July 5, 2025 –
Vitamin A Supply Chain Stabilizes as BASF Resumes Full Production
The global vitamin A market is witnessing a significant recovery as BASF’s Ludwigshafen facility completes its restoration process, marking the end of supply constraints that have impacted multiple industries for nearly twelve months. The German chemical giant has officially lifted force majeure on its animal nutrition product Lutavit® A 1000 NXT and human nutrition supplements, signaling a return to normalcy for this essential nutrient’s supply chain.
Key developments in the market recovery include:
- BASF’s full production resumption after July 2024 explosion
- Wanhua Chemical’s emergence as major competitor with 48,000-tonne citral capacity
- Market price stabilization following 53% vitamin A spike post-incident
The incident exposed critical vulnerabilities in global vitamin production:
• 80% of world supply dependent on citral intermediate
• Single-point failure potential in concentrated production
• Limited regional diversification in manufacturing
“Wanhua’s vertical integration has fundamentally altered market dynamics,” noted industry analyst Dr. Emma Richardson. “Their complete vitamin A value chain from citral to final product gives China unprecedented leverage.” Current production shares now show:
✓ BASF: 31% global capacity
✓ Wanhua: 24% and expanding
✓ DSM-Firmenich: 22%
✓ Zhejiang NHU: 18%
✓ Others: 5%
The restoration timeline reveals:
- June 2025: Final force majeure lifted on key products
- Q1 2025: Wanhua’s citral facility reached full capacity
- November 2024: First batches from alternative suppliers reached markets
Downstream impacts are now stabilizing across sectors:
• Animal feed: Prices returning to pre-crisis levels
• Food fortification: Supply security improving
• Cosmetics: Nerolidol availability increasing
Market lessons from the disruption include:
- Need for geographic production diversity
- Value of vertically integrated producers
- Importance of strategic inventory management
“BASF’s recovery brings welcome relief, but the industry won’t return to business as usual,” cautioned S&P Global’s chemicals expert Mark Fischer. “Smart buyers are already diversifying sources and demanding more transparent supply chain data.”
The vitamin A market’s transformation continues as Chinese producers invest in next-generation fermentation technologies that could further disrupt traditional synthesis routes. Industry watchers anticipate increased M&A activity as established players seek to strengthen their positions in this newly competitive landscape.