09 Mar

Plant Extracts Industry Introduction

Plant extracts refer to the products formed by using appropriate solvents or methods, through physical and chemical extraction and separation processes, directional acquisition and concentration of one or more effective components in plants without changing the structure of the effective components.

At present, there are more than 300 kinds of industrial extracts, which can be divided into three types: effective monomer extracts, standard extracts and ratio extracts according to the content of active ingredients. According to the components, it can be divided into acids, polyphenols, polysaccharides, flavonoids, alkaloids, etc. According to the product form can be divided into vegetable oil, extract, powder, lens and so on; According to the use, it can be divided into natural pigment products, traditional Chinese medicine extract products, extract products and concentrated products. Plant extracts are important intermediates, which have been widely used in food and beverage, flavoring, medicine, health products, nutritional supplements, cosmetics, feed additives and other industries.

Analysis on Export Scale of Chinese Plant Extraction Industry

Since the 1980s, the voice of "advocating nature and returning to nature" has become louder and louder. As a new industry, plant extraction industry has taken the lead in Europe and America. With the advantage of abundant plant resources, Chinese plant extraction industry started from the 1990s, and more and more Chinese enterprises began to export plant extracts to Europe and the United States.

With the improvement of human living standards, the idea of returning to nature has been strengthened. Food, medicine, health care products and cosmetics are becoming green, natural and pollution-free products. Plant extracts have a huge development space and market prospect at home and abroad. As an important exporter of plant extracts, China still achieved a good growth rate during the outbreak, especially in the US market.In the downstream industry demand, the pharmaceutical industry accounted for the largest proportion of demand, followed by food, cosmetics industry. In 2018, the proportion of plant extracts used in medicine / food / cosmetics / others was 45.23% / 25% / 22.63% / 7.14%, respectively.

According to Chinese customs statistics, China's exports of plant extracts reached $2.372 billion in 2019, with a compound annual growth rate of 13.35% from 2010 to 2019. In 2020, China's total export of plant extracts was 2.45 billion US dollars, up 3.6% year on year. The export volume was 96,000 tons, up 11.0% year over year.

In 2020, the amount of plant extracts exported from China to the North American market increased by 36.8% and the export volume increased by 49.7%. In 2020, the amount of plant extracts exported to the United States was $610 million, an increase of 35.8% year on year, and the export volume was 24,000 tons, a growth of 48.8%. The United States remains China's largest export market for plant extracts, followed by Japan and Indonesia, accounting for 13.91% / 8.56% / 5.40% of total exports in 2019. US plant extracts market demand is strong, from the trend, the US market growth is sufficient, the market growth rate will remain at 8-10%.

Industry status analysis

Plant extract industry as a sub-industry of the big health industry, is still a growing stage of emerging industries. At present, China's plant extraction industry has a high degree of marketization, the number of enterprises in the industry is large, but the scale is different, the industrial concentration is generally low. There are many varieties of plant extracts, and more than 300 varieties have entered the industrial extraction. The market size of a single variety is about ten million to several billion yuan. Because of the small size of the market for a single product, in the market where each single product is located, There are few enterprises with comprehensive strength. The leading enterprises can improve their market share rapidly by virtue of their scale, technology and management. More and more single products gradually enter the market pattern of monopolistic competition or oligopoly.

At present, there are more than 2000 enterprises engaged in the plant extraction industry in China, most of which are small in scale, low in technology and management level, few varieties of production and sales and low in industry concentration. With the improvement of industry regulation, standardization of plant extract standards, and improvement of quality requirements from consumers, plant extract industry is gradually getting rid of the low threshold of disorderly competition. Entering the stage of benign development driven by quality and technology, leading enterprises with good brand reputation, strong technological innovation ability and strong capital strength will stand out from the competition, continuously improve market share and lead the healthy and sustainable development of the industry.

Due to the dependence on the acquisition of plant raw materials, it presents a certain regional, seasonal and cyclical characteristics, the cyclical changes in upstream raw materials prices have a greater impact on product prices. In recent years, with the continuous increase of health consumption demand, and increasingly personalized, diversified and multi-level.

For the leading enterprises in the plant extraction industry, due to the small size of the single product market constraints, it is an inevitable choice to seek the development of more varieties. According to their own accumulated raw materials, technology, scale or customer resources advantages, actively develop new varieties or new business, developed two main growth models

:1) to improve the procurement and sales network as the core advantage, to provide customers with one-stop plant extracts product services, product lines rich, can produce dozens or even hundreds of varieties;

2) With technology research and development and industrial production capacity as the core advantage, to provide customers with stable quality, cost-effective products, product line focus on a few large single products.

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