Plant Extraction Industry Is Entering A Golden Period Of Development

Core tips: in recent years, the development of plant extraction industry in China is ushering in a golden period of development, but at the same time, it is also in a period of industrial pain. Whether it is self driven or industry driven, enterprises need to complete self innovation. China's plant extraction industry is also experiencing a return from barbaric growth to rational development. In the future, how to build competitive products and have a greater say in natural health products will become the focus of the industry.

Welcome to the blue ocean

Consumer coverage expanded

Plant extracts are widely used in plant medicine, food additives, functional food, cosmetics and other fields. Especially in the field of health food, whether it is functional health food or nutritional supplements, plant extract is a basic part of the core competitiveness of products, and also 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, in 2017, there were 2317 health food production licenses nationwide, and the total nutrition and health care market in China exceeded 700 billion yuan. It can be seen that the industry still has huge growth space. The growth rate of market consumption potential lies in the overall consumption upgrading, and people are more willing to pay for health.

In 2017, China's per capita health care expenditure was 1451 yuan, which was higher than that of per capita consumption expenditure. In addition, the consumer population of health food market is also tending to diversity.

The post-90s, who are keen on the "health trend", like the 90 year old people, love to buy health care products. According to the data from Yibang power, one of the favorite health care products of the post-80s and post-90s in last year's double 11 was medlar. The post-90s coexist with the growing number of silver haired people, and are gradually growing into another force in the consumption of health care products.

Industry weakness

Restrict the development of the industry

Although the plant extraction industry has a huge market space, in recent years, the industry has also experienced the process from vicious competition to standardized development. At present, the whole plant extraction industry is still facing the short board of development.

In the fierce international competition, the domestic natural health products industry needs more cultivation both inside and outside, in order to have more voice and occupy the core position in the industrial chain. Because in the rapid development, the endogenous problems such as the industry scale development is not obvious, the core competitiveness is not strong, and the R & D ability is not strong begin to highlight.

First of all, at present, China's health food industry development scale advantage is not obvious, the investment range of more than 100 million yuan of enterprises only accounts for 1.45% of the total number of enterprises in the industry, 100000 yuan to 1 million yuan of enterprises, accounting for 41.39%, and less than 100000 yuan of enterprises for 38%. This shows that the industry has not yet formed a large-scale development. In addition, in terms of products, the competition of imitation and homogenization is serious. Under the background of increasingly fierce international competition, domestic enterprises have to face the competition pattern of "cannibalism".

In addition, in the quality supervision system, the industry standard and access threshold are low; In the sales channels, excessive publicity and even false publicity and other incidents against the rights and interests of consumers also occur from time to time.

External challenges

Forced enterprise market innovation

China's plant extraction industry needs to break through the development bottleneck and solve the development problems of the industry. The changes and challenges in the external environment also need China's natural health products industry to make positive changes. In the past, China was a big exporter of plant extraction raw materials in the plant extraction industry, but it was weak in the product competition in the downstream of the industrial chain. With the 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 show that in 2017, the sales of foreign health food accounted for 10% of the total cross-border e-commerce imports, reaching 50 billion yuan market scale. The total import volume of cross-border e-commerce has been close to the share of domestic health food brands.

According to a group of data from China Chamber of Commerce for import and export of medical and health care products, in 2017, China's export of plant extracts was as high as US $2.01 billion, an increase of 4.33% over the same period last year. However, China's export of health food was only US $241 million, a decrease of 3.35% over 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 was as high as 69.51%. In other words, the impact of foreign products on the domestic market is growing, and domestic health food can not avoid the fierce international competition.

These data reflect that the development of plant extraction industry in China is ushering in a golden period of development, but also indicates that the industry is in a period of industrial pain. Whether it is self driven or industry driven, domestic health care products enterprises need to complete self innovation.

Take advantage of

Turning crisis into opportunity

Generally speaking, in R & D, enterprises need more innovation and increase investment in scientific research, rather than just satisfied with the lowest profit upstream in the industrial chain. In the production process, we need to use the digital way to redefine the quality control; In the marketing link, we need to expand new channels, cooperate with downstream enterprises, and carry out brand building.

Meng Dongping, vice president of China Chamber of Commerce for import and export of health care products, said: "if the natural health care products industry wants to break through the bottleneck of development and form large-scale development, it needs to have an international vision and follow international rules; Second, we should constantly innovate to create differentiated competitive advantages; Third, with the help of the industry platform, we should combine investment and trade, import and export. "

Zhang Chengwen, chairman of China plant extracts branch, said: "at present, the industry still needs relevant laws and regulations to standardize the development of the industry. At the same time, it needs to fully start the consumer education mechanism and establish a quality monitoring mechanism from raw materials to circulation."

In the future, the plant extraction industry will be from large to strong, and the formation of differentiated core competitiveness can not be completed in a short time. Relevant industry insiders have said that they have been promoting the development of the industry in depth, improving the ability of scientific research, quality control, service and other links, playing a greater role in the healthy China strategy, and better meeting the multi-level needs of consumers and customers.