Taiwan's Chinese Herbal Medicine Imports Plunge 40%, Industry Warns of Supply Chain Disruption Affecting TCM
Taiwan's imports of Chinese herbal medicines have plummeted 40% over 15 years. The Chinese Herbal Medicine Dealers Association warns that the decline, driven by the withering of traditional pharmacies and changes in the national health insurance system, could sever the supply chain, impacting the raw materials for scientific Chinese medicines and TCM clinics.
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- 📰 Published: June 3, 2026 at 18:24
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(Central News Agency, reporter Chen Jieling, Taipei, 3rd) Taiwan's imports of Chinese herbal medicines have sharply decreased. According to statistics, they have plummeted by 40% in just 15 years. The Chinese Herbal Medicine Dealers Association believes the main reason is the decline of traditional Chinese medicine pharmacies, which could lead to a supply chain disruption. When herbal medicines are in short supply, scientific Chinese medicines will inevitably face a shortage of raw materials, subsequently impacting Traditional Chinese Medicine (TCM) clinics.
Ma Yicai, Honorary Chairman of the National Federation of Chinese Herbal Medicine Dealers Associations, attended the seminar "Challenges in the Grading System and Development of the Chinese Herbal Medicine Industry" today, sharing the current development status of the herbal medicine industry and the challenges and suggestions under the current management system. He stated that based on recent import statistics for Chinese herbal medicines, it is not difficult to see that Taiwan's overall import volume has decreased by a full 40%.
Ma stated that according to statistics from the National Federation of Chinese Herbal Medicine Dealers Associations of the Republic of China, the total import volume of Chinese herbal medicines in 2011 (Minguo 100) was 36,482 metric tons. It decreased significantly year by year from 2023 to 2025, with imports in 2025 (Minguo 114) falling to just 21,724 metric tons. "Compared to the import volume in 2009 (Minguo 98), it has been cut in half," Ma said.
Ma noted that imported Chinese herbal medicines are wholesaled and retailed in Taiwan, with sales channels including TCM clinics, traditional pharmacies, scientific Chinese medicine manufacturers, biotech companies, and the food industry. Although the import volume of herbal medicines has been declining year by year, further analysis shows that the business of TCM clinics, etc., has not suffered as much. This indicates that the sharp decline in imports has almost entirely occurred in traditional Chinese pharmacies. "The decline in imports for traditional pharmacies is certainly more than 40%," Ma stated.
Ma explained that the sharp decline in herbal medicine imports is mainly due to the National Health Insurance (NHI) system changing the ecosystem. The NHI only covers scientific Chinese medicines, not decoctions (shui yao), causing sales to plummet. Additionally, it is difficult to obtain licenses for Chinese herbal medicine dealers, and there are no new entrants. "No industry can thrive after its new blood is cut off," he said, adding that young people no longer visit traditional pharmacies, preferring to buy rose and four-herb drinks with minimal herbal content from convenience stores.
Ma said that partners in traditional pharmacies have told him their customers are all over 50 years old, and no young people actively step into a traditional pharmacy. According to statistics, there are only about 7,000 traditional Chinese pharmacies left in Taiwan this year, and the number could drop to 2,000 in the next 10 years. These pharmacies are losing money and shrinking, like an endangered species. The current situation is that the supply of herbal medicines could be disrupted, and there are concerns that a future supply chain disruption will affect the supply of Chinese medicine preparations.
Ma likened the relationship between the supply of herbal medicines and Chinese medicine preparations to that of a fruit and vegetable vendor and a smoothie shop. "If the smoothie seller prevents the fruit and vegetable seller from selling their produce, the supply of fruits and vegetables will be cut off, the smoothie shop will have no raw materials, and the smoothie shop will be out of business." The urgent task is to save the herbal medicine trade to maintain the normal operation of the Chinese medicine industry chain.
"If the herbal medicine industry withers, the Chinese medicine preparation industry will definitely be affected. Unfortunately, the authorities only focus their attention on Chinese medicine preparations, leaving the herbal medicine industry feeling like an orphan," Ma warned. If the traditional pharmacy industry that buys and sells herbal medicines collapses, the herbal medicine supply chain will break. The next wave of impact will be that scientific Chinese medicines will have no raw materials for production. A shortage of NHI-covered scientific Chinese medicines will inevitably affect TCM clinics.
Ma reiterated, "A pharmaceutical dealer's license is not a panacea. If you casually give a license to a random person but require them to run a Chinese medicine business, 9 out of 10 will lose money. Even the old shops that have been in business for decades are losing money now." He called for promoting the development of the Chinese medicine industry, ensuring medication safety naturally, and fostering the healthy development of the entire TCM industry. (Editor: Chen Qingfang) June 3, 2026
Ma Yicai, Honorary Chairman of the National Federation of Chinese Herbal Medicine Dealers Associations, attended the seminar "Challenges in the Grading System and Development of the Chinese Herbal Medicine Industry" today, sharing the current development status of the herbal medicine industry and the challenges and suggestions under the current management system. He stated that based on recent import statistics for Chinese herbal medicines, it is not difficult to see that Taiwan's overall import volume has decreased by a full 40%.
Ma stated that according to statistics from the National Federation of Chinese Herbal Medicine Dealers Associations of the Republic of China, the total import volume of Chinese herbal medicines in 2011 (Minguo 100) was 36,482 metric tons. It decreased significantly year by year from 2023 to 2025, with imports in 2025 (Minguo 114) falling to just 21,724 metric tons. "Compared to the import volume in 2009 (Minguo 98), it has been cut in half," Ma said.
Ma noted that imported Chinese herbal medicines are wholesaled and retailed in Taiwan, with sales channels including TCM clinics, traditional pharmacies, scientific Chinese medicine manufacturers, biotech companies, and the food industry. Although the import volume of herbal medicines has been declining year by year, further analysis shows that the business of TCM clinics, etc., has not suffered as much. This indicates that the sharp decline in imports has almost entirely occurred in traditional Chinese pharmacies. "The decline in imports for traditional pharmacies is certainly more than 40%," Ma stated.
Ma explained that the sharp decline in herbal medicine imports is mainly due to the National Health Insurance (NHI) system changing the ecosystem. The NHI only covers scientific Chinese medicines, not decoctions (shui yao), causing sales to plummet. Additionally, it is difficult to obtain licenses for Chinese herbal medicine dealers, and there are no new entrants. "No industry can thrive after its new blood is cut off," he said, adding that young people no longer visit traditional pharmacies, preferring to buy rose and four-herb drinks with minimal herbal content from convenience stores.
Ma said that partners in traditional pharmacies have told him their customers are all over 50 years old, and no young people actively step into a traditional pharmacy. According to statistics, there are only about 7,000 traditional Chinese pharmacies left in Taiwan this year, and the number could drop to 2,000 in the next 10 years. These pharmacies are losing money and shrinking, like an endangered species. The current situation is that the supply of herbal medicines could be disrupted, and there are concerns that a future supply chain disruption will affect the supply of Chinese medicine preparations.
Ma likened the relationship between the supply of herbal medicines and Chinese medicine preparations to that of a fruit and vegetable vendor and a smoothie shop. "If the smoothie seller prevents the fruit and vegetable seller from selling their produce, the supply of fruits and vegetables will be cut off, the smoothie shop will have no raw materials, and the smoothie shop will be out of business." The urgent task is to save the herbal medicine trade to maintain the normal operation of the Chinese medicine industry chain.
"If the herbal medicine industry withers, the Chinese medicine preparation industry will definitely be affected. Unfortunately, the authorities only focus their attention on Chinese medicine preparations, leaving the herbal medicine industry feeling like an orphan," Ma warned. If the traditional pharmacy industry that buys and sells herbal medicines collapses, the herbal medicine supply chain will break. The next wave of impact will be that scientific Chinese medicines will have no raw materials for production. A shortage of NHI-covered scientific Chinese medicines will inevitably affect TCM clinics.
Ma reiterated, "A pharmaceutical dealer's license is not a panacea. If you casually give a license to a random person but require them to run a Chinese medicine business, 9 out of 10 will lose money. Even the old shops that have been in business for decades are losing money now." He called for promoting the development of the Chinese medicine industry, ensuring medication safety naturally, and fostering the healthy development of the entire TCM industry. (Editor: Chen Qingfang) June 3, 2026
FAQ
Why is Taiwan's import of Chinese herbal medicines decreasing?
The main reason is the decline of traditional Chinese pharmacies due to changes in the National Health Insurance system, which does not cover decoctions, leading to business closures.
How will this problem affect TCM clinics?
If the supply of herbal medicines is cut off, there will be a shortage of raw materials for scientific Chinese medicines. This will lead to a shortage of NHI-covered scientific medicines, disrupting TCM clinic operations.
How many traditional Chinese pharmacies are there in Taiwan currently?
There are approximately 7,000 pharmacies as of 2025, but this number is projected to drop to 2,000 within the next 10 years if the current trend continues.