Geoff Meyers, head of the vitamin B3 business at US-based Reilly Industries, says the combined costs of raw materials and energy have already pushed production costs up about 30 per cent this year.
The main raw materials required for niacin production are derived from petrochemicals.
Reilly, a global supplier, announced a price increase of 7-10 per cent from 1 October on its niacinamide, the water-soluble version of the vitamin.
But Meyers told NutraIngredients.com: "If energy and raw materials go up again, we'll have to put prices up further."
The British and Irish millers association (NABIM) said the price rise would not impact the price of flour although energy costs directly affecting the milling process are currently significant.
Lonza, the leading supplier of niacin, is also putting its prices up in the new year.