The global natural source vitamin E market is highly consolidated and characterized by the dominance of few international players. Transparency Market Research states that the top four companies in the market accounted for a share of over 58% in 2015. The top vendor DSM N.V. accounted for over 23% of the market. The other three leading vendors in the market are Archer Daniels Midlands Company, BASF SE, and Wilmar Spring Fruit Nutrition Products Co. Ltd.
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Other notable vendors in the market include companies such as Fenchem Biotek, Beijing Gingko Group, Davos Life Science, Riken Vitamin Co. Ltd., Eisai Food and Chemical, and Zheijang Worldbestve Biotechnology. Acquisitions of specialty product manufacturers in emerging economies, partnerships, and development of new product varieties will help key vendors to survive the stiff competition in the market.
Rising Awareness Regarding Health Benefits of Vitamin E Encourage Adoption
Vitamin E is known to have a wide-ranging impact on the human health, from regulating a variety of processes such as reproduction and blood pressure, to protecting cells from damage, and preventing a health problems such as cancer, heart diseases, and possibly even dementia. In the past few years, sedentary lifestyles, unhealthy diets, and rising geriatric population have led to a vast surge in the prevalence of chronic diseases such as diabetes, cardiovascular diseases, and a variety of cancers. The scenario has stimulated the need for consuming vitamin E though supplementary sources.
Rising disposable incomes of the global population are enabling consumers to spend more on vitamin and dietary supplements along with regular diets for maintaining healthy lifestyles. The trend is equally popular across developed and developing regions. While developed regions such as North America and Europe are presently the largest contributors to the overall global consumption of natural source vitamin E, the market in Asia Pacific is rising at a significant pace and is expected to expand at the fastest pace from 2016 to 2024.
Strengthening Distribution Channels Enable Easy Availability of Natural Source Vitamin E Products
The easy availability of natural source vitamin E through an increasingly strengthening distribution network is also a key factor driving the market globally. Having successfully established a large consumer base through store-based retail channels such as health shops, supermarkets, hypermarkets, mass merchandisers, drugstores, and healthcare specialist retailers, the focus is now on strengthening the e-commerce channel. In the next few years, a large number of natural source vitamin E product manufacturers will be seen exploiting the highly popular marketing space of e-commerce, making it one of the most prominent retail channels for the market.
High Costs of Natural Source Vitamin E to Threaten Growth across Emerging Economies
In the past few years, a vast shortage in the supply of deodorized distillates has been observed across the globe. As these compounds are the most prominent raw material used for the production of natural vitamin E, disruption in their supply has a direct impact on the prices of vitamin E and, in turn, on the prices of natural source vitamin E products.
The high prices of vitamin E products could act as a major restraint to their overall appeal, especially for the cost-conscious masses across developing economies. Many vendors are actively involved in research and development initiatives aimed at exploring alternative sources for producing deodorized distillates. However, no plausible results have been attained.
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In terms of product variety, the tocopherol segment accounted for a dominant share of over 65% of the market’s revenues in 2015. Geography-wise, North America led the global natural source vitamin E market, accounting for over 40% share in 2015. The global natural source vitamin E market is expected to exhibit a healthy 12.8% CAGR from 2016 through 2024. The market, which held an opportunity of US$765.6 mn in 2015, is expected to rise to US$2,251.7 mn by 2024.
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