vitamin raw material

Vitamin raw material cost rise means manufacturing threat?

Even before the Covid-19 pandemic nutraceutical as an industry was growing a at rate of 7-8% per year. In the year 2021 we did not see a decline in this growth and the same is likely to continue for 2022 as well. There are multiple reasons for vitmain prices to shoot up, from china squeezing production due to environmental issues to steep rise in global demand, irrespective of the reason the fact is that vitmain raw material per kg costs have only gone up.

But the real question to answer – does high cost of vitamin raw material pressurize Indian nutraceutical manufacturing businesses to close their operations? The answer is DEFINITELY NOT!

You must be wondering if not many but some small regional manufacturing companies must be feeling that supplement manufacturing is too competitive and that how can they even survive if they cannot mimic the steep low prices when compared to companies who manufacture in bulk and get the tax advantage of being located in SEZ’s, even despite the fact that vitmain raw material cost is only going up each year? The answer is simple because pandemic has directly fueled the demand.

The dietary supplement industry is rapidly growing, and even though vitamin raw material will become costlier but supplements will likely to continue to be in demand after COVID-19 vaccine is widely distributed as well.

For the year 2022, the dietary supplement industry is projected to grow as much as 22%. Why So? simply because the pandemic is encouraging people to consume more and more multivitamins and to strengthen their immunity, so that they are even healthier if they contract COVID-19 which most likely everyone will. If anything the world has only seen tremendous increases in vitamin D, vitamin E3 and vitmain C along with the healthy gut microbes which are probiotic strains. So logically high cost of vitamin raw material will not pose a threat to small or mid size manufacturing companies, in fact it is a great time to be a prominent supplier in the nutraceutical market. Click here to know about the basic rule of capital sustainability in manufacturing

Try and picture this as well, for people who have been regular consumers of vitamin and health supplements they have more likely increased their usage of multivitamins and will most likely continue to do so in the near future. It’s reinforcing. They didn’t get sick during the pandemic when they took more supplements, even after administering the vaccine they will keep with this good habit of being loyal consumers to their vitamin and health supplements.

Both direct consumer search and Health care practitioner or pharmacist keep sales healthy.

A very well known business collaboration that you might have heard was the union between Doctors and Pharmaceutical companies, it was prevalent decades back and the same bond is strong today as well. Even pure supplement manufacturing companies use this channel to up their sales and in such cases the consumer takes the word of what their health care practitioner advises, in such case even though the supplement cost is high but sale is inevitable. Supplements are like an itch to a large number of nerdy consumers, they want to keep healthy and fit at any cost and this is quite evident if you were to observe the online Plant vitamin market and also the sports nutrition segment online in India.

Hence vitamin raw material cost increase each year should not bother supplement manufacturing companies and their procurement certainly should not solely be based on price, but they should focus on their vitmain raw material suppliers service, promise of ingredient quality. We at Rass Bisolution Private Limited understand that vitamin raw material and other natural health raw powders costs have been on the rise past 5 years and that Indian is not a demand constrain market if the quality and price is right. We do our best to ensure competitive prices for vitamin raw material, premix and finishes formulation for our manufacturing buyers.

To buy vitamin raw material watsapp on +918090113353 for a quote.

We supply Vitamins, proteins, amino acids, antioxidants, herbal health ingredient and much more

Ruchi Khanna