Analysis of Import and Export of Chinese Medicines in 2019

Since 2019, due to the increase of external instability factors and the increasing downward pressure on the global economy, especially the impact of Sino-US trade frictions, the overall growth of China's foreign trade has slowed. With the help of a series of national measures to promote foreign trade and stabilize growth, China's pharmaceutical industry has overcome difficulties, effectively responded to severe and complex environmental changes, and achieved overall stable development of foreign trade. In particular, the trade of traditional Chinese medicine commodities achieved steady growth throughout the year.

According to customs statistics, China's total trade volume of Chinese medicines in 2019 was 6.174 billion US dollars, a year-on-year increase of 7.05%. Among them, the export value was US $ 4.019 billion, an increase of 2.82% year-on-year; the import value was US $ 2.155 billion, an increase of 15.93% year-on-year.

Overview of import and export of Chinese medicines in 2019

No.1 Exports steadily increase

Chinese medicinal materials and decoction pieces are the most prominent in the export trade of Chinese medicinal commodities. The annual export volume was 1.137 billion US dollars, a year-on-year increase of 10.32%. The main reason for the strong growth of the export of Chinese herbal medicine pieces is the price increase, which increased by 8.48% year-on-year. The continuous increase in exports to major markets such as Japan and South Korea is the key to the steady development of foreign trade of Chinese herbal medicine and pieces.

Subject to the influence of foreign policies and regulations, the foreign trade performance of Chinese patent medicines was sluggish in 2019, with exports of US $ 262 million, a year-on-year decrease of 0.45%. The second largest market for Chinese patent medicine exports in the United States in 2019 decreased by 16.65% year-on-year, which may be one of the reasons for the sluggish export; in addition, the price decline is another reason for the sluggish export of Chinese patent medicine. 11.28%.

The largest export of plant extracts in 2019 was only US $ 2.38 billion, a year-on-year increase of only 0.19%. The main reason for the low export of plant extracts is due to the impact of Sino-US trade frictions. The United States is the largest export market for plant extracts in China. In 2019, China's export of plant extracts to the United States was only 451 million US dollars, a year-on-year decrease of 15.32%. Another reason for the low export value of plant extracts is the decline in export prices, the average export price fell by 5.19% year-on-year.

In 2019, the export of health products was "tepid", with an export value of US $ 247 million, a slight increase of 0.21% year-on-year. Although U.S. exports to the largest market fell by 12.37% year-on-year, the increase in exports to Canada, Spain and other countries filled the gap, and the overall export of health products remained stable.

No.2 Imports maintained rapid growth

In 2019, the import value of traditional Chinese medicines was 2.155 billion US dollars, a substantial increase of 15.93% year-on-year. The import value of 2017-2019 continued to maintain double-digit growth.

In 2019, the import trade of Chinese medicinal materials and decoction pieces still maintained a high development trend, with an import value of US $ 358 million, a year-on-year increase of 25.82%. The varieties with large imports of Chinese medicinal materials and pieces are mainly longan, American ginseng, deer antler, frankincense, myrrh, blood, etc., mainly imported from Thailand, Canada and New Zealand.

The import value of Chinese patent medicine in 2019 was US $ 392 million, a year-on-year decrease of 2.51%, and the import volume also fell by 6.94% year-on-year. For many years, the mainland has been importing a large amount of Chinese patent medicines from Hong Kong. The imports accounted for about 50% of the total imports of Chinese patent medicines. In 2019, this figure dropped by 11.88% year-on-year. One.

In 2019, the import value of plant extracts was US $ 849 million, an increase of 16.85% year-on-year, and the import volume was 40,300 tons, an increase of 29.08% year-on-year. Among them, the import of menthol contributed a huge amount of energy. Its imports accounted for 40.6% of the total imports of plant extracts. The imports reached 345 million US dollars, an increase of 35.22% year-on-year; the import of other essential oil products also increased significantly, and the market heat high.

The import performance of health products in 2019 is quite "dazzling". Under the guidance of the country's import policy, the annual import volume reached 556 million US dollars, an increase of 24.77% year-on-year. Among them, bird's nest is still the most popular health product, with an import value of US $ 320 million, an increase of 43.8% year-on-year.

No.3 Export market share is changing

In 2019, China ’s traditional Chinese medicine products were exported to 193 countries and regions. The Asian region is still the main market for traditional Chinese medicine exports. The export value reached 2.388 billion US dollars, an increase of 8.02% year-on-year, accounting for 59.42% of the total export of Chinese medicine products.

1. The US is still the largest export market.
Specifically, although affected by the Sino-US trade friction, China's exports to the United States fell 16.1% year-on-year, but it still occupies the position of the largest export market. In 2019, China exported 559 million US dollars of Chinese medicine products to the United States, accounting for 13.9% of its exports from 17.04% in 2018. The Chinese medicine products exported to the United States are mainly plant extracts, accounting for 80.71%.

2. The Japanese market is picking up quickly.
Japan is the second largest market for the export of Chinese herbal medicines in China. In 2019, the export value was 533 million US dollars, accounting for 13.28% of the total export value. The gap with the US export value gradually narrowed. Japan occupies an important position in the export market of all kinds of Chinese herbal medicines in China. Japan is the largest market for Chinese herbal medicine exports, the second largest market for plant extracts and health products, and the third largest market for Chinese patent medicine exports. With the further improvement of the economic and trade relations between China and Japan, the signs of market recovery are becoming more and more obvious, and the position of the Japanese market in China's traditional Chinese medicine export market will be more stable.

3. The Hong Kong market in China is shrinking further.
In 2019, the Hong Kong market in China further shrunk. After the mainland ’s export value slipped to the third position from 2017, it has continued to decline for two consecutive years. In 2019, the mainland ’s export value of Chinese medicines to Hong Kong was US $ 429 million, down 5.34%, the proportion of total exports further shrank to 10.67%. In addition, the mainland ’s exports to Hong Kong have fallen by as much as 23.96%. Hong Kong ’s advantage as a hub for the re-export of traditional Chinese medicines in the country has been lost. More and more buyers tend to purchase directly from the origin.