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China's Nutraceutical Ingredient Exports: Challenges and Prospects

Admin我的商店 Feb 19 2025Translation missing: ru.blogs.article.comments

Industry Overview: The Core Position of the Global Supply Chain China has become the core force in the global supply of raw materials for health care products. Data shows that more than 80% of the health food raw materials used in the United States, Europe and Oceania countries rely on imports from China. From plant extracts to bulk raw materials such as vitamins and amino acids, China has long dominated the global market by virtue of its industrial advantages of large scale, low cost and high output. For example, vitamin raw materials have consistently ranked first in export categories all year round, followed closely by amino acids and plant extracts. As of 2023, China's annual export value of health care raw materials has exceeded US$540 million, of which fish oil and cod liver oil products have grown as high as 66%, becoming the main force driving growth.
At the technical level, China's extraction technology has reached the top international level, especially in the fields of separation of plant active ingredients and microbial fermentation technology. . For example, raw materials such as steroid hormones and antibiotics account for more than 50% of the global market share, and many companies have passed US FDA certification and EU COS certificates, improving their international competitiveness.

2. Foreign trade: growth and volatility coexist
Export scale continues to expand Historical data: In 2018, the import and export volume of health care products reached US$4.68 billion, a year-on-year increase of 31.5%, a record high . Trend in recent years: Health product exports will increase to US$540 million in 2023, a year-on-year increase of 42%, mainly relying on fish oil products and demand from emerging markets such as Southeast Asia. . Category structure: Bulk raw materials (such as vitamins and antibiotics) account for 45%-54% of the total exports of pharmaceutical and health products, and are still the mainstay of exports. Two-way competition in the import market Although China is a major exporter of raw materials, the finished health products market is facing the impact of international brands. Through overseas purchasing agents, cross-border e-commerce and other methods, foreign brands (such as Australian and American products) are expanding their share in China. In 2023, China's imports of health care products will reach US$1.16 billion, a year-on-year increase of 10%, showing domestic demand for high-end products.
Impact of trade frictions The Sino-US trade war has put significant pressure on raw material exports. Among the U.S.’s additional tariffs on $250 billion of Chinese goods, the third round of tariffs directly impacted health product raw materials, causing some companies to increase their export costs. . However, domestic companies have resolved risks through strategies such as overseas mergers and acquisitions (such as acquiring international brands) and supply chain synergy (using channels to complement R&D).

3. Competitive advantages and industry barriers 1. Core advantages Cost and scale: The production cost of chemical raw materials is 30%-50% lower than that in Europe and the United States, and the concentration of production capacity is high . Policy support: The Ministry of Commerce released the "Export Technical Guidelines - Health Food" to help companies expand into the US, Europe, Japan and other markets in compliance with regulations . Improvement of the industrial chain: From the cultivation of Chinese medicinal materials to the extraction of biologically active substances, a supply system covering the entire chain has been formed. 2. Industry barriers Technical barriers: High-purity extraction technology and patented formula research and development require long-term investment. Certification barriers: Entering the European and American markets requires strict certifications such as FDA and COS. . Brand barriers: International customers tend to cooperate with companies with stable quality records.

3. Competitive advantages and industry barriers
Core advantages Cost and scale: The production cost of chemical raw materials is 30%-50% lower than that in Europe and the United States, and the concentration of production capacity is high. Policy support: The Ministry of Commerce released the "Export Technical Guidelines - Health Food" to help companies expand into the US, Europe, Japan and other markets in compliance with regulations. Improvement of the industrial chain: From the cultivation of Chinese medicinal materials to the extraction of biologically active substances, a supply system covering the entire chain has been formed. Industry barriers Technical barriers: High-purity extraction technology and patented formula research and development require long-term investment. Certification barriers: Entering the European and American markets requires strict certifications such as FDA and COS. Brand barriers: International customers tend to cooperate with companies with stable quality records.

4. Challenges and Risks
External environmental pressure Trade protectionism: Tariff barriers and technical trade measures (such as the EU REACH regulations) make exporting more difficult. International competition intensifies: India is in direct competition with China in some areas of APIs (such as generic drugs). Internal issues Dependence on low added value: Exports are still dominated by bulk raw materials, and high value-added preparations account for an insufficient proportion. Low market concentration: there are many small and medium-sized enterprises, and industry integration needs to be improved.

5. Future trends:

Diversification and high-quality development

Market diversification Expansion of emerging markets: Rapidly growing demand for health care products in Southeast Asia, the Middle East and other regions has become a new growth point for exports. Product upgrades: Natural plant extracts (such as Ganoderma lucidum, Cordyceps sinensis) and marine biological raw materials (such as fish oil) are very popular.

Technology-driven innovation Synthetic biology: Using gene editing technology to produce rare active ingredients and reduce dependence on natural resources. Digital marketing: Cross-border e-commerce and social media help small and medium-sized enterprises directly reach international customers.

Policy and industry coordination: The China Chamber of Commerce for Import and Export of Medicines and Health Products helps companies deal with compliance risks through information platforms and trade promotion activities. At the same time, domestic companies are accelerating their transformation to the OBM model (independent brands) and improving their status in the global value chain.