On December 17th, "The 15th Natural Extract Innovation and Development Forum and Natural Ingredients Industry Development Forum" sponsored by China Chamber of Commerce for Importers and Exporters of Medicines and Health Products was held at CPHI Expo in Shanghai New International Exhibition Center. In the meeting, the Chinese medicine and health products import and export chamber of commerce in plant extracts branch director Mr Cheng-wen zhang Shared the outbreak of "new crown's effect on the food supplements market" speech, in-depth interpretation of the outbreak, food supplements and plant extracts development trend of the market, let it be in the future the development of nutrition and health industry is full of confidence.
01. Economic recovery is still a long way off, but the food supplement industry is bucking the trend
After the epidemic, the economy will not return to normal for quite a long time. That is, in the current situation, there is no way we can go back to where we were before the pandemic without a vaccine or widespread immunization. This is the worst possible choice we could face. That would mean we would have a big crisis from which it would take a long time to recover.
What changes will this economic model bring to us?
1) First, trade protectionism and trade wars will be the norm for a long time;
2) People are less and less inclined to go on holidays abroad and attend fewer international exhibitions and conferences. The concept of global village will be forgotten for a long time.
3) The relief policies and inundated currency issuance that have to be adopted will have a great uncertain impact on the economic trend after the epidemic;
4) The overdevelopment of the Internet, driven by home-based work and epidemics, will change people's behavior.
But for the food supplement industry, the epidemic has bucked the trend. In the United States, for example, at the beginning of the epidemic, visits to mainstream media sites such as Twitter and Reddit for immune-enhancing products increased 4.4 times, visits to anti-inflammatory products increased 2.8 times, visits to elderberry products increased 16.6 times, visits to echinacea 9.4 times, and visits to vitamin C and D more than tripled. In this kind of traffic, the United States in March vitamin minerals, amino acids, digestive enzymes, food supplements and other products sales have increased substantially.
02. The rapidly growing global market for plant extracts is expected to grow by 16.5% in the future
The global market for plant extracts reached 23.7 billion yuan in 2019 and is expected to reach 59.4 billion yuan in 2025, with a compound growth rate of 16.5% from 2019 to 2025. Phytochemistry development over the past decade the global average growth rate of around 5%, as people concern about synthetic additive effects, plant drugs, herbal extract to enhance understanding of health benefits, and plant extracts research and development activities of growth and the popularity of convenience foods, food and beverage industry is also growing demand for plant extracts. Therefore, the market for plant extracts will grow rapidly in the future.
Despite the rapid growth in the Asia-Pacific region, the size of the U.S. market, a bellwether for the global planting market, remains large. According to NBJ, total sales of herbal dietary supplements in the U.S. reached $9.602 billion in 2019, spending $750 million more than in 2018 and an increase of 8.6% from 2018. Since 2000, the US market has experienced negative growth only in 2003 and 2010. The overall trend is growing, with an increase rate of about 5%, and the growth rate is expected to exceed 10% in 2020.