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　　According to China Chamber of Commerce for Import& Export of Medicines& Health Products, in 2011, China’s herb extract export reached 1.13 billion USD, 47 percent increase year on year. It was the first category that surpassed one billion USD value among the export of Traditional Chinese Medicine related products. The export volume reached 42,000 tons, up by 14.9 percent over the last year. The price of herb ingredients was up by 28.2 percent, with an average price of 26.8 USD/kg.
　　 Growing import
　　In 2011, the import value reported 220 million USD, an impressive growth of 67.8 percent year on year; while the import volume reached 18,000 ton, 59.4 percent increase y/y. The most popular imported ingredients in 2011 were essential oil such as pennyroyal and domestic ingredients in short supply such as liquorice extract. Both ingredients’ imports increased over 100 percent in 2011.
　　 Growing overseas market
　　Except Latin America, all other overseas markets witnessed a good growth in demand of China’s ingredients. Asia, Europe, and North America were the top three destinations of China’s ingredients, which made up 82.6 percent of the whole export business.
　　ASIA- China’s export volume of ingredients to Asia was 440 million USD, occupying 39.4 percent of the entire export business, up 18.8 percent year on year Japan and ASEAN were the two main export destinations in Asia.
　　As the second largest market of China’s ingredients, Japan imported 170 million USD ingredients last year, which were mainly used as Traditional Chinese Medicine and health products there. The demand has been increasing steadily in recent years.
　　Singapore and India had a good growth in the same year in import of China’s ingredients, increasing by 39 percent and 62 percent year on year respectively, registering 43.94 million USD and 28.06 million USD respectively. The most popular ingredients were pennyroyal and eucalyptus oil.
　　Europe- China’s ingredients export to the European market saw a 63.2 percent increase in 2011, with a value of 290 million USD, and a volume of 11,000 tons (15.1 percent increase). Last years’ overall pricing was increased by 41.8 percent. Main export destination countries in EU were Spain, Germany, France and UK. Spain and Germany ranked the fourth and fifth in China’s ingredients export in 2011. Spain mainly imported China ingredients for food dye, while Germany for health products, with a growth of 76 percent and 57 percent respectively.
　　U.S.- U.S. has been the most important exporting market for China’s ingredients, who has been listed as the biggest importer for ingredients for many years. In 2011, China exported 180 million USD of ingredients to U.S., an increase of 54 percent; while the volume was 8,050 tons, an increase of 32 percent year on year. The most popular ingredients in the U.S. were licorice, including glycyrrhetate and licorice extract. The export of glycyrrhetate alone to the U.S. reached 16.64 million USD last year, up by 36.7 percent. U.S. mainly used the ingredients for the health products, which most Americans take everyday.
　　
　　 Profile at home
　　There were 1,402 companies exporting ingredients in 2011, an increase over 2010, which was 1,365. Private companies were the major exporters, taking up over 56 percent, while joint-ventures took up 32 percent, and SOEs 11 percent.
　　Most of China’s ingredients witnessed a stable growth in 2011. Here are a few examples. Eucalyptus oil (export value of 110 million USD, an increase of 26 percent), Glycyrrhetate (33.14 million USD, 17.5 percent increase), Rutin (29.6 million USD, 87.5 percent increase), Licorice extract (25.33 million USD, 28.3 percent increase).
　　However, at the beginning of this year, China’s Import and Export Inspection and Quarantine Bureau set up a new rule for ingredient export that all the herb ingredients should be inspected as Hazchem and food additive, which will take a longer time and cost more to finish all the inspection processes. And the export companies should have a QS certification for food manufacturing, which most of the ingredient companies don’t have now. At this time, the ingredient manufacturing industry is in a transitional period to catch up with the new regulations.