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Price trends of herbal materials for rutin and Monk fruit extract

The quercetin price is at a high level. Will the new harvest make the price go to a nice level? Is the monk fruit growing well with the abnormally hot weather in China?

Price trends of Sophora Japonica buds for rutin and quercetin.

The harvest of Sophora Japonica flower buds begins in July every year in China. The season is just finished in each planting area in 2022. The price of the buds rocketed to RMB60/kg before July,2022. It hit a low of RMB20/kg in early August, and the current merchant purchase price ranges from RMB 23/kg (depending on quality), according to the medicine website. Why did the price of the buds vary so much?

Quercetin granule

The yearly yield of the buds affects the price.

In 2015, China enjoyed a high-yield year with a large output of sophora buds. Coupled with the amount of inventory from the previous year, the market price fell all the way. In 2016, the price was at around RMB10/kg. In 2018 and 2019, the price was also between RMB 10-12/kg, due to the sluggish market demand.

The market price began to rise and reached RMB15/kg as the new output shrank due to the abnormal weather in 2020. Again, affected by the weather again, the buds output of new goods was small, and the market price in the new production period roared to RMB30-35/kg in 2021.

As the supply of buds is digested, the market price before the 2022 harvest rocketed to RMB60/kg, an increase of six times in the short term of three years, which has surprised many businesses.

Here(Figure on the left) we found the lowest price of Sophora japonica is RMB10/kg in the past 10 years, the highest is¥70/kg in 2009, RMB60/kg is the second highest price in previous 10 years. As with other herbal ingredients, the demand also affects the price of sophora buds. For instance, the decreased demand and the large supply lowered the price sharply together in 2015.

The changed demand for the buds affected the price.

In China, Sophora buds are generally applied as raw materials for rutin extraction and then other flavonoids such as quercetin. This takes an amount of 80%.

Aside from China, Vietnam has a plentiful supply of Sophora buds. The higher rutin content in the flower buds attracted some of the rutin extraction factories. Some of them have moved to Vietnam or imported buds and extracted them in China. In this context, the domestic demand for Sophora japonica buds has shrunk significantly since then.

However, the epidemic in recent years has made importing supply chains a lot more difficult. The manufacturers had to turn back to domestic supply and rely on the old inventory of the buds, which resulted in the rising price of the buds and, of course, the higher prices of rutin, quercetin, and other related flavonoids.

Cultivation trends of Monk fruit for mogrosides.

Did the high temperature and drought in southern China affect the cultivation of Luo Han Guo(Monk fruit) this year? Will this affect the harvest and thus the yield and price of mogrosides?

Luo Han Guo has stringent requirements for the growth environment, including moisture and temperature. Although monk fruit is a sun plant, it does not tolerate high temperatures. The growth of Luo Han Guo will be hampered if the planting temperature exceeds 34°C. The high temperatures and drought in August this year had an impact on the young Monk fruit grown in Guangxi, Hunan, and other provinces. A lack of water will reduce the size of the monk fruit or cause it to deform.

The Luo Han Guo planting area is around 200,000 mu in 2022, a 30% increase over last year (estimated by the number of seedlings), According to NutaMax. Based on current conditions, the yield per mu of Luo Han Guo in most areas will be lower than in 2021. NutraMax predicts that the average yield of Luo Han Guo this year will be 6,000-8,000/mu, with a total number of fruits of around 110,000 tons, based on recent extreme weather conditions.

We predict that the price of monk fruit extract will at least keep at the current level, or maybe a little higher in near future.

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