Vitamin Industry Development Review and Eco-development of Industry Value Chain II

Effamall.com Dec 14, 2023

The principal business of almost all these vitamin manufacturers then was the manufacturing of chemicals and pharmaceuticals. Even Roche, BASF and Rhone-Poulenc, known as the top three vitamin giants globally, were in nature the world's leading producers in the pharmaceutical and chemical industries respectively. Although they were recognized as the world's largest multivitamin manufacturers, the revenue generated from the business segments involving vitamins (including fine chemicals) accounted for only 10% to 20% of their total revenue.

In the 1990s, except for the three giants, all other remaining pharmas or chemical companies with vitamin production business were only capable of producing one to three varieties of vitamins.

Defeat of the three vitamin makers in the antitrust suits in 1999 marked a complete breakup of monopolies in the global vitamin market, leading to a sharp decline in the revenue of these companies and triggering a series of asset and corporate restructuring. For instance, Roche sold its vitamin division to DSM, zeroing in on pharmaceuticals manufacturing; Adisseo gained independence from Rhone Poulenc, becoming an independent animal nutrition company, with the remaining chemical division merged with part of Hoechst to form a merged firm Aventis SA; in 2007, BASF sold its vitamin premix business in eight countries to Nutreco, an animal feed group headquartered in the Netherlands. These events brought about tremendous changes to the global vitamin market landscape.

In the meanwhile, a cluster of Chinese pharmaceutical and chemical companies set foot in the field of individual vitamins production. Through leveraging their increasingly innovative technologies, booming local market and opportunities for globalization, and promoted by capitals at the later stage, they drove China’s vitamin industry achieve a great leap and expansion in the global market.

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