Price trend of Andrographis extract in China 2022.
Andrographis paniculata in Guangdong province is ready for harvest and dried herbs are already on the market in small amounts, which means that the new season of Andrographis paniculata will begin gradually. How much is the dried herb Andrographis paniculata in the new season? Will it have an impact on the price of Andrographis paniculata extract? What’s the price trend of Andrographis extract in China after the 2022 harvest season?
Changes in costs (cost of raw Andrographis paniculata, extraction cost) and market demand affect the price of Andrographis extract.
The price trend in the raw material of the extract-dried Andrographis herb.
Andrographis paniculata is an annual herb with a 120-day growth cycle. In general, its price does not fluctuate significantly. In fact, it will stabilize as the new harvest season approaches, though it changed significantly before. At the same time, it does happen when the new season has been produced but a part of the previous season’s inventory is still backlogged.
The price trend of the 2022 season dried andrographis herb.
Andrographis paniculata herbs are cultivated in provinces such as Guangdong, Guangxi, Fujian, Hainan, Anhui, Sichuan, etc. Among them, the output of Guangdong and Guangxi accounts for about 70% of the total output, which directly determines the price of dried Andrographis paniculata.
In general, the yield and output of dried herb are stable year by year in Guandong province. The main planting base of Guangdong is Zhanjiang. Raoping and other places are supplementary. If the planting area in Zhanjiang stays stable, the andrographis supply is stable. The herbs in Raoping experienced dry weather, which may hav led to a decreasing output. At present, a small amount of dried andrographis from Zhanjiang has been on the market, and the price is relatively stable referring to 2021.
Andrographis herb in the Guangxi cultivation area is still in the growing season and will be gradually on the market at the end of September, as usual. The largest planting area in Guangxi is in Guigang, which is the biggest planting area in China with the longest cultivation history. But the planting area shrank more than the previous year, and the output may be cut in half.
The significant reduced output may rocket the price of the dried herb, but it’s on the convert at present. The price of the raw materials remains at the same level as in 2021.
Backlogged inventory affects the price of the herbal extract.
The cost of Andrographis extraction rose to some degree.
Besides the basic raw material, the dried andrographis, there are other things that influence the cost of andrographis extract. For instance, the solvents and the labor and the power.
The main solvent for Andrographis extraction is ethanol, and the price of ethanol increased by nearly 20% in early 2022. With the new corn on the market, the price of ethanol dropped around 3%.
Rising labor and transportation costs are the main causes of the increasing cost of andrographis extract. The labor costs rose about 7%, and the transportation charges rose at least 60% more than 2019.
Domestic demand for andrographolide (andrographis extract) is lower.
There is a new chance for andrographolide. Xiyanping, a trademark of injection made from the andrographolide derivative-andrographolide sulfonate, is a designated drug in “Guidelines on the Novel Coronavirus-Infected Pneumonia Diagnosis and Treatment”. It is mainly one of the backup drugs for severe patients.
However, the domestic demand for andrographolide derivatives started to decrease in early 2020. On the one hand, stricter regulations in China monitor andrographolide derivative injections such as Chuanhuning and Yanhuning.The medical sites where injections can be used are strictly regulated. On the other hand, public health awareness has increased, masks are worn most of the time after the COVID breakout, and the public suffers from influenza less than before the epidemic. Therefore, the market for andrographolide derivative injections shrank and influenced much of the demand for the andrographis extract.
Although the production cost of andrographis extract is on the rise, the price of the herbal extract will not expect a significant increase but rather a relatively steady market price in coming months.
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