consequence, these developing nations are the regions slated to emerge as the fastest growing for food products derived from livestock.

The report reviews, analyses and projects the synthetic vitamin E market for global and the regional markets including North America, Europe, Asia-Pacific and Rest of World. The regional markets further analyzed for independent countries across North America – The United States, Canada and Mexico; Europe – Germany, France, Italy, Spain, The United Kingdom, The Netherlands and Rest of Europe; Asia-Pacific – China, Japan and Rest of Asia-Pacific. Synthetic vitamin E end-use applications covered in this report include animal feed, dietary supplements, food & beverages and cosmetics.

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KEY MARKET TRENDS

Synthetic Vitamin E Growth to be Propelled by Animal Feed Demand in Developing Economies

The global livestock industry has been quite dynamic for some time now. Whereas demand for livestock products in developing economies has been instrumental in driving growth, the developed world, in contrast, has been witnessing stagnating demand. Production systems, too, have been in the process of enhancing efficiencies and environmental sustainability. Traditionally, livestock products’ demand has changed in direct proportion to human population growth, income growth and levels of urbanization and different livestock systems have responded to these changes by developing science and technology platforms for enhancing animal production. Future production would largely depend on a range of competitive forces, such as those for natural resources, including land and water and those between food and feed, in addition to functioning in a carbon-constrained economy. Potential production growth and additional efficiency and genetic gains would be greatly facilitated through advancements in breeding, nutrition and animal health.

On a worldwide basis, the livestock industry can be said to be a study in contrasts between the developed and developing regions. Meat production has been witnessing unprecedented growth in the developing world, with a major proportion of the same being concentrated in regions that went through rapid economic growth, such as Asia-Pacific. On the contrary, the developed world presents a strikingly different picture, with meat production and consumption in these regions either on the wane or already declined.

By 2050, it is estimated that the global human population would reach a projected 9.15 billion, ranging between 7.96-10.46 billion, with a major chunk of this increase expected to be in the developing regions. Though the overall global population growth is likely to cease at some point in time in this century, the rapidity in this growth would, in all likelihood, have a debilitating effect in realizing food security improvements in some countries, at least. Urbanization forms yet another key factor that influences demand for food. An increasing number of people have moved over to urban settings now from rural areas that at any previous point of time, with statistics revealing urbanization rates varying from below 30% in South Asia to almost 80% in the developed world and Latin America. General patterns of food consumption and specific demand for livestock products are greatly shaped by levels of urbanization. Another factor bolstering demand for livestock products is growth in income, and it has been established that growing income is directly proportional to growing demand for livestock products. As a consequence, Africa and Asia are the regions slated to emerge as the fastest growing for food products derived from livestock. Contrastingly, high calorie intakes of animal products in a majority of OECD countries would ensure that consumption levels record negligible changes, and consumption levels in South America and countries of the Former Soviet Union are expected to reach up to current OECD levels.

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KEY GLOBAL PLAYERS

Global Synthetic Vitamin E Installed Capacities

Total global capacity of Synthetic Vitamin E stood at xxxx thousand metric tons in 2011 and reached xxxx thousand metric tons in 2012, thereby registering a growth of x.x%. DSM Nutritional Products AG was the largest producer of Synthetic Vitamin E in 2011, accounting for a share of xx.x% equating to xx thousand metric tons and was followed by BASF SE of Germany with a share of xx.x% or xx thousand metric tons in that year. For 2012, both the companies maintained their Synthetic Vitamin E production capacities at the same levels. By the end of 2013, it is estimated that global Synthetic Vitamin E capacity would witness a xx.x% growth over 2012 and reach xxx.x thousand metric tons, primarily because of capacity expansion initiatives undertaken by Chinese manufacturers. Zhejiang Medicine Co Ltd, the largest Chinese player, accounted for a Synthetic Vitamin E capacity share of x.x% in 2012 or xx thousand metric tons, which grew to xx.x% in 2012, equivalent to xx thousand metric tons. By 2013, it is estimated that the company would further expand its capacity to xx thousand metric tons and corner a share of xx.x% in that year. As is evident from the table below, other Chinese players intending to expand Synthetic Vitamin E capacity include Zhejiang NHU Co Ltd (from xxx thousand metric tons in 2012 to xxx thousand metric tons in 2013) and other major Chinese manufacturer (around xx thousand metric tons in 2013), with other small players from the region also on the expansion track between these years.

Chart 2: 2011, 2012 and 2013(E) Global Synthetic Vitamin E Capacity by Major Player in Metric Tons

Company Country Capacity (Metric Tons)

2011 % Share 2012 % Share 2013 (E) % Share

DSM Nutritional Products AG Switzerland xxxxxx xxxxx xxxxxx xxxxx xxxxxx Xxxxx

BASF SE Germany xxxxxx xxxxx xxxxxx xxxxx xxxxxx Xxxxx

Zhejiang Medicine Co Ltd China xxxxxx xxxxx xxxxxx xxxxx xxxxxx Xxxxx

Zhejiang NHU Co Ltd China xxxxxx xxxxx xxxxxx xxxxx xxxxxx Xxxxx

Southwest Synthetic Pharmaceutical Co Ltd China xxxxxx xxxxx xxxxxx xxxxx xxxxxx Xxxxx

DSM Vitamins (Shanghai) Co Ltd China xxxxxx xxxxx xxxxxx xxxxx xxxxxx Xxxxx

BASF Vitamins Co Ltd China xxxxxx xxxxx xxxxxx xxxxx xxxxxx Xxxxx

Eisai Food & Chemicals Ltd Japan xxxxxx xxxxx xxxxxx xxxxx xxxxxx Xxxxx

Other Chinese China xxxxxx xxxxx xxxxxx xxxxx xxxxxx Xxxxx

Others xxxxxx xxxxx xxxxxx xxxxx xxxxxx Xxxxx

Total Global xxxxxx xxxxx xxxxxx xxxxx xxxxxx Xxxxx

Others include: Merck Ltd, Soham Organics Limited in India and Yerevan Vitamin Plant in Armenia among others.

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ZHEJIANG MEDICINE CO LTD (CHINA) No.268, Deng Yun Road, Gong Shu District Hangzhou, Zhejiang, 310011, China Phone: 86 571 8722 0660, 86-571-87213883 Fax: 86 571 8721 3793 Website: www.china-zmc.com Xinchang Pharmaceutical Factory 59 Huancheng East Road, Xinchang, Zhejiang 312500, China Phone: (+86)-575-86022860 Fax: (+86)-575-86022746 Email: [email protected] Website: www.xcpharma.com ZMC Vitamin Factory D-11 Paojiang Industrial Zone, Shaoxing, Zhejiang 312071, China Phone: (+86)-575-88030706 Fax: (+86)-575-88030706

Business Profile

Established in 1997 with headquarters in Hangzhou, China, Zhejiang Medicine Co Ltd is engaged in researching, developing, manufacturing and distributing medicinal preparations and chemical raw medicines, in addition to wholesaling and retailing medicines. The company was formed by the merger of Zhejiang Xinchang Pharmaceutical Co Ltd, Zhejiang Xianju Pharmaceutical Co Ltd and Zhejiang Medical and Pharmaceutical Co Ltd, and provides nature vitamin E soft capsules, vancomycin hydrochloride injection, levofloxacin lactate tablets, synthesized synthetic vitamin E capsules, Rifampicin, VH (D-Biotin), and Kitasamycin. Other offerings from Zhejiang Medicine include active pharmaceutical ingredients (APIs), intermediates and animal and human nutrition products. The company is China’s largest and the world’s second largest manufacturer of synthetic vitamin E, in addition to being the number one Chinese producer of natural vitamin E. Other products offered include β-carotene, canthaxanthin, biotin, and coenzyme Q10. Zhejiang Medicine Co Ltd’s Xinchang Pharmaceutical Factory ranks as the leading Asian producer of fat-soluble vitamins, with an annual vitamin E production capacity of xxxxxx tons and natural d-α-vitamin E production capacity of 800 tons. Major products offered by the company comprise astaxanthin, beta-carotene (natural and synthetic), canthaxanthin, lutein, lycopene, zeaxanthin, vitamin A, vitamin E (natural and synthetic), phytosterol, coenzyme Q10 and D-biotin. Natural vitamin E products include CarolE branded d-alpha-tocopherol (liquid and powder), mixed tecopherols (liquid and powder), d-alpha-tocopheryl acetate powders, d-alpha-tocopheryl succinate and water soluble natural vitamin E (TPGS-N), while synthetic vitamin E products include dl-alpha-tocopherol liquid, dl-alpha-tocopheryl acetate liquid and powder and dl-alpha-tocopheryl calcium succinate powder.

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Global Synthetic Vitamin E Market Overview by End-Use Application

Volume Analysis

In terms of volume of Synthetic Vitamin E consumed globally, Animal Feed is the largest application area with a share of about xx.x% in 2012, translating into xx.x thousand metric tons, which is estimated to be xx.x thousand metric tons in 2013. Further, consumption of Synthetic Vitamin E by the Animal Feed industry is also expected to record the fastest 2012-2020 CAGR of x.x% in reaching a projected xxx.x thousand metric tons in 2020. In contrast, the Dietary Supplements industry is forecast to be the slowest growing consumer of Synthetic Vitamin E, and is anticipated to post a 2012-2020 CAGR of x.x% in reaching a projected x.x thousand metric tons in 2020 from x.x thousand metric tons in 2012 and an estimated x.x thousand metric tons in 2013. Cosmetics industry constitutes the other fast growing application area for Synthetic Vitamin volume consumption and is expected to maintain a CAGR of x.x% during 2012-2020 to reach a projected x.x thousand metric tons in 2020, as against xx thousand metric tons in 2012. Synthetic Vitamin E consumption for Food & Beverage applications is slated to post a sedate CAGR of x.x% over the same analysis period.

Chart 4: Global Synthetic Vitamin E Market by End-Use Application (Animal Feed, Dietary Supplements, Food & Beverages and Cosmetics) in Metric Tons

Year Animal Feed Dietary Supplements Food & Beverages Cosmetics Total

2010 xxxxxxx xxxxx xxxxx xxxxx xxxxxxxx 2011 xxxxxxx xxxxx xxxxx xxxxx xxxxxxxx 2012 xxxxxxx xxxxx xxxxx xxxxx xxxxxxxx 2013 xxxxxxx xxxxx xxxxx xxxxx xxxxxxxx 2014 xxxxxxx xxxxx xxxxx xxxxx xxxxxxxx 2015 xxxxxxx xxxxx xxxxx xxxxx xxxxxxxx 2016 xxxxxxx xxxxx xxxxx xxxxx xxxxxxxx 2017 xxxxxxx xxxxx xxxxx xxxxx xxxxxxxx 2018 xxxxxxx xxxxx xxxxx xxxxx xxxxxxxx 2019 xxxxxxx xxxxx xxxxx xxxxx xxxxxxxx 2020 xxxxxxx xxxxx xxxxx xxxxx xxxxxxxx CAGR% 10-12 xxxxxxx xxxxx xxxxx xxxxx xxxxxxxx CAGR% 12-20 xxxxxxx xxxxx xxxxx xxxxx xxxxxxxx

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Animal Feed Dietary Supplements Food & Beverages Cosmetics

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THE NETHERLANDS

Synthetic Vitamin E Market Overview by End-Use Application

Volume Analysis Consumption of Synthetic Vitamin E in the Netherlands is projected to reach x.x thousand metric tons by 2020 from x.xx thousand metric tons in 2012 and an estimated xxx thousand metric tons in 2013, thereby registering a CAGR of x.x% between 2012 and 2020. In terms of share, Animal Feed is the largest end-use application for Synthetic Vitamin E in 2012 accounting for about xx% that equates to xx thousand metric tons. Expected to maintain a 2012-2020 CAGR of x.x%, volume of Synthetic Vitamin E consumed for this application area in the Netherlands is further projected to reach x.x thousand metric tons by 2020. However, fastest volume growth in Synthetic Vitamin E consumption is expected from Cosmetic applications, forecast to register a compounded annual rate of x.x% over 2012-2020 in reaching a projected xxx metric tons by 2020 from xxx metric tons in 2012. Volume of Synthetic Vitamin E consumed for production of Dietary Supplements in the Netherlands is poised to record a negative CAGR of x.x% between 2012 and 2020 to decline to xx metric tons by 2020 from xx metric tons in 2012. The declining trend in volume consumption of Synthetic Vitamin E is likely to commence from 2015 as a result of Natural Vitamin E replacing it increasingly for producing Dietary Supplements. Food & Beverage applications for Synthetic Vitamin E are also expected to post a modest CAGR of x.x% during the analysis period.

Chart 50: Dutch Synthetic Vitamin E Market by End-Use Application (Animal Feed, Dietary Supplements, Food & Beverages and Cosmetics) in Metric Tons

Year Animal Feed Dietary Supplements Food & Beverages Cosmetics Total

2010 xxxxxx xxxx xxxx xxxx xxxxx 2011 xxxxxx xxxx xxxx xxxx xxxxx 2012 xxxxxx xxxx xxxx xxxx xxxxx 2013 xxxxxx xxxx xxxx xxxx xxxxx 2014 xxxxxx xxxx xxxx xxxx xxxxx 2015 xxxxxx xxxx xxxx xxxx xxxxx 2016 xxxxxx xxxx xxxx xxxx xxxxx 2017 xxxxxx xxxx xxxx xxxx xxxxx 2018 xxxxxx xxxx xxxx xxxx xxxxx 2019 xxxxxx xxxx xxxx xxxx xxxxx 2020 xxxxxx xxxx xxxx xxxx xxxxx CAGR% 10-12 xxxxxx xxxx xxxx xxxx xxxxx CAGR% 12-20 xxxxxx xxxx xxxx xxxx xxxxx

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Animal Feed Dietary Supplements Food & Beverages Cosmetics

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ANNEXURE

RESEARCH METHODOLOGY

Scope of the Study The study is aimed to explore the market insights of Synthetic Vitamin E for the below mentioned product types, end-use applications and geographic regions.

Product Types Vitamin E type/form analyzed in this report include the following –

► Synthetic Vitamin E (Alpha-Tocopherol)

End-Use Applications Synthetic Vitamin E end-use applications analyzed in this report include the following –

► Animal Feed

► Human Nutritional/Dietary Supplements

► Food and Beverage Fortification

► Cosmetics

Region Coverage

The study is conducted on a global level and the market for Synthetic Vitamin E is analyzed for the following regions/countries –

► North America (United States, Canada and Mexico)

► Europe (Western Europe - Germany, France, The Netherlands, Italy, Spain, The United Kingdom and Rest of Europe)

► Asia-Pacific (China, Japan and Rest of Asia)

► Rest of World

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