Epimedium extract witnessed a relatively stable market in H1 and an increase in price in H2 2013, and may see a further higher price in the coming year.

Epimedium primarily grows in northeast China, Sichuan and Gansu provinces. The ones in Gansu are the fittest for production. The wild herb hasn't successfully cultivated. For more profits, farmers have picked epimedium out of order for years, resulting in a year-by-year drop in seeds production and active ingredient content. The harvesting ahead of time is mainly contributed to the worse condition. Epimedium production declined to 300 tons in 2013. The price, which soared higher and higher after the harvest season, was stabilized in September when the price was up 40 percent year on year.

Market situation

The harvesting began in June. The price for Epimedium extract rose along with Epimedium price. 10% icariin was sold about 620 yuan per kilogram in the first half of 2013. The figure dropped 3 percent in July, due to the fact that some manufacturers were eager to sell goods in stock to purchase raw materials. The price, remained stable in August, rose 5 percent in September,   then increased by 3 percent in November from the previous month.

Global demand

With stable demand in recent years, epimedium extract gained 100 million yuan abroad in 2013. The extract is mainly used in health product and pharmaceuticals. The largest demanders are still the United States and the European market, which accounts for more than 50 percent. The Asian market, the second largest demander, contributes to about 40 percent, especially Japan. The third largest demander is the Southeast Asian market, especially Thailand, Singapore and Malaysia. The Australian market, accounting for 5 percent, saw no demand growth in 2013. The demand grew in Middle East.
The domestic demand grew 10 to 15 percent year on year.

The extract price is expected to rise in 2014, on the basis of higher raw material price, less epimedium extract and constant global demand.

Copyright：Herbridge Media