Vitamin B5 Prices Plummet Across the Globe Amidst Declining Demand and Abundance of Supply

In July 2023, the prices of Vitamin B5 decreased further due to a decrease in downstream demand, which was offset by an abundance of supply in the market. As a result, market manufacturers reduced their prices to entice buyers and maintain their profit margins. Declining purchasing activity, sales, and new orders in the global market further supported this downward trend.

Vitamin B5, which is also referred to as pantothenic acid, belongs to a group of eight B Vitamins. All B Vitamins are required to break down fats and carbohydrates into glucose, which is then used to generate energy. Vitamin B5 is an essential nutrient that is found naturally in food and available as a dietary supplement.

In the United States, Vitamin B5 prices continued to fall due to a decrease in end-user industry consumption, as suppliers remained with a sufficient supply of the product to meet the overall demand. The U.S. manufacturing PMI (Purchasing Managers' Index) was 46.4% in July, which was 0.4% higher than June's reading of 46%. This month's PMI reading indicates that economic activity in manufacturing declined for the ninth straight month in July, following 28 months of expansion. New orders further declined in July as domestic and foreign demand conditions remained subdued. Additionally, a difficult sales environment caused businesses to reduce their input purchases, resulting in a significant decrease in inventory levels. Moreover, an interest rate hike by the US Federal Reserve has further declined the demand in the market, which has added downward pressure on Vitamin B5 prices.

A similar downward trend of Vitamin B5 is observed in the German market. The demand from end-consumers has sharply decreased due to a variety of factors, including customer hesitancy, destocking, higher interest rates, along with tightening market conditions and economic and geopolitical uncertainties.

The Chinese economy is currently experiencing difficulties in regaining momentum. Manufacturing activity has been halted amid lower overseas orders and insufficient domestic demand, which has put downward pressure on Vitamin B5 prices. Moreover, extreme heat waves and intense rainfall in China have further kept consumer confidence on the lower side. Additionally, the Chinese Yuan has appreciated against the US dollar, which has decreased exports and increased supply, supporting the declining trend of Vitamin B5 in the Chinese market.

According to ChemAnalyst analysis, the prices of Vitamin B5 continued to decline further due to a consistent weak demand outlook from end-user nutraceutical and pharmaceutical industries, coupled with adequate inventories in the market. Weak trade activities might further keep the market on the lower side.