Major traditional Chinese medicine (TCM) companies raised TCM prices by up to 20% in December, CCTV reported on Tuesday.
According to industry insiders, the price increase is mainly due to the general increase in raw material costs, which have been pushed up by weather conditions and tighter regulations.
Jiuzhitang, a Chinese listed company, said on Tuesday that TCM commodity prices rose significantly in 2021 due to weather and growth, with fines and valuable commodities in stark contrast to the Offer and demand.
The company said it will adjust its pricing strategies based on different products.
In the case of Angong Niuhuang pill, a popular bezoar-based TCM, the price of the drug’s 11 ingredients has increased by 20 to 50 percent.
Prices for all major TCM ingredients rose sharply and prices for some species doubled during the month, Hu Tengfei, a TCM trader based in eastern China, Anhui province, said on Tuesday.
“For example, niuhuaxi, a common Chinese herb was selling for 22 yuan a kilo last month and now the price has surged to 500 yuan a kilo, “he said.
Hu said that the price surge is mainly caused by the weather, noting that heavy rain in central’s China’s Henan province earlier this year has impacted production.
Tightened regulation on TCM also boosted the price, he added.
“New medicine regulation which took effect this year has put forward higher requirements on Chinese medicinal materials in terms of pesticide residues and place of origin of the ingredients which resulted in tighter supply,” he said.
In contrast to a relative low supply, demand for TCM has increased approaching the end of the year a with Chinese medicine a popular gift for the Spring Festival holiday.
From 2016 to 2020, the market size of TCM has continued to grow at a compound annual growth rate of 19.4 percent, according to 2021 TCM Innovation and Development Briefing.
In 2020, the market size of TCM reached 2.82 trillion yuan ($443 billion yuan) and is expected to reach 4.80 trillion yuan by 2025, the report said.
