Market Supply And Demand For Plant Extracts

There are many different varieties of plant extracts. The supply and demand of these products continue to change with the year and various market factors, and imbalances in supply and demand often occur.
① Impact on product supply
Since the raw materials of the plant extract industry are agricultural and forestry products, they are easily affected by factors such as weather, pests and diseases, sowing area, etc. The purchase price and quantity of raw materials in different years will fluctuate. The fluctuation of raw material prices will cause the price and output of natural plant extract products to have certain fluctuations. The degree of change causes an imbalance between market supply and demand.
② Impact of market demand
Most manufacturing companies have limited understanding of overseas market demand and may lack scientific and long-term accurate judgments on market demand. When the market demand for a certain product is good, there will be a short-term market imbalance in which supply exceeds demand. However, as market information spreads, a large number of companies will rush to produce repeatedly, resulting in product supply exceeding demand.