BASF presents global business unit “Nutrition Ingredients” to further expand in vitamins

22 Jul 2022 --- BASF is seeking to strengthen core product platforms in vitamins and carotenoids with its new global business unit, Nutrition Ingredients. Following last year’s investment in the vitamin A plant expansion in Ludwigshafen, Germany, the company aims to expand world-scale vitamin A distribution.

“Overall, BASF Nutrition & Health has a strong commitment to further develop its vitamins and carotenoids business, which are core ingredients in our human nutrition portfolio. With the changes announced, we aim to strengthen our core product platforms supported by investments in organic growth,” Tina Low, vice president at BASF Human Nutrition, tells NutritionInsight.

“Additionally, we continue to support our customers in animal and human nutrition with a new setup for nutrition ingredients and leverage our strengths in technology, research and development, as a leading ingredient supplier to the animal and human nutrition markets,” she notes.

The company highlights that the new Germany-based business unit will be supported by the division’s technology leadership while building on large-scale product platforms. 

Tackling energy crisisVitamin A will continue to be the company's main product focus.
Previously, BASF stressed the rising energy costs accounted for “approximately 50% of additional costs resulting from the further increase in natural gas price was incurred in the fourth quarter alone.” 

“Currently, natural gas is supplied to all BASF’s European sites in line with demand. There are no supply-related shutdowns or curtailments. Our Human Nutrition production plants in Ludwigshafen are operating normally,” Low says.

“Indeed, we faced higher operating costs in energy, raw materials and logistics. To ensure our commitment to operating safely, reliably and producing quality ingredients, we had to raise prices across the human nutrition portfolio to cover the higher energy, raw materials, and logistics costs,” she adds.

Earlier this year, BASF increased the pricing of vitamin E by 20% on a global scale, with immediate effect as a response to higher expenses in raw material, logistics and energy expenses.

Beyond vitamin A
The company highlights two other growing demands, fragrance and flavor. Further developments include an additional business unit, Singapore-based Aroma Ingredients. 

“This will ensure proximity of the Aroma Ingredients headquarters to major growth markets in Asia while fully maintaining the strong commitment and connection to markets in the other regions,” the company adds.

Nonetheless, vitamin A remains as the core product of the company.To ensure quality ingredients, the company raised prices around the human nutrition portfolio to cover costs.

“Vitamins and carotenoids are at the heart of our business. We commit to reliable, competitive ingredients with leading formulations and application properties. Before the integration, vitamins and carotenoids were core product ingredients in the Human Nutrition portfolio. With this change, the business operations will be optimized to focus on this segment,” says Low.

BASF continues to highlight its diversified position in nutrition, pharma, flavor and fragrance markets.

“We need to evolve by tailoring our business portfolio with growth investments into our core value chains, technology and R&D capabilities to meet sustainability needs and address the challenges of climate change,” says Anup Kothari, president at BASF Nutrition & Health.

By Beatrice Wihlander