Special report of new three board plant extract industry: stride forward towards standardization

With the rise of "return to nature" in the 1980s and the promulgation of relevant laws in the United States, the legal status of plant extract as a dietary supplement has been confirmed The global plant extract industry has entered a period of continuous growth The market size has increased from $5.1 billion in 2009 to $7.2 billion in 2014, with a compound growth rate of 7% It is expected to continue to grow in the future Regionally, Europe and Asia Pacific are the main markets with a share of about 40% and 37% respectively With the rapid development of China's plant extract industry and outstanding overseas market position: with the growth of international market demand and the development of China's foreign trade, China's plant extract industry has entered a stage of rapid development and is the main export form of traditional Chinese medicine products Since 2010, the combined growth rate of export volume has exceeded 20%, and reached US $2.16 billion in 2015 Due to the relatively small scale of domestic market, China's main export of plant extract products includes overseas markets of more than 100 countries and regions, of which the United States and Japan are the top two markets, with export shares of 19.5% and 10.6% respectively At the same time, there are many export varieties of plant extract products in China, the proportion of single product is not high, and the proportion of Stevia extract, the largest export product, is only about 7% The market concentration is relatively low, gradually moving towards standardization: the development time of plant extract industry in China is relatively short, the market competition is more intense, and the concentration is relatively low According to statistics, including trade and production enterprises, there are more than 2000 enterprises (more than 70% of them are trading companies), most of which can only provide several or more primary products In 2014, the top ten export enterprises accounted for only 24% of the export of the whole industry However, some leading enterprises have established a high market position in some varieties, such as psyco and Rhine bio, which account for about 70% of Stevia extract export share Restricted by the lack of industry standards, plant extracts in China have developed extensively In recent years, China Chamber of Commerce for import and export of medical and health products, the industry association, has actively promoted the standardized operation of the industry The main measures include formulating product quality standards, working with the General Administration of Customs to prepare the manual of plant extract customs code classification, and jointly launching the "high quality supplier of plant extract" certification (GEP certification) with the National Health Foundation of the United States (NSF) We expect that with the improvement of standards, the industry will gradually step into standardized operation, and leading enterprises are expected to benefit Most of the new three board plant extract companies grow well and implement the multi product strategy: at present, there are 17 new three board listed plant extract companies, forming a certain plate effect Through the analysis, we found that the listed companies have a good growth and maintain a rapid growth in revenue, of which most of the enterprises with the revenue scale of more than 50 million have realized profits, while the listed companies with the revenue of less than 50 million yuan generally have poor profits, and the gross profit rate and profit level of each company are quite different due to the differences in product mix and competition situation in the subdivision field In terms of business model, in view of the variety of products in the industry and the limited scale of a single product, most enterprises implement the multi product strategy; due to the obvious export-oriented characteristics of the industry and the wide distribution of customers, most listed companies adopt the combination of online and offline sales model For specific companies, we suggest focusing on three leading companies in scale, products, customers and technology platforms: Jiahe biology, Lingbei and Huacheng biology Risk tip: market competition intensifies, industry policy changes, exchange rate and overseas market demand changes, raw material price fluctuations, etc.