After Its Withdrawal From the EU Market in 2018, Vitamin B2 Makes Comeback, Benefitting Nutraceutical Businesses

When we talk about commerce between China and Europe, a positive picture usually emerges as China is Europe's largest trading partner, doing business in the whole shebang, from pharmaceutical drugs to industrial goods. According to the UN Comtrade database on global commerce, the European Union (EU) imported pharmaceutical products from China worth $3.42 billion in 2022 alone. On a value basis, the EU itself produces 24% of the world's generic Active Pharmaceutical Ingredients (APIs), compared to 66% in Asia Pacific (China and India), 3% in North America, and 7% in the rest of the world. Additionally, there are just a few sources from which APIs such as Vitamin B2 and others are imported into Europe, including China (which accounts for 45%), India, the US, the UK, and Indonesia.

China-based Guangji Pharmaceutical Industry is a significant producer of Vitamin B2 (Riboflavin) across the world. In addition to winning the top prize for scientific and technological advancement in Hubei Province in central China, its core production technology also took home the second-place award for national scientific and technological advancement. Vitamin B2 is a feed additive that was awarded the title of "China Famous Brand" in 2007. With exports to more than 80 nations and regions across five continents, China's production and sales of Vitamin B2 rank first in the world. According to the sources, Vitamin B2 80% has satisfied the requirements for market access for EU feed additives and will be offered for sale across the EU market after April 10, 2023. This development is sure to garner considerable interest in both nations, i.e., China and Europe. The Guangji pharmaceutical company ceased selling the feed additive Vitamin B2 80% in the EU zone in 2018, which had a detrimental impact on the country's market dynamics, considering the EU has been its considerable importer. 

The demand for Vitamin B2 has increased from the European end-use sectors, including both the pharmaceutical and nutraceutical industries, according to ChemAnalyst experts, who predict that the price will climb in both China and Europe. Following an extended period of drug shortage in the European region, market participants are prepared to replenish their Vitamin B2 stock levels. Moreover, since the cost of shipping goods by ocean freight has substantially decreased to pre-pandemic levels, ocean carriers are still displaying indications of fortitude, which will only strengthen the foundations of the market for nutraceuticals and facilitate the export of Vitamin B2 from China in the EU.