Is there still a future for vitamin production in Switzerland?

Of the thirteen vitamins considered essential for human health, more than 80 per cent of eight of them are now produced in China. Keystone-SDA

China is flooding the global vitamin market, leaving European vitamin producers in a precarious position.

The world’s largest vitamin E factory is located in Sisseln, in the canton of Aargau in northern Switzerland. Vitamins have been produced there since the 1970s, and around a third of the world’s vitamin E comes from the site.

Silvia Sonneveld, head of the vitamins division at the flavour and fragrence firm DSM Firmenich, proudly shows us around the factory. Nowhere else in the world is production as efficient as it is here. However, this confidence is tempered by concerns.

+ Swiss seek China business boost as old trade links unravel

A new vitamin E factory is currently being built in China. “There are lots of rumours about when it’s due to be completed. Perhaps by the end of this year,” says Sonneveld. The fear is that the additional factory in China is likely to lead to a global oversupply of vitamin E. Already, around 60% of the world’s vitamin E comes from China.

History of vitamin production in Switzerland

Vitamins have been chemically identified and characterised since 1906. In 1934, Swiss pharmaceutical firm Roche began the world’s first industrial production of a vitamin. Roche subsequently expanded its vitamins division further and sold it to the Dutch company DSM in 2003.

In early 2026, it was announced that the private equity firm CVC would acquire a majority stake in DSM’s vitamins division, Firmenich. The transaction is due to be completed by the end of the year, subject to regulatory approval.

The future independent company, which will specialise in the production of vitamins, carotenoids and flavourings, will generate turnover of around €1.8 billion (CHF1.7 billion) and employ around 3,600 staff. Once the transaction is complete, the company will also be given a new name.

By building ever-larger production capacities, Chinese manufacturers have already dominated the global market for other vitamins. Of the thirteen vitamins classified as essential for humans, over 80% of eight of them are now produced in China. China now produces over 90% of global output of vitamins B6, B9, B12, vitamin H and vitamin C.

European manufacturers can now only maintain a marginal presence. Meanwhile, in the US there is no longer any industrial production of vitamins at all.

+ Nestle to sell vitamins business for $1 billion

For some products, production capacity is now twice as high as demand, according to Sonneveld. “This creates a dynamic of oversupply, which leads to falling prices. The result: all manufacturers are selling their products at a loss.”

How the ‘China Playbook’ works

The methods China has employed in vitamin production are familiar from other sectors – such as solar panels or electric cars, according to Swiss public television SRF’s China correspondent Lukas Messmer.

First, the leadership in Beijing decides to focus on a particular sector; this objective is then supported at all levels of government, right down to the provinces. “Through subsidies, cheap electricity, research or even special regulations,” explains Messmer.

This results in a ruinous price war among local Chinese companies, in which foreign firms are often unable to compete. “They have to cede their market share to their Chinese competitors, who then export their products globally,” he says, summarising the situation.

Risk of dependence on China

Various vitamins are produced in Sisseln, which end up, for example, in food, dietary supplements, cosmetics and the feed for millions of farm and pet animals. Around a thousand people are employed here. Another important production site for the company is Grenzach in southern Germany.

They are working hard to be as efficient as possible at every level. However, according to Sonneveld, the market situation for some products is precarious.

“At a certain point, it becomes an economic decision for the company as to whether to discontinue the manufacture of a product,” says Sonneveld. Vitamin B1, which the company produces in Grenzach, is one example. “If we have to decide to shut down this production for economic reasons, the world would be completely dependent on supplies from China.”

The example of baby food earlier this year demonstrated just how vulnerable a globalised and highly concentrated supply chain in the food industry can be. Food giants Nestlé and Danone, as well as the Swiss manufacturer Hochdorf, had to recall batches of their products across Europe.

The reason was that there were suspicions that the toxin cereulide was present in several of their baby milk products. It can cause diarrhoea and be life-threatening, particularly for infants.

Shortly afterwards, the toxin was traced to contamination of the additive arachidonic acid. The additive originated from a Chinese factory that had supplied all the affected baby food manufacturers.

Lessons learnt from the infant formula recall

Georg Aichinger, a toxicologist at ETH Zurich, believes that the European system functioned well in the cereulide case. “As soon as the contamination was detected, the manufacturers reacted very quickly, informed one another, carried out analyses and withdrew products from the market.”

He is less positive, however, about the level of transparency on China’s part. “Very little information was received from China. Enquiries were also actively blocked. There is already a suspicion that the authorities did not want to pass on any further information,” says Aichinger.

Because cereulide is a bacterial toxin, it is possible to piece together how the contamination occurred. “It stands to reason that there was bacterial contamination during the biotechnological production process,” said the toxicologist. One thing is clear: “We are not receiving the same information that we would certainly have had if this had been produced and happened in Europe.”

Vitamins are not just lifestyle products

Georg Aichinger, a toxicologist at the Swiss Federal Institute of Technology ETH Zurich, conducts research into toxins in food, including cereulide. He sees parallels between the cereulide case and the vitamin market. Some vitamin supplements could be described as lifestyle products that one could do without.

“But there are also some products that should actually be regarded as critical raw materials.” As examples, he cites vitamins added to infant formula, or vitamin B9 – known as folic acid – which is recommended during pregnancy.

“If there is a very high concentration of imports from just a few third countries or from just a few manufacturers, there is always the risk that, in the event of a production or supply disruption, the entire market will face a real problem.”

A call for political action

Competition is important for companies, as it leads to the best possible prices for society, says Sonneveld. However, all competitors must operate under the same conditions.

The issue has now reached the attention of European policymakers. We are in dialogue with politicians and authorities, Sonneveld continues. “If they recognise these products as strategically important in the areas of food safety and health, then they must ensure that we can continue to produce them here.”

Another positive development is already noticeable: customers in the food and feed industries are increasingly ensuring that their critical ingredients come from crisis-proof sources. “That plays into our hands. We are one of the few manufacturers still producing almost all vitamins in Europe,” says Sonneveld.

Translated from English, sub-edited by jdp