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Nutraceutical Industry Report

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CONTENT
COPYRIGHT NOTICE.............................................................................................................................................. - 3 1. OVERVIEW OF NUTRACEUTICAL INDUSTRY........................................................................................... - 4 1.1. 1.2. 1.3. 2. DEFINITION OF THE INDUSTRY ........................................................................................................................- 4 TAX REBATES ON EXPORTS .............................................................................................................................- 4 PROSPECT OF THE INDUSTRY...........................................................................................................................- 4 -

ANALYSIS ON EXPORT MARKET OF NUTRACEUTICAL INDUSTRY.................................................. - 4 2.1. 2.2. EXPORT TREND OF NUTRACEUTICAL INDUSTRY IN CHINA ..............................................................................- 4 ANALYSIS ON OVERSEAS MARKET DEMAND OF NUTRACEUTICAL INDUSTRY ................................................- 5 -

3. ANALYSIS ON CHARACTERISTICS OF NUTRACEUTICAL INDUSTRY BUYERS................................. - 6 CONTINENT DISTRIBUTION OF BUYERS ..........................................................................................................- 6 CONTINENT DISTRIBUTION OF BUYER INQUIRIES IN THE PAST HALF YEAR ....................................................- 6 BUYERS’ ACTIVITY IN NETRACEUTICAL INDUSTRY .........................................................................................- 6 BUYERS’ ACTIVITY IN NUTRACEUTICAL INDUSTRY IN THE PAST HALF YEAR AND TOP5 COUNTRIES/REGIONS WITH MOST BUYER INQUIRIES. ...................................................................................................................................- 7 3.5. TOP 30 KEYWORDS IN NUTRACEUTICAL INDUSTRY SEARCH .........................................................................- 8 3.6. REPRESENTATIVES OF ALIBABA NUTRACEUTICAL INDUSTRY BUYERS (PARTIAL) ...........................................- 9 3.1. 3.2. 3.3. 3.4.

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Copyright Notice
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1. Overview of Nutraceutical Industry
1.1. Definition of the Industry
Nutraceutical (functional foods) is a category of foods can provide physiological benefits. It is fit for certain groups of people, but is not intended for curing diseases.

1.2.

Tax Rebates on Exports
Notice of the Ministry of Finance and the State Administration of Taxation on Lowering the Export

Rebate Rates for Some Commodities was issued by Ministry of Finance of PRC, State Administration of Taxation, National Development and Reform Commission, Ministry of Commerce of the PRC and General Administration of Customs, according to which the export rebate rate for nutraceuticals containing composition from endangered species has been eliminated and the export rebate rate for nutraceuticals with an export rebate rate of 17% has been reduced to 13% and the export rebate rate for nutraceuticals with an export rebate rate of 13% has been reduced to 5% since July 1, 2007.

1.3.

Prospect of the Industry
Nutraceutical industry has taken up a 5% of the total food sales in the world and made a sales amount of

over USD 100 billion. It continues growing at a considerable rate every year. Sales of nutraceuticals in USA is currently USD 75 billion, taking up one third of its total food sales. Japan achieved a sales amount of JPY 1500 billion of nutraceuticals in the last two years and produced over 3,000 kinds of nutraceutical products annually. Europe has over 2,000 kinds of nutraceuticals and has increasing sales at an annual rate of 17%. It is without a doubt that nutraceutical industry is a flourishing industry.

2. Analysis on Export Market of Nutraceutical Industry
2.1. Export Trend of Nutraceutical Industry in China
Historical Export Revenue of Nutraceutical Industry in China
  Historical Export Revenue of Nutraceutical Industry in China (100 million U.S $) 4.59 2.84 3.50 3.86

2005

2006

2007

2008(1-10)

Distribution of Destinations of Nutraceutical Industry in China

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Distribution of Destinations of Nutraceutical Industry in China
Japan 29%

others 31%

Korea 4% Singapore America 5% 14%

HongKong 17%

2.2.

Analysis on Overseas Market Demand of Nutraceutical Industry Japan (The data is from Japan Customs.)
Historical Import Revenue of Nutraceutical Industry in Japan (100 million U.S $)
Import sources of Nutraceutical product in Japan
others, 31% America, 34%

9.27 7.70 6.64
New Zealand, 6% Singapore, 6%

8.13

8.01

China, 14% Korea, 9%

2003

2004

2005

2006

2007

Hong Kong (The data is from Hong Kong Customs and Excise Department.)
Historical Import Revenue of Nutraceutical Industry in HongKong (100 million U.S $)
1.82 2.03 1.84 1.90 2.10
Thailand, 6% other Asia countries, 6% Japan, 6%

Import sources of Nutraceutical product in HongKong
others, 24% China, 37%

America, 21%

2003

2004

2005

2006

2007

USA (The data is from U.S. Customs Service.)

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Historical Import Revenue of Nutraceutical Industry in U.S. (100 million U.S $)
14.14 12.03 10.44 7.66 14.29

Import sources of Nutraceutical product in HongKong
others, 36% Canada, 35%

French, 4% Thailand, 7% New Zealand, 8% Mexico, 10%

2003

2004

2005

2006

2007

3. Analysis on Characteristics of Nutraceutical Industry Buyers
3.1. Continent Distribution of Buyers
Distribution of global buyers via Alibaba
southeast Middle East America 3% Oceania 1% 7% North America 12% Europe 16%

In the continent distribution of Alibaba buyers, 77% are from Asia, Africa and Europe. They have great potential for market development.
Asia 43%

Africa 18%

3.2.

Continent Distribution of Buyer Inquiries in the Past Half Year
Distribution of global inquiries via Alibaba
southeast Middle East America 2% 4% North America 10% Oceania 1% Asia 44%

In the distribution of Alibaba buyer inquires, inquiries from Asia, Africa and Europe take up 44%, 24% and 15% respectively. They have great potential for market development.

Europe 15%

Africa 24%

3.3.

Buyers’ Activity in Netraceutical Industry

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Global Alibaba buyer activity
Europe Southeast America Middle East Asia Africa Oceania North America Activity

3.4.

Buyers’ Activity in Nutraceutical Industry in the Past Half Year and TOP5 Countries/Regions with Most Buyer Inquiries.
North America Buyer Inquires Distribution Distribution of inquiries from Europe
England 27%

Canada 16%

Mexico 2%

others 42%

Germany 14% America 82% Poland 4% Italy 5% French 8%

Distribution of inquiries from Africa
Egypt 24% others 37%

Distribution of inquiries from Asia

others 33%

India 26%

Nigeria 11% South Africa 9% Togo 10% Tunis 9% Philipine 8% Bengal 8% Malaysia 9% Pakistan 16%

Distribution of inquiries from Middle East
others 35% Iran 20%

Distribution of inquiries from Southeast America
Brazil 20%

others 32% UAE 14%

Peru 17% Koweit 7% Syria 13% Turkey 11% Ecuador 7% Colombia 8%

Puerto Rico 16%

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Distribution of inquiries from Oceania
others 4%

New Zealand 24%

Australia 72%

Note: The above data quoted as of Aug.11, 2008. 3.5. TOP 30 Keywords in Nutraceutical Industry Search
Rank of Hotest buyer-searching keywords
health food bird nest food vitamin diet pill spirulina health whey protein ginseng organic food protein slimming capsule fish oil healthy food food supplements nutrition bird's nest food supplement weight loss red ginseng colostrum maca birds nest health supplements capsule health products collagen vitamin c aloe vera health drink

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3.6.

Representatives of Alibaba Nutraceutical Industry Buyers (partial)

NOTICE: Above all, Some Sources are from: China Customs Ministry of Commerce of the People’s Republic of China UN data statistics China Industry Research

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