22 Dec 2025 | By YGG
Abstract: In 2025, the combined effects of global industrial chain restructuring, fluctuating trade policies, and evolving market demand have subjected China’s plant extract supply chain to an unprecedented stress test. Latest data reveals that against a backdrop of overall pressure, the supply chain has demonstrated significant “structural resilience”: core products have achieved counter-trend growth, and the market landscape is rapidly tilting towards emerging Asian markets [1]. Simultaneously, the industry is actively constructing an international passport through “standard mutual recognition”[2] and reshaping the source of value with disruptive technologies such as “synthetic biology”[3]. This report, based on the latest trade data and industry dynamics from the first half of 2025, re-examines the evolution of China’s supply chain, providing global buyers with core strategies for identifying high-value partners and building risk-resistant supply chains in a changing landscape.
Chapter 1: The 2025 Landscape: Structural Resilience Under Stress Test
Against the backdrop of a complex and volatile global economic and trade environment, China’s total foreign trade of traditional Chinese medicine products in the first half of 2025 fell by 5.5% year-on-year [1]. However, within this overall decline, the plant extract segment bucked the trend, emerging as a critical pillar of supply chain resilience.
1.1 Core Data Reveals “Resilience” and “Divergence”
The Counter-Trend Growth Engine: In the first half of 2025, exports of plant extracts reached USD 1.54 billion, a year-on-year increase of 3.8%, successfully reversing the 14.5% decline from the same period last year [1]. Its share in the total export value of traditional Chinese medicine products has further solidified, highlighting its irreplaceable role as a modern, standardized raw material.
The Shift in Import-Export Dynamics: The role of China’s plant extract supply chain is deepening. While exports grew steadily under pressure, imports also increased by 1.4% to USD 360 million[1]. This indicates that China is not only the core global supply “hub” but is also rapidly evolving into a “market” and “re-processing center” that aggregates high-quality global raw materials, with supply chain value shifting towards two-way flow.
1.2 The “Rise of the East” in Market Structure
The traditional demand structure dominated by Europe and America is undergoing profound adjustment, with the vitality of emerging Asian markets becoming the most significant growth pole in 2025 [1].
Table 1: Analysis of China’s Core Export Markets for Plant Extracts in H1 2025
| Rank | Country/Region | Export Value | Year-on-Year Growth | Key Driver/Category |
| 1 | United States | USD 320 million | +7.7% | Stable foundation of dietary supplement ingredients |
| 2 | India | USD 156 million | +13.8% | Exports of oleoresins surged by 98.5% |
| 3 | Japan | USD 153 million | +15.9% | Steady growth in demand for health foods |
Trend Interpretation: The U.S. market remains stable as the “foundation.” However, the double-digit high growth in the Indian and Japanese markets indicates a more diversified demand engine for the supply chain. In particular, India’s strong demand for oleoresins and Japan’s long-term preference for high-quality, standardized extracts provide clear market opportunities for Chinese suppliers specializing in niche segments [1].
Chapter 2: Dynamic Upgrading of Core Supply Chain Links
Pressure from the external environment is forcing an unprecedented rapid upgrade across all links of the supply chain, shifting the focus from “capacity and cost” to “quality, compliance, and sustainability.”
2.1 Upstream Link: Technology Disrupts the Source of Value
The traditional agricultural cultivation model in the upstream link is being profoundly reshaped by biotechnology.
Synthetic Biology Opens New Pathways: Addressing the century-old industry challenge of extremely low content (typically <0.1%) and difficult extraction of “plant gold” rare ginsenosides, Chinese researchers achieved a key breakthrough in 2025. A team from Tianjin University significantly improved the efficiency of producing rare ginsenosides using “plant cell factories” by engineering glycosyltransferases through synthetic biology [3]. This breakthrough means that the future supply chain for ultra-high-value ingredients like rare ginsenosides will no longer be entirely constrained by long cultivation cycles and land resources, but will shift towards controllable and efficient bio-manufacturing, fundamentally addressing issues of stability, scarcity, and sustainability at the source.
2.2 Midstream Link: Standards Build the Cornerstone of Trust
Competition in the production and manufacturing link has evolved from equipment scale to competition for international discourse power in quality systems.
GEP Standard Release and Global Certification Launch: In June 2025, the industry witnessed a milestone event—the official release of the “Good Extraction Practice (GEP)” group standard and the simultaneous launch of a certification program jointly promoted by Chinese and American authoritative institutions[2].
The strategic significance of this standard lies in the fact that it is a bilaterally mutually recognized standard jointly promoted by organizations including the China National Institute of Standardization, the China Chamber of Commerce for Import & Export of Medicines & Health Products, and the United Natural Products Alliance (UNPA) of the USA [2]. GEP certification means that the production systems of high-quality Chinese suppliers have obtained a “credible passport” directly to the mainstream U.S. dietary supplement supply chain, significantly reducing the verification costs and risks for international buyers. This marks a shift in China’s supply chain from passively adapting to international standards to actively participating in building a globally accepted quality and trust system [2].
2.3 Downstream and Support Systems: Specialization and Greening
Specialization of Export Services: Facing stringent regulations in different markets, the supply chain’s support systems are becoming increasingly specialized. Local customs authorities and other departments provide “tailor-made” guidance for plant extract exports, helping companies avoid technical trade barriers, which has become a key force supporting SMEs in going global [4].
Green Sustainability Becomes a Hard Indicator: The global “clean label” trend has now extended from the consumer end to the manufacturing end. Adopting green technologies such as supercritical CO₂ extraction, along with achieving energy-saving and consumption-reduction in production processes, is no longer just a bonus but a prerequisite for entering high-end supply chains.
Chapter 3: Future Trends and Strategic Responses for Buyers
3.1 Key Trend Projections
Deepening Supply Chain Geographical Restructuring: Against the backdrop of the “China Plus One” procurement strategy, supply chain competitiveness is no longer just about capacity, but about “technological depth + market breadth.” Suppliers capable of effectively serving differentiated markets like the US, India, and Japan will demonstrate greater resilience.
Value Competition Replaces Cost Competition: Led by standards like GEP, the industry will accelerate its polarization. Suppliers possessing technological patents, standard certifications, and a sustainability narrative will break away from the low-price competition and enter the blue ocean of value competition [2].
Technology Convergence Spurs New Categories: The integration of synthetic biology and extraction technologies will give rise to entirely new functional ingredients that were previously present in trace amounts in nature or uneconomical to extract, opening up new spaces for product innovation [3].
3.2 Updated Strategic Recommendations for Global Buyers
Adopt a “Technology-Standards” Dual-Core Assessment Method: Update the supplier audit checklist. Incorporate “engagement in forward-looking technologies like synthetic biology” and “GEP certification status or plans” as core indicators for evaluating a supplier’s long-term value and compliance capability [2, 3].
Build a “Resilience-Oriented” Supply Portfolio: Avoid over-reliance on a single market or supplier. Consider constructing a diversified supply portfolio: for instance, GEP-certified suppliers (ensuring compliant supply to high-end US/EU markets) + technical leaders in niche categories (e.g., oleoresin experts, ensuring supply to the Indian market) + synthetic biology innovation partners (co-developing future exclusive ingredients) [1, 3].
Deepen Partnerships and Co-invest in the Future: The relationship with leading Chinese suppliers should transition from transactional procurement to strategic co-development. Consider co-investing in regulatory filings for target markets (e.g., Novel Food), product development based on new technologies, securing priority supply rights, and building long-term competitive barriers [3].
Leverage China’s Import and Re-processing Capabilities: View China as a global “value-added hub” for raw materials. Explore models where primary raw materials are shipped to China for deep processing using its advanced extraction and formulation technologies to produce high-value-added standardized extracts before being sold globally [1].
Conclusion
The data and events of 2025 clearly indicate that China’s plant extract supply chain is undergoing a profound “qualitative transformation.” Its core advantage has comprehensively shifted from the static scale and cost of the past to the dynamic adaptability through innovation, leadership in standards, and market resilience.
For global buyers, the greatest opportunity lies in identifying and partnering with those Chinese firms leading this transformation—those that actively embrace GEP standards to build international trust, invest in synthetic biology to reshape the industrial source, and can flexibly serve diversified global markets[2, 3]. Future supply chain competition will be ecosystem competition based on shared standards and technological innovation networks. Those who can integrate earlier into this upgrading “China Hub” network will gain command over a more stable and dynamically innovative raw material pipeline amidst an uncertain global trade environment.
References
[1] China Chamber of Commerce for Import & Export of Medicines & Health Products. (2025). Analysis Report on China’s Plant Extract Imports and Exports for the First Half of 2025 [Internal Industry Report].
[2] China National Institute of Standardization, & China Chamber of Commerce for Import & Export of Medicines & Health Products. (2025). Joint Notice on the Release of the “Good Extraction Practice (GEP)” Group Standard and the Launch of the Certification Program [Press Release].
[3] Wang, Y., Li, J., Zhang, H., & Liu, T. (2025). Engineering glycosyltransferases for efficient biosynthesis of rare ginsenosides in Saccharomyces cerevisiae. Metabolic Engineering, *79*, 110-122.
[4] General Administration of Customs of the People’s Republic of China. (2025). Several Measures by the General Administration of Customs on Optimizing Supervision and Services to Support the High-Quality Development of the Plant Extract Industry [Policy Document].