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Release time：2024-06-16 10:53:14 Source：Comprehensive Chinese media
Angong Niuhuang Pills, traditionally revered as a "first aid magic medicine" in Chinese medicine, have recently seen a significant price hike, making headlines. The Hong Kong version's price surged by over 20%, with a single pill now costing HK$1,280.
Raw Material Costs: The Primary Driver
The core factor behind the price increase is the escalating cost of raw materials, particularly natural bezoar. As of June 13, the price of natural bezoar ranged from 1.4 million to 1.65 million yuan per kilogram, exceeding gold's value, which was about 545,400 yuan per kilogram. This price surge is driven by the scarcity and high demand for natural bezoar, a critical ingredient in Angong Niuhuang Pills.
According to Southwest Securities, natural bezoar and musk constitute over 90% of the cost of Angong Niuhuang Pills. The rapid increase in these raw materials' prices has substantially impacted production costs, prompting manufacturers like Beijing Tongrentang to adjust their product prices accordingly.
The supply chain dynamics of TCM are complex and often constrained by the availability of high-quality raw materials. Natural bezoar, for instance, is not only scarce but also relies heavily on imports, making its supply vulnerable to global market fluctuations. The "Three No and One Full" standard (no pesticides, no sulfur, no heavy metal residues, and full process traceability) further complicates the production process, requiring significant investments in quality control and raw material management.
Competitive Landscape and Future Outlook
While Tongrentang's Angong Niuhuang Pills lead the market, they are not an exclusive product. With 126 companies approved to produce Angong Niuhuang Pills, competition remains fierce. However, the significant market share and brand loyalty enjoyed by Tongrentang provide a competitive edge, allowing for more aggressive pricing strategies. The continuous rise in raw material costs and the expanding market demand suggest that further price adjustments may be on the horizon for other manufacturers. Companies like Guangyuyuan, Jiuzhitang, and Pianzihuang, which have not yet announced price increases, may follow suit to offset their rising production costs.
The introduction of the "Special Provisions on the Registration and Administration of Chinese Medicine" from July 1, 2023, emphasizes additional safety requirements for TCM, potentially increasing the research and development costs for manufacturers. While this aims to enhance the safety and credibility of TCM, it may also exacerbate the financial pressures on smaller enterprises, leading to a more pronounced "Matthew effect" where larger companies with more resources continue to dominate the market.
The good news is that the price of bezoar is expected to be controlled in the future. Shangyaoju (Ningxia) Pharmaceutical Co., Ltd., a Chinese company, has initiated mass production and market entry of in vivo cultivated bezoar, a significant milestone for the traditional Chinese medicine (TCM) market. Priced at around 800,000 yuan per kilogram—more than 50% cheaper than natural bezoar—this development promises to stabilize prices and ensure a steady supply of high-demand TCM products like Angong Niuhuang Pills and Pien Tze Huang. With an annual production goal of 800 kilograms, cultivated bezoar addresses the long-standing supply-demand imbalance, offering a cost-effective, high-quality alternative that maintains the efficacy of natural bezoar.