Introduction – Current State of Play: The Herbs Sector in China
The Chinese herbs market is currently navigating a whirlwind of change. From sudden policy changes to dramatic shifts in global trade, China’s herbal supply chain is under pressure—and opportunity. In March 2025, the U.S. imposed an additional 20% tariff on Chinese herbs, pushing total tariffs on some goods to a staggering 45%. This move has sparked immediate ripple effects, including price hikes and potential shortages of key herbs like Astragalus (Huang Qi), Codonopsis (Dang Shen), and Atractylodes (Bai Zhu).
Simultaneously, China has launched a domestic procurement program targeting 45 commonly used herbs, starting April 2025. This centralized move is designed to stabilize internal pricing, ensure quality, and reduce treatment costs for Chinese patients. But here’s the catch—by prioritizing the local market, the country may tighten exports, creating uncertainty for international buyers.
And let’s not forget Mother Nature. Climate change is tossing curveballs into the mix. From devastating rains to long droughts, unpredictable weather is hurting yields and shaking up supply predictability. Notably, floods in mid-2023 wiped out crops like Schizonepeta and Lonicera japonica flower, spiking their prices by nearly 300% within months.
Yet, even in the middle of this turbulence, the herbs market is booming. With a projected market size of $27.8 billion USD by the close of 2025, demand for Chinese medicinal herbs isn’t slowing down. But the road ahead demands agility, insight, and reliable partnerships.
Platforms like Freshdi are becoming essential allies—offering verified supplier data, real-time RFQ trends, and current market intelligence to help buyers keep pace with these rapid changes.
Deep Dive – Market Movers: Recent Developments and Consequences
Overproduction & Price Volatility
In 2024, prices of high-demand herbs such as Astragalus, Atractylodes, and Moutan peel saw a surprising dip. Why? Overproduction and speculative stockpiling led to a glut in the market. While this benefited pharmaceutical companies with lower input costs, many farmers and smaller vendors took a financial hit due to depreciated selling prices.
Climate Chaos and Crop Damage
Sichuan province, a major herb-growing region, experienced heavy flooding in mid-2024. Root herbs like Atractylodes and Peony root suffered from waterlogging, leading to rot and fungal outbreaks. Similar disasters affected Gardenia and Mume fruit yields, pushing prices upward and creating bottlenecks for processors and exporters.
Investor Interest and Market Speculation
Interestingly, medicinal herbs are now attracting the eyes of non-traditional investors. As real estate and stock markets wobble, herbs are being treated like green gold. Take coltsfoot flowers, for example—their price quadrupled in just two years. This speculative interest, while boosting short-term market activity, also adds unpredictability for long-term buyers.
Regulatory Push for Stability
Facing wild price swings, China proposed a national herb reserve in March 2024. The idea? Buy low, sell high—just like oil reserves. This could help smooth out extreme price fluctuations. And in July 2024, local regulators cracked down on illegal price hikes, trying to bring some order to the chaos.
A Reshuffling Market
Centralized procurement is shaking things up. Pharmaceutical firms are now battling harder for contracts, making quality, pricing, and compliance more important than ever. For exporters, this means more scrutiny—and potentially fewer players surviving the squeeze.
Top 3 Verified Herbs Suppliers in China – Relevant in the Current Climate
When the market’s moving this fast, you need suppliers who are stable, export-ready, and responsive. These three have been standout performers in Q3 2025, according to Freshdi’s verified supplier ratings and RFQ trends.
1. Gansu Guocao Pharmaceutical Co., Ltd.
- Specialties: Traditional Chinese medicinal herbs
- Strengths: Strong domestic base in Gansu (a key herb-growing region), GMP-certified, rapid export turnaround
- Why Now: Their strategic location shields them somewhat from the extreme weather affecting central and southern regions
2. China Mark Foods Co., Ltd.
- Specialties: Dried black pepper, single herbs
- Strengths: Wide international footprint, excellent logistics capabilities, high product consistency
- Why Now: Their robust supply chain management has allowed them to maintain stable pricing amid broader market fluctuations
3. Qianshi Food (Cangzhou) Co., Ltd.
- Specialties: Chili powder, single spices, dried herbs
- Strengths: High-volume production, HACCP-certified, strong buyer feedback on Freshdi
- Why Now: Their northern location helped avoid recent flooding impacts in southern regions
Dynamic Ranking Note
Remember, rankings like these are fluid. Platforms like Freshdi regularly update “Suppliers of the Month” or “Top Exporters by RFQ Volume” based on real-time buyer activity, product quality, and response efficiency. Always check the latest stats before making sourcing decisions.
Market Navigation – Strategic Responses to The Prevailing Herbs Landscape in China
So, what should businesses do now? The market is volatile, but that doesn’t mean it’s unmanageable. Here are some strategic insights:
1. Diversify Your Supplier Base
Don’t put all your herbs in one basket. Climate change and regulation can impact certain regions more than others. Using platforms like Freshdi to vet suppliers across multiple provinces can reduce your risk exposure.
2. Monitor Policy Changes Daily
The Chinese government is doubling down on procurement and compliance. Make sure your suppliers are aligned with new regulations. Freshdi’s real-time alerts for verified RFQs and supplier certifications can keep you from falling behind.
3. Be Wary of “Too Good to Be True” Prices
With speculative pricing and stockpiling rampant, suspiciously low prices may indicate poor quality or future delivery issues. Trust verified suppliers with a strong export record and customer feedback.
4. Focus on Resilient Herbs
Some herbs are more affected by weather than others. For instance, root herbs like Atractylodes are more susceptible to flooding. Consider shifting focus to hardier herbs or those grown in less-affected areas.
Conclusion – Key Takeaways for Businesses in a Dynamic Market
Let’s recap what’s happening, and what you can do about it:
- Tariffs are up, especially for U.S. importers, making Chinese herbs more expensive and possibly harder to find.
- China’s domestic procurement is squeezing export availability, especially for 45 core herbs.
- Climate challenges are real and impacting specific regions and herb types.
- Speculation is distorting prices, so verified suppliers are more critical than ever.
- The market is still growing, but smart sourcing decisions are now the difference between profit and pain.
Freshdi is more than just a marketplace—it’s your herbs intelligence hub. With supplier verification, RFQ trend tracking, and dynamic rankings, it empowers you to make fast, data-backed sourcing decisions even in a stormy market.
Checklist for Herbs Buyers – Q3 2025 Edition
- ✅ Check current tariff structures for your target import country
- ✅ Use Freshdi to verify certifications and recent buyer feedback
- ✅ Monitor climate reports for regional crop risks in China
- ✅ Validate supplier participation in centralized procurement programs
- ✅ Track RFQ trends to spot potential shortages early
Future Outlook
Looking ahead, the traditional Chinese herbs market will continue to grow—but not without challenges. The winners will be those who stay informed, diversify their supplier network, and lean on tools like Freshdi for real-time, actionable insights.
Whether you’re importing Astragalus or exploring newer herbal solutions, the key to success lies in preparation and adaptability.
References
- Mayway Supply Chain Update – March 2025
- Mayway Blog – Supply Chain Centralization
- 6W Research – China Fresh Herbs Market
- Futunn News – TCM Price Trends
- SCMP – TCM as an Investment Trend
- Business Research Insights – Global TCM Growth
FAQs
1. What are the most affected herbs by China’s new procurement program?
Primarily, commonly used medicinal herbs like Codonopsis, Astragalus, and Atractylodes are prioritized, which could reduce their availability for export.
2. How can I verify a Chinese herb supplier’s export credentials?
Platforms like Freshdi offer real-time verification, including certifications, export history, and buyer feedback.
3. What herbs are currently experiencing the highest price volatility?
Due to climate and speculation, herbs like Schizonepeta, Lonicera japonica flower, and coltsfoot are seeing major price swings.
4. Are there any herbs less impacted by recent weather events?
Generally, herbs grown in northern regions (e.g., Gansu) have been more stable compared to southern provinces affected by floods.
5. How can I stay updated on herbs market trends in China?
Use tools like Freshdi for RFQ tracking, supplier updates, and market trend reports tailored to the herbs segment.
