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Vitamin E is Hit by the Supply Chain Crisis, Negatively Impacting the Nutrition Industry

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The food and nutrition industries have suffered from the problems surrounding Vitamin E as the worldwide economy is still tackling the challenges caused by supply chain restrictions as well as inflation. Presently, the industry is being affected by challenges such as rising costs, which is compelling businesses to switch to alternatives where there is a possibility. Vitamin E is among the many products that have been affected by the supply chain crisis.

The precision of the impact depends on factors including the production locations and shipping routes; however, generally, the shipments have been affected by short-term delays caused by shortages of the container, raw materials, and labour, as well as capacity constraints in harbours. The issues rise as the demand for vitamin E skyrockets.

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Vitamin E supplements are linked with positionings of the immune, energy, Brain-Mood, and Stamina. Additionally, skin health is the fastest-growing segment taking fourth place among the supplements of vitamin E.

Skyrocketing Costs

Several issues are causing the shortages. The current situation in China, including global imbalances, interruptions of the supply chain, and energy control measures, paired with the cases of COVID-19 and the effect on specific production plants, are also influencing the situation. As a result, all of the mentioned factors combined are causing insufficiencies across the board, also counting a scarcity of magnesium that further impacts the aluminium industry.

The costs of energy, raw material, labour, and transport were soaring. These price rises are not only affecting Vitamin E but are also across the board as the circumstances are exceptionally inflationary. The rise in costs is significant and was not noticed for a while as several effects were transpiring at the same time. Due to the following factors, the prices of food worldwide have soared to a ten-year high, and monopolies are being held accountable for exploiting the crisis

Sourcing 

To mitigate the supply chain problems, the companies are using the approach of sourcing materials locally. For example, American River Nutrition uses a unique kind of Vitamin E for its DeltaGold product. The delta and gamma tocotrienols, derived from the annatto plant used by the company, are mainly cultivated in South America. The sourcing of raw materials is sometimes tricky, but as the company manufactures onshore in the US, it has succeeded in avoiding several international trade issues. However, the constraints continue to persist, specifically in activities like customs clearance, shipping, and container procurement.

During the 2017-2021 period, North America accounted for 39 percent of vitamin E supplement launches, followed by West Europe with around 28 percent of the launches. But markets like Australasia and Latin America that are less established are showing signs of recovery.

Impact On the Meat Industry

The current problems are also impacting animal feed as vitamin E is a crucial ingredient in the food industry due to its use in enhancing the smell, flavour, and texture of meat. For instance, DSM uses ROVIMIX E50, a bioavailable vitamin E type, that maintains the immune system of the animals.

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The primary effects were witnessed in the animal market, where the standard form E50 prices doubled. Some new requests have to be dropped, while some suppliers have stopped quoting together.

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