In recent years, there has been a growing demand for dietary supplements, and mushroom extracts have gained widespread attention as natural health supplements. According to research by the Indian market research company Evolve Business Intelligence, the global mushroom extract market reached $28.3 billion in 2022. Additionally, according to global import and export data from the U.S. trade data company Volza, China leads in mushroom extract exports, accounting for 1016 out of 1952 batches globally. The United States stands out as a prominent market with a high awareness of mushroom extracts, importing 833 batches, making it the largest importing country worldwide. The collaboration between China and the United States has elevated the mushroom extract industry to new heights, with China becoming the preferred destination for U.S. companies importing mushroom extracts.
Perhaps upon hearing this news, as a professional in the supplement industry, you may be eager to quickly enter the mushroom extract business. However, it's important to realize that international trade is never a simple matter, and you still face challenges such as ensuring cost-effective, efficient, and risk-controlled processes during overseas procurement. Before taking action, we recommend that you carefully read this article. In this guide, we will provide you with a one-stop solution, including how to choose mushroom extract products, find reliable suppliers, and ensure safe and efficient product transportation, as well as the final customs clearance process. Our goal is to help you overcome any challenges encountered during the import of mushroom extracts. Whether you are a newcomer to international trade or have previous experience with import and export, this guide will provide you with valuable assistance in your work.
Before choosing a mushroom extract, it is necessary for you to carefully analyze the market demand for the product. This includes understanding which types of mushroom extracts are currently popular among consumers and their preferences and needs. In my article "Expanding Your Business: A Guide to Choosing the Right Product Line," I have conducted a detailed analysis. Currently, in the U.S. market, popular mushroom extracts include lion's mane, reishi, chaga, and cordyceps. Additionally, due to ongoing consumer interest in cognitive health, emotional support, and immune regulation, lion's mane remains a favorite in the market. Moreover, turkey tail mushroom also has significant potential as a mushroom extract. If you're feeling uncertain about choosing mushroom extracts, this information may provide you with some assistance.
It is crucial to determine the specific application areas for your product based on your target market and consumer demands. According to the "2023 Mushroom Ingredients Market Report" by the U.S. data company SPINS, mushroom extracts are widely popular in various application areas. Currently, two major application areas have received significant attention:
1、 Dietary Supplements
Mushroom extracts were initially used mainly in the field of vitamins and dietary supplements as they are believed to provide the body with a wide range of essential nutrients. Moreover, this application area has consistently garnered attention.
2、 Food and Beverages
In recent years, mushroom extracts have also garnered attention in the food and beverage industry. Especially in ready-to-drink beverages and packaged foods, the application of mushroom extracts has gradually increased. This might be due to the growing demand for health-functional foods among consumers, who seek to incorporate the health benefits of mushroom extracts into their diet.
If you're interested in delving deeper into information on selecting the most suitable product line, please refer to my previous blog post, "Expanding Your Business Scope: A Guide to Selecting the Right Product Line." In this essential blog post, we discuss how to choose the most appropriate product line for your business. The following are the key points from that article, which will help you better understand how to make informed decisions:
1、 Selecting Mushroom Extracts Based on Market Demand
In this article, we delve into consumer perceptions of mushroom extract products—how they view these products and their preferences for different types. We also analyze and forecast market trends for mushroom extracts to formulate long-term strategies.
2、Choosing Mushroom Extracts Based on Product Positioning
In this article, we elaborate on how to select mushroom extracts that align with your product's positioning and cater to your target audience. These selections should also match the popular products with long-term market demand.
3、Picking Suitable Mushroom Extracts According to Brand Positioning
In this article, we will guide you step by step on how to choose the right product types that suit your brand image and positioning. Additionally, we will recommend product formats suitable for your industry.
By reading this detailed blog post, you'll gain an in-depth understanding of how to select the most suitable product line based on market and customer demands. This guidance will provide valuable insights and decision-making foundations for your process of importing mushroom extracts. We hope these suggestions contribute to the thriving and successful growth of your business.
When searching for the right mushroom extract suppliers, you may sometimes feel overwhelmed. In such cases, you can utilize specialized B2B platforms such as Alibaba, and Global Sources, or conduct a straightforward Google search. These platforms can assist you in easily locating the suppliers you need. Just type in relevant keywords like 'China mushroom extract suppliers' or 'China mushroom extract manufacturers,' and you'll get a list of suppliers that match your requirements.
Through this search process, you'll get a list of the most excellent mushroom extract suppliers. If you want to make the supplier list more specific, you can use specific keywords related to the product. For example, type in 'China lion's mane mushroom extract,' and you'll find a list of suppliers that offer that specific type of product.
1、Check Company Qualifications and Certificates
Before collaborating with suppliers of mushroom extracts from China, it's important to conduct a thorough check of their company qualifications and certificates to ensure that the chosen supplier is a reliable partner. When inspecting suppliers, there are certain relevant certificates they should provide, which can contribute to smooth cooperation. Here are some certificates you should request from suppliers when inspecting them:
Categories | Specific Certificates |
Compliance Operations | Business License, Operating Permit |
Production Standards Certificate | ISO 9001, ISO 22000, HACCP |
Organic Certification (if applicable) | US ORGANIC, ECOCERT |
Religious Certification (as required) | Halal, Kosher |
Quality Inspection Report | Microbes, Heavy metals, Pesticides exceeding USP standards, Organoleptic evaluation |
Among these, quality inspection reports are the most crucial part of all product checks. They have a decisive impact on ensuring product quality, smoothly passing customs inspections, and obtaining market access qualifications. Professional mushroom extract suppliers should conduct such inspections on their products before export and disclose the final test results to their customers. In addition to the information in the table above, reiheychem conducts regular inspections and sets additional requirements and standards for themselves. This typically includes:
● Complete microbial testing for bacteria, yeast, and mold, e. coli, and coliforms
● Heavy metals analysis.
● Pesticide testing that exceeds USP standards.
● Beta-glucan testing to ensure the presence of active compounds.
● Ergosterol testing to ensure fungal purity.
● Alpha-glucan testing to guard against adulterants and carriers.
● Reishi extracts are analyzed for triterpenoids. Cordyceps is analyzed for cordycepin.
● Final organoleptic evaluation.
In conclusion, whichever analysis or certification is required, we determine it based on specific agreements and contract terms with the customer. This helps assure my customers of high quality and competitiveness in the sales market.
After thorough screening and assessment, you can initiate collaboration with the suppliers you favor. This step is pivotal for the success of your mushroom extract import business.
1、Clarify Purchase Details
Before formal collaboration with the supplier, ensure you have a clear understanding of the mushroom extracts you're purchasing. Clear up the following details to prevent unnecessary troubles later on:
● Quantity and specifications: Determine the quantity and detailed specifications of the products you intend to purchase, including weight, dimensions, ingredients, etc.
● Delivery time: Agree on the delivery time to ensure the supplier can deliver the products on time. Specific delivery times vary depending on the transportation method, and I'll provide specific delivery times from different suppliers based on the transportation method for your reference.
2、Negotiate Prices and Terms
● Base price: Reaching an agreement on the base price is the initial step to establishing a clear consensus on product pricing with the supplier. This price is typically determined when the market conditions are relatively stable and serves as the starting point for discussing price fluctuations.
● Bulk discounts: Suppliers often offer tiered pricing, and purchasing mushroom extracts in bulk usually comes with price discounts. You can decide whether to place large orders based on your needs and the extent of discounts.
3、Confirm Delivery Location
Clearly specify the delivery location of the goods to ensure they are delivered to the appropriate destination. Different transportation methods impact the destination of goods. For instance, when cooperating with US clients, shipping typically arrives at the CIF port of San Francisco.
4、Choose Packaging Methods
Select suitable packaging methods to ensure the safety of mushroom extracts during transportation. I'll provide detailed packaging information in the subsequent section on product transportation. Our primary goal is to make every effort to ensure products arrive at your location intact.
5、Payment Terms
Payment terms outline the payment arrangement between you and the supplier, ensuring both parties' rights and responsibilities are protected during the transaction. Various payment methods are available, such as advance payment, payment upon delivery, or letter of credit. Regardless of the chosen method, ensure that all payment terms are explicitly stated in the contract to avoid disputes later on. For example, when our company collaborates with overseas clients and opts for advance payment, we specify the payment method in the contract, paying a 30% deposit upon confirming the Proforma Invoice (PI) and the remaining 70% before shipment.
The packaging and shipping methods of your products not only affect their condition and quality but also directly impact delivery times and cost-effectiveness. Therefore, carefully considering how to choose the right packaging and shipping methods for your products is crucial. In the following section, we will discuss how to select the most suitable packaging and shipping methods based on your needs and specific circumstances.
There are various packaging methods for products, and when selecting a packaging method, you need to consider several factors and make your choice based on your specific circumstances.
1、Consideration Factors:
● Protective Performance
Choose packaging that offers sufficient protection to prevent damage, impact, or compression during transportation.
● Product Form
Consider the form of the mushroom extract, whether it's powder, capsules, or liquid, to select a suitable packaging method.
● Product Characteristics
Consider the sensitivity and moisture-prone nature of the mushroom extract, and choose special packaging materials like moisture-resistant and impermeable materials.
● Environmental Requirements
Consider using eco-friendly materials that comply with relevant regulations. In the US, the Toxics in Packaging Clearinghouse (TPCH) updated its model legislation in February 2023, prohibiting the detection of PFAS in packaging or packaging components. PFAS is present in plastic-based packaging materials, oil-resistant coatings, fire-retardant foams, and other products, posing various health risks like cancer, liver damage, thyroid diseases, and developmental delays.
2、Common Packaging Methods for Mushroom Extracts:
Based on the experience of our company's cooperation with clients, there are two commonly used packaging methods for mushroom extracts. You can choose based on the actual weight of the product you are ordering:
● Drum Packaging: Suitable for bulk purchases, with a capacity of 25kg per drum, providing good sealing and leak-proof performance.
● Bag Packaging: Suitable for smaller quantities, such as 1kg bags of powdered mushroom extract, using materials like woven bags or aluminum foil bags.
3.1.2 Choosing Packaging Materials
In addition to selecting the packaging method, you should also consider the choice of packaging materials. Opting for the right packaging materials ensures the safety of your goods. For instance, when it comes to air transportation, packaging needs to be sturdy while keeping the weight as light as possible. In the case of sea transportation, due to the relatively unpredictable marine environment, packaging materials should include measures to absorb moisture and prevent dampness, preventing damage to the goods. Additionally, sea freight involves repeated handling of goods, so packaging must withstand vibrations, abrasion, and potential impact from handling.
For the export of mushroom extract products, the primary consideration is usually moisture protection. Based on our current experience in collaboration, most often, sealed bags or aluminum foil bags are chosen to meet this requirement.
After choosing the appropriate packaging method, determining the correct packaging labels is a crucial step to ensure the smooth transportation and customs clearance of your mushroom extracts. Packaging labels serve as carriers of product information and are essential references for customs clearance, storage, and distribution processes. According to US customs regulations, exported goods must use packaging materials that meet US standards, and important information such as the manufacturer's name, address, product model, and batch number must be clearly labeled on the packaging materials. The specific labeling requirements are as follows:
● Product Name
● Quantity
● Quality
● Weight
● Volume
● Production Date
● Shelf Life
● Country of Origin
Selecting the appropriate shipping method is a crucial decision to ensure the safe and timely arrival of your products. Different shipping methods are suitable for various situations and needs. Taking the United States as an example, I will compare two different weights of goods to visually demonstrate the advantages and disadvantages of different shipping methods:
Name | 550kg | 12 Ton/20'GP | Delivery Time | Location |
Air Transportation | 5035$ | 5325$ | 12-15days | San Francisco Airport |
Sea Freight | 396$ | 2895$ | 25-30days | CIF San Francisco |
From the above comparison, it's clear that sea freight offers cost-effectiveness but slower shipping speed. On the other hand, air freight is faster but comes at the highest cost and certain limitations (additional charges for customs inspection, compensation of $40/kg for air cargo clearance, and potential return fees). Air freight is suitable for urgent orders with ample budget. However, based on our current cooperation experience, air freight isn't suitable for such large quantities of goods due to high costs. In practice, we usually opt for sea freight. This comparison can help you select the most suitable shipping method for your business needs based on your specific circumstances and priority factors.
According to U.S. international trade regulations, the HTS (Harmonized Tariff Schedule) code is a classification system used to identify imported and exported goods. The HTS code for mushroom extracts is 130219. Tariffs are calculated based on the tariff code and the value of the goods. Tariff rates can vary due to factors such as the type of product, country of origin, and trade agreements. Tariffs and fees encompass import duties and other charges. According to the Department of Commerce, U.S. imports of mushroom extracts from China are duty-free. Based on our current cooperation experience, customers often prefer sea freight as their primary shipping method. Therefore, the following discussion will focus on other potential costs associated with maritime transportation in addition to tariffs.
Other Taxes | Percentage | Condition | / |
ADDITIONAL DUTY | 7.5 % COST | / | / |
HMF | 0.125 % COST | / | / |
MPF | 0.0 | COST <= 800 | / |
/ | 1.05% COST | COST > 800 AND, COST <= 2500 | / |
/ | 0.346 % COST | 0.346 % COST | Max:508.70, Min:26.22 |
After successfully choosing the appropriate packaging and shipping method, mushroom extracts are about to arrive in the destination country. However, before the products can enter the market, they need to go through a complex customs clearance process. Customs clearance is the process of ensuring that products legally enter the destination country and comply with relevant regulations. It involves various documents and procedures.
1、Prepare Documents:
Before exporting, a series of documents need to be prepared. The main documents include:
● Commercial Invoice
● Packing List
● Certificate of Origin
● Customs Declaration Documents
● Import License
● Transportation Documents
● Certificate of Analysis
● For mushroom extract powders, an MSDS (Material Safety Data Sheet) may also be required.
These documents will be used for declaration and customs clearance. It's worth noting that regarding the Certificate of Analysis, reports from laboratories with CNAS certification can be recognized by multiple countries, including the United States.
2、Submit Import Declaration
Upon arrival in the United States, an import declaration must be submitted to the U.S. Customs and Border Protection (CBP). The declaration includes detailed information about the goods, their value, quantity, and more.
3、Pay Duties
Based on the value of the goods and the tariff rate, the corresponding duties need to be paid. This can be completed after submitting the import declaration.
4、 Inspection and Review
Depending on the circumstances, U.S. Customs may conduct inspections or reviews of your goods to ensure their legality and compliance with relevant regulations.
5、Customs Clearance Release
If your documents are complete and compliant, and your goods pass inspections, the U.S. Customs will allow your products to enter the U.S. market. Your goods will be cleared for customs release.
In conclusion, through in-depth analysis and practical advice, we hope that you can confidently handle the import of mushroom extracts. If you have any questions about purchasing mushroom extracts, please feel free to contact our suppliers. Thank you for reading our guide, and we wish you every success in your journey of importing mushroom extracts!
FAQ
Does the origin of mushroom extracts affect product quality?
Yes, the origin of mushroom extracts can affect product quality. China, as one of the major mushroom-producing regions, boasts abundant natural resources and favorable geographical conditions that contribute to cultivating high-quality mushrooms. Our products originate from China, benefiting from its excellent growth conditions to ensure product quality and purity.
What is the shelf life of mushroom extracts?
The shelf life of mushroom extracts depends on the product type, packaging, and storage conditions. Typically, when stored in sealed packaging, away from light, and in dry conditions, mushroom extracts can have a shelf life of 24 months.
Can the packaging of mushroom extracts be customized?
Yes, typically the packaging of mushroom extracts can be customized according to the customer's needs. You can choose packaging materials, formats, and designs that suit your brand and market. We can provide custom services to turn the powder into tablets, capsules, or gummies, and we can also offer customized packaging for your own brand.
What kind of packaging and transportation method should I choose?
Packaging and transportation methods should be determined according to the nature of the product, quantity, and customer needs. Usually, sealed bags, drums, and sea freight are the common choices for packaging and transportation of mushroom extracts.