In recent years, the global trend of natural health consumption has continued to heat up, and the demand for plant-based raw materials in the European and American dietary supplement markets has steadily increased. Herbal extracts from authentic producing areas in China are entering a window of opportunity for overseas expansion. However, the industry also faces practical challenges such as compliance thresholds, value perception, and supply chain traceability. The domestic plant extract industry is transforming from simply exporting primary raw materials to a standardized, scientific, and branded globalization path.
According to statistics from the China Chamber of Commerce for Pharmaceuticals & Health Products Import & Export, in 2025, my country's total plant extract exports reached US$2.98 billion, with a total export volume of 138,000 tons. Export volume increased by 2.9% year-on-year, and the decline in export value narrowed significantly. The United States has long been my country's largest export market for plant extracts, accounting for over 20% of total exports. It is also the world's largest consumer market for herbal dietary supplements, with the market reaching $13.231 billion in 2024, a year-on-year increase of 5.4%. A large amount of raw materials are imported, and extracts from authentic Chinese herbs such as ginseng, Ganoderma lucidum, turmeric, licorice, and ginkgo biloba are consistently on procurement lists.
This shift in overseas consumer attitudes has opened up new narratives for Chinese herbal medicine. Concepts such as adaptogens and functional mushrooms popular in Western markets align closely with the domestic concept of "preventive medicine" based on the principle of food and medicine sharing the same origin. Traditional herbs like ginseng, astragalus, Ganoderma lucidum, and Hericium erinaceus are no longer seen merely as mysterious Eastern medicines, but are instead positioned for functions such as stress regulation, immune system maintenance, and sleep improvement in European and American retail channels. Market monitoring data shows that sales of Ganoderma lucidum-related gummies and blended coffee in the US market have increased by over 22% annually, and searches for Hericium erinaceus in the UK have seen a single-month surge of 450%, indicating a rapidly expanding audience for Chinese herbal ingredients.
However, behind these opportunities lie significant challenges. For a long time, many domestic plant extract companies have relied on a "price-for-volume" trading model. The unit price of the same extract sold in the US is significantly lower than in markets like Japan and Germany, squeezing profit margins and easily leading to low-price, homogeneous competition. Most trade is completed through intermediaries, resulting in information gaps between upstream authentic planting bases and overseas end-user brands. Information on raw material origin traceability and planting control is difficult to convey to overseas buyers, causing value perception discrepancies and preventing the regional advantages of authentic medicinal materials from translating into product premiums.
The significant differences between the regulatory systems in Europe and the US are a core hurdle that companies venturing overseas must overcome. The US dietary supplement industry follows the DSHEA Act, requiring factories to meet cGMP production standards, new dietary ingredients to undergo NDI (Novel Dietary Ingredient) declaration procedures, and product labels strictly prohibiting claims of therapeutic effects. Pesticide residues, heavy metals, and solvent residues are frequent reasons for customs detention. The EU implements a new resource food approval system; herbal ingredients not widely consumed before 1997 require EFSA (Emerging Foods of Europe) safety assessments, which are lengthy, have stringent material requirements, and are extremely difficult to approve health efficacy claims. Companies are often forced to emphasize natural, traceable, and organic attributes. Many domestic companies are familiar with Chinese pharmacopoeia standards but lack sufficient preparation for overseas LC-MS/MS and fingerprint spectroscopy testing requirements, easily leading to incompatible testing methods and incomplete certifications causing customs clearance obstacles.
To truly integrate authentic herbal extracts into the mainstream dietary supplement supply chains of Europe and the US, industry practitioners have summarized several practical paths:
First, solidify the authentic source supply chain, transforming the advantages of production areas into data that can be understood overseas. The core advantage of authentic medicinal herbs lies in the specific soil and climate conditions under which they are grown. Enterprises need to maintain complete records of the entire chain of planting, harvesting, and processing, promoting the construction of a traceability system. This involves creating standardized, publicly available data on origin, pesticide residue testing, and active ingredient content, rather than simply exporting powdered raw materials without any background information. Some leading companies have already experimented with blockchain traceability, allowing overseas buyers to directly access planting and batch testing information, alleviating trust concerns.
Second, adapt to overseas regulations and proactively implement compliance measures. Prepare differentiated plans for the US and EU markets, perfecting basic qualifications such as GMP and ISO22000 for factories, and completing the preparation of NDI and new resource food documentation in advance, rather than waiting until orders are secured to initiate compliance work. Strictly distinguish between cultural concepts and compliant expressions, avoiding direct translation of domestic TCM terminology, and instead using functional descriptions acceptable to the overseas market to avoid labeling violations.
Third, move beyond simply selling raw materials and strengthen scientific data support. The European and American dietary supplement industry highly values in vitro and human research literature. For the same herbal extract, products with standardized active ingredient indicators and publicly available research data are more likely to enter the supply chains of mid-to-high-end brands, escaping the price war. Many domestic companies have begun to release raw material research data at overseas industry exhibitions such as Vitafoods and SupplySide West, connecting with overseas research institutions to conduct joint trials and enhance the scientific persuasiveness of their raw materials.
Fourth, change the communication narrative and complete cultural translation. Instead of forcibly exporting complex traditional Chinese medicine theories, it's necessary to connect with the mature consumer context overseas, classifying ginseng and schisandra as adaptogens, and hericium erinaceus and ganoderma lucidum as functional fungi, explaining the value of raw materials in language that overseas consumers can understand, transforming authentic herbs from "foreign medicinal materials" into daily dietary supplement options.
Industry observers say that China possesses globally leading authentic herbal planting resources and a complete extraction and processing industrial chain, its advantages are undeniable, but currently, most of its value remains at the raw material level. The breakthrough point for future industries lies not in simply increasing export volume, but in combining authentic origins, standardized quality, and scientific evidence to achieve a leap from "Made in China raw materials" to "Exporting the value of Chinese herbal medicine." As more and more companies prioritize compliance, research, and traceability, more plant extracts from China's mountains and fields will steadily appear on shelves in Europe and America.
Shaanxi Lvke Chunyuan Biotechnology Co., Ltd.
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