Competitive Landscape and Prospect Analysis of China's Plant Extract Industry, 2023-2028

2023-07-25

1. Analysis of the Competitive Landscape of China's Plant Extract Industry
At present, China's plant extracts belong to the emerging health raw materials industry, the threat of substitutes is relatively small; segmented products, market concentration is low, part of the market segments to form a monopoly pattern but the overall point of view of the degree of competition among existing enterprises is still general; upstream suppliers of plant raw materials for plant extracts and plant production and testing equipment, of which raw material costs accounted for more than 90% of the industry bargaining power of the upper reaches of the raw material is relatively low. In contrast, the plant extracts industry on the production of equipment bargaining power is relatively strong, mainly due to plant extracts equipment manufacturers are more, the industry has a greater choice of products, buyers have a more obvious advantage.

Plant extracts are important raw materials for the production of downstream industries, such as pharmaceuticals, cosmetics, food and beverage industries will more or less use to plant extracts, so a single market fluctuations on plant extracts to bring less impact, plant extracts on the downstream industry bargaining power is stronger. At the same time, due to the high technological threshold of the industry, the threat of potential entrants is small.

2. The United States is the most important export region for Chinese plant extracts.

The U.S. is the largest export market for China's plant extracts, and strong exports to it drove the rapid growth of Herbal Extracts exports, with China's exports to the U.S. amounting to $770 million in 2021, accounting for 25.41% of the total exports of plant extracts, up 25.7% year-on-year. The spread of the epidemic has boosted the demand for major health products, plant extracts as the raw material for dietary supplements in the United States, strong demand pulling China's exports of plant extracts to grow at a high rate.

3. Prospect analysis of China's plant extract industry
In the future, with the gradual growth of China's traditional Chinese medicine industry and food industry, the market scale of China's Herbal Extract industry will also continue to expand. Foresight based on the growth rate of China's plant extract industry market size in previous years, 2023-2028, China's plant extract industry market size will grow at a compound growth rate of 10%, is expected to 2028, China's plant extract industry market size will reach 7.8 billion U.S. dollars.

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