Feike Sijbesma, chairman and chief executive officer of Royal DSM NV, sees the huge potential in China's nutrition market as the company expresses plans to invest more in the country. (Photo : YouTube)
The world's largest vitamin maker, Royal DSM NV, is seeing a big potential for growth in China following announcement by its chairman and chief executive officer that it will continue to invest in life science business as the market for nutrition supplements in the country expands, China Daily reported.
Feike Sijbesma, the Dutch company's chairman and CEO, said that as part of their expansion plans, they will launch new manufacturing plants, open research and innovation centers, and hire more local talent.
DSM posted sales of 937 million euros ($1.026 billion) in 2015 in China, one of its fastest growing markets. The revenue was up 12 percent from 833 million euros in 2014, according to the company's annual results.
DSM further strengthened its position in 2015 by acquiring Aland, a Hong Kong-based vitamin C manufacturer.
Sijbesma said that DSM sees the growth potential in the sector as China is undergoing reforms in the supply to give consumers better nutrition and better food.
According to the report, DSM is also expanding its factory in Tongxiang, Zhejiang Province, which produces gellan gum, a stabilizing and texturizing agent used in a wide variety of foods and beverages.
The market for nutrition supplements, food and other products is growing at a fast pace in the Chinese market, along with rising consumer awareness, analysts said.
Data from Beijing-based market information research firm Zhiyan Information Ltd. showed that the annual compound growth rate is expected to surpass 10 percent in the next five years.
In 2015, China's health-related products market, which included protein, vitamins, fish oil and other supplements, exceeded 400 billion yuan ($61.24 billion), which is expected to double by 2022, data from the China Nutrition Societies showed.
"I am not with the people who are overconcerned with economic slowdown," Sijbesma said. "I am still positive about China's underlined fundamentals with consumption-driven growth, talent with knowledge who can contribute to innovations, and consumers willing to spend more amid urbanization."
The DSM CEO added that the company is also developing an animal nutrition business to meet the demand for quality ingredients and additives for animal feed, as consumers demand more, better and safer sources of meat and eggs.
The report said that DSM now regards China as a hub for manufacturing as well as innovations for the company's global operation, and not just as a consumer market for the company.
According to Sijbesma, the company has long-term commitment to develop and grow in China where urbanization, leadership and growth of knowledge are making the fundamentals promising, adding that DSM is now expanding its materials business by leveraging on local innovation resources to support its global operations and grow together with its partners in China.
