24 Dec 2025 | By YGG
Source: China Chamber of Commerce for Import & Export of Medicines & Health Products (CCCMHPIE)
Executive Summary
Despite headwinds such as slowing global economic growth and weakening international demand, China’s trade in Traditional Chinese Medicine (TCM) products demonstrated remarkable resilience in 2024. According to customs data, the total trade volume reached US$8.38 billion, a year-on-year (YoY) increase of 0.4%. While exports slightly declined by 3.2% to US$5.28 billion, imports surged by 7.3% to US$3.11 billion. A defining feature of 2024 was the continuous expansion of TCM raw material imports, with import growth significantly outpacing export performance.
I. Export Overview: Key Sectors and Market Shifts
1. Botanical Extracts: Volume Up, Price Down
Botanical extracts remained the cornerstone of TCM exports, accounting for 57% of the total value at US$3.01 billion (down 7.7% YoY). However, export volume grew aggressively by 21.3% to 134,000 tons. Since surpassing the $3 billion mark in 2021, this sector has maintained high operational scale.
- The “Price War”: Due to intensified market competition and global economic sluggishness, the average export price plummeted by 23.9%, hitting a five-year low.
- Leading Products: Menthol, Stevia extract, Citrus essential oils, Silymarin, Ginkgo Biloba, and Licorice extract were the primary drivers. Notably, Menthol exports exceeded $200 million (+36.8% YoY).
- Top Markets: The USA remains the largest market (US$670 million, +30.1% YoY), followed by **Japan** and **India** (both around US$270 million). Exports to Hong Kong SAR saw a significant drop.
2. Chinese Materia Medica (Raw Herbs) and Decoction Pieces
Exports in this category slowed for the third consecutive year, totaling US$1.2 billion (-5.7% YoY).
- Top Items: Cinnamon, Goji berries, Ginseng, Angelica (Dang Gui), and Cordyceps Sinensis.
- Market Dynamics: Asia remains the primary destination (84% market share). Japan is the top importer, with its market share rising to 25.4%.
- Vietnam Sharp Decline: Exports to Vietnam plummeted by 45.6% due to tightened local import policies and the rapid growth of Vietnam’s domestic cinnamon industry.
3. Finished Chinese Medicines (Patent Medicines)
Exports grew by 10.6% to US$400 million, a bright spot in the sector. Classic products like Pien Tze Huang, Essential Balm, and Angong Niuhuang Pills drove growth, with Hong Kong, Indonesia, and Macau showing strong demand.
4. Health Supplements
Exports (including fish oil, bee products, and bird’s nest) rose by 20.9% to US$660 million. The USA and Australia remain the top growth markets.
II. Import Overview: Raw Material Demand Surges
1. Botanical Extracts
Imports reached US$730 million (+6.5% YoY), with volume jumping 20%. Essential oils (Orange, Peppermint, Lemon) accounted for nearly half of the total. India is the largest supplier, primarily providing Menthol and Peppermint oil, while Uzbekistan saw an 84.1% explosion in growth, becoming China’s top supplier of Licorice extract.
2. Raw Herbs and Decoction Pieces
Imports rose to US$640 million (+3.6% YoY) with volume increasing by 20.6%. Indonesia remains the top supplier, providing the majority of China’s Cardamom, Nutmeg, and Cloves.
III. Strategic Outlook and Future Opportunities
- Quality Standards (2025 Pharmacopoeia): The upcoming 2025 Edition of the Chinese Pharmacopoeia (ChP) will introduce more than 100 new standards and revise 500 existing ones. By aligning closer with international standards (USP/EP) for pesticide residues and heavy metals, China aims to reduce trade barriers and enhance global competitiveness.
- Global Expansion: With the support of the WHO (now recognized by 170 member states) and new bilateral agreements with countries like Belarus and Vietnam, TCM is expanding via “Overseas TCM Centers” and the “Belt and Road Initiative.”
- Policy Support for Imports: To address domestic shortages of premium materials like Natural Ox Gallstones (Bezoar), authorities are streamlining import processes and adding new border ports (e.g., in Yunnan province) specifically for TCM materials.
- Cultural Integration: The synergy between TCM “Service Trade” (clinics, culture) and “Goods Trade” (products) is identified as the key next step for internationalization.
BDD Media — The Bloomberg for Botanicals.