Bon Natural Life, one of the leading providers of bio-ingredient solutions in the natural, health and personal care industries, will build a new plant in China.
On May 10, 2021, the company acquired an 8.2-acre land use right at a cost of $267,000, through a government-organized auction bidding in Yumen City, Gansu Province of China.
There the company has the right to use this land for 50 years until May 9, 2071.
Bon Natural Life plans to build a new manufacturing plant on this land. The total budget for the construction of this new manufacturing plant is around 6.2 million dollars.
Thus, the company began the construction of the Yuman plant on July 29, 2021 with an estimated completion around October 2022.
Health care is one of the largest sectors of the Chinese economy.
The 2018 Statistical Bulletin on the Development of China’s Health and Welfare Industry shows that China’s total health spending in 2018 was expected to reach RMB 5 trillion 800 billion or US$998 billion, among which, the social spending on health was RMB 2 trillion 495 billion or US$382 billion.
While total health spending per capita is $635, total health spending accounted for 6.4% of China’s GDP in 2018.
According to Bon Natural Life, the Chinese government actively supports policies to improve the health outcomes of its citizens.
Bon Natural Life
According to the Healthy China Action, by 2030, the Chinese government seeks to improve the health awareness of the general public, which will lead to much better healthy lifestyles and increase average life expectancy.
The health industry in China will continue to develop. According to the enterprise development strategy and industrial planning in China’s large health sector of the Advanced Industry Research Institute, the large health industry was 2.6 trillion RMB or 402.5 billion US dollars in 2011 and rose to 6.2 trillion RMB or 929.5 billion US dollars in 2017, representing a CAGR of approximately 15.6 percent.
China’s health industry would have reached US$1.5 by 2020.
The annual compound annual growth rate over the next five years (2019-2023) is forecast to be 12.6 percent.
Meanwhile, China’s nutritional and dietary supplement industry has seen rapid growth in the past decade. In 2011, the industry market size was US$13.3 billion and grew at a CAGR of 20.9% to US$49.9 billion in 2018, according to the Forward Industry Research Institute research report
The industry is expected to reach $105.7 billion in 2023, representing a CAGR of approximately 15.5 percent.
Bon Natural Life’s total net revenue was $25.5 million in fiscal 2021, an increase of 39.9% year over year.