Abstract:
Between October and November 2025, China's vitamin, mineral, and nutraceutical ingredients sector witnessed a series of significant project announcements and regulatory milestones. Key players, including subsidiaries of multinational BASF and leading domestic firms like ZMC and Huachen Pharmaceutical, are investing in capacity expansion, technological renovation, and new product lines. These developments focus on enhancing efficiency, reducing environmental impact, expanding into high-value derivatives, and strengthening supply chain self-sufficiency, signaling robust confidence and strategic evolution within the industry.
Analysis of Key Project Developments:
1. Capacity Expansion and Product Diversification
A clear trend is the expansion of existing production capabilities and the introduction of new, often more specialized, product lines.
BASF Vitamin (Shenyang) is adding 300 tonnes per annum (t/a) of Lutavit A (NXT) capacity, reinforcing its position in feed-grade vitamins.
L&P Food (Guangdong) is constructing a major new 500 t/a facility for high-purity Folic Acid, a critical B vitamin used in nutrition fortification.
Xinweirong Chemical (Gansu) is moving into the cosmetic and personal care space with its Phase II expansion, adding capacity for premium vitamin derivatives like Vitamin C tetrapalmitate (50 t/a) and Retinol (5 t/a).
Keming Biomedical (Zhejiang) is executing a strategic portfolio shift through technical renovation. While establishing a substantial 1,400 t/a bio-fermentation base for products like Coenzyme Q10 and Calcium Pantothenate, it is simultaneously phasing out lower-value APIs and preparations, optimizing for higher-margin nutraceuticals and fermented pharmaceuticals.
2. Technological Renovation and Automation Focus
Several projects emphasize process optimization, automation, and environmental upgrades over simple capacity addition.
Huachen Pharmaceutical's USD 7.06 million project is a prime example, described as a "technical renovation." It involves adding 89 pieces of equipment specifically to upgrade the automation of its 4,000 t/a Vitamin B5 production process. Concurrently, a significant portion of the investment targets the wastewater treatment plant, adding 73 new components to improve environmental performance.
BASF Vitamin's project, though smaller in scale, includes retrofitting its steam supply system for efficiency.
L&P Food is optimizing its sucralose production line by eliminating in-house esterification and chlorination steps, thereby reducing the generation of specific by-products (sulfur dioxide, dimethylamine), which represents a cleaner production modification.
3. Backward Integration and Supply Chain Security
A notable strategic investment aims to reduce dependency on external raw materials.
Zhejiang Medicine Co., Ltd. (ZMC) is making the largest single investment covered, planning to spend USD 237.77 million through its subsidiary Changbei Bio. The project's explicit goal is to "enhance the self-sufficiency of raw and auxiliary materials for products such as vitamins and reduce the dependency on key intermediates from external sources." The two-phase construction will create a platform for vitamin intermediates and derivatives, strengthening the company's upstream control.
4. Environmental Compliance as a Prerequisite
All projects highlighted have successfully passed or publicized their Environmental Impact (EI) assessment reports, underscoring that regulatory compliance is a non-negotiable first step for industry development in China. The detailed EI processes for projects ranging from a one-month renovation (BASF) to a 24-month major upgrade (Huachen) demonstrate the sector's integration of environmental planning into its growth strategy.
Outlook:
These collective moves indicate a maturing Chinese vitamin and nutraceutical ingredients industry that is moving beyond basic manufacturing. The focus is shifting towards specialized, high-value products (cosmetic actives, fermentation-based nutraceuticals), process excellence and automation, and securing a resilient, integrated supply chain. This positions the sector for more sustainable and competitive growth in the global market.
About CCM
CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & feed and life-science industries. Founded in 2001, CCM offers price and trade analysis, market reports and customized intelligence solutions. CCM also provides advertising and brand-promotion services for agrochemical producers and food ingredient suppliers, helping companies reach targeted global buyers and decision-makers.
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