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As a result of Market Competition, Ubiquinone values fall in China

As a result of Market Competition, Ubiquinone values fall in China

As a result of Market Competition, Ubiquinone values fall in China

  • 01-Jul-2022 6:18 PM
  • Journalist: Xiang Hong

It is no secret that China is a global powerhouse and has influenced the nutraceuticals business, especially in the ingredient and dietary supplement segments, where labor costs make up a significant portion of manufacturing expenses. As a result, China has evolved from only being a net provider to the global nutraceuticals market to also becoming a net consumer of nutraceutical products. 

After the United States and Japan, the Chinese nutraceutical market is regarded as the third-largest in the world. Despite solid fundamentals and high yearly growth rates, the Chinese market is still far from reaching its full potential. Ambiguities around nutraceuticals and how they should be handled have somehow clouded its evolution. The unprecedented outbreak of covid has taken a toll on the economy and markets in China by hampering the production activities, supply chain, port movement, etc.

President Xi Jinping has reiterated China's zero-COVID policy, which officials claim is essential to protect the elderly and the nation's healthcare system even though other nations are attempting to live with the coronavirus. However, China's infection rate is low by international standards.  

Given that China is the world's largest producer and supplier of CoQ10 (Ubiquinone), the nation's intermittent lockdowns have seriously impeded trade with importing nations. As many of the most extensive production facilities in the nation have undergone maintenance, several new competitors have emerged in the market, increasing market competition. The makers have reduced the price of Ubiquinone in the local Chinese market due to competitiveness and eliminating inventories. 

It has now become evident that the delays off the coast will take a little longer to improve after projections for bottleneck relief came and went with little or no improvement. China's "ineffective" zero-tolerance rules and restrictions continue hamper manufacturing and logistics. To help downstream industrial businesses whose earnings have been hurt by the high cost of raw materials, China is also reportedly considering "special" new laws.

ChemAnalyst forecasts that CoQ10 prices in China will stabilize once the plants are back in operation following maintenance, considering the substance's new supply. Along with increasing trade activity, the end-user demand from the pharmaceutical and nutraceutical industries is projected to improve domestically and internationally in the upcoming weeks.

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