Published: March 2014Report Code: PH002IN Pages: 117 | Charts: 38Price: Sample

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“The report reviews, analyzes and projects the Indianmarket for Natural Source Vitamin E - Tocopherols andTocotrienols for the period 2010-2020”

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Natural Source Vitamin E (Tocopherols and Tocotrienols) – An Indian Market Overview © Industry Experts, All Rights Reserved

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INTRODUCTION

Indian Natural Vitamin E market is in infant stage and is growing at a healthy rate. Currently, natural vitamin E is being mainly used in dietary supplements followed by fortification of foods & beverages and cosmetics. Preference towards the application of Natural Vitamin E in animal feed is expected to pick up in next couple of years which is almost negligible or very low at present. Industry participants also expect that natural vitamin E is preferred to use, especially in high end pet food segment. Inline to the expansion of Indian nutraceutical market, the demand for vitamins has been increased over the years. Global leading nutraceutical companies such as Amway and Herbalife are investing in manufacturing nutraceuticals in India either directly or through contract manufacturers. In fact, Amway and Herbalife are in Indian market for quite some time partnered with their Indian counterpart. Now, these two companies planning for the own production facilities to meet their nutraceuticals demand.

Due to lack of awareness of benefits to human health, the consumption of natural Vitamin E supplements in India is very low and the major portion of natural Vitamin E supplements manufactured domestically are being exported. Also owing to the limited or no information of these products among the customer community through a published literature from industry participants or any government institution, the Indian natural Vitamin E market hasn’t been grown to the level that it has to be. If the awareness of natural Vitamin E is spread across the domestic market, Indian market will grow at a faster rate than that has been projected in this report.

Natural Vitamin E Industry in India The Indian natural vitamin E market is composed of dietary supplements, fortified foods & beverages and cosmetics. Dietery supplements segment leads the market followed by food & beverages. In India, Baddi (Himachal Pradesh) and Banglore (Karnataka) are the regions with highest number of nutraceutical manufacturers. These companies have been preferred partners for international as well dometstic pharma and nutraceutical manufacturers. Cargill is the first company which introduced natural vitamin E enriched edible oils in India. This trend has been now followed by the companies such as Adani Wilmar, Marico and few other leading edible oil manufacturers. There has been also increasing trend in natural vitaimin E consumption in cosmetics, as number of players such as Himalya Drug Company are using natural vitamin E in anti aging and other skin care products.

There is no domestic production for natural Vitamin E in India, at present. Domestic demand for natural vitamin E is been met by imports only and the majority of the imports are coming from China (xx%), followed by the USA (xx%), Argentina (x%) and rest from Spain, Malaysia and Singapore. Tocotrienols is exclusively being imported from Malaysia and Singapore where as tocopherols is from other countries.

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Natural Source Vitamin E (Tocopherols and Tocotrienols) – An Indian Market Overview © Industry Experts, All Rights Reserved

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The key players that are exporting natural Vitamin E to India comprise ADM, BASF-Cognis and Cargill-DSM from the US; AOM SA from Argentina; VitaeNaturals and BTSA Biotecnologías Aplicadas from Spain and their Indian counterparts include DSM Nutritional Products India, BASF India, Anshul Agencies, K.Sevantilal & Co and Privi Pharma Pvt. Ltd.

There are also companies who are directly procuring natural vitamin E from overseas manufacturers. For example, Dr. Reddy’s Laboratories, Tinna Oils & Chemicals and India Glycols Ltd from Archer Daniels Midland; and Geltec Private Ltd, Softesule Private Ltd from BASF- Cognis Corporation.

In 2012, among different forms of natural vitamin E imported to India, mixed tocopherols and tocopheryl acid succinate forms accounts for a lions-share of around xx.x% followed by tocopherol acetate oil with xx% and tocotrienols with x.x% share.

Chart 1: 2012 Indian Natural Vitamin E Imports Share (%) by Vitamin E Form

Product Type Volume (MTs) % Share

Mixed Tocopherols xxxx xxxxx Tocopherol Acetate xxxx xxxxx Tocopheryl Acid Succinate xxxx xxxxx Tocotrienol xxxx xxxxx Total xxxx xxxxx

Raw Material Availability Majority of the natural vitamin E produced globally is from GM (Genetically Modified) soybean oil deodorized distillate (SODD). But, natural vitamin E produced from non-GM soybean distillate has a good demand in western countries especially European. In Europe, non-GM label is mandatory and is widely accepted all over the Europe. Also, non-GM derived natural vitamin E has a higher price tag compared to GM derived natural vitamin E. Natural vitamin E is produced widely from soybeans and India is the country where xxx% of soybeans produced are non-GM. Each year India produces around x.x million metric tons of soybean oil. Among these x.x million tons xx% of the oil goes for biodiesel production in India, and left out soybean oil for refining edible oil is around x.xx miliion tons. During the production of refined soybean oil, soybean deodorizer distillate (SODD) is produced as byproduct of a deodorization step. The SODD corresponds between x.x% and x.x% of crude soybean oil i.e. xxxx tons to xxxx tons of SODD each year depending on the SODD concentration and refining process. As per industry participants’ openion, SODD derived from refining process will be around xxxx tons per year in India. Tocopherols conecentration in Indian origin SODD is around x% to x%. If we assume a x% of natural vitamin E concentration in SODD, so it is possible to produce around xx metric tons of non-GM natural vitamin E from SODD that is being produced in India. Each year around xxx to xxxx metric tons of non-GM SODD is being exported overseas, especially for the manufacturing of natural vitamin E. Availability of SODD for the production of natural vitamin E in India is low at present, but in the future it is expected, according to experts, that the production of soybean oil will grow double fold every five years, so the availability of SODD.

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Natural Source Vitamin E (Tocopherols and Tocotrienols) – An Indian Market Overview © Industry Experts, All Rights Reserved

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KEY GLOBAL PLAYERS

Natural Vitamin E Tocopherol Manufacturers

ADVANCED ORGANIC MATERIAL SA (ARGENTINA) Calle 14 N° 507, Parque Industrial Pilar, Pcia, Buenos Aires, Argentina Phone: +54 230 4496456/531, Fax: + 54 230 4496456/531 Email: info@aomsa.com.ar Website: www.aomsa.com.ar

Business Profile

Buenos Aires, Argentina-based Advanced Organic Materials SA (AOM) is a leading global producer and processor of oilseeds that chiefly comprise soybean and sunflower. The company also produces natural vitamin E, mixed tocopherols and plant sterols through refining a byproduct of vegetable oil and then extracting and purifying the same. The natural vitamin E offered by AOM finds application as a food additive, while mixed tocopherols are extensively utilized as natural antioxidants and plant sterols are used as a natural source of reducing cholesterol. After the development of the biodiesel industry, the company diversified into this area, and is currently engaged in producing and supplying 50,000 tons per annum of biodiesel to the domestic market.

AOM has the distinction of being the sole manufacturer of mixed tocopherols in Latin America that are offered globally under the Tocomix™ brand, and include a broad category of products comprising standard, as well as IP/non-GMO tocopherols. Mixed tocopherols are isolated and derived from vegetable oils and include naturally occurring d-alpha, beta, gamma and delta tocopherols, which are all varieties of natural vitamin E. These products are offered in Tocomix™ 50 & Tocomix™ 70, Tocomix™ 50 IP & Tocomix™ 70 IP (non-GMO) and Tocomix™ High D-Alpha forms.

The company is also engaged in manufacturing wholly natural vitamin E that is isolated and obtained entirely from sunflower oil. AOM’s Natural Vitamin E SF product range is offered in concentrations of 750 IU and 900 IU for a variety of applications, such as a nutritional supplement in capsules or as a food additive in several products. This non-GMO product delivers completely natural d-alpha tocopherol and is also free of allergens. AOM also supplies soy and sunflower deodorized distillate to major natural vitamin E manufacturers such as ADM and Cargill.

Technical Specifications Product Total Tocopherols IU Physical Form Shelf Life

MIXED TOCOPHEROLS

Tocomix™ 50 IP Min. 50% NA Oil 36 Months

Tocomix™ 70 Min. 70% NA Oil 36 Months

Tocomix™ 70 IP Min. 70% NA Oil 36 Months

Tocomix™ High d-Alpha 700 mg/g NA Oil 36 Months

NATURAL VITAMIN E

Vitamin E SF 900 IU 66 – 69 (d-α-tocopherol - Min. 60.4) 900 Oil 36 Months

Vitamin E SF 750 IU 55 - 58 (d-α-tocopherol - Min. 50.3) 750 Oil 36 Months

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Natural Source Vitamin E (Tocopherols and Tocotrienols) – An Indian Market Overview © Industry Experts, All Rights Reserved

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INDIAN MARKET OVERVIEW

Indian Natural Vitamin E Market Overview

Indian Natural Vitamin E volume market, estimated at xxx.x metric tons with a value of US$x.x million in 2013 and forecast to be xx.x metric tons valued at US$x.x million in 2014, is further projected to reach xx.x metric tons worth US$x.x million by 2020, thereby maintaining a volume CAGR of xx.x% and a value CAGR of xx.x% between 2012 and 2020. Between the years 2010 and 2012, though volume consumption for Natural Vitamin E in India has grown by a compounded annual rate of just x.x%, the same has registered a xx.x% compounded annual growth in terms of value over these years.

Chart 15: Indian Natural Vitamin E Market Overview by Volume (Metric tons) and Value (US$ Million)

Year Volume (MTs) Value (US$ Million)

2010 xxxxx xxxxx 2011 xxxxx xxxxx 2012 xxxxx xxxxx 2013 xxxxx xxxxx 2014 xxxxx xxxxx 2015 xxxxx xxxxx 2016 xxxxx xxxxx 2017 xxxxx xxxxx 2018 xxxxx xxxxx 2019 xxxxx xxxxx 2020 xxxxx xxxxx CAGR% 10-12 xxxxx xxxxx CAGR% 12-20 xxxxx xxxxx

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Valu

e (U

S$ il

lion)

Volu

me

(MTs

)

Volume (MTs) Value (US$ Million) SAMPLE

Natural Source Vitamin E (Tocopherols and Tocotrienols) – An Indian Market Overview © Industry Experts, All Rights Reserved

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Indian Natural Vitamin E Market Overview by End-Use Application

Volume Analysis

In terms of volume, Dietary Supplements constitute the largest end-use application for Natural Vitamin E in India, cornering an estimated share of xx.x% in 2013 that equates to xx.x metric tons. Indian consumption of Natural Vitamin E for Dietary Supplement applications, forecast at xx.x metric tons in 2014, is further expected to post a 2012-2020 CAGR of xx.x% in reaching a projected xx metric tons by 2020. Volume consumption of Natural Vitamin E for Food & Beverage and Cosmetic applications in India is likely to witness comparatively slower CAGRs of xx.x% and x.x%, respectively, over the 2012-2020 analysis period. Industry Experts estimates that utilization of Natural Vitamin E in Animal Feed applications would commence from the year 2015, with a demand of x.x metric tons in that year, which would increase to more than one metric ton by 2020 to reflect a CAGR of xx.x% between 2015 and 2020.

Chart 17: Indian Natural Vitamin E Market by End-Use Application (Animal Feed, Dietary Supplements, Food & Beverages and Cosmetics) in Metric Tons

Year Animal Feed* Dietary Supplements Food & Beverages Cosmetics Total

2010 xxxx xxxxx xxxxx xxxx xxxxxx 2011 xxxx xxxxx xxxxx xxxx xxxxxx 2012 xxxx xxxxx xxxxx xxxx xxxxxx 2013 xxxx xxxxx xxxxx xxxx xxxxxx 2014 xxxx xxxxx xxxxx xxxx xxxxxx 2015 xxxx xxxxx xxxxx xxxx xxxxxx 2016 xxxx xxxxx xxxxx xxxx xxxxxx 2017 xxxx xxxxx xxxxx xxxx xxxxxx 2018 xxxx xxxxx xxxxx xxxx xxxxxx 2019 xxxx xxxxx xxxxx xxxx xxxxxx 2020 xxxx xxxxx xxxxx xxxx xxxxxx CAGR% 10-12 xxxx xxxxx xxxxx xxxx xxxxxx CAGR% 12-20 xxxx xxxxx xxxxx xxxx xxxxxx

Note: *CAGR for Vitamin E in Animal Feed is from 2015-20.

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Animal Feed Dietary Supplements Food & Beverages Cosmetics

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Natural Source Vitamin E (Tocopherols and Tocotrienols) – An Indian Market Overview © Industry Experts, All Rights Reserved

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Value Analysis

In terms of value, too, the Indian market for Tocopherols is the largest, accounting for an estimated 2013 share of xx.x% translating into US$x.x million. Demand for Tocopherols in India is forecast to be US$x.x million in 2014 and further projected to reach US$x.x million by 2020, thereby reflecting a CAGR of xx.x% between 2012 and 2020. Though accounting for the smaller share estimated at xx.x% equating to US$x.x million in 2013, value demand for Tocotrienols in India is likely to record the faster CAGR of xx.x% over 2010-2020 and reach a projected US$x.x million by 2020. The sizeable growth witnessed by Tocotrienols in India between 2010 and 2012 in terms of volume consumption is also evidenced in terms of value growth, as the table below depicts.

Chart 25: Indian Natural Vitamin E Market Overview by Vitamin E Type (Tocopherols and Tocotrienols) in US$ Million

Year Tocopherols Tocotrienols Total

2010 xxxx xxxx xxxx 2011 xxxx xxxx xxxx 2012 xxxx xxxx xxxx 2013 xxxx xxxx xxxx 2014 xxxx xxxx xxxx 2015 xxxx xxxx xxxx 2016 xxxx xxxx xxxx 2017 xxxx xxxx xxxx 2018 xxxx xxxx xxxx 2019 xxxx xxxx xxxx 2020 xxxx xxxx xxxx CAGR% 10-12 xxxx xxxx xxxx CAGR% 12-20 xxxx xxxx xxxx

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Tocopherols Tocotrienols SAMPLE

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Vitamin E End-Use Industry Players

AMWAY INDIA ENTERPRISES PVT LTD Plot No. 84, Sector-32, Gurgaon – 122001 Haryana, India Phone: +91-124-3058888 Fax: +91-124-3058899 Website: www.amway.in

Business Profile

Amway India, founded in 1995 and a wholly owned subsidiary of Ada, Michigan, United States-based Amway Corporation, ranks as the number one Indian direct selling fast moving consumer goods (FMCG) company, engaged in manufacturing and distributing top drawer consumer products. The major proportion of products offered by Amway India is manufactured and sourced domestically via seven third-party contract manufacturers, and the company’s portfolio includes 130 products encompassing five categories, viz., Personal Care, Home Care, Nutrition and Wellness, Cosmetics and Great Value Products. Amway’s India-based manufacturing unit is scheduled to commence operations by the end of 2015. In the Nutrition and Wellness category, Amway offers Nutrilite, the leading global brand of vitamins and dietary supplements. NUTRILITE® Parselenium E is one product within this category, which is a naturally potent antioxidant supplement with 400 IU of vitamin E and 10 mcg of selenium. This product includes the full range of tocopherols, such as d-alpha-tocopherols in stable form. The company also utilizes natural vitamin E in its multivitamin supplements and personal care products.

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Natural Source Vitamin E (Tocopherols and Tocotrienols) – An Indian Market Overview © Industry Experts, All Rights Reserved

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ANNEXURE

RESEARCH METHODOLOGY

Scope of the Study The study is aimed to explore the market insights of Indian Natural Source Vitamin E for the below mentioned product types, end-use applications and geographic regions.

Product Types Natural Source Vitamin E types/forms analyzed in this report include the following –

► Tocopherols

► Tocotrienols

End-Use Applications Natural Source Vitamin E end-use applications analyzed in this report include the following –

► Animal Nutrition/Feed

► Human Nutritional/Dietary Supplements

► Food and Beverage Fortification

► Cosmetics

Region Coverage

The study is conducted on Indian market for Natural Source Vitamin E and also briefly discusses the Global Market for Natural Source Vitamin E.

Industry Experts has also published the Global Natural Source Vitamin E Market report. For more information about the report please click the below link:

Natural Source Vitamin E (Tocopherols & Tocotrienols) – A Global Market Overview SAMPLE