Plant extraction industry enters golden period of development

Key Tips: In recent years, the development of China's plant extraction industry has entered a golden period of development, but at the same time, it is also experiencing a period of industrial troubles. Regardless of whether it is stand-alone or industry-specific, enterprises need to innovate on their own. China's plant extraction industry is also experiencing a return from barbaric growth to rational development. In the future, how to create competitive products and have a greater impact on natural health products will become the main focus of the industry.

Welcome to the blue ocean

Expanding consumer reach

Plant extracts are widely used in plant medicine, food supplements, functional nutrition, cosmetics and other fields. Especially in the field of healthy nutrition, whether it is functional health food or nutritional supplements, plant extract is a core part of the core competitiveness of products, as well as the most important part.

In the past, China's plant extraction industry was mainly export-oriented. At present, China's plant extract market is a blue ocean in terms of scale and growth rate.

According to the statistical annual report of the former State Food and Drug Administration, 2,317 health food production licenses were issued nationwide in 2017, and the total food and health care market in China exceeded 700 billion yuan. It can be seen that the industry still has huge room for growth. The growth rate of market consumer potential is associated with an overall increase in consumption levels, and people are more willing to pay for health.

In 2017, China's per capita healthcare expenditure was 1,451 yuan, higher than per capita consumption expenditure. In addition, the consumer population of the healthy food market also strives for variety.

Post-90-ers who are passionate about the&"health trend"&", like 90-young people, love to buy health products. According to Yibang Power, one of the favorite healthcare products in post{{2} }x and post-90-x had loquat in last year's double 11&# 39. Post-90-x coexist with the growing number of gray-haired people and are gradually emerging as another force in the consumption of health care products.

Industry weakness

Limit the development of the industry

Although the plant extraction industry has a huge market space, in recent years the industry has also experienced a transition from cut-throat competition to standardized development. At present, the plant extraction industry still faces a short time.

In the face of intense international competition, the domestic natural health products industry needs to grow more both internally and externally to have a greater voice and a key position in the production chain. Because with rapid development, endogenous problems such as large-scale industry development are not obvious, the core competitiveness is low, and R& amp; & & & & & & & & & & & & D ability is not strong to start highlighting.

First of all, at present, the development scale advantage of China's health food industry is not obvious, the investment range of more than 100 million yuan of enterprises is only 1.45% of the total number of enterprises in the industry, 100,000 yuan per 1 million yuan of enterprises, accounting for 41 .39%, and less than 100,000 yuan enterprises by 38%. This indicates that the industry has not yet formed large-scale development. Moreover, when it comes to products, the competition of imitation and homogenization is severe. Against the backdrop of increasingly fierce international competition, domestic enterprises have to face the “cannibalism” model of competition.

In addition, the quality control system has a low industry standard and entry threshold; Sales channels also experience excessive publicity and even false publicity and other incidents that are contrary to the rights and interests of consumers from time to time.

External calls

Forced innovation in the corporate market

China's plant extraction industry needs to overcome the development bottleneck and solve the industry's development problems. Changes and challenges in the external environment also require the Chinese natural health products industry to make positive changes. In the past, China was a major exporter of plant extraction raw materials in the plant extraction industry, but it was weak in competing for products downstream in the production chain. With increasing international competition, the only way to maintain the status quo is to wait and die.

Although China's health food market has a scale of 100 billion, not everyone can get a share. Relevant data shows that in 2017, sales of imported health food products accounted for 10% of total cross-border e-commerce imports, reaching a market scale of 50 billion yuan. The total volume of cross-border e-commerce imports was close to the share of domestic health food brands.

According to the China Chamber of Commerce Medical and Health Products Import and Export Data Group, China's herbal extract exports amounted to US$2.01 billion in 2017, up 4.33% over the same period last year. However, China's healthy food exports were only US$241 million, down 3.35% from the same period last year.

Meanwhile, in 2017, China's health food imports reached US$323 million, which is not surprising, but the year-on-year growth rate reached 69.51%. In other words, the influence of foreign products on the domestic market is increasing, and domestic health food cannot escape fierce international competition.

These data reflect that the development of the plant extraction industry in China marks a golden period of development, but also indicates that the industry is going through a period of industrial challenges. Regardless of whether it is independent or industry-specific, domestic healthcare product enterprises need to introduce their own innovations.

Take advantage of

Turning crisis into opportunity

Generally speaking, in R& amp; D, enterprises need to innovate more and increase investment in scientific research, rather than simply being satisfied with the lowest profits in the production chain. In the manufacturing process, we need to use digital technology to redefine quality control; On the marketing side, we need to expand new channels, collaborate with downstream companies and carry out brand building.

Meng Dongping, vice president of the China Chamber of Commerce for Import and Export of Medical Products, said: “If the natural health products industry wants to overcome the development bottleneck and enter into large-scale development, it must have an international vision and adhere to international regulations; Secondly, we must continuously innovate to create differentiated competitive advantages; Thirdly, through the industry platform, we must integrate investment and trade, import and export."

Zhang Chengwen, Chairman of the China Herbal Extracts Industry Division, said, "At present, the industry still needs relevant laws and regulations to standardize the development of the industry. At the same time, it is necessary to fully launch the consumer education mechanism and establish a quality control mechanism from raw materials to appeals."

In the future, the plant extraction industry will become increasingly stronger, and the formation of differentiated core competitiveness cannot be completed in a short time. Relevant industry insiders said they are promoting the comprehensive development of the industry, improving the capabilities of scientific research, quality control, service and other communications, playing a greater role in the strategy of a healthy China, and better fulfilling the multi-level needs of consumers and customers.