In recent years, consumer concepts regarding health have continued to evolve; wellness approaches prioritizing prevention and dietary nourishment are gradually replacing traditional tonic-based regimens. Consequently, the industry for plant extracts derived from "dual-use" ingredients-substances serving as both food and traditional medicine-has entered a period of rapid growth. Thanks to their safety, regulatory compliance, versatility, and wide range of applications, these products have quickly penetrated sectors such as food, beverages, dietary supplements, and beauty, becoming a core growth engine in the broader health consumption market. Industry data indicates that the domestic market for dual-use ingredient end-products surpassed 370 billion RMB in 2025, with the total industry chain valued at over 2 trillion RMB. The market size is projected to climb to 450 billion RMB by 2026, maintaining an annual growth rate of over 30%-far exceeding that of the general food and beverage industry-and firmly establishing itself as a lucrative "golden track" worth hundreds of billions.
Continuous policy support has laid a solid foundation for the standardized development of the dual-use plant extract industry. Against the backdrop of the ongoing "Healthy China" strategy, the National Health Commission has steadily expanded the catalog of substances that serve as both food and medicine; the list of such edible raw materials has now grown to 106, providing a rich resource base for innovation and R&D in the plant extract sector. Meanwhile, the implementation of new regulations for specialty foods has put an end to the industry's previously unregulated, chaotic expansion, ushering in a new phase of standardization, compliance, and high-quality development. Relevant policies explicitly encourage the deep processing of agricultural products and the development of precision extraction technologies for herbal ingredients. By prioritizing innovative processes-such as fermentation and targeted extraction-these policies compel upstream plant extract enterprises to upgrade production standards and optimize product quality, thereby building a fully compliant industry chain that spans everything from raw material cultivation and precision extraction to end-product application.
Shifting consumer demographics and evolving needs are the primary drivers behind the explosive growth of the dual-use plant extract market. Unlike traditional wellness consumers, today's health-conscious market is notably younger; the 18–35 age group has emerged as the core consumer demographic, representing a significantly larger share of the market. Moving away from traditional, heavy tonic-based methods, these young consumers prefer dietary wellness products that are convenient, suited to specific lifestyle scenarios, and "light" in nature. Driven by this trend, refined ingredient products-such as wolfberry polysaccharides, turmeric extract, ginsenosides, and *Poria cocos* powder-developed using plant extraction technology have rapidly gained popularity. They are widely used in categories ranging from functional beverages and meal-replacement snacks to portable wellness mixes and daily dietary supplements. Compared to raw ingredients, plant extraction technology precisely concentrates active compounds while removing inert impurities, significantly enhancing wellness efficacy. Moreover, these products align with the fast-paced lifestyles of modern consumers, precisely meeting the demand for "light wellness" and routine health maintenance.
The diversification of consumption scenarios continues to unlock growth potential for the industry. Historically, products based on the "dual-purpose medicine and food" concept were largely confined to traditional tonic markets, reaching a limited audience. Today, as plant extraction technology matures, herbal extracts are being integrated across various sectors, permeating all aspects of daily life. Offline, public hospitals have partnered with time-honored restaurant brands to launch herbal-infused pastries and wellness teas, embedding the dual-purpose philosophy into everyday dining. Online, sales of these herbal extract products on major e-commerce and short-video platforms are surging; combined sales across the four leading consumer platforms have already reached the ten-billion-yuan mark. Simultaneously, emerging needs-such as emotional well-being and the management of sub-health conditions-have fueled the rise of functional products formulated with these herbal extracts. These products have become popular choices for stress relief, sleep improvement, and physical balance, driving the industry's transformation from simple tonic products toward scientifically formulated, targeted wellness solutions.
Technological innovation is driving industrial upgrading and optimizing the competitive landscape. As the integration of industry, academia, and research deepens, domestic plant extraction companies are moving away from crude processing methods. Advanced techniques-such as targeted fermentation of traditional Chinese medicines, low-temperature extraction, and precision separation-are now widely applied in production, effectively boosting raw material utilization and ingredient purity. Data indicates that dual-purpose medicine-and-food products utilizing these novel fermentation and extraction processes are growing at an annual rate of 45%, far outpacing the industry average. Meanwhile, the industry is exhibiting a tiered development pattern: traditional plant-based extract categories-such as bird's nest, goji berry, and donkey-hide gelatin-remain the market's bedrock; functional ingredients like turmeric, licorice, and honeysuckle have achieved market breakthroughs through innovative processing; and extracts from niche, authentic regional ingredients are gaining widespread acceptance, thereby enriching the product portfolio.
Industry experts note that the sector for plant-based extracts derived from dual-purpose medicinal and edible ingredients is currently at a critical juncture characterized by both opportunities and a market shakeout. Driven by the convergence of robust consumer demand, favorable policies, and continuous technological breakthroughs, this sector has emerged as a high-potential growth area within the health consumption market. However, as industry standards rise, products resulting from crude, undifferentiated manufacturing will gradually be phased out; instead, market leadership will be claimed by enterprises possessing core extraction technologies, compliant production systems, and strong brand innovation capabilities. Looking ahead, the industry will continue to evolve toward greater refinement, technological sophistication, scenario-based applications, and brand building. By further unlocking the value of traditional Chinese medicinal and dietary wellness culture, the industry will continue to empower the upgrading of national health consumption and the high-quality development of the broader health sector.
Shaanxi Lv Ke Chun Yuan Biotechnology Co., Ltd
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