The Global Vitamin Ingredients Market is estimated to be valued at USD 6.3 billion in 2024 and is expected to reach USD 11.1 Bn by 2031, growing at a compound annual growth rate (CAGR) of 8.4% from 2024 to 2031.

The vitamin ingredients market is expected to witness significant growth over the forecast period. The increasing demand for fortified food products along with rising health-conscious population is a major factor driving the market. There is a growing awareness among consumers regarding maintaining nutritional balance in their diet. This has resulted in increased consumption of various dietary supplements, which is supporting the demand for vitamin ingredients. Moreover, changing lifestyles and busy schedules have reduced the intake of essential nutrients from regular diet. This is further boosting the need for vitamin-enriched products. Product innovation with novel blends of vitamins is also fueling the growth of vitamin ingredients market. However, strict regulations regarding the usage of vitamins may hamper the market expansion to some extent over the coming years.

Market Driver - Rising Awareness About Health and Wellness, Leading to Higher Demand for Vitamin-Based Dietary Supplements

With growing health consciousness among people, awareness pertaining to wellness and importance of good nutrition has increased tremendously over the past decade. People are recognizing that their lifestyles have become more sedentary and the food they consume lacks essential nutrients. This has compelled them to address deficiencies through targeted means such as dietary supplements. Vitamins make an indispensable part of their daily supplementation regime.

Individuals are actively seeking ways to boost immunity, reduce stress, enhance energy levels and look after overall well-being. While earlier supplements used to be considered only for elderly population or those falling ill, they are now adopted by youngsters as well as preventive healthcare measure. Continuous health information through various sources like internet, newspapers, magazines etc. has transformed people's thinking that vitamins can play a pivotal role even for healthy individuals to stay active, focused and perform optimally throughout the day. Besides, long working hours and erratic routines leave little time for preparing balanced diets, further elevating the dependence on vitamin supplements.

Women especially have increased uptake of supplements enriched with minerals and vitamins. Apart from basic multi-vitamins, they particularly choose those meant for bone health, hair & skin care, pre-post pregnancy requirements. Even among working professionals travel, erratic shifts impact their ability to maintain nutrition, prompting them to compensate through supplements. Market is witnessing surge in variants catering to gender, age and problem-specific needs. Understanding that regular supply of vitamins can promote wellness in long-run, consumers demonstrate readiness to pay premium prices for good quality products.

Market Driver - Increasing Prevalence of Chronic Diseases and Aging Population

Rising global chronic disease burden along with aging demographics in several regions are compelling factors driving steady demand for vitamins especially in pharmaceutical industry. Chronic illnesses such as diabetes, cardiovascular diseases, cancer have become much more common than before due to changing lifestyle, environmental pollution and other risks. Long-term management as well as prevention of such diseases rely heavily on micronutrients that body fails to manufacture on its own.

For example, vitamins C & E find extensive application in cancer treatment as powerful antioxidants to relieve side-effects of chemotherapy and radiotherapy. Vitamin B12, B6, folic acid are essential components of medications regulating blood sugar levels and circulation. Calcium, vitamin D, K are widely used in drugs for bone disorders like osteoporosis afflicting elderly. Realizing potential of vitamins in curing illnesses, R&D spending in pharma sector continues on innovative formulations, therapies involving specific micronutrients.

At the same time, proportion of geriatric demographic is swelling across regions resulting from improved healthcare and increased longevity. Age-related frailties cause nutrients absorption challenges for many. As body's requirement for vitamins also rises with advancing age, supplementation becomes fundamental requirement rather than option. This is evidenced through segment's sturdy sales of high-dosage vitamin supplements tailored for senior citizens suffering arthritis, eyesight deterioration, cognitive decline and more. Healthcare providers routinely advise vitamins consumption especially for those above 65 years of age. Thus, factors such as above create steady opportunities for vitamin ingredients within curative and preventive healthcare sphere.

Market Challenge - Volatility in Raw Material Prices, Which Increases Production Costs and Disrupts Supply Chains

One of the key challenges faced by players in the vitamin ingredients market is the volatility in raw material prices. Vitamin ingredients are derived from natural sources such as fruits and vegetables. The prices of these raw materials are dependent on various factors like crop yields, climatic conditions, supply-demand dynamics etc. Any fluctuations in the prices of raw materials can have a significant impact on the production costs of vitamin ingredient manufacturers. Higher raw material costs often force companies to gradually pass on these increases to customers in the form of increased product prices. This price volatility makes it difficult for manufacturers to fix stable prices over longer periods of time. It also disrupts the supply chain as manufacturers may face shortages or surpluses due to unpredictable raw material availability and pricing. Maintaining adequate inventory levels poses operational challenges. The frequent fluctuations in input costs can squeeze profit margins for companies. To counter this risk, manufacturers may look to diversify their raw material sourcing regions and establish long term supply contracts. However, volatility in commodity prices continues to be a major risk faced by the industry.

Market Opportunity - Innovations in Manufacturing Techniques to Encourage Development of Novel Opportunities

The vitamin ingredients market is now witnessing new opportunities arising from technological innovations in manufacturing processes. One such promising innovation is the development of lab-grown or cultured nutrients. Just as lab-grown meat is gaining acceptance, companies are exploring ways to cultivate vitamin compounds artificially under controlled conditions. This offers the ability to produce high-quality, sustainable and consistent vitamin ingredients without reliance on agricultural raw materials. Such cultured nutrients can overcome issues of seasonal availability and quality variations associated with plant and animal sources. The manufacturing process also allows greater customization of vitamin profiles as per consumer needs. With advancements in fermentation and cell culture technologies, lab-grown vitamin production is becoming commercially viable. It paves the way for new business models focused on nutrition rather than agricultural commodities. Companies investing in innovative techniques will be well-positioned to tap new markets and application segments like personalized nutrition with consistent, customizable formulations. Overall, these innovations are opening up promising avenues for the future growth of the vitamin ingredients industry.

Focus on innovation through R&D: Companies have significantly increased their R&D spends to develop innovative and value-added vitamin ingredients. For example, BASF spent over €1.7 billion on R&D in 2020, a significant portion of which was dedicated to vitamin R&D. Their extensive R&D efforts led to the development of Ovatol, a patent-protected crystalline form of vitamin E. Ovatol offers superior stability, bioavailability and dispersion which helped BASF capture a significant market share.

Portfolio expansion through acquisition: Major players have expanded their product portfolios through targeted acquisitions. For example, in the recent past, DSM acquired capsule and softgel business from Jiangsu Chenpai Pharmaceutical Co., strengthening its position in delivery technologies. This allowed DSM to provide complete end-to-end vitamin solutions.

Focus on emerging markets: Companies have made strategic investments and expansions in high growth emerging markets like Asia Pacific, Central & South America and Eastern Europe.

Partnerships for new delivery systems: Players have strategically partnered with dietary supplement and pharmaceutical companies to develop novel delivery technologies. For example, in 2021, DSM partnered with Catalent for a sustained-release B-complex vitamin tablet using DSM's Veri-te delivery technology. Such partnerships allow companies to broaden their technology expertise and customer base. 

Insights, By Application, Pharmaceuticals Are Set to Witness a High Growth in the Forecast Period

By Application, Pharmaceuticals are expected to contribute 33.9% market share in 2024 due to the increasing demand for vitamin-based drugs. The pharmaceutical application segment holds the largest share in the vitamin ingredients market due to the immense importance of vitamins in drug formulations. Vitamins are commonly used as active pharmaceutical ingredients (APIs) in various drugs to treat deficiency-related diseases and illnesses. For example, vitamin A is widely used in medications for eye care, vitamin D helps strengthen bones and plays a key role in drugs for calcium absorption and bone density, vitamin C supports immune function and is found in cold and flu drugs.

As lifestyle diseases and chronic conditions like diabetes, cardiac problems, obesity are on the rise globally, the need for vitamin-fortified drugs is growing. Population aging is another driver as older adults are more prone to vitamin deficiencies and related health issues. Moreover, innovative drug delivery systems are allowing vitamins to be integrated into more complex drug molecules for diverse applications. Liposomal and micro-encapsulation techniques help stabilize vitamins and facilitate controlled absorption in the body.

Focus on preventive healthcare and early intervention is prompting pharmaceutical companies to introduce vitamin-based drugs for indications like weakened immunity, CVD risk reduction, cancer prevention etc. Customized nutrition is another area drawing research into vitamin-drug combinations. Generics market is also expanding availability of low-cost vitamin drugs for mass consumption. However, stringent regulations regarding clinical trials and approval processes impact the ability to commercialize new vitamin drugs quickly. Still, the pharmaceutical segment is expected to hold its dominant share in the overall vitamin ingredients industry.

Insights, By End-use, Organic Foods are Likely to Witness a High Growth in the Forecast Period

By End-use, Organic Foods contributes the highest share of the market owing to growing consumer preference for clean-label products. The organic foods End-use segment holds a major share of the vitamin ingredients market due to heightened health-consciousness among people worldwide. There is strong demand for organic produce, dietary supplements and packaged foods that are free from synthetic chemicals, GMOs and artificial preservatives. Consumers are paying more attention to ingredient labels and opting for "real food" products with easily understandable nutrition profiles.

This plays into the advantages of vitamin ingredients derived from natural sources like fruits and vegetables. Organic farming practices also allow vitamins to retain their innate goodness without chemical processing. Many consumers now associate organic certification with high-quality vitamins and perceive them as more "authentic" than lab-created synthetic alternatives. The organic label acts as a significant purchase determinant, especially for millennial shoppers who prioritize sustainability.

Even the economic viability of organic farming has improved over the past decade with streamlined certification protocols and better access to export markets. Organic cultivation of vitamin-rich crops is increasingly lucrative for growers. Manufacturers benefit from robust demand as they develop novel offerings like organic gummy vitamins, and powder drink mixes. This fast-growing clean-label segment offers diverse opportunities to companies in the vitamin ingredients domain. Strict quality controls ensure organic status is maintained right from sourcing to production.

The growth is driven by the increasing demand for vitamins in dietary supplements, pharmaceuticals, and skincare products. Consumers are more health-conscious than ever, leading to a surge in the use of vitamins to prevent deficiencies and promote overall well-being. The pharmaceutical industry is a major user of vitamin ingredients, utilizing them in drug production to address a range of health issues. The rise in plant-based diets is also pushing for the development of more natural and sustainable vitamin supplements. Innovations in manufacturing techniques, such as lab-grown vitamins and 3D printing, are helping companies meet consumer demand for high-quality, customizable supplements. However, challenges such as raw material price volatility and stringent regulations will need to be navigated by market players.

The major players operating in the Vitamin Ingredients Market include BASF SE, Koninklijke DSM N.V., Lonza Group, Glanbia Plc., Atlantic Essential Products Inc., Bactolac Pharmaceutical Inc., Farbest Brands, AIE Pharmaceuticals Inc., Nutrilo and Bluestar Adisseo Co.

• In May 2024, Evonik launched the AvailOm & Boswellia nutraceutical ingredients at Vitafoods Europe 2024, aiming to expand their functional food and supplement portfolio.
• In April 2024, P&G Health introduced a new Vitamin E-enriched cream in India under its Evion brand, enhancing its skincare product line with moisturizing and sun protection benefits.

• By Application
  • Pharmaceuticals
  • Personal Care Products
  • Dietary Supplements
  • Animal Feed
  • Food & Beverages
• By End-use
  • Organic Foods
  • Artificial Supplements