A survey of the Traditional Chinese Medicines (TCM) market indicates that conventional Western-style medicines hold 60 percent of the market in the People's Republic of China (PRC) while herbs and other traditional medicines make up the remaining 40 percent. This information is contained in a report on the Chinese market just published by Natural Medicines Marketing of London, England, in collaboration with Sino European Clinics Ltd. of Bath, England.
The report is divided into three sections. Part I presents an overview of China and includes population demographics, economics, natural resources, a summary of TCM, the structure of the state healthcare system, and legislation dealing with medicines, drug approvals, and quality control.
Part II: "Chinese Medicines Industry" looks at the distribution and production of medicines, including cultivation, wildcrafting, manufacturing and processing of ingredients; different categories of medicines from loose ingredients (yin pian) to patent medicines, health products, and Chinese drugs; research and development institutes, funding, and trends; market size, structure, and key players; distribution through hospitals, clinics, and retail outlets; trends in growth; and key problems and opportunities facing the industry.
Part III: "International Opportunities" reports the research and development joint ventures currently underway with major and minor pharmaceutical firms (e.g., Pfizer, Glaxo-Wellcome, and others) as well as the import and export opportunities with China.
Some of the statistical highlights related to herbs follow:
In 1994, 914,000 acres (555,000 mu) were cultivated with medicinal plants in China. With a total demand for 1.6 million tons, the output of merely 300,000 tons via cultivation suggests that a majority of these plants are still being foraged from wild habitats. The authors of the report speculate that actual harvest of cultivated material might be as high as 400,000 tons, thus still leaving a significant shortfall which portends potentially serious consequences on wild populations.
According to the report, 30 traditional herbs account for approximately 50 percent of the demand for herbs in China. These include licorice, dong quai, ligusticum, rehmannia, atractylodes, peony root, poria, astragalus, ginseng, honeysuckle flower, yam root, aconite root (processed), lychee fruits, magnolia bark, and orange peel.
The report includes a table which lists 20 primary (mostly herbal) ingredients and their sales volume in tons in 1994:
NATURAL BUSINESS STOCK INDEX(TM) -- PUBLICLY-OWNED HERBAL COMPANIES
(Including related dietary supplement, body-care and plant-based pharmaceutical products.)
Revised September 25, 1996
Company Name
Location
Symbol Ex Product/Brands
Herbs, Botanicals, and Dietary Supplements
Amrion
Boulder, CO AMRI(*) NA(*) Dietary supplements
Chai-Na-Ta Corp. Langley, B.C. CCCFF NA Ginseng products
Cyanotech
Kailua-Kona,HI CYAN NA Spriulina, miroalgae
produts; Nutrex brand
4Health Inc.
Boulder, CO HHHH NA Nature's Secret, Lindsey
Duncan's Home Nutrition
Futurebiotics Hauppage, NY VITK NA Futurebiotics
Gum Tech Intl. Phoeniz, AZ GUMM NA Dietary supplements
Hauser
Boulder, CO HAUS NA Dietary supplements
HealthRite
New York, NY HLRT NA Dietary supplements;
Nautilus brand
Herbalife Intl. Los Angeles,CA HERB NA Dietary supplements,
personal care
Intl. Vitamin Co. Freehold, NJ IVCO NA Fields of Nature,
Revlon, Rybuton,
Nature's Wonder,
American Vitamin,
Synergy Plus, Nature's
Blend, private label
brands
Martek
Columbia, MD MATK NA Dietary supplements, raw
Biosciences
materials derived from
midroalgae
Natural
San Marcos, CA NAI AN Dietary supplements,
Alternataves,
with products sold
Int'l Inc.
under
Jenny Craig, Avon,
NuSkin, NSA
International, and
Nordic Track
Nature's
Bohemia, NY NBTY NA Nature's Bounty,
Bounty Inc.
Hudson, Natural
Health, Good N'
Natural, American
Health
Nature's Sunshine Provo, UT
NATR NA Herbal and dietary
Products
supplements
Nutrition for Houston, TX NFLI NA Dietary supplements
Life Int'l.
PDK Laboratories- Hauppage, NY PDKL NA Dietary supplements
(parent company of
Futurebiotics)
Paracelsian Inc. Ithaca, NY
PRLN NA Plant-based
pharmaceutical
Pure World
Far Hills, NJ PURW NA KavaPure, raw materials
Reliv, Int'l. Chesterfield,MO RELV NA Dietary supplements
Rexall Sundown Boca Raton, FL RXSD NA Thompson Vitamins,
Sundown brand
Shaman
So.San
SHMN NA Plant-based
Pharmaceuticals Francisco, CA
pharmaceuticals
Food/Beverage/Retail
Body Shop
Littlehampton, BDSPY OT Personal care products
International Eng.
retail chain
Celestial
Boulder, CO CTEA NA Herbal teas
Seasonings
Garden Botankia Redmond, WA GBOT NA Personal care products
retail chain
General Nutrition Pittsburgh, PA GNCI NA Health food retail
Co. Inc.
chain
Whole Foods
Austin, TX
WFMI NA Full service natural
Market
products retail chain
Company Name
Type of Market Annual 52-wk 52-wk
Close
revs. ($M)
high low 9/23/96
Herbs, Botanicals, and Dietary Supplements
Amrion
Mail order, 38 22 1/4 9 3/4 20 1/4
Mass market,
Health foods
Chai-Na-Ta Corp. Natural foods, 26 2 13/16 1 11/16 27/16
Mass market,
International
Cyanotech
Natural foods, 8
15 5 1/8 6 1/8
raw materials
4Health Inc.
Natural foods, 23 17 1/8
5 7 1/4
Mass
Futurebiotics
Natural foods 11 1 1/2
1/8
3/16
Gum Tech Intl.
Natural foods 3 7 3/4 5 5/8 6 1/8
Hauser
herbal raw
25 8 3/8 4 1/4
6
materials
HealthRite
Mass market
3 1 1/2 2 7/8
9
Herbalife Intl.
Multi-level 480 16 3/8 6 3/4 14 7/8
Intl. Vitamin Co. Natural foods, 43 4 1/6 1 3/4 2 7/16
Mass market
Martek Biosciences Natural foods, 3 37 3/4 15 1/4
22
Mass market
raw materials
Natural
Mass market 38 12 7/8
7 8 3/4
Alternataves,
Int'l Inc.
Nature's Bounty Inc. Natural foods, 166 17 7/8
4 17 1/4
mass market
Nature's Sunshine Multi-level 203 30 1/2 13 53/64 16 47/64
Products
Nutrition for Life Multi-level 52
35 8 1/8
11
Int'l.
PDK Laboratories- Mass market 30 5 1/2 2 3/8 3 7/8
Paracelsian Inc. Pharmaceutical 0 7 5/8 15/16 3 1/16
Pure World
Natural foods, 6 4 1/6 1 11/16 1 3/4
raw materials
Reliv, Int'l.
Multi-level 50 8 1/2 1 3/16 6 1/2
Rexall Sundown
Natural foods, 151 39 3/4 9 1/16
37
mass market
Shaman
Pharmaceutical 2 9 3/8 4 7/8
6
Pharmaceuticals
Food/Beverage/Retail
Body Shop
Retail
910
16 9 5/8 14 3/4
International
Celestial Seasonings Natural foods, 69
26 16 1/4 19 1/2
mass market
Garden Botankia
Retail
98
35 8 1/2 10 1/2
General Nutrition Retail
864 26 1/2 13 1/4 17 1/8
Co. Inc.
Whole Foods Market Retail
491 37 1/8 10 7/8
24
(*) Abbreviations: NA=NASDAQ:AM=American Stock Exchange
Information provided by The Natural Business Stock Index(TM), an exclusive product and service of Natural Business(TM), the Journal of Business and Financial News for the Natural Products Industry, published monthly by Natural Business Communications, PO Box 7370, Boulder, Colorado 80306-7370. Ph. 303/442-8983. Fax 303/440-7741. E-mail naturalbiz@aol.com. $249/yr.
Article copyright American Botanical Council.
~~~~~~~~
By Mark Blumenthal