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Plant extract industry is booming

People are not only filled with hope but also have a trace of worry about the plant extracts industry. The expect is from the rapid development in Chinese plant extracts industry for the past 10 years.

†It has become an important force in the global market. The worry is that the market is in a state of disorder and it needs to improve the safety and competitive advantage.

In 2010, composed by the four major categories of dietary supplements, natural organic food, natural care products and functional foods constitute a global nutrition market size is about f $ 210.4 billion. It is expected that in the next 10 years the annual growth rate will exceed 8%; the global plant extracts material with annual sales of $ 6.5 billion, the growth rate of about 20% higher than the drugs.

The first major exporter of Chinese plant extracts is the United States accounting for exports of 30.06%. The 21.82% are exported to Europe, 16.86% are exported to Japan. Plant extracts advantage of China's vast plant resources and relatively low operating costs. Increase of the overall trend of global aging and the natural demand for drugs will continue to provide a huge market space, which provides development opportunities for China's plant extracts. Plant extracts come from agricultural products, development of the industry will be able to drive a new type of rural development.

At the same time, the plant extract industry should be standardized. First, Chinese plant extracts the current level of competition is relatively low, uncoordinated with the export volume of the market continued to rise. Firm size is relatively small, generally 2 billion to 3 billion in sales; low level of price competition between enterprises, despite the current exports are rising, but profit margins have been falling. Second, the plant extracts in the department in charge of standards, the legal status of the three noes state. No standards and no legal status, making the industry the threshold is very low, resulting in an influx of a large number of small irinotecan businesses, and also planted a hidden danger for the safety of products. Third, the technological content of export varieties is relatively low and the patented product is not rich. Most crude exports are relatively low-end. The Chinese plant extracts lack of international competitiveness mainly due to plant resource constraints, backward extraction process, the lower the level of equipment, as well as new R & D investment less.

Enterprises should improve the technological content of products to raise profit margins. Plant extracts are still relatively small scale and lack of benchmark enterprises with high visibility. Chinese enterprises can choose the way of the development of a complete industrial chain to build growth companies, plant extracts is the main raw material for health products. Chinese enterprises can emulate the API manufacturer to do the preparations the production of health products.

Plant extracts has rapid development in the irregulatory environment. Chinese enterprises generally aware of the urgency of the industry norms and self-discipline. The country began to pay more attention to the development of this chia seed industry. For medicine extractís foreign market demand, China should focus on support demand, high tech and comprehensive utilization-oriented. They can promote the specialization of Chinese medicine industry with independent intellectual property rights and market competitiveness of Chinese medicine standard extract industry, the formation of the extract of 20 kinds of traditional Chinese medicine has a competitive advantage in the market standardFree Articles, the new Chinese medicine standard extract exports worth $ 200 million. The sales are 2 billion RMB in China.


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