The Export Of Plant Extracts Enters The Adjustment Period

- Jan 23, 2018 -

In recent years, the plant extracts industry develops rapidly, in the food, the medicine, the chemical industry and so on the widespread application, is our country Chinese Medicine type product important export variety, occupies its half. However, compared with the booming 2015, the export growth of extractive industries slowed in 2016, and the industry entered the adjustment stage.

Export overview

In 2016, the scale of plant extracts trade in China was shrinking: 2.45 billion U.S. dollars, down 4.77%, of which exports of 1.93 billion U.S. dollars, down 10.93% year-on-year, in contrast, imports amounted to 520 million U.S. dollars, the year-on-year increase of up to 27.84%. Taking into account that compared with 2015, the exchange rate fluctuation in 2016 has a greater impact on the import and export trade trends, the United States dollar is now converted into renminbi in accordance with the annual average rate of exchange, the following statistics are in renminbi. The result shows: in 2016, the volume of China's extract trade amounted to 16.17 billion yuan, an increase of 1.27%, but a decrease of 23.6%; among them, exports of 12.72 billion yuan, a slight decline of 5.28%, the import amount of 3.45 billion yuan, a sharp increase of 35.95%.

The decline in the export of extracts is mainly caused by the cliff-type fall of the essential oil products, due to the adjustment of market demand and the increasing regulation of customs supervision, the exports of essential oil products are 3.58 billion yuan, down 26.79% sharply. The traditional extracts, that is, the non-essential oil products are in a steady growth of the state, exports 9.13 billion yuan, up 7.03% year-on-year. As a matter of comparison, the roots of extractive exports are relatively solid.

Export market

In 2016, our country exported extract products to 150 countries and regions. Asia, Europe and the Americas are the main export markets, with exports accounting for nearly 90%. Asia is the largest market for extract exports, in 2016 China's exports to Asia amounted to 5.81 billion yuan, accounting for 45.7% of total exports, by the ASEAN market oil products, the decline of China's exports to Asia year-on-year reduction of 13.63%. and exports to Europe and North America as a result of non-essential oil products, then more stable, less volatile, exports are 2.72 billion yuan and 2.88 billion yuan respectively.

From the single country level, since 2011, the United States has replaced Japan as China's largest exporter of extracts. Extracts from the United States are mainly used in the production of dietary supplements and food additives. Since 1994, when the United States released Dahea (dietary supplement Tiyatien and Education Act), the dietary supplement industry has been developing rapidly, the demand for raw materials has increased sharply, and the export of extracts has been characterized by rigidity. 2016, China's exports to the United States a total of 2.77 billion yuan of extracts, the export amount accounted for up to 21.76%, an increase of 5.88%.

Japan and South Korea followed. China's exports to Japan for 1.44 billion yuan, up 1.16% year-on-year. In addition to the export of ordinary extracts, the raw material export of Chinese herbal medicines is a major feature of export to Japan. Japanese Han prescription industry demand for raw materials is great, Chinese herbal extracts such as peony and licorice soup, Maimendongtang soup, wuling powder, add flavor Xiaoyao san, etc., exports reached 540 million yuan. China's exports to Korea, although less than the United States and Japan, but due to the Korean health care products and cosmetics industry, the performance of the bright eye, exports amounted to 640 million yuan, an increase of 33.24%.

The rest of the top ten countries and regions, Spain, Germany, France and other Western European countries, the export of extracts are more stable, year-on-year growth of 20.95%, 13.77% and 9.15% respectively. Hong Kong's exports fell by 2.04% per cent year-on-year as a result of the decline in its re-export status. The rest of South-East Asia and other countries, due to the decline of essential oil products, exports declined significantly.

Export Products

2016, China's top ten varieties of extracts include: Stevia extract, eucalyptus Oil, menthol, Licorice Extract, marigold extract, capsicum pigment, blueberry extract, rutin and its derivatives, hesperidin, cinnamon oil and so on.

Stevia extract. 2016, stevia extract continued to stabilize the export of extracts, the annual export amount of up to 1.45 billion yuan. Stevia's main export market is the United States and Malaysia. The United States is China's largest sweet chrysanthemum export market, the export amount of 530 million yuan, exports accounted for the total number of stevia export 36.76%. Malaysia followed closely, with exports of 390 million yuan, which accounted for 26.74% of Stevia's total exports. Stevia market is very concentrated in the United States and Malaysia after the South Korea, Japan, Mexico and other countries, exports are only 120 million yuan, 70 million yuan and 60 million yuan, while the United States and Malaysia exports accounted for more than 60%.

Licorice extract. Because of the unfavourable foreign trade environment, and the international market because of the past years, export volume growth too fast and lead to market saturation, in the past three years, licorice market growth is weak. 2016 exports of 529 million yuan, an increase of 0.06%. Japan and the United States are the main export markets for licorice extracts, of which the amount of exports accounted for 62.07% of total exports. 2016, China's exports to Japan for 170 million yuan, fell 16.53% year-on-year, exports to the United States for 160 million yuan, an increase of 37.08%. Licorice exports to feed processing forms more, 2016 licorice import amount of 310 million yuan, due to the weakness of export market, resulting in the import of licorice also fell, down 1.55% year-on-year.

Ginkgo Biloba extract. Ginkgo Biloba extract in 2013 after the outbreak of growth, exports have always maintained a small growth trend. Although the 2015 domestic Ginkgo Biloba extract industry has undergone a major adjustment, but the overall impact on foreign trade is small, the 2016 Ginkgo biloba export increase in volume, exports amounted to 220 million yuan, an increase of 26.67%, the Ginkgo Biloba extract industry in which the standardization has a certain impact.

Ginkgo Biloba extract mainly exported to North America, Europe and Asia, Japan and South Korea, the United States is the largest export market, 2016 exports to the United States accounted for 37.51% of global exports, the United States Ginkgo leaf market is more stable, China's exports to the United States 83.928 million yuan, an increase of 7.46%. The Korean market has surpassed Germany since 2015, and has become the second largest market for Ginkgo biloba extracts, with exports reaching 25.514 million yuan, an increase of 41.64% per cent, and a vibrant market. Germany is also the traditional market of extracts exports, 2016 exports to 19.885 million yuan, an increase of 22.27%.

Export Enterprises

Due to the tightening of domestic policies, the overall foreign trade environment in the international market downturn, the increase in competition pressure, the 2016 extract export enterprises to reduce. China's extractive export enterprises a total of 2,120, compared to the 2015 reduction of 129, of which private enterprises in the reduction of 124 companies.

Our country extracts export industry concentration degree is low, the export main body is the private enterprise, the state-owned enterprise and the enterprises occupies the proportion to be few, but because the state-owned enterprise and the enterprises strength, has the scale superiority, the export amount rises 12.23% and 7.75% respectively Year-on-year, but the private enterprise is slightly weaker, Exports fell 11.79% per cent year-on-year. The top ten enterprises exports accounted for 23.77% of the total exports of extracts.

Industry back to stability positive

In order to actively respond to the changes in the international situation, the Government and industry and other parties have made efforts to stabilize the industry is worth looking forward to.

Government, actively play its role in building platforms and policy guidance. The National Standardization System Construction Development Plan (2016-2020), promulgated by the State Council in December 2015, put forward the development of modern standardization system with Chinese characteristics, guide the industry to "foster the standard of sending and turning groups", "stimulate the vitality of the market main body." January 2017, "Chinese medicine" along the way "development Planning (2016-2020)" issued, and strive to create a new pattern of all-round opening-up of Chinese medicine, and "around the way" the country in the field of Chinese medicine to strengthen exchanges and cooperation, is bound to lead the development of the extractive market along the line.

Industry, extract standards and certification to help industry development. Under the lead of China Medical Insurance Chamber of Commerce, domestic extractive enterprises actively participate in the formulation of international business standards for plant extracts, so far, two batches of standards have been completed, and the third batch of standards is about to be introduced, which has aroused great repercussions at home and abroad. At the same time, the Chamber of Commerce also actively to the industry standards and national standard docking, in 2016, with the Chinese Food and Drug Research Institute of the Joint screening of ginseng, Polygonum cuspidatum, Ginkgo Biloba extract International business standards, apply to become the national food standards. In addition, the Chamber of Commerce United States National Health Foundation (NSF) for enterprises to create "plant extracts quality supplier" certification (GEP certification). The certification to meet the United States Fsma Act requirements, in the factory audit certification to add more integrity evaluation certification, to fill the domestic GMP certification blank, to enter the FDA recognized Third-party certification lay a good foundation for Chinese extractive enterprises in the international market to create "new business card."

National policies and regulations provide a good opportunity for the extractive industry, while industry standards and certifications offer the best solutions for enterprises to seize opportunities. Although the extractive industry is now in the adjustment stage, but with the industry standardization into the right track, the international reputation is gradually formed, the extractive industry again Take-off is worth looking forward to!

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