Lutein, an ingredient for eye health, is generally available as grain, extractum and crystal. It is not hard to produce grain and extractum, and the quality is equal in China. But for the depressed market, some manufacturers withdraw from the sector in recent two years. The crystle production has high technical requirements, and the product has larger profit space than extractum. So a few manufacturers involve in lutein enhancement production, but constrained by Kemin’s patents, it's hard to form large-scale supply layout. 

Domestic application increases

SANYUAN is the first company to launch infant formula such as ILACTOU featured by lutein in China, which may be followed by domestic manufacturers of infant formula. It's reported that Marigold-Lutein eggs were successfully produced in Lichuan city, Hubei province, and were sold to Beijing in September 2013. Many feed manufacturers established relationships with farmers in Lichuan, and invested to build breeding factories, which means that lutein application will expand in the feed sector. North China Pharceutical Group Corporation (NCPC) launched MeiLiFang(R) lutein ester tablet in August 2013.

Diverse Players

Kemin's patents on high-end lutein products hinder involvement of other manufacturers. China is the largest supplier of raw materials, but the production of advanced lutein products is limited by Kemin's patent on microencapsulation technology, according to Chenguang Biotech Group.

Willows (Israel) launched lutein in Europe, and OmniActive (India) advertised lutein on Supplyside West in 2013. It is hard for domestic players to build brands on the globe. Owing to the lack for clinical supports of domestic lutein, manufacturers have to export primary products. The representives include Qingdao Scitech, CNPC, Chenguang Group, Qingdao ZhongRen ZhiYe Bio-technology, Henan Zhongda Biological Engineering, Qujing Bohao Biotech and Xi'an Huarui Bio-engineering.

Small profit margin

The supply still exceeds the demand in 2013, said Chenguang Group. The price war doesn't stop through the year. It is hard to make profit only by lutein. The stagnant market doesn't affect high-end products, but makes low-end products with no profit.

Domestic manufacturers just maintained production in the last two years. China accounts for 70 percent of global lutein production, followed by India and Peru. 




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