On March 2016, German based BASF has increased the prices of its Vitamin A products by 20% with an immediate effect. BASF is a leading producer of Vitamin A for many end users industries such as cosmetics, food and animal nutrition. This change in price escalation will not affect the existing contractual obligations with customers.
Vitamin A comprises of a wide group of unsaturated nutritional organic compounds which includes retinal, retinol, retinoic acid, numerous provitamin A carotenoids, and beta-carotene. Contrast to other vitamins, Vitamin A is available only through a synthetic production when used as a raw ingredient.
According to BASF Global Marketing Head the reason for this escalation in price is due to a tighter supply of Vitamin A in the worldwide market, precisely for the Citral industry. Citral is also known as lemonal is used in synthesis of vitamin A. It used in various end users industry. In addition, this is the case for all industries consuming vitamin A. The price increase reflects the global demand and supply situation for Vitamin A in the market.
Analyst View:
The escalation in prices of vitamin A describes the overall market situation. There is high demand of vitamin A in the market from various end users industry and manufacturers are facing a difficult task of ensuring steady supply at desired prices. This increased in prices will affect mainly the food and cosmetic industries. Vitamin A found its application in personal care and cosmetic industry as anti-ageing ingredient in various skin care formulations. It also found in application in various food and beverages industry as flavoring and coloring agent. Vitamin A is difficult to work with as it’s unstable naturally. It is an ingredient mainly supported by indication.
