Report of Market Evaluation and

Investment Prospect
Assessment
on China Bird's Nest Industry
（2019-2025）

Report of Market Evaluation and Investment Prospect Assessment

on China Bird's Nest Industry（2019-2025）

 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

2019-2025 年中国燕窝行业
市场评估及投资前景评估报告

Report of Market Evaluation and Investment Prospect Assessment

on China Bird's Nest Industry（2019-2025）

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Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

目 录

CHAPTER I OVERVIEW OF BIRD'S NEST INDUSTRY ............ 1

SECTION I CONCEPT OF BIRD'S NEST INDUSTRY ................................................... 1

1、DEFINITION OF BIRD'S NEST INDUSTRY ........................................................... 1
2、CHARACTERISTICS OF BIRD'S NEST INDUSTRY ................................................. 2
3、CLASSIFICATION OF BIRD'S NEST INDUSTRY..................................................... 8
4、ANALYSIS OF THE BUSINESS MODEL OF CHINA'S BIRD'S NEST INDUSTRY .......... 12
SECTION II MATURITY OF BIRD'S NEST INDUSTRY ............................................... 12
1、INDUSTRY DEVELOPMENT CYCLE ANALYSIS ................................................... 12
2、COMPARISON OF DOMESTIC AND FOREIGN MARKET MATURITY IN THE INDUSTRY 13
3、MATURITY ANALYSIS OF BIRD'S NEST INDUSTRY AND ITS MAIN SUB-INDUSTRIES 14
SECTION III ANALYSIS OF MARKET CHARACTERISTICS OF BIRD'S NEST INDUSTRY 15
1、MARKET SITUATION ..................................................................................... 15
2、INDUSTRIAL RELEVANCE .............................................................................. 15
3、KEY FACTORS AFFECTING DEMAND............................................................... 16
4、DOMESTIC AND INTERNATIONAL MARKETS..................................................... 16
5、MAIN COMPETITIVE FACTORS ....................................................................... 17
6、LIFE CYCLE ................................................................................................ 17
SECTION IV INDUSTRY CHAIN ANALYSIS .............................................................. 18
1、ANALYSIS OF INDUSTRIAL CHAIN STRUCTURE ................................................ 18
2、VALUE-ADDED SPACE OF MAIN LINKS ............................................................ 19
3、RELEVANCE WITH UPSTREAM AND DOWNSTREAM INDUSTRIES ........................ 20
4、ANALYSIS OF RELEVANT INDUSTRIES UPSTREAM OF THE INDUSTRY CHAIN........ 20
5、ANALYSIS OF RELEVANT INDUSTRIES IN THE DOWNSTREAM INDUSTRY CHAIN .... 20
6、UPSTREAM AND DOWNSTREAM INDUSTRY IMPACT AND RISK TIPS .................... 21

CHAPTER II ANALYSIS OF THE DEVELOPMENT

ENVIRONMENT OF BIRD'S NEST INDUSTRY IN 2022 ............ 22

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SECTION I ANALYSIS OF CHINA'S ECONOMIC DEVELOPMENT ENVIRONMENT IN 2022

....................................................................................................................... 22
1、ANALYSIS OF CHINA'S GDP GROWTH ........................................................... 22
2、ANALYSIS OF INDUSTRIAL ECONOMIC DEVELOPMENT SITUATION...................... 23
3、ANALYSIS OF SOCIAL FIXED ASSET INVESTMENT ............................................ 27
4、TOTAL RETAIL SALES OF CONSUMER GOODS IN THE WHOLE SOCIETY ............... 28
5、ANALYSIS OF INCOME GROWTH OF URBAN AND RURAL RESIDENTS .................. 30
6、ANALYSIS OF CHANGES IN CONSUMER PRICES ............................................... 34
SECTION II ANALYSIS OF SOCIAL DEVELOPMENT ENVIRONMENT ............................ 39
1、DEVELOPMENT STATUS OF DOMESTIC SOCIAL ENVIRONMENT .......................... 39
2、IMPACT OF SOCIAL ENVIRONMENT ON THE INDUSTRY ...................................... 42
3、IMPACT OF INDUSTRIAL DEVELOPMENT OF BIRD'S NEST INDUSTRY ON SOCIAL
DEVELOPMENT ................................................................................................. 42

SECTION III ANALYSIS OF THE POLICY ENVIRONMENT OF CHINA'S BIRD'S NEST

INDUSTRY ........................................................................................................ 43
1、SUPERVISION AND MANAGEMENT SYSTEM OF BIRD'S NEST INDUSTRY .............. 43
2、ANALYSIS ON RELEVANT POLICIES OF BIRD'S NEST INDUSTRY ......................... 44
3、IMPACT OF UPSTREAM AND DOWNSTREAM INDUSTRIAL POLICIES ..................... 47
SECTION IV TECHNICAL ENVIRONMENT ANALYSIS OF CHINA'S BIRD'S NEST INDUSTRY
....................................................................................................................... 61
1、OVERVIEW OF TECHNOLOGY DEVELOPMENT OF BIRD'S NEST INDUSTRY ........... 61
2、TECHNICAL DEVELOPMENT STATUS OF BIRD'S NEST INDUSTRY ........................ 64

PART II MARKET PANORAMA SURVEY .................................. 65

CHAPTER III ANALYSIS OF THE DEVELOPMENT OF THE

INDUSTRY TO WHICH THE BIRD'S NEST BELONGS ............. 65

SECTION I INDONESIAN BIRD'S NEST INDUSTRY MARKET..................................... 65

1、DEVELOPMENT STATUS OF BIRD'S NEST INDUSTRY IN INDONESIA..................... 65

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2、INDONESIAN BIRD'S NEST INDUSTRY MARKET ANALYSIS ............................... 67

SECTION 2 MALAYSIAN BIRD'S NEST INDUSTRY MARKET .................................... 70
1、DEVELOPMENT STATUS OF BIRD'S NEST INDUSTRY IN MALAYSIA ..................... 70
2、 MARKET ANALYSIS OF BIRD'S NEST INDUSTRY IN MALAYSIA .......................... 72
SECTION III BIRD'S NEST INDUSTRY MARKET IN THAILAND .................................. 73
1、DEVELOPMENT STATUS OF BIRD'S NEST INDUSTRY IN THAILAND...................... 73
2、MARKET ANALYSIS OF BIRD'S NEST INDUSTRY IN THAILAND .......................... 73

CHAPTER IV ANALYSIS OF THE OPERATION STATUS OF THE

INDUSTRY OF BIRD'S NEST IN CHINA .................................... 75

SECTION I ANALYSIS OF THE DEVELOPMENT OF CHINA'S BIRD'S NEST INDUSTRY.... 75

1、DEVELOPMENT STAGE OF BIRD'S NEST INDUSTRY IN CHINA ............................ 75
2、OVERVIEW OF THE DEVELOPMENT OF BIRD'S NEST INDUSTRY IN CHINA ........... 76
3、ANALYSIS ON THE DEVELOPMENT CHARACTERISTICS OF CHINA'S BIRD'S NEST
INDUSTRY ........................................................................................................ 79
4、ANALYSIS OF THE BUSINESS MODEL OF CHINA'S BIRD'S NEST INDUSTRY .......... 81
SECTION II DEVELOPMENT STATUS OF BIRD'S NEST INDUSTRY FROM 2018 TO 2022
....................................................................................................................... 82
1、MARKET SCALE OF CHINA'S BIRD'S NEST INDUSTRY IN 2018-2022 ................. 82
2、ANALYSIS ON THE DEVELOPMENT OF CHINA'S BIRD'S NEST INDUSTRY FROM 2018
TO 2022 .......................................................................................................... 83

3、 ANALYSIS ON THE DEVELOPMENT OF ENTERPRISES IN THE INDUSTRY OF CHINESE

BIRD'S NEST FROM 2018 TO 2022...................................................................... 84

SECTION III ANALYSIS OF BIRD'S NEST INDUSTRY MARKET FROM 2018 TO 2022 .. 85
1、OVERVIEW OF CHINA'S BIRD'S NEST INDUSTRY MARKET IN 2018-2022.......... 85
2、BUSINESS ACTIVITY ANALYSIS OF CHINA'S BIRD'S NEST INDUSTRY FROM 2018 TO
2022 ............................................................................................................... 86
3、ANALYSIS OF PROBLEMS IN CHINA'S BIRD'S NEST INDUSTRY FROM 2018 TO 2022
....................................................................................................................... 87

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SECTION IV PREDICAMENTS AND COUNTERMEASURES OF BIRD'S NEST QUALITY

SUPERVISION IN CHINA ..................................................................................... 88
1、CHINA'S BIRD'S NEST IMPORT MANAGEMENT SYSTEM .................................. 88
2、REASONS FOR THE DEVELOPMENT OF BIRD'S NEST SMUGGLING MARKET......... 90
3、SAFETY RISK OF SMUGGLED BIRD'S NEST FOOD ............................................ 91
4、PROBLEMS IN BIRD'S NEST MARKET REGULATION ........................................ 92
5、SUGGESTIONS ON THE REGULATION OF BIRD'S NEST MARKET ......................... 94
SECTION V ANALYSIS OF THE OVERALL OPERATION OF CHINA'S BIRD'S NEST
INDUSTRY ........................................................................................................ 97
1、ANALYSIS OF THE OVERALL SIZE OF CHINA'S BIRD'S NEST INDUSTRY .............. 97
2、ANALYSIS OF THE BUSINESS SCALE OF CHINA'S BIRD'S NEST INDUSTRY .......... 97
3、ANALYSIS ON THE OPERATION OF CHINA'S BIRD'S NEST INDUSTRY .................. 98

CHAPTER V RELATED INDUSTRIES OF BIRD'S NEST ........ 100

SECTION 1 UPSTREAM INDUSTRY .................................................................... 100

1、ANALYSIS OF UPSTREAM INDUSTRY DEVELOPMENT ...................................... 100
2、TECHNICAL DEVELOPMENT OF UPSTREAM INDUSTRY .................................... 101
3、MARKET SHARE OF UPSTREAM INDUSTRIES ................................................ 102
4、DEVELOPMENT TREND OF UPSTREAM INDUSTRY .......................................... 102
SECTION 2 MIDSTREAM LINK........................................................................... 103
1、ANALYSIS ON THE DEVELOPMENT OF MIDSTREAM LINKS ............................... 103
2、MIDSTREAM LINK TECHNOLOGY DEVELOPMENT ........................................... 103
3、MIDSTREAM SEGMENT MARKET SHARE ....................................................... 104
4、MIDSTREAM LINK DEVELOPMENT TREND ..................................................... 105
SECTION 3 DOWNSTREAM INDUSTRIES............................................................. 106
1、ANALYSIS OF DOWNSTREAM INDUSTRY DEVELOPMENT ................................. 106
2、DOWNSTREAM INDUSTRY TECHNOLOGY DEVELOPMENT ................................ 110
3、MARKET SHARE OF DOWNSTREAM INDUSTRIES ........................................... 111
4、DOWNSTREAM INDUSTRY DEVELOPMENT TREND .......................................... 112

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CHAPTER VI COMPARATIVE ANALYSIS OF KEY AREAS OF

BIRD'S NEST INDUSTRY ........................................................ 115

SECTION I DEVELOPMENT OF BIRD'S NEST INDUSTRY IN THE YANGTZE RIVER DELTA

..................................................................................................................... 115
1、DEVELOPMENT ENVIRONMENT OF BIRD'S NEST INDUSTRY IN THE YANGTZE RIVER
DELTA ........................................................................................................... 115
2、DEVELOPMENT STATUS OF BIRD'S NEST INDUSTRY IN THE YANGTZE RIVER DELTA
..................................................................................................................... 119
3、COMPETITION PATTERN OF BIRD'S NEST INDUSTRY IN THE YANGTZE RIVER DELTA
..................................................................................................................... 119
SECTION II DEVELOPMENT OF BIRD'S NEST INDUSTRY IN THE PEARL RIVER DELTA
REGION ......................................................................................................... 122
1、DEVELOPMENT ENVIRONMENT OF BIRD'S NEST INDUSTRY IN THE PEARL RIVER
DELTA ........................................................................................................... 122
2、DEVELOPMENT STATUS OF BIRD'S NEST INDUSTRY IN THE PEARL RIVER DELTA
..................................................................................................................... 125
3、COMPETITION PATTERN OF BIRD'S NEST INDUSTRY IN THE PEARL RIVER DELTA
..................................................................................................................... 126
SECTION III DEVELOPMENT OF BIRD'S NEST INDUSTRY IN BOHAI RIM REGION .... 129
1、DEVELOPMENT ENVIRONMENT OF BIRD'S NEST INDUSTRY IN BOHAI RIM ........ 129
2、DEVELOPMENT STATUS OF BIRD'S NEST INDUSTRY IN BOHAI RIM .................. 133
3、COMPETITION PATTERN OF BIRD'S NEST INDUSTRY IN BOHAI RIM .................. 134

PART III ANALYSIS OF COMPETITION PATTERN ................ 136

CHAPTER VII ANALYSIS OF THE COMPETITIVE PATTERN OF

BIRD'S NEST INDUSTRY ........................................................ 136

SECTION I ANALYSIS OF THE COMPETITIVE STRUCTURE OF BIRD'S NEST INDUSTRY

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..................................................................................................................... 136
1、COMPETITION AMONG EXISTING ENTERPRISES ............................................. 136
2、ANALYSIS OF POTENTIAL ENTRANTS ........................................................... 136
3、SUBSTITUTE THREAT ANALYSIS .................................................................. 137
4、SUPPLIER BARGAINING POWER .................................................................. 138
5、CUSTOMER BARGAINING POWER ................................................................ 139
SECTION II ANALYSIS OF BIRD'S NEST INDUSTRY CONCENTRATION ...................... 140
1、MARKET CONCENTRATION ANALYSIS .......................................................... 140
2、ANALYSIS OF ENTERPRISE CONCENTRATION ................................................ 141
3、REGIONAL CONCENTRATION ANALYSIS ........................................................ 142
SECTION III COMPARISON OF INTERNATIONAL COMPETITIVENESS OF BIRD'S NEST
INDUSTRY ...................................................................................................... 142
1、PRODUCTION FACTORS ............................................................................. 142
2、DEMAND CONDITIONS ................................................................................ 143
3、SUPPORT AND RELATED INDUSTRIES .......................................................... 144
4、ENTERPRISE STRATEGY, STRUCTURE AND COMPETITIVE STATUS ................... 144
5、THE ROLE OF GOVERNMENT ....................................................................... 145

CHAPTER VIII ANALYSIS OF COMPETITIVE STRATEGIES OF

ENTERPRISES IN THE BIRD'S NEST INDUSTRY .................. 147

SECTION I ANALYSIS OF MARKET COMPETITION STRATEGY OF BIRD'S NEST INDUSTRY

..................................................................................................................... 147
1、ANALYSIS OF MARKET GROWTH POTENTIAL OF BIRD'S NEST INDUSTRY IN 2022
..................................................................................................................... 147
2、ANALYSIS OF MAIN POTENTIAL VARIETIES OF BIRD'S NEST INDUSTRY IN 2022 . 148
3、ANALYSIS ON THE COMPETITIVE STRATEGY OF THE EXISTING BIRD'S NEST
INDUSTRY PRODUCTS ...................................................................................... 149

4、ANALYSIS OF PRODUCT COMPETITION STRATEGY OF TYPICAL ENTERPRISES... 149

SECTION II ANALYSIS OF COMPETITIVE STRATEGY OF BIRD'S NEST INDUSTRY ...... 152

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1、ANALYSIS OF COMPETITIVE STRATEGY OF BIRD'S NEST INDUSTRY FROM

2023-2029 .................................................................................................... 152
2、ANALYSIS OF COMPETITIVE STRATEGY OF ENTERPRISES IN BIRD'S NEST INDUSTRY
FROM 2023-2029........................................................................................... 154

CHAPTER IX ANALYSIS OF COMPETITION AMONG

ENTERPRISES IN THE MAIN BIRD’S NEST INDUSTRY ........ 158

SECTION 1 YANPLACE .................................................................................... 158

1、ENTERPRISE PROFILE................................................................................ 158
2、COMPETITIVE ADVANTAGE ANALYSIS ........................................................... 159
3、BUSINESS STATUS .................................................................................... 162
4、DEVELOPMENT STRATEGY ......................................................................... 162
SECTION 2 ZONGTONGPAI .............................................................................. 163
1、ENTERPRISE PROFILE................................................................................ 163
2、COMPETITIVE ADVANTAGE ANALYSIS........................................................... 165
3、BUSINESS STATUS .................................................................................... 166
4、DEVELOPMENT STRATEGY ......................................................................... 166
SECTION 3 FIRST EDIBLE NEST LIMITED（ZHANJI） ......................................... 167
1、ENTERPRISE PROFILE................................................................................ 167
2、COMPETITIVE ADVANTAGE ANALYSIS ........................................................... 167
3、BUSINESS STATUS .................................................................................... 168
4、DEVELOPMENT STRATEGY ......................................................................... 168
SECTION 4 GUANGZHOU GUANYANZHAN COMMERCE&TRADE CO.,LTD.............. 169
1、ENTERPRISE PROFILE................................................................................ 169
2、COMPETITIVE ADVANTAGE ANALYSIS ........................................................... 169
3、BUSINESS STATUS .................................................................................... 171
4、DEVELOPMENT STRATEGY ......................................................................... 171
SECTION 5 TWINLOTUS ................................................................................ 171
1、ENTERPRISE PROFILE................................................................................ 171

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

2、COMPETITIVE ADVANTAGE ANALYSIS ........................................................... 172

3、BUSINESS STATUS .................................................................................... 173
4、DEVELOPMENT STRATEGY ......................................................................... 173
SECTION 6 DRAGONBRAND ............................................................................ 173
1、ENTERPRISE PROFILE................................................................................ 173
2、COMPETITIVE ADVANTAGE ANALYSIS ........................................................... 174
3、BUSINESS STATUS .................................................................................... 174
4、DEVELOPMENT STRATEGY ......................................................................... 174
SECTION 7 YANANJU ...................................................................................... 175
1、ENTERPRISE PROFILE................................................................................ 175
2、COMPETITIVE ADVANTAGE ANALYSIS ........................................................... 175
3、BUSINESS STATUS .................................................................................... 176
4、DEVELOPMENT STRATEGY ......................................................................... 176
SECTION 8 EUYANSANG ............................................................................... 177
1、ENTERPRISE PROFILE................................................................................ 177
2、COMPETITIVE ADVANTAGE ANALYSIS........................................................... 178
3、BUSINESS STATUS .................................................................................... 179
4、DEVELOPMENT STRATEGY ......................................................................... 179

PART IV INDUSTRIAL DYNAMIC ANALYSIS ......................... 180

CHAPTER X ANALYSIS OF THE DEVELOPMENT TREND OF

BIRD’S NEST INDUSTRY ........................................................ 180

SECTION I DEVELOPMENT ENVIRONMENT OUTLOOK IN 2022 ............................. 180

1、PROSPECTS FOR MACROECONOMIC SITUATION IN 2022 ............................... 180
2、POLICY TREND IN 2022 ............................................................................. 184
3、PROSPECTS FOR INTERNATIONAL MACROECONOMIC TRENDS IN 2022 ........... 187
SECTION II ANALYSIS OF THE DEVELOPMENT TREND OF BIRD’S NEST INDUSTRY IN
2022 ............................................................................................................. 189

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1、ANALYSIS OF TECHNOLOGY DEVELOPMENT TREND IN 2022 .......................... 189

2、ANALYSIS OF PRODUCT DEVELOPMENT TREND IN 2022 ................................ 189
3、PROSPECT OF COMPETITION PATTERN OF BIRD’S NEST INDUSTRY IN 2022 ..... 190
4、DEVELOPMENT TREND OF PRODUCT APPLICATION FIELD IN BIRD’S NEST INDUSTRY
..................................................................................................................... 190
SECTION III MARKET TREND ANALYSIS OF CHINESE BIRD’S NEST INDUSTRY IN
2023-2029 .................................................................................................... 191
1、SUMMARY OF BIRD’S NEST INDUSTRY MARKET TRENDS 2017-2022............. 191
2、ANALYSIS ON THE DEVELOPMENT TREND OF BIRD’S NEST INDUSTRY IN 2023-2029
..................................................................................................................... 192
3、MARKET DEVELOPMENT SPACE OF BIRD’S NEST INDUSTRY IN 2023-2029 ...... 192
4、ANALYSIS OF THE DRIVING FACTORS FOR THE DEVELOPMENT OF BIRD’S NEST
INDUSTRY ...................................................................................................... 193

CHAPTER XI DEVELOPMENT FORECAST OF BIRD’S NEST

INDUSTRY IN THE FUTURE .................................................... 195

SECTION I FUTURE BIRD’S NEST INDUSTRY DEMAND AND CONSUMPTION FORECAST

..................................................................................................................... 195
1、PRODUCT CONSUMPTION FORECAST OF BIRD’S NEST INDUSTRY IN 2023-2029
..................................................................................................................... 195
2、FORECAST OF BIRD’S NEST INDUSTRY MARKET SIZE FROM 2023 TO 2029 ... 196
SECTION II SUPPLY AND DEMAND FORECAST OF CHINESE BIRD’S NEST INDUSTRY IN
2023-2029 .................................................................................................... 197
1、FORECAST OF SUPPLY AND DEMAND BALANCE OF CHINESE BIRD’S NEST INDUSTRY
IN 2023-2029 ................................................................................................ 197

2、PRODUCT PRICE FORECAST OF CHINESE BIRD’S NEST INDUSTRY IN 2023-2029

..................................................................................................................... 198
SECTION III KEY TRENDS AFFECTING ENTERPRISE PRODUCTION AND OPERATION
..................................................................................................................... 199

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1、MARKET INTEGRATION GROWTH TREND ...................................................... 199

2、DEMAND CHANGE TREND AND NEW BUSINESS OPPORTUNITIES FORECAST ..... 200
3、THE TREND OF ENTERPRISE REGIONAL MARKET EXPANSION ......................... 200
4、TRENDS IN SCIENTIFIC RESEARCH AND DEVELOPMENT AND PROGRESS IN
ALTERNATIVE TECHNOLOGIES .......................................................................... 201

PART V DEVELOPMENT STRATEGY RESEARCH ................ 203

CHAPTER XII INVESTMENT OPPORTUNITIES AND RISKS OF

BIRD’S NEST INDUSTRY ........................................................ 203

SECTION I INVESTMENT BENEFIT ANALYSIS OF BIRD’S NEST INDUSTRY ................ 203

1、ANALYSIS OF INVESTMENT IN BIRD’S NEST INDUSTRY FROM 2018 TO 2022 .... 203
2、INVESTMENT BENEFIT ANALYSIS OF BIRD’S NEST INDUSTRY FROM 2018 TO 2022
..................................................................................................................... 204
3、INVESTMENT DIRECTION OF BIRD’S NEST INDUSTRY IN 2023-2029 ................ 204
4、SUGGESTIONS FOR INVESTMENT IN BIRD’S NEST INDUSTRY IN 2023-2029..... 205
5、ANALYSIS OF OBSTACLES THAT NEW ENTRANTS SHOULD PAY ATTENTION TO .. 205
SECTION II MAIN FACTORS AFFECTING THE DEVELOPMENT OF BIRD’S NEST INDUSTRY
..................................................................................................................... 207
1、ANALYSIS OF FAVORABLE FACTORS AFFECTING THE OPERATION OF BIRD’S NEST
INDUSTRY IN 2023-2029 ................................................................................. 207

2、ANALYSIS OF ADVERSE FACTORS AFFECTING THE OPERATION OF BIRD’S NEST

INDUSTRY IN 2023-2029 ................................................................................. 208

3、ANALYSIS OF THE CHALLENGES FACED BY THE DEVELOPMENT OF CHINESE BIRD’S

NEST INDUSTRY IN 2023-2029 ......................................................................... 209

4、ANALYSIS OF OPPORTUNITIES FOR THE DEVELOPMENT OF CHINESE BIRD’S NEST

INDUSTRY FROM 2023-2029 ........................................................................... 209
SECTION III PROBLEMS AND COUNTERMEASURES IN CHINESE BIRD’S NEST INDUSTRY
..................................................................................................................... 210

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1、PROBLEMS IN CHINESE BIRD’S NEST INDUSTRY ........................................... 210

2、SUGGESTED COUNTERMEASURES FOR THE DEVELOPMENT OF BIRD’S NEST
INDUSTRY ...................................................................................................... 212
3、KEY CUSTOMER STRATEGY IMPLEMENTATION IN THE MARKET ....................... 212
SECTION IV INVESTMENT RISK AND CONTROL STRATEGY ANALYSIS OF BIRD’S NEST
INDUSTRY ...................................................................................................... 213
1、MARKET RISK AND CONTROL STRATEGY OF BIRD’S NEST INDUSTRY IN 2023-2029
..................................................................................................................... 213
2、POLICY RISK AND CONTROL STRATEGY OF BIRD’S NEST INDUSTRY IN 2023-2029
..................................................................................................................... 213
3、OPERATIONAL RISKS AND CONTROL STRATEGIES OF BIRD’S NEST INDUSTRY IN
2023-2029 .................................................................................................... 214
4、TECHNICAL RISKS AND CONTROL STRATEGIES OF BIRD’S NEST INDUSTRY IN
2023-2029 .................................................................................................... 214
5、RISKS AND CONTROL STRATEGIES OF HORIZONTAL COMPETITION IN BIRD’S NEST
INDUSTRY FROM 2023 TO 2029 ....................................................................... 216

6、OTHER RISKS AND CONTROL STRATEGIES OF BIRD’S NEST INDUSTRY IN 2023-2029

..................................................................................................................... 216

CHAPTER XIII RESEARCH ON INVESTMENT STRATEGY OF

BIRD’S NEST INDUSTRY ........................................................ 218

SECTION I RESEARCH ON THE DEVELOPMENT STRATEGY OF BIRD’S NEST INDUSTRY

..................................................................................................................... 218
1、COMPREHENSIVE STRATEGIC PLANNING ..................................................... 218
2、TECHNOLOGY DEVELOPMENT STRATEGY..................................................... 219
3、BUSINESS PORTFOLIO STRATEGY ............................................................... 219
4、REGIONAL STRATEGIC PLANNING ............................................................... 220
5、EXIT STRATEGY ........................................................................................ 222
6、MARKETING BRAND STRATEGY .................................................................. 223

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7、COMPETITIVE STRATEGIC PLANNING ........................................................... 224

SECTION II BACKGROUND SIGNIFICANCE OF STRATEGIC PLANNING FOR THE
DEVELOPMENT OF ENTERPRISES IN THE BIRD’S NEST INDUSTRY ......................... 225

1、THE NEED FOR ENTERPRISE TRANSFORMATION AND UPGRADING .................. 225

2、THE NEED FOR ENTERPRISES TO BECOME STRONGER AND BIGGER................ 226
3、ENTERPRISE SUSTAINABLE DEVELOPMENT NEEDS ....................................... 228
SECTION III STRATEGIC THINKING ON THE BRAND OF CHINESE BIRD’S NEST INDUSTRY
..................................................................................................................... 229
1、THE IMPORTANCE OF CORPORATE BRAND ................................................... 229
2、THE SIGNIFICANCE OF IMPLEMENTING BRAND STRATEGY IN BIRD’S NEST INDUSTRY
..................................................................................................................... 230
3、ANALYSIS OF THE CURRENT SITUATION OF ENTERPRISE BRANDS IN BIRD’S NEST
INDUSTRY ...................................................................................................... 231
4、BRAND STRATEGY OF CHINESE BIRD’S NEST INDUSTRY ENTERPRISES .......... 233
5、STRATEGY OF BRAND STRATEGY MANAGEMENT IN BIRD’S NEST INDUSTRY ..... 234
SECTION IV RESEARCH ON INVESTMENT STRATEGY OF BIRD’S NEST INDUSTRY .. 235
1、RESEARCH ON INDUSTRY INVESTMENT STRATEGY IN 2022 ........................... 235
2、INVESTMENT SITUATION OF BIRD’S NEST INDUSTRY IN 2023-2029 ................. 236
3、INVESTMENT STRATEGY OF BIRD’S NEST INDUSTRY IN 2023-2029 ................ 238
4、DEVELOPMENT STRATEGY OF BIRD’S NEST INDUSTRY IN 2023-2029 ............ 240

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

Chapter I Overview of Bird's Nest

Industry

Section I Concept of Bird's Nest Industry

1、Definition of Bird's Nest Industry

Bird's nest, sexual ping, sweet taste, nourishing lungs and yin, can relieve
cough, coughing up blood and other symptoms, is a kind of Chinese medicine
supplement with deer antler velvet, ginseng and other names. Due to the
influence of traditional culture, the demand for bird's nest has increased and
the price has increased, and bird's nest counterfeiting may also exist. Its false
phenomena mainly include bleached bird's nest, rubberized bird's nest, dyed
bird's nest, seaweed bird's nest, watery bird's nest and substitute bird's nest.
The production areas of bird's nest are mostly concentrated in Southeast Asia,
and there are some near Hainan Island in China, but the output is not large.

Origin and distribution of bird's nest

Source: sorting out public data

Bird's nest industry refers to the industry that processes and sells bird's
nest products or their products with bird's nest as the main material. It mainly
includes: processing and sales of hairy swallow; Processing and sales of dried

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

bird's nest, instant bird's nest and stewed bird's nest; Deep processing of bird's
nest or production and sales of extract; Production and sales of bird's nest
products with bird's nest or bird's nest extract as the main additive.
In China, bird's nest and its products are divided into nutrition and health
food manufacturing industries, which belong to nutrition food. We are also
used to call nutrition food health food. After processing, the bird's nest will
enter the market in three forms: dry bird's nest, ready-to-eat bird's nest and
stewed bird's nest. The dry bird's nest does not contain auxiliary materials.

2、Characteristics of bird's nest industry

Edible Bird's Nest （EBN） is a nest formed by mixing and condensing

saliva secreted by the family of Apodidae, the genus of swiftlet, and a variety of
swallows of the same genus with their feathers. The Compendium of Materia
Medica, written by Li Shizhen of the Ming Dynasty, has a more detailed
description of bird's nest: there is a bird's nest named Jinsi near the far sea of
Fujian. The head and tail are as small as a swallow, and the hair is as gold.
When spawning, the group flew into the sand and mud where there were rocks,
pecking at the silkworm and snails. Some people inquired about the sea
merchants. They heard that the meat on the back of the silkworm snail has two
ribs like maple silk. It is hard and clean and white. Eating it can make up the
deficiency and damage. It has tired and dysentery.
1. Regulate immunity
The animal model of lung-yin deficiency was established by using SO2
fumigation method, and the effects of different concentrations of bird's nest
homogenate on the physical signs, body weight, immune organ index, lung
pathological changes and serum cytokines IL-2, IL-4 and IFN of lung-yin
deficiency mice were studied- γ Effect of content. The results showed that the
high dose homogenate in bird's nest has certain effect on improving the
immune function of mice with lung yin deficiency. Zhao Ran injected 100

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

mg · kg - 1 cyclophosphamide intraperitoneally into mice to create a mouse

immunosuppressive model. The concentration of sIgA in the intestine of
immunosuppressive mice, the number of Peyer's patches and the proportion of
T and B lymphocytes were measured by feeding bird's nest to
immunosuppressive mice, and the effect of bird's nest on the intestinal
immunity of immunosuppressive mice was evaluated. The results showed that
bird's nest could significantly promote the secretion of IgE, IgA, IgM, IgG3
antibodies and enhance the immune function of mice. Huang Zhiji was given a
high dose of bird's nest homogenate by gavage during pregnancy and
lactation, and the content of interleukin-2 in its immune organ index increased
significantly. DOBUTR et al. studied the immune regulation of mice in vivo by
feeding bird's nest. The results showed that EBN could significantly increase
the expansion of CD3 and T cells. Chen Siwei et al. showed that bird's nest
beverage and free sialic acid feeding could increase the phagocytic
percentage and phagocytic index of macrophages in immunocompromised
mice, promote the proliferation of spleen lymphocytes, and significantly
enhance the immune function of mice.
2. Delay aging
The active ingredients in bird's nest have the ability to delay aging and
promote the growth of epidermal keratinocytes. Dong Jianhui and others found
that the water extract of bird's nest can promote the proliferation of human skin
epidermal keratinocytes through the cell oxidative stress injury model
experiment, indicating that the effective ingredients in bird's nest play a role in
resisting skin relaxation, skin damage repair, and anti-aging process. HWANG
et al. evaluated the anti-aging effect of ultraviolet B （UVB） irradiation on
dermal fibroblasts （ NHDFs ） . The results showed that bird's nest can
significantly reduce the expression of matrix metalloproteinase-1 induced by
UVB, promote the synthesis of type I collagen, and thus protect skin damage
and play an anti-aging role. Yao Haiyan observed the number of eggs laid,
weight difference, food intake and heat stress resistance of Drosophila
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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

melanogaster by feeding the bird's nest of Drosophila melanogaster, indicating

that bird's nest can improve the fecundity of Drosophila melanogaster, and
may delay aging by improving the heat stress resistance of Drosophila
melanogaster. The mechanism of bird's nest delaying aging can be related to
reducing the production of free radicals and increasing the level of catalase.
Chen Xinlu and Fan Qunyan carried out survival experiments on Drosophila
melanogaster, calculated the half death time, average life span, maximum life
span and life extension rate of Drosophila melanogaster, and drew survival
curves. The results showed that the stewed bird's nest has a certain effect on
delaying the aging of Drosophila melanogaster. The heat stress test of
Drosophila by HU et al. showed that feeding bird's nest can prolong the life
span of Drosophila, reduce mortality and improve survival rate.
3. Antivirus
There have been many reports on bird's nest anti-virus. Lin Jieru and
other researchers have shown that bird's nest extract has inhibitory effect on
the activity of H5N1 avian influenza pseudovirus, and the intensity of inhibition
increases with the increase of bird's nest extract concentration. Among them,
bird's nest artificial intestinal juice digest has the strongest effect, and bird's
nest water extract has the weakest effect, but has no significant inhibition on
VSV-G pseudovirus activity. HAGHANI and others fed the bird's nest to the
mutant mice, and detected the genes of virus and cytokines through RT-qPCR
and ELISA to study the antiviral and immune regulation of bird's nest. The
results showed that the bird's nest showed high neuraminidase inhibition in
vitro and in vivo; At the same time, it can reduce the NS1 copy number of the
virus and has a high immune regulation effect on influenza A virus. Later,
HAGHANI and others used enzymolysis bird's nest to study the effect of
immunity against influenza A virus （IAV）, and the results showed that
enzymolysis bird's nest has a high inhibitory effect on influenza A virus.
4. Anti senile dementia
ISMAEIL et al. took bird's nest orally to rats with Alzheimer's disease
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induced by chronic cerebral hypoperfusion. The results showed that bird's nest
showed neuroprotective effect by increasing the number of neurons and
reducing the level of oxidative stress, thus improving neuronal damage; It is
emphasized that if the bird's nest is eaten in the early stage of the disease, it
may delay the progression of dementia in Alzheimer's disease patients. YEW
et al. established an in vitro Parkinson's cell model by exposing SH-SY5Y cells
to neurotoxin 6-hydroxydopamine （6-OHDA）, and used MTT method to test
the toxicity of enzymolysis bird's nest extract on SH-SY5Y cells; The results
showed that the enzymolysis of bird's nest extract reduced the level of
6-OHDA-induced SH-SY5Y cell apoptosis, increased cell viability, and had the
potential to prevent Alzheimer's disease. Later, YEW and others found that
eating bird's nest could reduce the expression of glutathione peroxidase I and
increase the activation of microglia in Parkinson's mice. The bird's nest taken
orally for 28 days greatly improved the ability of Parkinson's mice to travel
distance and exercise balance, and had a protective effect on the nerves of
mice treated with neurotoxin 6-hydroxydopamine （6-OHDA）. Xu Liba used
D-gal combined with AlCl3 to induce Alzheimer's disease rats. The study
showed that bird's nest acid can effectively improve the learning and memory
impairment of D-gal combined with AlCl3 induced Alzheimer's disease rats,
which may be related to the reduction of inflammatory factor （IL-1 β、 IL-6
and TNF- α）， It is related to enhancing the body's antioxidant capacity,
reducing the level of blood lipids, protecting liver and kidney functions, and
protecting brain neurons.
5. Antioxidant
ZHANG et al. digested the edible bird's nest in sequence with pepsin,
trypsin and bile extract, and then measured the ABTS and oxygen free radical
absorption capacity （ORAC）. The results showed that the digested bird's nest
had antioxidant capacity, while the undigested bird's nest had no antioxidant
capacity, which might be because the bioactive substances were released
from the matrix when the bird's nest was digested in the intestine and
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transported through passive mediation, It is absorbed in the intestine to play its

role. GHASSEM et al. obtained two new pentapeptides, Pro-Phe-His-Pro-Tyr
and Leu-Leu-Gly-Asp-Pro, by hydrolyzing bird's nest with pepsin-trypsin, which
have preventive effects on the damage of human hepatoma HepG2 cells
caused by hydroxyl radicals. Dong Jianhui et al. measured the content of
reactive oxygen species （ROS） and malondialdehyde （MDA） in the cells,
and the activity of superoxide dismutase （SOD） and glutathione peroxidase
（GSH-Px） in the water extracts of bird's nest by constructing an oxidative
stress injury model, and evaluated the antioxidant activity of different bird's
nest extracts and bird's nest peptides The SOD activity of bird's nest peptide
and the water extract of "95 ° fresh bird's nest" increased significantly, and the
ROS content in cells decreased. Yao Haiyan observed the levels of superoxide
dismutase （SOD）, total antioxidant capacity （T-AOC）, catalase （CAT）
and malondialdehyde （MDA） in Drosophila tissue homogenate cultured with
different concentrations of bird's nest for one month. The study found that the
antioxidant capacity of the high concentration bird's nest group was
significantly better than that of the low concentration bird's nest group. The
results showed that bird's nest not only had antioxidant capacity, but also had
a dose-effect relationship with the concentration of edible bird's nest.
6. Improve memory
Chen Xinlu studied the effects of bird's nest stew and sialic acid standard
group on the learning and memory ability of young SD rats through Morris
water maze experiment. The results showed that bird's nest stew could
significantly shorten the latency time of young rats in finding the platform and
significantly improve the learning and memory ability of young rats. XIE et al.
used Morris water maze test to evaluate the spatial learning performance of
their offspring by oral administration of bird's nest acid to female mice during
pregnancy or lactation. The results showed that the maternal administration of
EBN during pregnancy and lactation could improve the spatial learning ability
of their offspring. CAREENA et al. constructed Wistar rat model by
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lipopolysaccharide, and evaluated the improvement of learning ability of Wistar

rats by bird's nest using Morris water maze experiment. The results showed
that bird's nest extract inhibited the inflammatory cytokines （IL-1） in rats β、
IL-6 and TNF- α） And the rise of oxidative markers, protect nerve cells and
improve the ability of learning and memory in rats. HOU et al. conducted
Morris water maze test on ovariectomized female rats after feeding bird's nest
and estrogen alone, and evaluated the serum estrogen level, toxicity markers
（alanine transaminase, alkaline phosphatase, urea and creatinine） and the
expression of Sirtuin-1 in the hippocampus. The results showed that both
bird's nest and estrogen could enhance the spatial learning and memory ability
of rats, increase the expression of serum estrogen and Sirtuin-1 in
hippocampus, and the toxicity of bird's nest to liver was less than that of
estrogen. Fan Qunyan et al. proved that bird's nest sialic acid can improve the
learning and memory ability of young rats through water maze experiment.
7. Others
Bird's nest also has other effects, such as Ruan Qingxuan and others
used rapid decapitation method, ligation of bilateral common carotid arteries
and vagus nerve method to observe the effect of bird's nest acid on acute
cerebral ischemia in mice; The effects of bird's nest acid on blood coagulation
time in mice were observed by slide method and glass capillary method; The
effect of bird's nest acid on the bleeding time of mice was observed by the
method of tail bleeding. The results showed that bird's nest acid has significant
anti-thrombotic and anti-cerebral hemorrhage effects. Wang Xin prepared
bird's nest peptides by enzymolysis and separated them by ultrafiltration. The
whitening activity of the enzymolysis products was studied through the
anti-oxidation experiment of HepG2 cells and the tyrosinase activity inhibition
experiment of B16 cells. It was found that bird's nest contains protein peptides
with high whitening activity. The whitening experiment of WONG et al. showed
that compared with undigested bird's nest, the digested bird's nest
small-molecule peptide had a stronger inhibitory effect on melanogenesis and
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tyrosinase activity of B16 cells. Zhao Ran et al. observed intestinal

microorganisms by feeding bird's nest. The results showed that feeding bird's
nest could regulate the intestinal flora of mice by promoting the reproduction of
intestinal beneficial bacteria such as bifidobacterium and lactobacillus, and
inhibiting harmful bacteria such as clostridium perfringens. TRIAWANTI et al.
conducted the bird's nest feeding experiment with the rat model of
streptozotocin induced diabetes and nephropathy, and found that the pancreas
H2O2 level, serum H2O2 level, kidney methylglyoxal level and kidney AOPP
level of the rats fed bird's nest significantly improved. The results showed that
the water extract of bird's nest had the potential of anti diabetes and preventing
kidney damage. The results of Yan Yan's MTT cell proliferation experiment
showed that bird's nest glycoprotein could inhibit the proliferation of RAW264.7
inflammatory cell model induced by LPS. PARK and other studies have shown
that bird's nest can increase the water-holding capacity of epithelial cells, and
reduce the erythema index and inflammation-related interleukin and IL-1
irradiated by UVB β And the content of IL-6 and TNF. MASUDA et al.
measured the apoptosis of epithelial cells by feeding the bird's nest extract of
mice. Studies have shown that edible bird's nest extract enhances the
expression of superoxide dismutase-2 in mouse epidermis and
down-regulates its cell apoptosis, thus helping to reduce skin damage. In
addition, bird's nest extract can alleviate the process of arthritis and help the
regeneration of cartilage tissue. Bird's nest can inhibit the degeneration of
climacteric bone in rats by increasing the expression of bone estrogen
receptor.

3、Classification of bird's nest industry

1. According to the amount of impurities in bird's nest

The bird's nest can be divided into best-quality swallow's nests, Poor
quality bird's nest and Bird's nest with many impurities.

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Swallows use saliva to mix their feathers to build nests, so Swallows have
more feathers and other impurities. Swallows are divided into light hair （10% -
20%）, medium hair （20% - 30%） and heavy hair （>40%） according to the
amount of impurities. The light wool bird's nest has few quantity, good quality
and few impurities, and has become a gift treasure among ancient officialdom,
so it is called "official swallow", also known as "tribute swallow" and "white
swallow". Grass swallows are swallows that can survive and build nests in
various environments. They use grass to mix their saliva to build nests. The
price of the bird's nest is relatively cheap. Because of the many impurities in
the bird's nest, most of the bird's nest are processed into broken bird's nest.
2. According to bird's nest color
The bird's nest can be divided into white swallow, yellow swallow and
blood swallow.
The color of the swallow's nest formed by the saliva it secretes varies with
the food it eats. According to color, it can be divided into white swallow, yellow
swallow and blood swallow. The white swallow is off-white. It should not be
stewed for too long, otherwise it will melt. There are also differences between
the house swallow and the hole swallow among the white swallows. The house
swallow is less fire-resistant, the hole swallow is relatively solid, and the hair
head is larger. The stewed top-grade Dongyan is fragrant, smooth and
refreshing. The yellow swallow is generally grayish yellow or yellowish brown.
Because it is the golden swallow that spit out saliva with strong cementation, it
turns yellow after air oxidation. Therefore, illegal businesses will dye the bird's
nest with liquid medicine or make the bird's nest yellow in the sun, so as to
pass it off as a yellow swallow. The blood swallow is a nest built by the golden
swallow on the rock wall of the cave. The main reasons for the formation of the
color of the blood swallow are as follows: the golden swallow preys on the
coastal algae, planktonic bacteria, insects, flying ants, etc., so its saliva is rich
in minerals, and the nest is easy to oxidize and form red; The cave on the cliff
contains minerals which contact with the bird's nest and will penetrate into the
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bird's nest over a long period of time. In addition, the natural mineral water on
the cliff drips into the cave and produces color changes; The air in the cave is
not ventilated and extremely hot. The bird's nest containing minerals is
oxidized to greyish red or orange red by the hot air.
3. According to nesting location
According to the nesting location, the bird's nest can be divided into cave
swallow and house swallow. Cave swallows are natural bird's nests collected
from rock walls, caves, caves and cliffs. Influenced by the natural climate and
natural environment, Dongyan has a solid texture, dark color, mostly beige or
tawny, unattractive appearance, many fine hairs, and absorbed a lot of
minerals. It has large hair, long soaking and stewing time, and is refreshing.
Cave swallows are picked in caves, and are gradually replaced by house
swallows due to the scarcity of production and the growing demand for
environmental protection. The house swallow is the bird's nest built by the
swallows raised in the house. The house swallow picks in the swallow house.
The golden swallow is still wild. It goes out in the morning to look for food and
returns in the evening. Because the habitat environment is good, the bird's
nest has less impurities, and the calyx shape is relatively complete. House
swallows are characterized by high quality, less hair and smooth taste. They
expand greatly in water （commonly known as hair）, with an average hair size
of 5-7 times.
4. According to the appearance and shape of bird's nest
According to the appearance of the bird's nest, it can be divided into bird's
cup, bird's stick, bird's broken, bird's cake and bird's horn.
Yanzhan is naturally picked. Compared with other bird's nests, its quality
and appearance are the best. It has less impurities and is clean. Swallow bars
and broken swallows are formed by dispersing the feathers and impurities of
the swallow and grass swallow, or made into different shapes of swallow cakes
for sale. The hard part of the two ends of the swallow cup is cut off, which is
the so-called swallow horn. It is the root part of the wall that the golden swallow
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sticks to when building its nest. It needs to be soaked for a long time （6~8
hours）, and its taste is fragrant and refreshing.
5. According to the way of eating
The bird's nest can be divided into dry bird's nest, stewed bird's nest and
instant bird's nest.
The dry bird's nest is usually the dry bird's nest obtained after the simple
removal of impurities, and the content of impurities is relatively small. Before
eating, dry bird's nest needs to be soaked again, picked out impurities and
removed small bird's hair. After stewing, other ingredients can be added
according to personal taste. However, it is not convenient to eat because the
process of soaking hair and picking impurities is cumbersome and
time-consuming, and the stewing time is not easy to control. That is, stewed
bird's nest is a clean bird's nest made by soaking, removing impurities, drying,
shaping and other processes. Its main advantages are free from cleaning,
soaking and picking impurities. The ready-to-eat bird's nest is made by
soaking, picking impurities, sub-packaging, liquid filling, sterilization and other
processes. It is easy to eat, has a long shelf life, and does not lose its
nutritional value. The quality of ready-to-eat bird's nests on the market varies,
among which the quality of ready-to-eat bird's nests made from Guanyanzhan
is the best.
6. Classified according to the picking period of bird's nest
According to the picking time, it can be divided into three stages: the first
stage, the second stage and the third stage. The nest built in the first phase is
the first phase, about January to April every year, and then called the second
and third phases. The first stage of bird's nest is suitable for the reproduction of
small animals and plants due to the abundant rainfall during the period. The
golden swallow has sufficient food, is particularly strong, and its saliva
secretion is particularly developed, with very few impurities. The calyx is large
and thick, and its hair is also the largest and most valuable. As for the second
stage, it is the second time for swallows to build nests. The local area has
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begun to enter the dry season. The food source of the golden swallow has
decreased, and the nests built are relatively sparse. The lines are not so thin
and dense, and the calyx shape and hair head are not as good as the first
stage. In the next third period, when the season of severe drought has entered,
the swallow's saliva secretion is slow and its feathers are easy to fall off, there
will be more impurities, the calyx shape is small, and the hair head is also poor.
All the first stage swallows are better than the second stage swallows, and the
second stage swallows are better than the third stage swallows.

4、Analysis of the business model of China's bird's

nest industry

Due to the specific living area of the Aerodramus fuciphagus that

produces edible bird's nest, the main origin of bird's nest raw materials has
always been Indonesia, Malaysia and other Southeast Asian countries, while
the main market of bird's nest consumption is concentrated in China, so the
bird's nest industry shows that bird's nest raw materials mainly rely on imports.
In the sales segment, the main sales target of bird's nest products is
individual consumers. At present, the sales channels that can reach individual
consumers are relatively developed, such as physical stores, e-commerce
platforms, telephone sales, live broadcast with goods, etc. The sales channels
of enterprises in the bird's nest industry are usually rich and diverse.

Section II Maturity of Bird's Nest Industry

1、Industry development cycle analysis

The size of the bird's nest product consumption market mainly depends
on the economic and social development as well as the income level and
consumption level of residents. With the continuous upward development of

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the economy, the development space of the bird's nest industry is expected to
continue to expand. Historically, the fluctuations in the development of the
bird's nest industry have a direct relationship with the non-standard situation in
the industry and the changes in regulatory policies.
From the perspective of consumer market, the bird's nest in South China,
East China, North China and Northeast China is highly recognized, so the
market scale is relatively large.
Traditionally, the bird's nest consumption market mainly includes the gift
market, the health care market for pregnant women and middle-aged and
elderly groups, among which the market demand for important holiday gifts
such as the Mid-Autumn Festival and the Spring Festival is large, making the
sales of the Mid-Autumn Festival and the Spring Festival account for a
relatively high proportion in the whole year. In recent years, with the growing
maturity of products with better eating convenience such as ready-to-eat bird's
nest at room temperature and fresh stewed bird's nest, the development of
e-commerce sales and efficient logistics, the expansion of the needs of the
majority of young people, and the rapid development of e-commerce shopping
festivals such as "618", "Double 11" and "Double 12", the sales peak of bird's
nest has gradually become fragmented.

2 、 Comparison of domestic and foreign market

maturity in the industry

Chinese people have a long history of eating bird's nest. There were
historical records of eating bird's nest in the Ming Dynasty, but for a long time
During the period, bird's nest is mainly used as a rare tonic for a very small
number of people, and the industry has not developed into a large scale. 20th
century
From the 1990s to around 2010, with the development of the market
economy and the improvement of people's living standards, the development

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of domestic bird's nest consumption gradually accelerated, but the regulatory

follow-up was relatively lagging, and the industry was in a disorderly
development stage, with many problems. In 2011, the "Blood Bird's Nest"
incident broke out, and the fake and inferior bird's nests hit consumer
confidence. The country restricted the import of bird's nests for two years, and
the bird's nest industry suffered a heavy blow. The industry quality supervision
began to start. In 2013, after two years of rectification and the construction of
bird's nest traceability system, the General Administration of Quality
Supervision, Inspection and Quarantine of the People's Republic of China
（AQSIQ） re-approved the import of bird's nest from Malaysia, and the bird's
nest industry entered a new stage of increasingly standardized regulation and
rapid development of market demand.

3、Maturity analysis of bird's nest industry and its main

sub-industries

China's bird's nest market is still in the growing stage. First of all, the
average annual growth rate of China's bird's nest market in the past five years
is more than 6% and not more than 50%. Secondly, although the domestic
bird's nest industry has developed for a period of time, the automatic
production technology process is still not complete, and the automation
technology level of bird's nest production needs to be improved. In addition, at
present, there are many enterprises in the bird's nest industry in China, but
there are few enterprises with scale and technical advantages, and the rest are
small enterprises with relatively small scale and weak technical strength.
Therefore, in general, China's bird's nest market still has a large market space,
and the market is still in the growth stage, which is not mature enough.

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Section III Analysis of market characteristics of

bird's nest industry

1、Market situation

The size of China's bird's nest retail market will grow to 41.307 billion yuan
in 2022, and the compound growth rate of China's bird's nest retail market will
reach 29.23% since 2015.
The size trend of China's bird's nest retail market in 2015-2022

年份 Retail market size of bird's nest: 100 million yuan

2015 年 68.64

2016 年 69.35

2017 年 129.18

2018 年 150.12

2019 年 300.05

2020 年 400

2021 年 378.54

2022 年 413.07

Source: research from Intelligence Research Group

2、Industrial relevance

For a long time, the bird's nest industry has shown an overall pattern that
the core raw materials come from Southeast Asia and the consumer market is
mainly China. According to research, bird's nest was introduced into China
from North Borneo （now Sabah, Malaysia） in the Tang Dynasty. With the
development of navigation technology in the Ming Dynasty, the supply of bird's
nest increased and the number of people who ate bird's nest increased. The

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number of people who ate bird's nest in the Qing Dynasty further expanded.
Since modern times, the bird's nest industry has gradually entered the
stage of commercial operation and development. Especially since the 1990s,
the reform and opening up has made the income level and consumption level
of an increasing number of people continue to increase, and the demand for
high-end food materials such as bird's nest has also increased. The upstream
and downstream industrial chain of bird's nest industry has entered a new
stage of market-oriented and large-scale development.

3、Key factors affecting demand

First of all, the growth of domestic residents' income and the upgrading of
food consumption have led to the continuous increase of the market demand
for bird's nest, and the market size of bird's nest has increased year by year.
Secondly, the development of fresh stewed bird's nest and other new products
and the rapid development of e-commerce channels have made the overall
sales scale of bird's nest industry continue to expand, thus promoting the
overall stable growth of the industry.

4、Domestic and international markets

Bird's nest products have always been favored by Chinese consumers

because of their rich nutrition, nourishing and health care functions. Chinese
Mainland is the world's largest consumer of bird's nest. Most of the bird's nests
produced in Southeast Asia are sold to China. At present, the post-90s and
post-90s have become the new force of bird's nest consumption. New bird's
nest consumption habits have been formed. With the improvement of people's
quality of life and health awareness year by year, and the real arrival of the era
of national health, China's bird's nest market will continue to grow.
The bird's nest food culture in Hong Kong, China is relatively popular, so
Hong Kong, China is also an important global bird's nest consumption market.

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In the whole circulation chain, Hong Kong, China plays an important role as a
free trade port. In the past, many bird's nests were sold to the mainland
through Hong Kong, China. Hong Kong is the center of EBN's world trade. At
present, the annual sales of EBN in Hong Kong are about 2 billion Hong Kong
dollars （257 million US dollars） （Nationthail and 2021）, although most of
the final consumers are located in Chinese Mainland. China （including Hong
Kong, Macao and Taiwan ） is the largest EBN consumer in the world,
accounting for more than 90% of world consumption.

5、Main competitive factors

The increasing number of enterprises engaged in the bird's nest industry

has led to fierce market competition, which may adversely affect the overall
profit margin of the industry. With the expansion of the domestic bird's nest
market, the intensification of brand competition and the improvement of
consumers' attention to product brand quality, enterprises with high product
quality control system and good brand advantages will occupy a favorable
position in the future market competition.
Affected by the further improvement of food safety threshold in the
industry and the enhancement of consumer awareness of brand consumption,
the survival space of some small production enterprises will be further
squeezed, the market share of brand enterprises will be further expanded, and
the scale and intensification of brand enterprises will effectively improve the
overall profit level of the industry.

6、Life cycle

In recent years, China's bird's nest market has maintained a high growth
rate, and is expected to continue to maintain the growth trend in the future.
China's bird's nest industry is in a rapid growth stage.

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Life Cycle of China's Bird's Nest Industry

Source: sorting out public data

Section IV Industry chain analysis

1、Analysis of industrial chain structure

At present, the business model of China's bird's nest industry is mainly to

import bird's nest raw materials, produce various bird's nest products through
processing, and then sell bird's nest products through online and offline
channels.

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

Bird's Nest Industrial Chain Structure

Source: research from Intelligence Research Group

2、Value-added space of main links

In recent years, people's living standards have continued to improve and

their ability to pay for consumption has continued to increase; Through
innovation, bird's nest enterprises continue to introduce new products with
better eating convenience, such as room-temperature ready-to-eat bird's nest,
fresh stewed bird's nest, and fresh pickled bird's nest, to attract more and more
consumers; At the same time, the development of e-commerce and efficient
logistics industry continues to improve the convenience of bird's nest
consumption. Under the combined effect of these factors, the domestic bird's

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

nest consumption market has shown a rapid growth trend.

3 、 Relevance with upstream and downstream

industries

At present, the bird's nest industry has formed an industrial chain with
relatively fine division of labor: the upstream of the industrial chain includes
bird's nest management, bird's nest picking, bird's nest rough processing and
other links; The middle reaches of the industrial chain include bird's nest import,
bird's nest deep processing, bird's nest sales and other links; Downstream of
the industrial chain are mainly various bird's nest sales terminals and final
consumers.

4、 Analysis of relevant industries upstream of the

industry chain

Singapore, Vietnam, Indonesia and other Southeast Asian countries are

rich in bird's nest. Among them, Indonesia regards the golden swallow as its
national bird. In Indonesia's economic development, bird's nest can be
regarded as a pillar industry. Bird's nests are also produced in Yunnan
Province and the southeast coast of Hainan Island, but the quality of their
products can not compete with that of Southeast Asia, and the output value is
low. Therefore, the raw materials of Chinese bird's nest industry are mainly
imported from Indonesia and other countries.

5、Analysis of relevant industries in the downstream

industry chain

The downstream links of the bird's nest industry mainly include sales
channels and consumer terminals. The sales channels mainly include online

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

and offline channels. The online sales channels of the bird's nest industry are
wide, including traditional e-commerce, such as Taobao, JD.com, Suning, and
the rapidly developing WeChat channels. The traditional offline channels of
bird's nest are wholesale stores, pharmacies, bird's nest franchise stores, etc.
With the promotion of e-commerce, WeChat and other new sales channels,
the bird's nest culture has become increasingly popular, and consumers have
gradually understood, accepted and recognized the nourishing effects of bird's
nest products.

6、Upstream and downstream industry impact and risk

tips

Since 2013, all bird's nests exported to China must pass the inspection
and quarantine of China, and the qualified bird's nests must be attached with
the traceability label issued by the Chinese Academy of Inspection and
Sciences. The information is entered into the third-party traceability system,
including the manufacturer, importer, origin of bird's nest, bird's nest
registration number, production date, etc., and consumers can scan the code
to query. However, because the processing cost of smuggled goods is low and
import taxes can be saved, the price difference between smuggled bird's nests
and the raw materials of compliant imported bird's nests can exceed 30%, and
the amount of smuggled bird's nests is large. The inflow of smuggled goods
may bring great food safety risks, and also bring hidden dangers to the
industry.
After the rise of e-commerce and social platforms, a large number of
manufacturers or individual businesses scramble for online channels. The
online channel industry has a low threshold, a low level of product
standardization, a large number of small workshops, and a very fragmented
market, which is not conducive to the healthy development of the industry.

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

Chapter II Analysis of the development

environment of bird's nest industry in
2022

Section I Analysis of China's economic

development environment in 2022

1、Analysis of China's GDP growth

China's GDP growth from 2016 to 2022

Source: National Bureau of Statistics

In 2022, China's total economic output will reach 121 trillion yuan, which is
a new step after the continuous breakthrough of 100 trillion yuan and 110
trillion yuan in 2020 and 2021. At the average annual exchange rate, 120
trillion yuan is equivalent to about 18 trillion dollars, ranking the second in the
world. In terms of per capita level, China's per capita GDP reached 85698
yuan in 2022, an actual increase of 3% over the previous year. At the annual

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

average exchange rate, it reached US $12741 and remained above US

$12000 for two consecutive years. The continuous improvement of the
economic aggregate and per capita level means that China's comprehensive
national strength, social productivity, international influence and people's living
standards have been further improved. It means that China's development
foundation is stronger, the quality of development is better, and the driving
force for development is more abundant. It means that China's economy is
resilient, has great potential, has wide space and has not changed in the long
term.

2 、 Analysis of industrial economic development

situation

Year-on-year growth rate of added value of industries above designated size in 2021-2022

Source: National Bureau of Statistics

1、 Overall stability of industrial operation
In 2022, the national industrial production above designated size will
maintain a stable recovery, with the added value increasing by 3.6% over the
previous year. From a quarterly perspective, the added value in the first,
second, third and fourth quarters increased by 6.5%, 0.7%, 4.8% and 2.7%

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

respectively. In terms of categories, the added value of mining, manufacturing,

power, heat, gas and water production and supply increased by 7.3%, 3.0%
and 5.0% respectively. In terms of industries, the added value of 27 of the 41
major industries increased by 65.9% compared with the previous year; The
growth rate of 10 industries was faster than that of the previous year.
2、 The energy and livelihood industries have strong and effective supply
guarantee
Since 2022, under the background of high international commodity prices
and high import inflation pressure, policies and measures to ensure supply and
price stability have been implemented in a timely and effective manner,
effectively promoting stable production in energy and livelihood industries, and
providing a strong guarantee for maintaining the normal operation of the
economy and society. In 2022, the energy industry will operate at a high level.
The added value of coal mining and washing industry will increase by 7.9%
over the previous year, the oil and gas mining industry will increase by 5.6%,
and the power and heating production and supply industry will increase by
5.1%. The supply of consumer goods for the people's livelihood was sufficient,
and the added value of the food manufacturing industry and the wine,
beverage and tea industry increased by 2.3% and 6.3% respectively; Among
the main livelihood products, the output of fresh and chilled meat, cooked meat
products, quick-frozen food and dairy products increased by 7.6%, 4.2%, 3.3%
and 2.0% respectively.
3、 New industrial drivers continue to play a leading role
The high-tech and equipment manufacturing industries have strong
support. In 2022, the leading role of high-tech manufacturing industry will be
strengthened, with the added value increasing by 7.4% over the previous year,
and the contribution rate to the growth of industries above designated size will
be 32.4%, 3.8 percentage points higher than the previous year. Among them,
the electronic and communication equipment manufacturing industry,
aerospace and equipment manufacturing industry, medical equipment and
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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

instrument manufacturing industry increased by 12.7%, 9.9% and 7.6%

respectively. The equipment manufacturing industry maintained rapid growth,
demonstrating the resilience of the industrial economy. The added value
increased by 5.6% over the previous year, 2.0 percentage points higher than
the average level of all above-scale industries. Among them, the electrical
machinery and equipment manufacturing industry, computer communication
and other electronic equipment manufacturing industry and automobile
manufacturing industry increased by 11.9%, 7.6% and 6.3% respectively.
New energy and new kinetic energy products grew rapidly. In 2022, the
production of new energy products will increase rapidly. The output of new
energy vehicles will nearly double from the previous year, with an increase of
97.5%. The output of new energy products such as charging piles, photovoltaic
cells and wind turbines will increase by 80.3%, 47.8% and 45.5% respectively;
Double-digit growth of new material products, with the output of ultra-white
glass, polycrystalline silicon and monocrystalline silicon for solar energy
industry increasing by 78.0%, 64.4% and 51.8% respectively; High-tech
products grew rapidly. The output of mobile communication base station
equipment, industrial control computers and systems, and civil aircraft
increased by 16.3%, 15.0%, and 10.5% respectively.
4、 The implementation of the economic stabilization policy has been
effective, and the willingness of enterprises to employ and invest has been
restored
With the implementation of the package of economic stabilization policies
and follow-up policies and measures, we have effectively promoted the
production and operation of various types of enterprises to maintain stability.
According to the three surveys on the effect of the tax deduction and refund
policy for industrial enterprises in 2022, the dividend of the large-scale
value-added tax deduction and refund policy has been released continuously,
the number of enterprises enjoying the policy has continued to increase, and
the enterprises that have enjoyed the policy are highly satisfied with the
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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

implementation of the policy, of which nearly two thirds are very satisfied, and
the beneficiary enterprises generally reflect that they have alleviated the
pressure of cash flow operation, and the effect of reducing the burden is very
obvious. According to the survey of small and micro enterprises in the fourth
quarter of 2022, 65.9% of enterprises enjoy preferential tax policies, an
increase of 3.6 percentage points over the same period of the previous year,
and the policy coverage has been maintained at more than 60% since the
fourth quarter of 2021. Under the continuous force of the policy, the willingness
of enterprises to employ and invest has recovered. According to the survey of
industrial enterprises' prosperity, the employment expectation index in the first
quarter of 2023 rose 0.9 percentage points month-on-month; The investment
expectation index rose by 0.5 percentage point month-on-month.
In general, industrial production will maintain a recovery trend in 2022.
However, it should also be noted that the triple pressures of demand
contraction, supply shock and expected weakening are still large, and the
external environment turbulence and epidemic impact have a significant
impact on the smooth operation of the industrial economy. In the next stage, in
the face of complex and severe domestic and international situations, we
should adhere to the general tone of seeking progress while maintaining
stability in accordance with the spirit of the Central Economic Work
Conference, comprehensively deepen reform and opening up, vigorously
boost market confidence, organically combine the strategy of expanding
domestic demand with deepening supply-side structural reform, pay close
attention to the transformation and upgrading of traditional industries and the
cultivation and expansion of strategic emerging industries, strive to strengthen
the weak links of the industrial chain, and promote the overall improvement of
industrial economic operation, Realize effective improvement of quality and
reasonable growth of quantity.

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

3、Analysis of social fixed asset investment

From January to December 2022, the national investment in fixed assets

（excluding farmers） was 57213.8 billion yuan, an increase of 5.1% over the
previous year. Among them, the investment in private fixed assets was
31014.5 billion yuan, an increase of 0.9% over the previous year. On a
month-on-month basis, fixed asset investment （excluding farmers） increased
by 0.49% in December.

China's fixed asset investment （excluding farmers） in 2016-2022

Source: National Bureau of Statistics

In terms of industries, the investment in the primary industry was 1429.3
billion yuan, up 0.2% over the previous year; The investment in the secondary
industry was 184004 billion yuan, up 10.3%; The investment in the tertiary
industry was 37384.2 billion yuan, up 3.0%.
In the secondary industry, industrial investment increased by 10.3% over
the previous year. Among them, the investment in mining industry increased by
4.5%, the investment in manufacturing industry increased by 9.1%, and the
investment in power, heat, gas and water production and supply industry

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

increased by 19.3%.
In the tertiary industry, infrastructure investment （excluding power, heat,
gas and water production and supply industries） increased by 9.4% over the
previous year. Among them, investment in water conservancy management
industry increased by 13.6%, investment in public facilities management
industry increased by 10.1%, investment in road transport industry increased
by 3.7%, and investment in railway transport industry increased by 1.8%.
From a regional perspective, the investment in the eastern region
increased by 3.6% over the previous year, the investment in the central region
increased by 8.9%, the investment in the western region increased by 4.7%,
and the investment in the northeast region increased by 1.2%.
According to the type of registration, the investment in fixed assets of
domestic enterprises increased by 5.5% over the previous year, the
investment in fixed assets of Hong Kong, Macao and Taiwan enterprises
increased by 0.2%, and the investment in fixed assets of foreign enterprises
decreased by 4.7%.

4、Total retail sales of consumer goods in the whole

society

In December 2022, the total retail sales of consumer goods reached

4054.2 billion yuan, down 1.8% year on year. Among them, the retail sales of
consumer goods other than automobiles were 3543.8 billion yuan, down 2.6%.
In 2022, the total retail sales of consumer goods reached 43973.3 billion
yuan, down 0.2% from the previous year. Among them, the retail sales of
consumer goods other than automobiles were 39396.1 billion yuan, down
0.4%.
According to the location of business units, the retail sales of urban
consumer goods in December reached 3459.4 billion yuan, down 1.8% year
on year; The retail sales of rural consumer goods reached 594.8 billion yuan,

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

down 1.3%. In 2022, the retail sales of urban consumer goods will reach
38044.8 billion yuan, down 0.3% from the previous year; The retail sales of
rural consumer goods reached 5928.5 billion yuan, basically the same as that
of the previous year.
By consumption type, retail sales of goods in December reached 3638.5
billion yuan, down 0.1% year on year; Catering revenue was 415.7 billion yuan,
down 14.1%. In 2022, retail sales of commodities will reach 39579.2 billion
yuan, up 0.5% over the previous year; Catering revenue was 4394.1 billion
yuan, down 6.3% from the previous year.
According to retail formats, in 2022, the retail sales of supermarkets,
convenience stores, specialty stores and specialty stores in retail units above
the designated size will increase by 3.0%, 3.7%, 3.5% and 0.2% respectively
compared with the previous year, while the retail sales of department stores
will decrease by 9.3%.
In 2022, the national online retail sales reached 13785.3 billion yuan, an
increase of 4.0% over the previous year. Among them, the online retail sales of
physical goods amounted to 11964.2 billion yuan, up 6.2%, accounting for
27.2% of the total retail sales of social consumer goods; Among the online
retail sales of physical goods, food, clothing and consumer goods increased by
16.1%, 3.5% and 5.7% respectively.

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

Total retail sales of consumer goods in China from 2016 to 2022

Source: National Bureau of Statistics

5 、 Analysis of income growth of urban and rural

residents

In 2021, the per capita disposable income of the national residents will be
35128 yuan, a nominal increase of 9.1% over the previous year, and a real
increase of 8.1% after deducting the price factor; Compared with 2019, the
growth rate is 14.3% （nominal growth rate on a year-on-year basis, unless
otherwise specified below）, with an average growth rate of 6.9% in two years.
After deducting the price factor, the average real growth rate in two years is
5.1%.
In terms of urban and rural areas, the per capita disposable income of
urban residents was 47412 yuan, an increase of 8.2%. After deducting the
price factor, the real increase was 7.1%; The per capita disposable income of
rural residents was 18931 yuan, an increase of 10.5%. After deducting the
price factor, the real increase was 9.7%.
In 2021, the median per capita disposable income of the national

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

residents will be 29975 yuan, an increase of 8.8%, and the median is 85.3% of
the average. Among them, the median per capita disposable income of urban
residents was 43504 yuan, up 7.7%, and the median was 91.8% of the
average; The median per capita disposable income of rural residents was
16902 yuan, an increase of 11.2%, and the median was 89.3% of the average.
According to income sources, in 2021, the per capita wage income of the
national residents will be 19629 yuan, up 9.6%, accounting for 55.9% of the
disposable income; The per capita net operating income was 5893 yuan, up
11.0%, accounting for 16.8% of the disposable income; The per capita net
property income was 3076 yuan, up 10.2%, accounting for 8.8% of disposable
income; The per capita net transfer income was 6531 yuan, up 5.8%,
accounting for 18.6% of the disposable income.
Compared with 2019, the average growth rate of various sources of per
capita disposable income of the national residents in the two years was 6.9%
in wage income, 6.0% in net operating income, 8.4% in net property income
and 7.2% in net transfer income.
The growth of residents' income is basically synchronized with economic
growth. In 2022, the per capita disposable income of the national residents
was 36883 yuan, a nominal increase of 5.0% over the previous year. After
deducting the price factor, the real growth was 2.9%, basically in line with the
economic growth.
The income of rural residents continues to grow faster than that of urban
residents. In 2022, the per capita disposable income of urban residents will be
49283 yuan, with a nominal increase of 3.9% and a real increase of 1.9%; The
per capita disposable income of rural residents was 20133 yuan, with a
nominal increase of 6.3% and a real increase of 4.2%. The nominal and real
growth rate of per capita disposable income of rural residents was 2.4 and 2.3
percentage points faster than that of urban residents, respectively. The income
ratio of urban and rural residents fell to 2.45 from 2.50 last year, and the
relative income gap between urban and rural residents continued to narrow.
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The real growth rate of consumer spending fell slightly. In 2022, the per
capita consumption expenditure of the national residents will be 24538 yuan,
with a nominal increase of 1.8%; After deducting the price factor, the actual
decline was 0.2%. In terms of urban and rural areas, the per capita
consumption expenditure of urban residents was 30391 yuan, a nominal
increase of 0.3% over the previous year and a real decrease of 1.7%; The per
capita consumption expenditure of rural residents was 16632 yuan, a nominal
increase of 4.5% and a real increase of 2.5% over the previous year. The
nominal and actual growth rate of per capita consumption expenditure of rural
residents is 4.2 percentage points faster than that of urban residents.
Per capita disposable income of Chinese residents in 2011-222

Year Per capita disposable income of residents （yuan）

2011 14551

2012 16510

2013 18311

2014 20167

2015 21966

2016 23821

2017 25974

2018 28228

2019 30733

2020 32189

2021 35128

2022 36883

Source: National Bureau of Statistics

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Income and consumption expenditure of urban and rural residents in

China from 2008 to 22

Income and expenditure of Income and expenditure of rural

urban residents residents

Per capita Per capita of

Per capita urban Per capita of rural

year
urban residents residents rural residents residents

Disposable Consumption Disposable Consumption

income （yuan） expenditure income （yuan） expenditure

（yuan） （yuan）

2008 15781 11243 4761 3661

2009 17175 12265 5153 3994

2010 19109 13472 5919 4382

2011 21810 15160 6977 5221

2012 24565 16674 7917 5908

2013 26467 18488 9430 7485

2014 28844 19968 10489 8383

2015 31195 21392 11422 9223

2016 33616 23079 12363 10130

2017 36396 24445 13432 10955

2018 39251 26112 14617 12124

2019 42359 28063 16021 13328

2020 43834 27007 17131 13713

2021 47412 30307 18931 15916

2022 49283 30391 20133 16632

Source: National Bureau of Statistics

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6、Analysis of changes in consumer prices

In December 2022, the national consumer price rose 1.8% year on year.
Among them, urban growth was 1.8%, and rural growth was 1.8%; Food prices
rose 4.8% and non-food prices rose 1.1%; The price of consumer goods rose
2.6% and the price of services rose 0.6%.
In December, the national consumer price was flat on a month-on-month
basis. Among them, urban areas remained flat, while rural areas fell by 0.2%;
Food prices rose by 0.5%, while non-food prices fell by 0.2%; The price of
consumer goods decreased by 0.1%, and the price of services increased by
0.1%.
Consumer price index of urban and rural residents in 2015-2022

Consumer price index of urban Consumer price index of rural

month residents residents

（same month of last year=100） （same month of last year=100）

2015

1 100.8 100.6

2 101.2 100.9

3 101.2 101.0

4 101.3 101.1

5 101.3 101.1

6 101.3 101.1

7 101.4 101.2

8 101.5 101.2

9 101.5 101.3

10 101.5 101.3

11 101.5 101.3

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12 101.7 101.5

2016

1 101.8 101.5

2 102.3 102.2

3 102.3 102.2

4 102.3 102.4

5 102.0 102.1

6 101.9 101.9

7 101.8 101.5

8 101.4 101.0

9 102.0 101.6

10 102.2 101.8

11 102.3 102.0

12 102.1 101.9

2017

1 102.6 102.2

2 100.9 100.6

3 101.0 100.6

4 101.3 100.8

5 101.7 101.1

6 101.7 101.0

7 101.5 101.0

8 101.9 101.5

9 101.7 101.4

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10 101.9 101.7

11 101.8 101.5

12 101.9 101.7

2018

1 101.5 101.5

2 103.0 102.7

3 102.1 101.9

4 101.8 101.7

5 101.8 101.7

6 101.8 101.9

7 102.1 102.0

8 102.3 102.3

9 102.4 102.5

10 102.5 102.6

11 102.2 102.2

12 101.9 101.9

2019

1 101.8 101.7

2 101.5 101.4

3 102.3 102.3

4 102.5 102.6

5 102.7 102.8

6 102.7 102.7

7 102.7 102.9

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8 102.8 103.1

9 102.8 103.6

10 103.5 104.6

11 104.2 105.5

12 104.2 105.3

2020

1 105.1 106.3

2 104.8 106.3

3 104.0 105.3

4 103.0 104.0

5 102.3 103.0

6 102.2 103.2

7 102.4 103.7

8 102.1 103.2

9 101.6 102.1

10 100.5 100.4

11 99.6 99.2

12 110.2 110.2

2021

1 99.6 99.9

2 99.7 99.9

3 99.9 100.0

4 100.2 100.2

5 100.4 100.4

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6 100.6 100.4

7 100.6 100.4

8 100.7 100.4

9 100.7 100.4

10 100.8 100.5

11 100.9 100.6

12 101.0 100.7

2022

1 101.1 100.4

2 101.1 100.5

3 101.2 100.7

4 101.5 101.0

5 101.6 101.2

6 101.7 101.5

7 101.9 101.7

8 101.9 101.8

9 102.0 102.0

10 102.0 102.0

11 102.0 102.0

12 102.0 102.0

Source: National Bureau of Statistics

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

Section II Analysis of social development environment

1、Development status of domestic social environment

At the end of 2022, the national population was 1411.75 million, 850000
fewer than that in 2021; The annual birth population was 9.56 million, down
1.06 million from 2021; The death toll was 10.41 million, an increase of 270000
over 2021. The birth rate of the population was 6.77 ‰, down by 0.75
percentage points from 2021; The death rate of the population was 7.37 ‰, an
increase of 0.19 percentage points; The natural growth rate of population was
-0.60 ‰, down by 0.94 percentage points.
The slight decline in China's total population in 2022 is mainly due to the
reduction of the birth population. First, women of childbearing age continue to
decrease. In 2022, the number of women of childbearing age aged 15-49 in
China will decrease by more than 4 million compared with that in 2021,
including nearly 5 million women of childbearing age aged 21-35 in the fertile
period. Second, the fertility level continues to decline. The fertility level of
women of childbearing age will continue to decline in 2022 due to changes in
fertility concepts, delayed marriage and childbirth and other factors.

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China's population from 2013 to 2022

Source: National Bureau of Statistics

Affected by the expansion of urban areas, the natural growth of urban
population and the inflow of rural population into cities and towns, the urban
population continues to increase. By the end of 2022, China's urban
permanent population will reach 920.71 million, an increase of 6.46 million
over 2021; The permanent population in rural areas was 49.104 million, a
decrease of 7.31 million. The urbanization rate of permanent residents was
65.22%, 0.50 percentage points higher than that in 2021. The spatial layout of
urbanization has been continuously optimized, and the quality of new
urbanization has been steadily improved.
By the end of 2022, the population aged 0-15 years in China will be
256.15 million, accounting for 18.1% of the national population; The working
age population aged 16-59 is 87.556 million, accounting for 62.0%; The
population aged 60 and above is 28.04 million, accounting for 19.8%, of which
the population aged 65 and above is 209.78 million, accounting for 14.9%.
Compared with 2021, the number of people of working age aged 16-59
decreased by 6.66 million, with a decrease of 0.4 percentage points; The

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

number of people aged 60 and above increased by 12.68 million, with the
proportion increasing by 0.9 percentage points; The number of people aged 65
and above increased by 9.22 million, up 0.7 percentage points.
Although the total population will decline slightly in 2022, China still has
more than 1.4 billion people, and the advantages of population scale and
super-scale market will exist for a long time; The working-age population is
nearly 900 million, and labor resources are still abundant. At the same time,
the education level of the working-age population in China has continued to
improve, and the talent dividend has gradually emerged. In 2022, the average
age of education of the 16-59 working age population in China will reach 10.93
years, 0.11 years higher than that in 2021 and 0.18 years higher than that in
2020. The continuous improvement of population quality will strongly support
the transformation of economic development mode, the upgrading of industrial
structure and the improvement of total factor productivity, and promote the
sustainable, coordinated and healthy development of population and economic
society.
In 2021, the population of separated households will reach 504.29 million,
an increase of 11.53 million over 2020. Among them, there are 119.62 million
people separated from households and 384.67 million floating people in the
municipal area, an increase of 2.68 million and 8.85 million respectively
compared with 2020.
By the end of 2022, China's urban permanent population will reach 920.71
million, an increase of 6.46 million over 2021; The permanent population in
rural areas was 49.104 million, a decrease of 7.31 million. The urbanization
rate of permanent residents was 65.22%, 0.50 percentage points higher than
that in 2021.

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Trend chart of China's urbanization rate from 2013 to 2022

Source: National Bureau of Statistics

2、Impact of social environment on the industry

Living in a fast-paced era, with the increasing pressure of life and work,
the irregular work and rest of staying up late has gradually become the norm.
At the same time, this work and rest is slowly torturing the health of employees.
In order to adjust the pressure of work and life, people will seek some ways to
make up for the adverse effects of work pressure, one of which is to buy
nutritious food. At the same time, the consumption awareness of bird's nest in
nutritious food in China will be improved, which will promote the continuous
expansion of bird's nest consumption market.

3 、 Impact of industrial development of bird's nest

industry on social development

At present, China has the largest middle-income group in the world.

During this decade, China's per capita GDP has also risen from 6300 US

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

dollars to more than 12000 US dollars. With the growth of income, the
consumption of Chinese residents is also accelerating and upgrading, and the
personalized demand of residents' consumption has been highlighted in the
past decade.
China has a vast territory and a large population, and the sales of bird's
nest has increased rapidly. Bird's nest has become a new trend in the domestic
health care market. With the outbreak of four strong demand in pregnant
women's market, nutrition market, food market and gift market, the future of
China's bird's nest market will be very broad.

Section III Analysis of the policy environment of

China's bird's nest industry

1、Supervision and management system of bird's nest

industry

At present, the National Development and Reform Commission is

responsible for the research and formulation of industrial policies, the
formulation of industrial planning, policy guidance, project approval and other
management work, and the macro-control of the development planning of the
bird's nest industry. The Food Safety Committee under the State Council is the
high-level deliberative and coordinating body for the food safety work of the
State Council; The State Administration of Market Supervision and
Administration is specifically responsible for the supervision and administration
of food safety; The General Administration of Customs is responsible for the
supervision and administration of the import and export of commodities.
Industry self-regulatory organizations in the field of bird's nest include the
Bird's Nest Market Professional Committee of the National Association of
Urban Agricultural and Trade Centers and regional industrial associations. The
Bird's Nest Market Professional Committee of the National Association of
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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

Urban Agricultural and Trade Centers, referred to as the "National Bird's Nest
Committee", is an industrial, national and non-profit social organization
composed of enterprises, institutions, social organizations and individuals
engaged in the bird's nest industry and related production, processing,
circulation, testing, scientific research, teaching and consumption fields on a
voluntary basis in accordance with national laws and regulations, Accept the
leadership and supervision of the National Federation of Urban Agricultural
Trade Centers, and accept the guidance of the Ministry of Commerce in
business. The purpose of the State Yan Committee is to play the role of
service, self-discipline, coordination, supervision and rights protection in the
industry, regulate market behavior, maintain market order and promote the
healthy development of the industry. In addition, the Chinese Academy of
Inspection and Quarantine provides professional services for the traceability of
products in the bird's nest industry.

2、Analysis on relevant policies of bird's nest industry

Industry laws and regulations

Release
Policy name Issuing agency primary coverage
time

Letter of the Ministry

of Health on the The former

Notification of the Ministry of

The temporary management
Temporary Health of the
2012-02 limit of nitrite in edible bird's nest is
Management Limit People's
30 mg/kg.
of Nitrite in Edible Republic of

Bird's Nest （WSH China

[2012] No. 62）

Announcement on The former 1. Bird's nest production and

2013-12
Inspection and General processing enterprises need to

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

Quarantine Administration register for record; 2. The

Requirements for of Quality processing enterprises of bird's nest

Imported Bird's Nest Supervision, products entering China should

Products from Inspection and establish a bird's nest traceability

Malaysia Quarantine system from the bird's nest to the

export; 3. Each batch of bird's nest

shall pass inspection and

quarantine; 4. The product name,

weight, bird's nest name and

registration number, processing

enterprise name, address and

registration number, product storage

conditions and production date and

other information shall be marked

on the outer package of the bird's

nest products entering China.

1. Bird's nest production and

processing enterprises need to

register for record; 2. A bird's nest

Announcement on The former traceability system from the bird's

Inspection and General nest production enterprise to the

Quarantine Administration export shall be established for the

Requirements for of Quality 2014-11 processing enterprises of bird's nest

Imported Supervision, products entering China; 3. Each

Indonesian Bird's Inspection and batch of bird's nest shall pass

Nest Products Quarantine inspection and quarantine; 4. The

outer packaging of bird's nest

products in China shall be marked

with information such as bird's nest

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

manufacturer, processing

enterprise, product name and

weight.

The official inclusion of bird's

nest products in the Registration

Catalogue for the The former
and Implementation Catalog of
Implementation of General
Overseas Manufacturers of
Registration of Administration
Imported Food aims to further
Overseas of Quality 2016-01
strengthen the safety management
Production Supervision,
of bird's nest food and guide
Enterprises of Inspection and
consumers to purchase the formal
Imported Food Quarantine
bird's nest products of registered

enterprises

1. Bird's nest production

enterprises and processing

enterprises need to register for

record; 2. A bird's nest traceability

system from the bird's nest

Announcement on The former
production enterprise to the export
Inspection and General
shall be established for the
Quarantine Administration
processing enterprises of bird's nest
Requirements for of Quality 2017-08
products entering China; 3. Each
Imported Bird's Nest Supervision,
batch of bird's nest shall pass
Products from Inspection and
inspection and quarantine; 4. The
Thailand Quarantine
product name, weight, the name

and registration number of the bird's

nest manufacturer （hole）, the

name, address and registration

number of the processing

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

enterprise, the storage conditions

and production date of the product

shall be marked on the outer

packaging of the bird's nest

products entering China.

Check the production license of

non-instant bird's nest, including the

production site, facilities and

Detailed Rules for
equipment, equipment layout and
the Examination of Fujian
technological process, personnel
the Production Provincial
and management system. In
License of Market
2021-08 addition, relevant departments
Non-edible Bird's Supervision and
should take representative samples
Nest in Fujian Administration
from the same variety and batch of
Province （for Trial Bureau
trial products for inspection
Implementation）
according to the varieties and

implementation standards declared

by the enterprise.

Source: research from Intelligence Research Group

3 、 Impact of upstream and downstream industrial

policies

Relevant policies of food production industry

Release Publishing
Policy name primary coverage
time department

General Opinions of the Encourage large food production

2017-4 Office of the General Office of and operation enterprises and chain

State Council the State Council on operation enterprises to build and

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

Accelerating the improve cold chain facilities for

Development of docking and unloading, encourage

Cold Chain retail terminal outlets such as

Logistics, Ensuring shopping malls and supermarkets to

Food Safety and be equipped with cold chain

Promoting equipment, and promote the use of

Consumption convenient and standardized cold

Upgrading chain transportation units such as

refrigerated boxes.

Circular of the Edible agricultural products and

General Office of food producers and operators are the

the State Council on first responsible person to ensure the

General Further quality and safety of edible

2017-9 Office of the Strengthening the agricultural products and food safety,

State Council Management of and must perform the main

Pesticides and responsibility for the quality and

Veterinary Drugs to safety of edible agricultural products

Ensure Food Safety and food safety.

Opinions of the

General Office of
Strengthen the supervision of
the State Council on
grain planting, purchase, storage,
Accelerating the
sales and food production and
General Agricultural
operation, and strictly prevent grain
2017-9 Office of the Supply-side
that does not meet the food safety
State Council Structural Reform
standards from flowing into the grain
and Vigorously
ration market or being used for food
Developing the
processing.
Grain Industrial

Economy

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

Guiding Opinions of Carry out standard publicity and

the Food and Drug implementation training in various

Food and Administration on forms and channels, urge food

2018-1 Drug Further producers and operators to strictly

Administration Strengthening the implement the standards, and

Work of Food and practically ensure that the standards

Drug Standards are implemented in place.

We will strengthen the

Opinions of the environmental sanitation

State Council on improvement of food production and

the State
2020-11 Deepening the operation sites such as small
Council
Patriotic Health restaurants and small workshops, and

Campaign promote the "bright kitchen and bright

kitchen" of the catering industry.

In Jilin, Heilongjiang, Henan,

Shandong and other major frozen

food production provinces, guide the

frozen food industry cluster area and

leading production enterprises to

connect with the national backbone

"Fourteenth
General cold chain logistics base and
Five-Year Plan" cold
2021-12 Office of the production and marketing cold chain
chain logistics
State Council distribution center, open up the whole
development plan
process cold chain service chain of

raw material procurement and

product sales, and promote the scale

and intensive development of the

frozen food industry. Build a rapid

quality inspection system for

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

quick-frozen food cold chain process,

and improve the cold chain logistics

service traceability system.

Improve the food production

safety risk prevention and control

system and hierarchical management

system, strengthen the dynamic

inspection of food safety risks,

General National Disability
regularly carry out risk assessment
2022-1 Office of the Prevention Action
and judgment, strengthen the
State Council Plan （2021-2025）
supervision of the production and

operation process, strengthen the

sampling inspection, severely punish

illegal acts, and compact the main

responsibility of enterprises.

We will strengthen supervision

measures in all aspects of food

"Fourteenth
production and processing, sales and
the State Five-Year Plan" for
2022-1 catering services, and improve and
Council Modernization of
improve the problem-oriented
Market Supervision
supervision and inspection

mechanism.

Source: research from Intelligence Research Group

In recent years, in order to promote the development of the food
processing industry, China has successively issued many policies. We will
guide agricultural product processing enterprises to take the lead in carrying
out joint research on "production, learning, research and use", and overcome
technical bottlenecks such as food pretreatment, separation and extraction,
mixing and homogenization, filling and packaging, and loss reduction and

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

efficiency enhancement.
National food processing industry policy from 2015 to 2022

Release Publishing
Policy name Key content
time department

Accelerate the transformation

and upgrading of light industry,

Several Opinions of textile, food processing and other

the State Council on industries, aim at international

Accelerating the standards and market segments, and

the State
2015 Cultivation of New improve the quality of consumer
Council
Competitive goods in an all-round way by

Advantages in improving the efficiency,

Foreign Trade performance, applicability, reliability

and appearance design level of

products.

Define the main tasks during the

"13th Five-Year Plan" period,

The 13th Five-Year including performing duties in

National
Plan for Food Safety accordance with the law, making
Health and
Standards, overall arrangements for food safety
2016 Family
Monitoring and standards and monitoring and
Planning
Evaluation evaluation, jointly building and
Commission
（2016-2020） sharing, and strengthening the food

safety standards and monitoring and

evaluation system, etc

Build a food processing industry

General Office Key work
cluster, guide food processing
2017 of the State arrangements for
enterprises to focus on main
Council food safety in 2017
production areas, advantageous

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

production areas and industrial parks,

increase support for technological

transformation, and promote the food

industry to increase varieties, improve

quality and create brands.

Accelerate the nutritional

transformation of food processing.

Priority should be given to the study

of the amount of oil, salt and sugar in

processed foods and their correlation

with health, and the control measures

General Office
National Nutrition for oil, salt and sugar in processed
2017 of the State
Plan （2017-2030） foods should be timely introduced.
Council
Put forward the path of nutritional

transformation of food processing

technology, and integrate the

technical system to reduce nutrient

loss and avoid the generation of toxic

and harmful substances.

Opinions of the
In energy, metallurgy, building
Central Committee
materials, non-ferrous metals,
of the Communist
The CPC chemical industry, electroplating,
Party of China and
Central paper making, printing and dyeing,
the State Council on
2018 Committee agricultural and sideline food
comprehensively
and the State processing and other industries, we
strengthening the
Council will comprehensively promote cleaner
protection of the
production transformation or cleaner
ecological
transformation.
environment and

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

firmly fighting the

battle of pollution

prevention and

control

Strictly control the quality and

safety of food processing. Implement

the hierarchical management of food

safety risks of production enterprises,

Opinions of the CPC
and on the basis of full coverage of
The CPC Central Committee
daily supervision and inspection,
Central and the State
carry out proportional "double
2019 Committee Council on
random" spot checks on general risk
and the State deepening reform
enterprises, carry out key inspections
Council and strengthening
on high-risk enterprises, carry out
food safety
flight inspections on enterprises with

problem clues, and urge enterprises

to continue to comply with the

production process.

We will strengthen supervision

measures in all aspects of food

"Fourteenth
production and processing, sales and
the State Five-Year Plan" for
2021 catering services, and improve and
Council Modernization of
improve the problem-oriented
Market Supervision
supervision and inspection

mechanism.

General Office The General Office Innovate the food processing and

of the CPC of the CPC Central distribution mode, support catering

2021
Central Committee and the units to make full use of the central

Committee General Office of the kitchen, and accelerate the

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

and General State Council printed construction of staple food distribution

Office of the and distributed the center and cold chain supporting

State Council action plan for food system.

conservation

Integrated processing technology

achievements. Deploy the innovation

Guiding Opinions of chain around the industrial chain,

the Ministry of deploy the capital chain and the

Agriculture and resource chain around the innovation

Rural Affairs on chain, guide the agricultural product

Ministry of Expanding processing enterprises to take the

2021 agriculture and Agricultural lead in carrying out the joint research

rural affairs Multi-functions and on "production, learning, research

Promoting and use", and overcome the technical

High-quality bottlenecks of food pretreatment,

Development of separation and extraction, mixing and

Rural Industries homogenization, filling and

packaging, loss reduction and

efficiency.

State Forestry
We will improve the bamboo
and Grassland
shoot industry and vigorously develop
Administration,
Opinions on the green food processing of bamboo
National
Accelerating the shoots. Accelerate the development
Development
2021 Innovative of bamboo processing, bamboo
and Reform
Development of furniture, bamboo decoration,
Commission,
Bamboo Industry bamboo handicrafts, bamboo
Ministry of
charcoal and other characteristic and
Science and
advantageous industries.
Technology,

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

Ministry of

Industry and

Information

Technology

and other

departments

2022 National
Focus on agricultural products,
Intellectual Property
State processed foods, authentic medicinal
Administrative
Intellectual materials, traditional handicrafts, etc.,
2022 Protection Work
Property and organize and carry out special
Plan of the State
Office rectification work on geographical
Intellectual Property
indications.
Office

Source: research from Intelligence Research Group

In recent years, in order to promote and standardize the development of
the health care products industry, China has successively issued many
policies, such as the "Fourteenth Five-Year Plan" for the Development of
Traditional Chinese Medicine issued by the State Council, which proposes to
focus on health food, formula food for special medical purposes, functional
cosmetics, and daily chemical products, and develop health products of
traditional Chinese medicine. Encourage the development of health detection
and monitoring products, self-care, functional rehabilitation and other devices
that are easy to operate and suitable for families around the health care,
diagnosis and rehabilitation of traditional Chinese medicine.
Industry related policies

Release Publishing
Policy name Related content
time department

The CPC Outline of the Actively develop the cause of

2022-12
Central Strategic Plan for traditional Chinese medicine, and

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

Committee Expanding Domestic strive to increase high-quality

and the State Demand services such as traditional Chinese

Council （2022-2035） medicine, health care, rehabilitation,

and health tourism.

Focusing on health promotion,

chronic disease management,

elderly care services and other

National Health Plan needs, focus on the development of

the State
2022-5 for the 14th Five-Year new health products such as health
Council
Plan management, intelligent

rehabilitation aids, scientific fitness,

traditional Chinese medicine and

health care

Focus on health food, formula

food for special medical purposes,

functional cosmetics and daily

chemical products, and develop

health products of traditional

"The 14th Five-Year
Chinese medicine. Encourage the
Plan for the
the State development of health detection and
2022-3 Development of
Council monitoring products, self-care,
Traditional Chinese
functional rehabilitation and other
Medicine"
devices that are easy to operate and

suitable for families around the

health care, diagnosis and

rehabilitation of traditional Chinese

medicine.

State Announcement on Develop a clear concept claim

2022-1
Administration the Issuance of system and compliance standards

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

of Market Non-nutrient for health food. With the

Supervision Supplements（2022） improvement of laws and

and and Supporting regulations, the whole industry is

Administration Documents of the developing in a more orderly and

Health Function healthy direction.

Catalog Allowed for

Health Food Claims

（for comments）,

Interpretation of

Health Food Function

Claims （2022）（for

comments）, etc

By 2025, we will develop a

number of high-value-added and

high-growth varieties, break through

a number of green and low-carbon

technical equipment, cultivate a

Development number of leading enterprises with

Notice on
and Reform international competitiveness, and
Implementation Plan
Commission, create a number of industrial clusters
for Promoting
2021-10 Ministry of and production bases with global
High-quality
Industry and influence. The innovative
Development of API
Information development and advanced
Industry
Technology manufacturing level of the API

industry have been significantly

improved, the green and low-carbon

development capacity has been

significantly improved, and the

flexibility of the supply system has

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

been significantly enhanced,

providing strong support for the

development of the pharmaceutical

industry and forging a characteristic

long board for international

competition and cooperation.

We should develop new

industries that promote the moderate

diversification of Macao's economy,

including the development of science

and technology research and

Overall Plan for the development, high-end

The CPC
Construction of manufacturing industry, traditional
Central
Hengqin Chinese medicine and other Macao
2021-9 Committee
Guangdong-Macao brand industries. Traditional Chinese
and the State
Deep Cooperation medicine products, food and health
Council
Zone care products approved and

registered in Macao and produced in

the cooperation zone are allowed to

use the sign of "Manufactured under

supervision in Macao" or "Designed

in Macao".

State Nutrient Supplement

Administration of Health Food Raw

of Market Material Catalog

Regulate the types of the latest
2021-3 Supervision （2020） and
health food raw materials.
and Nutrient Supplement

Administration, of Health Function

National Catalog Allowed to

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

Health Claim Health Food

Commission, （2020）

State

Administration

of Traditional

Chinese

Medicine

In order to implement the Interim

Measures for the Examination and

Model Form of Administration of Advertisements of

Examination Drugs, Medical Devices, Health

Document for Food and Formula Food for Special

State
Advertisements of Medical Purposes （Order No. 21 of
Administration
2020-2 Drugs, Medical the State Administration of Market
of Market
Devices, Health Food Supervision）. Standardize drugs.
Supervision
and Formula Food for medical apparatus and instruments.

Special Medical The review of advertisements for

Purposes health food and formula food for

special medical purposes shall be

carried out in a unified manner.

Interim Measures for The content of the health food

the Examination and advertisement shall be subject to the

Administration of registration certificate or filing

State
Advertisements of certificate approved by the market
Administration
2020-3 Drugs, Medical supervision and administration
of Market
Devices, Health Food department, and the content of the
Supervision
and Formula Food for product manual registered or filed,

Special Medical and shall not involve the function of

Purposes disease prevention and treatment. If

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

the health food advertisement

involves the health function, the

effective ingredients or the symbolic

ingredients and the content, the

suitable crowd or the consumption,

etc., it shall not exceed the scope of

the registration certificate or the filing

certificate, the registration or the

filing product description.

Health food is suitable for

specific people, but not for the

State purpose of curing diseases. To guide

Guidelines for
Administration the labeling of health food warning
2020-1 Labeling Warning
of Market terms, make it easier for consumers
Terms of Health Food
Supervision to distinguish health food from

ordinary food and drugs, and guide

consumers to consume rationally

Regulations on the

State Available Auxiliary

Administration Materials and Their Regulate the type and amount

2019-12
of Market Use of Health Food of excipients used in health food

Supervision Recorded Products

（2019 Edition）

Source: research from Intelligence Research Group

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Section IV Technical environment analysis of China's

bird's nest industry

1、Overview of technology development of bird's nest

industry

1. Processing classification
The bird's nest just picked by the workers collecting bird's nest, also
known as the raw material of bird's nest or "hairy bird's nest", needs to
undergo a series of artificial treatment before eating, and the bird's nest will be
processed differently according to different product requirements. Bird's nest
processing mainly includes primary processing, deep processing technology
and biotechnology processing, with the purpose of removing impurities,
retaining nutrients, improving appearance, extracting functional ingredients,
etc.
2. Initial processing of bird's nest
The main process of primary processing is roughly as follows: grading and
trimming, grading according to a series of characteristics of bird's nest raw
materials, such as hair content, size, shape, color, etc., and trimming the
redundant edges and corners and impurities. Cleaning: Because the newly
picked bird's nest is polluted by the environment, bird's hair, nesting grass,
eggshell fragments, small black spots and other impurities, the bird's nest
needs to be cleaned with purified water, and the surface is gently brushed with
a soft brush, and the bird's nest raw materials are washed repeatedly, which
can not only remove most of the impurities, but also remove the nitrite that is
easily soluble in water. Disinfection: steam the bird's nest raw material at a
certain temperature and time to eliminate possible harmful microorganisms.
Hair picking: spray water on the bird's nest raw material to make it expand, put
it into the bird's nest mold specially made with wire mesh, and use tweezers to

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

pick out the impurities and bird's hair on the bird's nest. This is the most
tedious step, testing the eyesight and speed of the picker, and it is very
time-consuming. Beginners can pick about 3-4 bird's nests a day, and skilled
workers can pick 15 to 18 bird's nests a day, which is labor-intensive work;
This step determines the cleanliness of bird's nest, and is also one of the
determinants of the higher price of bird's nest; In order to improve the contrast
between bird's nest and impurities and save the cost of manual hair picking.
After cleaning and sorting, the bird's nest will be transferred to another
workshop, and placed in the shape of the bird's nest to be air dried or dried for
qualitative analysis. The temperature and humidity of the shaping workshop
need to be monitored in real time to prevent the bird's nest from becoming
moldy and in a dust-free environment; After sorting and shaping, use ultraviolet
irradiation, ozone or high temperature for sterilization. Packaging: Bird's nests
are classified according to various specifications according to customer or
market demand, and packaged with special packaging boxes.
3. Deep processing technology of bird's nest
In order to adapt to the modern fast-paced life, market expansion and
development and consumer demand, the primary processing technology has
been unable to meet the demand, and the emergence of deep processing
technology has solved the relatively simple model with fewer product types. A
common one is the processing of ice sugar type ready-to-eat bird's nests:
weigh the selected clean bird's nests into bottles or bowls, fill the sugar
solution, add the lid or seal, sterilize at high temperature, cool, air dry and test,
and finally pack them out of the factory. The ready-to-eat bird's nest products
on the market include: canned bird's nest in bowls, bottled bird's nest, fresh
stewed bird's nest, thick fresh bird's nest, bird's nest porridge, etc. In addition,
ingredients such as gelatin, donkey-hide gelatin, ginseng, tremella, matsutake,
wolfberry, etc. will be added to achieve nutrition enrichment and taste
diversification, so as to meet the consumer's personalized choice and market
demand.
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4. Bioprocessing technology of bird's nest

Biotechnology processing mainly includes five aspects: genetic
engineering, cell engineering, enzyme engineering, fermentation engineering
and protein engineering. This technology is the application of organisms
（microorganisms, animal cells, plant cells） or their components （organelles,
enzymes） under the most suitable conditions to produce valuable products or
carry out beneficial process technology, which has broad application prospects.
In the process of bird's nest processing, biotechnology mainly uses enzyme
engineering to obtain some specific nutrients in bird's nest by means of
enzymolysis, extraction and separation. Jianye et al. and Li Jing et al.
extracted sialic acid from bird's nest by microwave or ultrasonic combined with
papain; Zheng Xinyi and others use alkaline protease to hydrolyze the
insoluble protein in bird's nest, and convert the insoluble protein in bird's nest
into water-soluble polypeptide after hydrolysis, which is conducive to human
digestion and absorption; The protein peptides and polysaccharides from
bird's nest were prepared by enzyme hydrolysis combined with membrane
separation technology. The results showed that bird's nest protein peptides
had good antioxidant activity; Gao Jianping and other researchers found that
trypsin can be used for the preparation of oligopeptides in bird's nest. After
enzymatic hydrolysis, the molecular weight of oligopeptides in bird's nest is
mainly concentrated in the range of 2000~4000U. The activity analysis shows
that oligopeptides in bird's nest can improve immune function. Therefore,
active substances can be obtained through biotechnology processing,
providing a new direction for the development of new bird's nest products,
including bird's nest extract, bird's nest enzymolysis, high sialic acid, high
utilization of downstream products, beauty and skin care products, oral liquid
or health functional food.

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2、Technical development status of bird's nest industry

At present, the main products of bird's nest are dry bird's nest, instant
bird's nest and stewed bird's nest. Different types of bird's nest processing
processes are different. According to the technological development route, the
technology of bird's nest industry is now divided into basic technology, deep
processing technology and biotechnology: basic technology mainly includes
cleaning, picking, soaking, stewing, etc; The deep processing technology
mainly includes sterilization packaging, nutrition maintenance, taste mixing,
etc; Biotechnology is the deep processing of bird's nest by means of
enzymolysis, extraction and separation, which is widely used in food, medicine,
cosmetics and other fields. However, the simplicity of the product can not
satisfy consumers. The development of bird's nest technology will make bird's
nest products more diversified: bird's nest drinks and canned bird's nests will
enrich bird's nest products; Sugar-free bird's nest and xylitol bird's nest provide
more choices for special groups in advance; Bird's nest facial mask and bird's
nest cosmetics rich in water-soluble amino acids make the bird's nest market
more open.

Process flow chart of bird's nest products

Source: sorting out public data

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 Report of Market Evaluation and Investment Prospect Assessment on China Bird's Nest Industry（2019-2025）

Part II Market Panorama Survey

Chapter III Analysis of the development

of the industry to which the bird's nest
belongs

Section I Indonesian Bird's Nest Industry Market

1 、 Development status of bird's nest industry in

Indonesia

Swiftlets are widely distributed in Indonesia, that is, from the west
（ Sumatra, Java, Kalimantan, Bali and Sinushadengara ） , the middle
（Sulawesi） to the east （Maluku）.

Regional distribution of Indonesian Swiftlet

Source: sorting out public data

The history of swiftlet breeding began in East Java in 1880. During this
period, the Dutch colonial authorities purchased the right to collect nests from

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the feudal rulers of Java, and then leased them to collectors. The swiftlet has
ecological and economic benefits for the environment and human beings.
From the point of view of ecology, the swiftlet is considered as a biological
predator of plant pests. From an economic point of view, the golden bird's nest
is regarded as a precious luxury and has a large number of consumer groups
in China and Southeast Asia.
In essence, there are 12 species of swiftlets in Indonesia, three of which
have a long history of breeding. They are: （1） Collocalia fuciphaga; （2）
COLLOCALIA MAXIMA; （3） COLLOCALIA LINCHII.
Brief introduction of main breeding varieties of Indonesian swiftlet

Swiftlet
Nest building characteristics Region
Species

Sumatra, Kalimantan, Java, Bali,

Collocalia Made of pure saliva, white with fur
southern Sinusa, Sulawesi and
fuciphaga mixed
Maluku

Collocalia Made of leaves （pine, spruce） or

Sumatra, Kalimantan and Sulawesi
maxima palm fiber

Collocalia Made of leaves （pine, spruce） or

Java
linchii palm fibers glued with saliva

Source: research from Intelligence Research Group

Indonesia is the largest bird's nest production area in the world. In recent
years, the output of bird's nest in Indonesia has maintained at about 1400 tons.
In 2021, the output of bird's nest in Indonesia will be 1600 tons, accounting for
63.7% of the total global output of bird's nest in the same period.

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Trend of Bird's Nest Production in Indonesia from 2016 to 2021

Source: research from Intelligence Research Group

2、Indonesian Bird's Nest Industry Market Analysis

It is understood that the consumption of bird's nest in Indonesia is very low,

the domestic market demand is less than 100 tons, and the products are highly
dependent on exports. However, bird's nest is mostly exported in the form of
primary agricultural products, with low export unit price and limited foreign
exchange earnings. At present, the government is trying to drive the upgrading
of bird's nest industry in Indonesia, transform the original form of raw material
export, and increase the proportion of deep-processed products exports, so as
to improve the added value of products and the competitiveness of the
international market.
According to statistics, Indonesia's bird's nest export volume was 405.3
tons in 2012, and climbed to 1505.5 tons in 2021. Since 2012, Indonesia's
bird's nest export compound growth rate has been 15.70%. In terms of export
volume, the Chinese market （including Hong Kong and Taiwan） accounted
for 82.32% of Indonesia's total bird's nest exports in 2021; Singapore
accounted for 5.31%; The United States accounted for 4.40%; Vietnam
accounted for 4.74%.

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Statistics of Indonesian Bird's Nest Exports from 2012 to 2021

Source: research from BPS、Intelligence Research Group

Statistics of Indonesian Bird's Nest Exports by Country and Region from
2012 to 2021 （tons）

Country 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Hong

Kong, 235.2 286.4 392.3 474.4 625.5 487.8 290.4 644.1 897.2 989.9

China

Chinese
12.4 1.2 0.0 18.4 23.0 55.5 69.6 129.1 263.5 228.8
Mainland

Singapore 131.9 194.1 131.8 100.2 96.8 71.6 90.0 75.4 68.8 80.0

U.S.A 14.2 18.0 17.7 17.1 16.8 18.2 16.6 47.0 20.4 66.2

Vietnam 0.0 16.3 42.3 124.3 203.7 624.5 806.1 329.9 27.2 71.3

Canada 5.3 6.0 3.4 4.2 3.5 3.4 2.7 2.0 1.8 2.3

Taiwan,
1.4 5.2 12.7 11.9 11.7 8.3 5.5 5.6 12.9 20.6
China

Thailand 3.1 3.0 13.7 4.0 5.0 3.9 4.4 1.1 2.4 1.8

Japan 0.3 0.1 0.1 0.5 0.2 0.3 1.0 0.1 0.3 0.1

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Cambodia 0.0 0.0 0.0 0.0 0.5 0.6 0.0 0.0 0.0 0.0

other 1.7 6.4 22.1 6.0 5.5 12.6 5.6 24.5 18.0 44.5

Source: research from BPS、Intelligence Research Group

The export value of Indonesian bird's nest in 2012 was US $153 million,
the export value of Indonesian bird's nest in 2021 was US $517 million, and the
compound growth rate of Indonesian bird's nest export value since 2012 was
14.45%. In terms of export value, the Chinese market （including Hong Kong
and Taiwan） accounted for 86.50% of Indonesia's total bird's nest exports in
2021; Singapore accounted for 5.69%; The United States accounted for 5.17%;
Vietnam accounted for 0.79%.

Statistics of Indonesian Bird's Nest Exports from 2012 to 2021

Source: research from BPS、Intelligence Research Group

Statistics of Indonesian Bird's Nest Exports by Country and Region from
2012 to 2021 （USD million）

国家/地区 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Hong

Kong, 59.05 67.60 65.62 42.91 117.32 132.23 88.05 86.38 79.17 93.01

China

Chinese 0.41 0.14 0.00 16.41 35.70 102.90 139.82 219.08 416.76 350.85

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Mainland

Singapore 77.08 64.80 39.95 20.80 18.40 8.21 20.17 30.78 18.47 29.41

U.S.A 7.70 8.62 7.89 7.98 10.45 13.25 12.77 12.92 16.06 26.74

Vietnam 0.00 3.59 6.81 5.92 6.52 19.09 25.99 10.72 1.23 4.10

Canada 4.25 3.67 2.00 2.02 1.99 2.28 2.28 1.41 1.09 1.71

Taiwan,
0.46 1.58 2.54 3.44 1.61 1.53 1.01 0.92 1.47 3.39
China

Thailand 4.11 2.02 2.69 0.17 0.11 0.09 0.09 0.03 1.89 1.59

Japan 0.15 0.11 0.02 0.06 0.10 0.20 0.01 0.00 0.25 0.03

Cambodia 0.00 0.00 0.00 0.00 0.10 0.02 0.00 0.00 0.00 0.00

other 0.20 1.09 0.51 0.11 0.19 0.49 0.36 1.72 3.98 6.21

Source: research from BPS、Intelligence Research Group

Section 2 Malaysian Bird's Nest Industry Market

1 、 Development status of bird's nest industry in

Malaysia

1.The species and distribution of the swiftlet that produces bird's nest
The bird's nest is belonging to the genus Aerodromus of the family
Apodidae of the order Apodiformes. Most of the bird's nest in the traditional
sense comes from the nest of the Aerodromus fuciphagus population.
Aerodramusfuciphagus build nests by solidifying saliva, thus forming a white
nest - bird's nest. The other is the Aerodromus maximus, which produces a
black nest. The third is the Collocalia esculenta, whose nest is mixed with
mosses. Edible bird's nest is mainly produced in Southeast Asian countries.
The countries with large production volume include Indonesia, Thailand,
Malaysia, Vietnam and Myanmar. The Aerodramusfuciphagus are distributed

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in Indonesia from the West Indian Ocean to the South Asian island countries,
Palawan in the Philippines, northern Australia, New Guinea, and the islands in
the southwest of the Pacific Ocean. In addition, the Andaman and Nicoban
Islands in the Indian Ocean and Hainan Island of China also have reports of
the Aerodramusfuciphagus.
2. Development process of "bird's nest production enterprise" in Malaysia
The development of the "bird's nest production enterprise" of the swiftlet
can be divided into three stages. The first stage is the embryonic stage of
"bird's nest production enterprise". Since 1880, in East Java, the natural
population of the swiftlet in the cliff cave flew into the houses of nearby
residents to nest, and the residents accidentally obtained the bird's nest
produced by the swiftlet. After that, residents built houses around the cliff
caves for the swiftlet to build nests, thus gradually developing this primary
"bird's nest production enterprise" in these areas. In the second stage
（1950-1990）, the agricultural technology of Jinsiyan was further improved
and innovated. The "bird's nest production enterprise" will be transformed to
simulate the cave environment to attract more swiftlets to live in and increase
the number of bird's nests produced by swiftlets. At the same time, the eggs
and chicks of the bird's nest are transferred to the nest of the white-bellied
bird's nest, and the cross-culture is carried out, which shortens the time of the
bird's nest building. Through this way, the population of the swiftlet has greatly
increased. In the third stage, using the characteristics of the ultrasonic
information exchange of the swiftlet, the living environment of the swiftlet is
simulated artificially, and the social social social information exchange voice of
the swiftlet such as settlement, feeding, warning, courtship and so on is
broadcast in the "bird's nest production enterprise" to attract the swiftlet to live.
In this way, under the environment of suitable environment and no interference
from natural enemies, the population of the swiftlet has been expanded, and
the bird's nest industry has also developed rapidly.
Malaysia formulated the bird's nest specification standard in 2011. This
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standard specifies the definition, general requirements, grading, packaging,

labeling, sampling, compliance with standards, certification marks, factory
requirements, legal requirements and other aspects of bird's nest. The general
requirements also stipulate that the bird's nest should meet the requirements
of good practice of bird's nest, and the quality and reliability requirements of
bird's nest are also specified. The bird's nest is divided into four grades
according to the height of bird's nest curve.

2、 Market Analysis of Bird's Nest Industry in Malaysia

In recent years, the output of bird's nest in Malaysia has been increasing.
According to the data, the output of bird's nest in Malaysia was 360 tons in
2016 and increased to 560 tons in 2021.

Trend of bird's nest production in Malaysia from 2016 to 2021

Source: research from Intelligence Research Group

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Section III Bird's Nest Industry Market in

Thailand

1 、 Development status of bird's nest industry in

Thailand

Thailand has not issued a national standard for bird's nest, but according
to the relevant information provided by the official competent department of
Thailand to the National Certification and Accreditation Administration,
Thailand has stipulated the quality, food additives, pesticide residues,
pollutants, hygiene, packaging, identification and symbols, laboratory analysis
methods and sampling methods of bird's nest.

Bird's nest quality, food additives, pesticide residues, pollutants, hygiene limit

Source: sorting out public data

2、Market Analysis of Bird's Nest Industry in Thailand

Thailand is one of the countries producing bird's nest in the world, but only

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a few islands in southern Thailand produce bird's nest. Because swifts in

Thailand are generally wild or free-range along the coastline, the quality of
bird's nest is also high.
Thailand's bird's nest not only has a long history, but also is the first
country to export to China. According to historical records, during the
Sukhothai period, when Emperor Langanghieng sent a diplomatic mission to
the Yuan Dynasty of China, there were bird's nests in the tribute to the
Emperor Shizu of the Yuan Dynasty. Since then, Thailand's bird's nests have
won a high reputation among the royal family. Today, Thai bird's nest is famous
for its few impurities, high fiber density and good quality.

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Chapter IV Analysis of the operation

status of the industry of bird's nest in
China

Section I Analysis of the development of China's

bird's nest industry

1、Development stage of bird's nest industry in China

There are different opinions about the development history of bird's nest.
Some historians said that the history of bird's nest can be traced back to the
Tang Dynasty more than 1500 years ago. Because bird's nest is mostly
produced in Southeast Asia, it is generally believed that it is a precious gift
brought back from the Nanyang region and offered to the emperor as imperial
food. At that time, bird's nest could only be found in the royal aristocracy.
That's how the official bird's nest came from.
According to historical data, bird's nest has a history of more than 500
years, and Zheng He is the first person in China to eat bird's nest. According to
historical records, during Zheng He's voyages to the West, the fleet
encountered a big storm at sea and had no choice but to dock on a desert
island in today's Malaysia, where food was scarce. I accidentally found the
bird's nest hidden on the cliff. Zheng He ordered the troops to pick them and
then stew them with water to satisfy their hunger. A few days later, all the
sailors were ruddy and full of vitality. Zheng He brought some bird's nests to
Zhu Di, the founder of the Ming Dynasty. Therefore, the bird's nest officially
appeared in front of the Chinese people and became a precious supplement
that the Chinese people could not give up.
But before that, there was a bird's nest record in Jia Ming's book "Diet

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Instructions" of the Yuan Dynasty. However, it is likely that the bird's nest refers
to the grass bird's nest or the wool bird's nest in China, not the real bird's nest,
because there is no large-scale overseas trade with the Nanyang. Among the
dozens of "delicacies" recorded in Tiaoding Collection of the Qing Dynasty, the
bird's nest ranks first. According to historical records, bird's nest entered China
in the late 17th century. According to records, about 400 bird's nests are
transported to China from Batavia （now Jakarta） every year. It coincides with
the time of Zheng He's seven voyages to the West and the countries he
passed by. It is also believed that Zheng He brought bird's nest and the
method of cooking bird's nest into China.

Basic situation of the development of China's bird's nest industry

Source: research from Intelligence Research Group

2、Overview of the development of bird's nest industry

in China

The swallows that can produce bird's nests are mainly several species of
the family Swift （Collalia）. The nests built by the family Swift （Apus） and

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the South China Swift （Swift） are also a kind of bird's nests, which are called
Longya Bird's Nest.
Common bird species and Latin names of bird nest origin

genus Latin name

Collocalia fuciphaga

Collocalia esculenta

Collocalia inexpectata

Collocalia vestita
Swiftlet
Collocalia linchi affinis

Collocalia unicolor Jordan

Collocalia inopina Thayer et Bangs

Collocalia brevirostris

Collocalia franciea vestida

apus Apus pacificus

Apus pacificus kanoi

Source: sorting out public data

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Bird's Nest Classification

Source: sorting out public data

There are two kinds of bird's nest in China's inland, the short-billed golden
swallow and the brown-backed golden swallow, which belong to the bird's nest.
The medicinal material is known as the native bird's nest, and can also be
used as the bird's nest. The short-billed golden swallow has three subspecies,
namely, Sichuan subspecies, Tibet subspecies and Yunnan subspecies. After
the bird's nest is picked, it can be made into finished bird's nest after complex
processing such as steaming, soaking, impurity removal, hair picking and
drying.
Swallows that produce bird's nests are mostly concentrated in the tropical
coastal zone. Southeast Asia is the kingdom of bird's nests. Indonesia,
Malaysia, Thailand, Vietnam, Myanmar and other countries are the main
producing areas of bird's nests. Indonesia has the highest yield of bird's nests,
ranking first in the world. Bird's nest is also produced in the coastal areas of
Fujian, Hainan and Guangdong.
At present, the upstream of bird's nest industry chain includes bird's nest
management, bird's nest picking, bird's nest rough processing and other links;
The middle reaches include bird's nest import, bird's nest deep processing,

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bird's nest distribution and other links; Downstream are mainly various bird's
nest sales terminals and final consumers.

Basic situation of bird's nest industry chain

Source: sorting out public data

3 、 Analysis on the development characteristics of

China's bird's nest industry

In order to regulate the healthy development of the bird's nest industry,

China has imposed strict requirements on the import of bird's nest. The
imported bird's nest shall be subject to unified filing management in the
"Imported Food Importer and Exporter Filing Management System", and strict
entry quarantine approval shall be implemented. During customs clearance,
relevant certificates shall be strictly checked. Those who have not obtained the
certificates or are not in conformity with the cargo certificates shall not be
allowed to enter the country. In addition, the Chinese Academy of Inspection
and Quarantine （CAIQ）, as a technical support institution, has developed a
service platform for traceability management of bird's nest in China in
accordance with the provisions of China's Food Safety Law and the bilateral
protocol of bird's nest imported to China. The platform only provides

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traceability management services for the bird's nest products imported to

China by registered enterprises from Southeast Asian countries that have
been approved to import to China, as well as the bird's nest products imported
from China for domestic reprocessing, so as to realize the traceability of the
whole supply chain of imported bird's nest. By December 2022, the number of
users of the traceability platform had risen to 21472, and the number of
consumer scanning queries had reached 20.66 million. The CAIQ Bird's Nest
traceability system was widely recognized by domestic and foreign bird's nest
regulatory authorities, industry and consumers.
The regional agglomeration characteristics of domestic bird's nest
products processing plants are relatively obvious, with the highest proportion
of enterprises and processing capacity in Fujian Province. Although there are a
large number of processing enterprises, there is a large gap in the magnitude
of processing plants, with most of the annual output value concentrated within
50 million yuan. In general, the number of head processing plants is small, but
they are relatively mature and stable in terms of upstream bargaining ability,
product innovation ability, channel management ability, and ability to resist
sudden risks. The waist enterprises and tail enterprises account for the
majority, and their competitive advantages compared with large enterprises
are mainly reflected in product prices.
With the improvement of consumption level and the strengthening of
health awareness, bird's nest is gradually becoming people's daily
consumption choice. The upgrade of bird's nest consumption led to import
growth. According to the data of China Bird's Nest Traceability Management
Service Platform, the import volume of edible bird's nest included in CAIQ
traceability in 2022 was 451.6 tons, up 36.4% year on year, of which the import
volume of Indonesia was 291.8 tons, up 27.7% year on year; Malaysia's import
volume was 159.8 tons, up 55.9% year on year. In 2022, the import volume
achieved a steady growth, ensuring the market supply.

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4、Analysis of the business model of China's bird's

nest industry

At present, the business model of China's bird's nest industry is mainly to

import bird's nest raw materials, produce various bird's nest products through
processing, and sell bird's nest products through online and offline channels.
Due to the particularity of the living area of the golden swallow, which
constructs edible bird's nest, the main origin of bird's nest raw materials has
been Indonesia, Malaysia and other Southeast Asian countries, while the main
market of bird's nest consumption is concentrated in China, so the bird's nest
industry shows that bird's nest raw materials mainly rely on imports. In the
sales segment, the main sales target of bird's nest products is individual
consumers. At present, the sales channels that can reach individual
consumers are relatively developed, such as physical stores, e-commerce
platforms, telephone sales, live broadcast with goods, etc. The sales channels
of enterprises in the bird's nest industry are also generally relatively rich and
diverse.
At present, the business model of China's bird's nest industry is mainly to
import bird's nest raw materials, produce various bird's nest products through
processing, and sell bird's nest products through online and offline channels.
Due to the particularity of the Golden Bird's Nest living area, the main origin of
bird's nest raw materials has been Indonesia, Malaysia and other Southeast
Asian countries, while the main market of bird's nest consumption is
concentrated in China, so the bird's nest industry shows that bird's nest raw
materials mainly rely on imports. In the field of sales, the main sales target of
bird's nest products is individual consumers. At present, the sales channels
that can reach individual consumers are relatively developed, such as physical
stores, e-commerce platforms, telemarketing, live streaming, etc. The sales
channels of enterprises in the bird's nest industry are also generally rich and

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diverse.

Section II Development Status of Bird's Nest

Industry from 2018 to 2022

1 、 Market scale of China's bird's nest industry in

2018-2022

Bird's Nest, as a high-end food ingredient, has gradually become an

important product bearing the current consumer demand for upgrading
consumption; The innovative bird's nest product forms, such as ready-to-eat
bird's nest, fresh stewed bird's nest, and fresh soaked bird's nest, are in line
with the current consumer's demand for safety and convenience; In addition to
the increasingly strengthened supervision of the import, production,
processing and marketing of bird's nest, the bird's nest market has entered a
healthy and standardized development channel.
The size of China's bird's nest market has increased for 9 consecutive
years, reaching 40 billion yuan in 2020. In 2021, the price of bird's nest will fall,
and the market size will drop to 37.854 billion yuan, and increase to 41.307
billion yuan in 2022.

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Size of China's Bird's Nest Market in 2015-2022

Source: research from Intelligence Research Group

2、Analysis on the development of China's bird's nest

industry from 2018 to 2022

In 2022, the overall market size of China's bird's nest industry is about
41.307 billion yuan, of which the retail market size of imported bird's nest is
about 25.181 billion yuan, and the retail market size of bird's nest aquatic
products is about 16.126 billion yuan.

Size of China's bird's nest market segment in 2015-2022

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Source: research from Intelligence Research Group

3、 Analysis on the development of enterprises in the

industry of Chinese bird's nest from 2018 to 2022

As of December 2021, there were 41 enterprises registered in China in

Malaysia and 29 enterprises registered in China in Indonesia, and 2
enterprises registered in China in Thailand. In 2021, Malaysia and Indonesia
will add 6 new bird's nest processing enterprises registered in China. Newly
registered enterprises actively participate in CAIQ traceability management.
With the gradual increase of registered enterprises, China's bird's nest trade is
developing in a healthy and orderly direction.

Traceability of overseas registered bird's nest processing enterprises incorporated

into CAIQ from 2013 to 2021

Source: China Academy of Inspection and Quarantine

By December 2021, there were 100 domestic processing enterprises, 682
importers and 17615 dealers included in CAIQ traceability.

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Traceability of domestic bird's nest processing enterprises incorporated into CAIQ

from 2013 to 2021

Source: China Academy of Inspection and Quarantine

Section III Analysis of Bird's Nest Industry

Market from 2018 to 2022

1、Overview of China's Bird's Nest Industry Market in

2018-2022

In 2022, the demand for bird's nest in China is 2135.4 tons, and the
consumption market scale is about 41.307 billion yuan. In recent years, the
demand for bird's nest in China is shown in the following figure:

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Market demand of China's bird's nest industry in 2015-2022

Source: research from Intelligence Research Group

2、Business Activity Analysis of China's Bird's Nest

Industry from 2018 to 2022

The sales channels of bird's nest are mainly offline stores. With the
continuous expansion of the online shopping market, the change of consumer
consumption habits and the rapid development of the logistics industry,
e-commerce platforms represented by Tmall and JD.com are becoming
important channels for bird's nest sales. The major brands continued to test
online channels, and began to try new marketing methods such as live
broadcast with goods. Tmall, JD, Xiaohongshu, Tiktok, Kwai and other
comprehensive large-scale e-commerce platforms, interest e-commerce
platforms, live broadcast platforms, social e-commerce and other platforms
have implemented different access systems and support policies for the bird's
nest category. In recent years, there have been pure online emerging brands
specializing in e-commerce platforms in the industry.

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3、Analysis of problems in China's bird's nest industry

from 2018 to 2022

1、 Poor and illegal products damage the industry ecology

Although the national supervision on the bird's nest industry from raw
material procurement, processing and production to marketing and promotion
has been continuously strengthened, there are still a large number of small
workshops and small brands that rely on illegal raw materials, non-standard
processing, false publicity, low prices and other ways to export inferior and
illegal bird's nest products to the market, seriously damaging the industry
ecology.
2、 Industrial competition will become increasingly fierce
With the continued strong demand of the bird's nest market, the prosperity
of the industry has remained at a high level, many manufacturers are
maintaining an increase in production, and external investors are also entering
the industry through new production capacity and other ways, and the degree
of competition in the industry is increasing.
3、 R&D and innovation capabilities need to be improved
At present, a large number of small and medium-sized brands in the bird's
nest industry focus on marketing promotion and neglect R&D innovation,
follow the trend to launch homogeneous products similar to well-known brands'
product names, packaging and technology, compete through marketing
channels and prices, and pay insufficient attention and investment in market
research, consumer analysis, technology research and development and
product innovation, resulting in the phenomenon that bad currency drives out
good currency in the industry, which is very detrimental to the healthy
development of the industry.
4、 The efficacy of bird's nest has been questioned for a long time
The question about the efficacy of bird's nest has a long history in the

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market. Although the merchants have given bird's nest the functions of
prolonging life, benefiting pregnant women, beautifying the skin, etc. in the
propaganda, there has never been relevant scientific data support, nor has
there been relevant health care or pharmaceutical production batch number.
And many experts and academic papers have publicly stated that eating bird's
nest is not as nutritious as eating eggs, and the price of bird's nest sold in
grams is several times that of eggs. With the improvement of consumers'
awareness of rights protection and discrimination, the market tends to be
rational, and the bird's nest industry will face an adverse situation.

Section IV Predicaments and Countermeasures

of Bird's Nest Quality Supervision in China

1、China's Bird's Nest Import Management System

At present, China's legal basis for the supervision of imported bird's nest
includes the Food Safety Law of the People's Republic of China, the Animal
and Plant Quarantine Law of the People's Republic of China, the Import and
Export Commodity Quarantine Law of the People's Republic of China and its
implementation regulations, the Special Provisions of the State Council on
Strengthening the Safety Supervision and Administration of Food and Other
Products, and the Measures of the People's Republic of China on the
Administration of Import and Export Food Safety Provisions of the People's
Republic of China on the Registration and Administration of Overseas
Production Enterprises of Imported Food, as well as the relevant agreements
signed between China and the countries （including regions） exporting bird's
nest to China.
The officially imported bird's nest must come from the entry country and
the registered production enterprise. Before entering the country, it must obtain
the quarantine approval license and have the official certificate issued by the

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exporting country. Importers and exporters at home and abroad need to

register, and manufacturers and bird's nest manufacturers need to register. At
the same time, the documents review and on-site inspection shall be
completed at the import port. In addition to the inspection of the veterinary
health certificate, health certificate and certificate of origin attached to this
batch of bird's nests, the customs shall also check the registration of the bird's
nest production enterprises, compare the external packaging and identification
of the goods, and ensure that the source of the goods is legal and the channel
is formal. If necessary, the imported bird's nest shall also be subject to
sampling inspection, and the qualified inspection and quarantine certificate of
imported goods shall be issued and released into the market; The unqualified
ones shall be returned or destroyed after issuing the Inspection and
Quarantine Treatment Notice. It should be noted that there is no Maoyan
imported to China that meets the requirements of the General Administration
of Customs.
At the same time, according to the Law of the People's Republic of China
on the Entry and Exit Animal and Plant Quarantine and its implementation
regulations, bird's nest （ except canned bird's nest ） and other animal
products are prohibited from carrying and mailing into the country as listed in
the List of Animals and Plants, Their Products and Other Quarantine Objects
Prohibited from Carrying and Mailing into the Country of the People's Republic
of China （Announcement No. 470 of the Ministry of Agriculture and Rural
Affairs and the General Administration of Customs）, Before entering the
country, it is necessary to go through the formalities of examination and
approval of animal and plant quarantine, declare to the customs with the
quarantine certificate of the exporting country or region, and enter the country
after passing the quarantine inspection.

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2 、 Reasons for the development of bird's nest

smuggling market

First, the temptation of huge profits. At present, the price of smugglers

taking goods from Indonesia's local bird's nest manufacturers （non-registered
businesses） is about 5 yuan/g of broken swallow, 11 yuan/g of swallow sticks,
and 15 yuan/g of Yan Zhan. Even with the package customs clearance fee of
400 yuan （0.4 yuan/g） per kilogram, smuggled bird's nest still has a
significant price advantage in terms of cost. According to the market terminal
price of online sales in the mainland of China, the price of Yanzhan is 30-40
yuan/gram, while the price of Yanjian is about 17 yuan/gram, which is more
than 2-3 times the price of Indonesia, and the smuggling profit can reach more
than 200%.
The second is the huge consumer market. At present, the consumption
market of bird's nests in the mainland of China is very large. In 2017, the sales
volume of Alibaba alone reached 1.48 billion yuan, far exceeding the
consumption amount of bird's nests of about 1.3 billion yuan in Hong Kong.
The mainland of China has already become the largest bird's nest consumer
market in the world, and the size of the bird's nest consumer market is still
growing.
Third, strict market access threshold. According to the registration list of
overseas manufacturers of imported food published by the Import and Export
Food Safety Bureau of the General Administration of Customs, at present,
there are only 74 manufacturers of bird's nest and bird's nest products with
qualifications for export to China （41 in Malaysia, 30 in Indonesia, and 3 in
Thailand）, which is difficult to meet the growing consumer market in the
mainland of China, and there is an objective contradiction between supply and
demand. Take Indonesia as an example. In Jakarta alone, there are nearly
4000 bird's nest processing enterprises. Compared with 30 enterprises with

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export qualifications, there is a huge difference in the number. Therefore, in the

case of strong demand and limited supply, processing enterprises without
registration qualification participate in the smuggling of bird's nest in order to
compete for the interests of the mainland market.

3、Safety risk of smuggled bird's nest food

Compared with the strict entry threshold and perfect inspection and
quarantine measures for the officially imported bird's nest products, smuggled
bird's nest products often have serious food safety risks.
One is bird flu. Avian influenza virus can infect a variety of birds including
poultry, wild birds and migratory birds. The bird flu virus was also detected in
wild swallows during the official animal epidemic surveillance in Indonesia.
Avian influenza virus can cause respiratory or systemic infection in birds, and
highly pathogenic avian influenza can directly or indirectly infect humans. The
smuggled bird's nest products lack inspection and quarantine measures. Once
they contain the avian influenza virus, they are still likely to spread the avian
influenza epidemic during transportation and storage, posing a serious threat
to consumers.
The second is Salmonella and pathogenic Escherichia coli. In the process
of nesting, the bird's nest will inevitably contain feathers, grass, dung and other
impurities. The high protein in the bird's nest, the warm and humid
environment in the bird's nest and the bird's house are more conducive to the
growth and reproduction of various microorganisms. There is a great
possibility of Salmonella and pathogenic Escherichia coli in the bird's nest. If
you ingest bird's nest products containing a large amount of the above
pathogenic bacteria, it will cause bacterial infection and food poisoning.
Third, heavy metal pollution. The attachment surface of Dongyan Yanzhan
is a natural rock wall, and the minerals in the rock wall will penetrate into the
bird's nest through the contact surface between the bird's nest and the rock

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wall or the water dripping from the rock wall. Such as lead, mercury, cadmium,
arsenic and other heavy metal minerals, once infiltrated into bird's nest
products, are extremely harmful to human health.
The fourth is nitrite. Nitrite is the general name of sodium nitrite and
potassium nitrite, which generally refers to sodium nitrite. According to the
farming and management tradition of house swallows, in order to attract the
golden swallow to nest in the house, the droppings accumulated in the bird's
nest are generally not cleaned. With the continuous accumulation of feces,
nitrogen-containing organic matter will be converted into nitrite under aerobic
conditions. The longer it is put into production, the higher the nitrite content in
the faeces of Yanwu.
The fifth is bleach （sulfur dioxide）. In the process of food processing, in
order to improve the appearance quality of food, sulfur dioxide and nitrite are
often used as bleaching agents to bleach food. Once excessive use of sulfur
dioxide, its excess residue will generate corrosive sulfite, sulfuric acid and
sulfate, causing damage to the bronchus and lungs, and inducing respiratory
inflammation.
Six is dye. According to GB 2760-2014 National Food Safety Standard for
the Use of Food Additives, colorants are not allowed to be used in bird's nest
and its products. The fake event of blood swallow once happened was to use
dye or even industrial dye to color and protect bird's nest products. Some
synthetic pigments may seriously harm human health.

4、Problems in Bird's Nest Market Regulation

1、 China's Mainland Market Regulation Faced with Obstacles

Because importers and exporters have different agreements on the
packaging form in the bird's nest import trade contract, and the import port
supervision department has no mandatory provisions on the packaging form of
bird's nest, there are also a large number of bird's nests imported in bulk in

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addition to the pre-packaging form. In the process of food circulation,

compared with the corresponding label inspection certificate and batch
certificate of prepackaged food in the procurement process, the bird's nest
imported in bulk is naturally easy to escape from supervision. Because there is
no uniform quality or volume identification for the bulk bird's nest in the
packaging material and container, the import, production and sales links can
not be matched one by one, which leads to the phenomenon that a batch of
illegal enterprises use multiple certificates for a long time. That is, as long as a
batch of bird's nest is imported, no matter how many batches of bird's nest
products are processed and sold, even if the imported bird's nest is smuggled,
the customs declaration can be used to deal with the law enforcement
inspection of the market supervision and management department.
2、 Lack of food safety standards
Due to the lack of registration and supervision of smuggled bird's nest,
some illegal businesses have made huge profits, and unconventional
processing methods such as bleaching, gluing and coloring have emerged in
an endless stream. The food safety problem has become even more worrying,
seriously damaging the interests of consumers.
For the inspection and quarantine standards of bird's nest, China's current
basis is still the temporary management limit requirement of nitrite content in
edible bird's nest, namely 30 mg/kg, issued by the original Ministry of Health in
2012 in the Letter on Notification of the Temporary Management Limit of Nitrite
in Edible Bird's Nest （Wei Jian Han [2012] No. 62）.
However, the lack of product quality standards can not be reflected in the
market full of smuggled bird's nests for enterprises with formal and legal
operation, which leads to the expulsion of good currency by bad currency, and
objectively leads to the confusion of imported bird's nests. For the regulatory
and law enforcement departments, for the detection of pathogenic bacteria
and heavy metals in bird's nest and its products, it is difficult to achieve
comprehensive and effective supervision because the judgment is only made
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by referring to other product standards or general standards, and even some

inspection reports have only test data without judgment, and there is no
special corresponding standard.

5、Suggestions on the regulation of bird's nest market

one side. Bird's nest smuggling often involves a large number of

enterprises and individuals, and years of operation and maintenance have led
to the formation of a certain scale of personnel involved in the case. The value
of the case is huge, resulting in a large loss of national taxes. On the other
hand, the low price smuggling of bird's nest, which has been flooded in the
market for a long time, will inevitably occupy the normal trade space and
eventually lead to unfair competition.
If the vicious competition cannot be contained, under the huge pressure of
survival, many operators have to face the dilemma of leaving or joining. The
broken window effect eventually leads to a general industry smuggling
situation, which hinders the healthy development of the economy. At the same
time, a large number of smuggled bird's nests that have not been inspected
and quarantined have entered the market, which also brings huge food safety
risks. Operators do not abide by the law, and law-abiding people can't move at
any pace. On the surface, they are thriving, but in fact, the tide is surging.
Once a food safety accident breaks out, it will lead to a collapse in the industry,
and ultimately the entire industry and consumers will pay for the violators.
Therefore, the regulation of the bird's nest market cannot be limited to the
market supervision of food safety or the professional crackdown of the
customs anti-smuggling department. It should be regarded as a systematic
project involving the government, society and citizens from the perspective of
implementing the overall national security concept.
（1） Strengthen the linkage and cooperation of law enforcement across
departments. According to the chain characteristics of bird's nest smuggling,

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the customs anti-smuggling department, the public security food and drug
detection department and the market supervision and management
department should closely communicate and coordinate to establish a
long-term working mechanism of coordination and cooperation. Realize
information sharing, clue management and joint action in the links of
combating gangs, cutting off channels, and market regulation. We should
realize the sharing of regulatory data, integrate the data of multiple regulatory
departments, and provide the full chain information of bird's nest product trade
for law enforcement.
（2） Improve laws and regulations. At present, the market supervision
department is mainly based on the Food Safety Law of the People's Republic
of China （ hereinafter referred to as the "Food Safety Law" ） and its
implementing regulations for the supervision of the bird's nest circulating in the
mainland market of China. However, the imperfect laws and regulations make
the market supervision department at a loss in the face of private bird's nest. In
the "Food Safety Law", there are only clear provisions and rules for meat that
has not been quarantined or failed to pass quarantine as required in
production and operation, while the relevant provisions are obviously not
applicable to bird's nest. If these smuggled bird's nests can detect serious
unqualified problems such as pathogenic bacteria or heavy metals after
inspection, they can also be handled according to relevant provisions such as
non-compliance with food safety standards. If the unqualified items are not
detected, there seems to be no other way to deal with them except according
to the provisions that the manufacturer and operator did not check the license
and relevant supporting documents when purchasing goods, and the
punishment result of this provision is difficult to match the social harm degree
of the illegal act. At the same time, the market supervision department is often
faced with the use and sales terminals of smuggled bird's nests. The value of
smuggled bird's nests is very small compared with the upstream of the
smuggling chain of bird's nests. Even if it is transferred to the customs
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anti-smuggling department, it is difficult to form a case that will shock the

industry. We will improve laws and regulations, fill regulatory loopholes,
provide law enforcement personnel with laws to follow, and make illegal
practitioners pay for illegal acts.
（3） Expand the market supply of officially imported bird's nest. The
contradiction between supply and demand is one of the important reasons for
the repeated prohibition of bird's nest smuggling. The demand for bird's nest in
the mainland market of China has increased year by year, and there is a huge
gap between the total amount of regular import bird's nest and the demand.
From the supply side, under the premise of strict supervision and ensuring
food hygiene and safety, appropriately liberalize the import restrictions,
moderately reduce the access threshold, expand the scale of formal import of
bird's nest, and balance the market supply and demand.
（4） We will improve national standards and the bird's nest food safety
system. Formulate national standards for bird's nest food safety as soon as
possible, and clarify the safety standards and grading standards for bird's nest
food. A sound standard can not only ensure food safety, but also enable the
supervision to cover the whole process of import, production and sales of bird's
nest.
（5） The whole people should participate and govern in multiple ways.
On the one hand, promote industry self-discipline, promote the establishment
of industry supervision and restriction mechanism, implement the main
responsibilities of producers and operators in the bird's nest market, and take
maintaining the healthy development of the bird's nest industry as the
consensus within the industry. On the other hand, we should cultivate citizens'
awareness of participation. There is a close relationship between the repeated
attacks of bird's nest smuggling and the lack of correct understanding and
weak legal concept of some citizens. We should conduct propaganda and
guidance through the media to let consumers understand the food safety risks
of smuggling bird's nest and consciously resist smuggling bird's nest.
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Section V Analysis of the overall operation of

China's bird's nest industry

1、Analysis of the overall size of China's bird's nest

industry

The supply of China's bird's nest industry in 2022 mainly consists of two
parts, one of which is the import volume counted by the domestic customs.
The other part is bird's nest. In 2022, the consumption of bird's nest in China
will be about 2135.40 tons, of which the import volume will be about 489.90
tons, and the quantity of bird's nest aquatic cargo will be about 1645.50 tons.
As shown in the following table:

Demand market of China's bird's nest industry in 2015-2022

Source: China Customs、Intelligence Research Group

2、Analysis of the business scale of China's bird's nest

industry

According to customs statistics, in 2022, China's bird's nest import volume

was 489.90 tons, and the import amount was 655 million dollars; In 2022,

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China's bird's nest export volume will be 7.0 tons, and the export amount will
be US $830000.
China's Bird's Nest Import and Export Statistics 2009-2022

Import Import Export Export

Year
quantity: kg amount: USD quantity: kg amount: USD

2009 7131 6838000 0 0

2010 9223 12846000 0 0

2011 7390 15356000 50 100000

2012 5 10000 0 0

2013 711 19000 710 15000

2014 3137 8728000 0 0

2015 22075 39936932 0 0

2016 43375 63928440 0 0

2017 77899 145519381 28 61115

2018 176525 222803149 5 543

2019 214252 320392884 35 993

2020 345020 540777246 370 179433

2021 352517 544791507 370 464621

2022 489903 654581725 7004 830025

Source: China Customs、Intelligence Research Group

3、Analysis on the operation of China's bird's nest

industry

According to statistics, at present, the price difference of domestic bird's

nest is obvious. The average price of imported bird's nest in 2022 is 51.4

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million yuan/ton, and the average price of smuggled bird's nest in the same
period is 9.8 million yuan/ton.

Price statistics of bird's nest products in China from 2015 to 2022

Source: research from Intelligence Research Group

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Chapter V Related Industries of Bird's

Nest

Section 1 Upstream Industry

1、Analysis of upstream industry development

The growth and reproduction of swiftlet need to have sufficient food

sources, keep the house free of light, about 90% humidity and 28-30 ℃
temperature. Therefore, the swiftlet's Nest is only distributed in the regions
with suitable conditions, producing edible bird's nests in Southeast Asia at 10 °
S~20 °N.The swiftlet can be divided into four genera, namely, Aerodramus,
Hydrochous, Schoutedenapus and Collocalia.However, there are only more
than 10 species in three genera, namely, Aerodramus or its subspecies,
Collocalia or its subspecies and Apus, which produce edible bird's nest
Aerodromus francicus, Aerodromus unicolor, Aerodromus brevirostris,
Aerodromus maximus, Collocalia, Collocalia linchi, Collocalia troglodytes,
Apus pacificus, Apus nipalensis. The most common structure of bird's nest is
semi-bowl shape, which can bear the weight of swiftlet 's eggs and hatchlings.
The nest of this structure can be firmly adhered to the wall.
Traditionally, in order to avoid natural enemies, the swiftlet usually
chooses to build a nest on the dark cliffs,Due to the precipitous situation and
other reasons, the cave swallow is difficult to pick, high cost and limited output,
and is no longer the main source of raw materials for bird's nest. At present,
the raw material of bird's nest supplied by the market is mainly produced by
artificial bird's nest houses.
Every breeding period, the well-developed salivary glands of the swiftlet
will expand and then secrete a large amount of saliva,The swiftlet will use the
saliva it secretes to build the bird's nest, and then breed the little swiftlet in the

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bird's nest. When the little swiftlet grows up and flies away from the bird's nest,
it can collect the bird's nest. After that, the swiftlet will rebuild the nest and then
breed again. Because every time the swiftlet breeds, it will rebuild its nest, so
harvesting the bird's nest that has completed the function of hatching and
feeding cradle will not damage the growth and breeding environment of the
swiftlet.
Compared with the cliff cave, Yanwu effectively reduces the invasion of
the natural enemies of the swiftlet, provides a safer and more favorable
environment for the growth and reproduction of the swiftlet, and is conducive to
the development of the swiftlet population. With the continuous development of
the bird's nest consumption market, the bird's nest specially built in the main
producing area of bird's nest for the swiftlet has gradually become the main
source of edible bird's nest in the market.
Since the construction of the swallow house only needs to attract the
swiftlet to nest without artificial feeding, and the sales income of the uncleaned
bird's nest is considerable, the domestic swallow house industry in Indonesia
and Malaysia has developed rapidly in recent years, which has laid a good
foundation for the growth of bird's nest production.

2、Technical development of upstream industry

At present, most of the commercial bird's nests in the world are produced
by the Java Golden Swallow and the Great Golden Swallow, while a small part
of the Huaiji bird's nests in China are produced by the white waist swifts. The
identification of the origin of bird's nest species is mainly achieved through the
DNA barcode technology based on Cytb and COI genes. The forward primer
ND5 and the reverse primer H15709 can effectively PCR the Cytb gene.
Through the comparison and analysis of different target fragments, the Java
Golden Swallow and its subspecies, the Great Golden Swallow and the White

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Waisted Swift can be distinguished, but the Great Golden Swallow and its
subspecies can not be distinguished.

3、Market share of upstream industries

Bird's nest can be divided into cave swallow and house swallow according
to the environment. Cave swallows are natural bird's nests collected from
caves. Due to the large number of bird's nests in Indonesia, Malaysia and
other major bird's nest-producing countries in recent years, a large number of
golden swallows have gradually abandoned the cave and chose to live in the
bird's nest. Resulting in a sharp decline in the output of cave bird's nest.
House swallows are bird's nests produced in houses. Due to the small
number of cave bird's nests and the difficulty of picking, time consuming and
labor consuming, and with the gradual rise of bird's nest fever in China, the
supply of pure bird's nests is in short supply, and the price is high, so now all
the producing countries adopt the method of manufacturing artificial bird's
nests to attract the golden swallow to build their nests, and the bird's nests sold
on the market are mainly house swallows.

4、Development trend of upstream industry

The existing technologies in the identification of bird's nest are mainly

based on sialic acid, bird's nest glycoprotein, amino acid, nucleic acid
spectrum, nuclear magnetic resonance, chromatography, mass spectrometry,
electrophoresis and molecular analysis technology. However, with the advent
of the era of big data, the development of proteomics, genomics,
metabolomics, lipomics and glycomics and other multi-omics technologies
may provide new opportunities for the improvement of the ability to identify the
true and false bird's nest. Therefore, whether from the technical development
level or from the policy-oriented level, the qualitative and quantitative
identification of adulterants in the identification of bird's nests and adulterants

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based on the food omics technology and the identification of the origin and
production mode of bird's nests will become the research focus in the field of
bird's nest authenticity identification.

Section 2 Midstream Link

1、Analysis on the development of midstream links

The consumption of bird's nest has a long history in China. Since its
introduction, bird's nest has been regarded as a tonic. In recent years, with the
improvement of people's living standards and the development of bird's nest
industry, bird's nest products have been constantly updated, and bird's nest
has attracted more and more attention. China has become one of the major
countries of bird's nest consumption in the world. The retail size of bird's nest
in China has increased from 6.864 billion yuan in 2015 to 41.307 billion yuan in
2022, The compound annual growth rate reached 29.23%.

2、Midstream link technology development

New technology trends in bird's nest industry

technology brief introduction

Under the condition that no preservatives are added, the bird's nest
Zero addition
is sterilized at 121 ° instantaneously under vacuum for 960 seconds
instant bird's
through precise numerical control operation, killing pathogenic bacteria
nest
and spoilage bacteria, and retaining all the nutrients of the bird's nest,
technology
with a shelf life of up to 12 months

Liquefied It is a protein peptide that decomposes bird's nest protein into small

Bird's Nest molecules, which can completely liquefy bird's nest and increase bird's

Technology nest absorption rate by more than 4 times

Production It is produced according to the unified industrial standard, using

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process of commercial aseptic technology, using physical antisepsis, without adding

ready-to-eat preservatives, and ready to eat after opening the lid, which is more

bird's nest convenient and faster than ordinary dry bird's nest

The water in the bird's nest will be sublimated at minus 50 degrees

per second to make it reach an absolute water content of less than 10%,

and the nanostructure of the bird's nest will be kept intact, effectively
Vacuum rapid
reducing the heat loss of sialic acid caused by traditional drying process
freeze-drying
or high-temperature stewing and instant bird's nest. The average content
process
of sialic acid in the product is higher than 100mg/g, and at the same time,

it can be eaten without foaming and stewing, and only need to add boiling

water and stew for more than 10 minutes

Source: research from Intelligence Research Group

3、Midstream segment market share

In recent years, the proportion of China's imported bird's nest retail size to
the total retail size has increased, reaching 60.96% in 2022, and the smuggled
goods of bird's nest products accounts for 39.04%.

Analysis of the proportion of bird's nest industry segment size in 2015-2022

Source: research from Intelligence Research Group

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4、Midstream link development trend

Under the background of the popularity of ready-to-eat bird's nest and

stewed bird's nest, the bird's nest brands represented by Yanzhiwu and
Xiaoxian stew are trying to highlight the "freshness" of their own products to
attract consumers. The fresh-keeping period of ready-to-eat bird's nest and
fresh stewed bird's nest is very short. If bird's nest wants to ensure nutrition
and freshness, it must work hard on processing technology and cold chain
transportation.
In order to better control the quality of bird's nest, Yanzhiwu has
established its own bird's nest factory, which controls every production link of
products from raw material selection to product distribution. The bird's nest is
stewed at 115 ℃ in Yanzhiwu, which makes sterilization more complete, and
the whole process of cold chain distribution ensures the safety of product
transportation.
In order to highlight the "freshness" of the product, Xiaoxian stew has also
made great efforts. Xiaoxian stew has developed a water mist stewing process
of 360 ° 180 times, lasting 38 minutes. This process simulates manual slow
stewing, which makes the bird's nest evenly heated, and the swallow silk and
water are fully integrated to create a crisp and smooth taste. In addition,
Xiaoxian stew adopts the method of first filling and then stewing, and each pot
is stewed separately to reduce food pollution and further lock fresh. In the final
delivery link, Xiaoxian stew adopts three-layer cold fresh packaging to ensure
the cold fresh temperature and freshness of products.
Yananju has opened up the whole industrial chain from the aspects of
bird's nest picking, transportation, storage, processing and transportation, and
defined "fresh" bird's nest. Yanzhiwu directly collects bird's nests from the
production area, and then directly arrives at the exclusive inspection channel
through air transportation; Then use 0 ℃ to store "fresh"; In the processing
process, 16 ℃ pure water is used to make "fresh"; Finally, it is packaged at -

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18 ℃ and delivered in cold chain. Ensure that the bird's nest delivered to
consumers is fresh and safe.
With the accelerated pace of people's life, Kaifeng ready-to-eat fresh
stewed bird's nest and ready-to-eat bird's nest are not only simple and
convenient, but also meet the needs of health preservation.Therefore, this kind
of product has a considerable market. For bird's nest, a product with a short
shelf life, how to ensure the freshness of the product is a problem that must be
considered by the production body, which requires the enterprise to work hard
on the processing technology and cold chain logistics. In this context, "fresh"
may become another competitive point for bird's nest enterprises.

Section 3 Downstream Industries

1、Analysis of downstream industry development

Downstream of the industrial chain of the bird's nest industry are mainly
various bird's nest sales terminals and end consumers. At present, the sales
channels that can reach the end consumers include physical stores,
e-commerce platforms, telephone sales, live broadcast with goods, etc.
1. E-commerce
By June 2022, the number of Internet users in China was 1.051 billion,
19.19 million more than in December 2021, and the Internet penetration rate
reached 74.4%, 1.4 percentage points higher than in December 2021.

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Statistics on the scale of Internet users and Internet penetration rate in China from

June 2016 to 2022

Source:CNNIC
By June 2022, the number of mobile Internet users in China was 1.047
billion, 17.85 million more than that in December 2021, and 99.6% of Internet
users used mobile phones to access the Internet.

Statistics on the scale and proportion of mobile Internet users in China from June

2016 to June 2022

Source:CNNIC
As of June 2022, the number of online shopping users in China reached

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841 million, down 1.53 million from December 2021, accounting for 80.0% of
the total number of Internet users.

Statistics on the scale and utilization rate of online shopping users in China from

2016 to 2021

Source:CNNIC
In 2011, the national e-commerce transaction volume was 6.09 trillion
yuan, and increased to 42.3 trillion yuan in 2021.

Statistics of total e-commerce transactions in China from 2011 to 2021

Source: Ministry of Commerce

In 2022, the national online retail sales will reach 13.79 trillion yuan, up

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4% year on year. Among them, the online retail sales of physical goods
reached 11.96 trillion yuan, up 6.2% year on year, accounting for 27.2% of the
total retail sales of social consumer goods. According to the data of the
Ministry of Commerce, in 2022, among the 18 categories of monitored
commodities, the sales growth of 8 categories of commodities exceeded
double digits. Among them, Jewellery、Tobacco and alcohol increased by
27.3% and 19.1% respectively year on year. Online retail sales in Northeast
and Central China increased by 13.2% and 8.7% respectively year on year, 9.2
and 4.7 percentage points higher than the national growth rate. Online retail
sales in the eastern and western regions increased by 3.8% and 3%
respectively year on year. The national rural online retail sales reached 2.17
trillion yuan, up 3.6% year on year.

Statistics of online retail sales in China from 2015 to 2022

Source: National Bureau of Statistics

2.Supermarket
In 2020, the total number of supermarkets in China was 24100, with a
slight increase of 24700 in 2021.

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Statistics of the number of supermarkets in China from 2014 to 2021

Source: National Bureau of Statistics

In 2020, China's supermarket commodity sales reached 334.731 billion
yuan, with a slight increase of 361.889 billion yuan in 2021.

Statistics of China's supermarket merchandise sales from 2014 to 2021

Source: National Bureau of Statistics

2、Downstream industry technology development

1. E-commerce

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As the application of new technologies such as AI and big data continues

to mature, the modes of short video, live broadcast with goods, and community
group purchase have further sunk, and the technologies and modes of
e-commerce marketing have become more diversified. More and more brand
enterprises and e-commerce practitioners use short video and live broadcast
platforms as their new home, and the use of big data to achieve precision
marketing applications is also more extensive. Precision marketing and digital
marketing based on big data have gradually sunk into various application
scenarios, and gradually become the mainstream mode of e-commerce
marketing.
2. Supermarket
In recent years, the retail industry has undergone earth-shaking changes.
Facing the pressure of consumption upgrading and the rising cost of labor and
rent, major supermarkets have explored ways to develop. With the wide
application of new technologies such as big data and the Internet of Things,
intelligent supermarket forms emerge. Smart supermarkets usually support
consumers to interact with products through mobile phones when shopping in
physical stores, including browsing evaluation information, opening electronic
invoices, etc. It can enable consumers to connect across time and space,
enable consumers and businesses to accurately identify and recommend
marketing, and finally form a more intelligent, humanized and personalized
smart supermarket.

3、Market share of downstream industries

The traditional bird's nest sales channels are mainly offline stores. With
the continuous expansion of the online shopping market, the change of
consumer consumption habits and the rapid development of the logistics
industry, e-commerce platforms represented by Tmall and JD are becoming
important channels for bird's nest sales. About 70% of the bird's nest brands in

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the domestic bird's nest market operate both online and offline channels.

Channel Operation of Chinese Bird's Nest Brands

Source:EMBC

4、Downstream industry development trend

1. E-commerce
（1） E-commerce service industry extends from urban to rural areas
With the further improvement of rural digital infrastructure and the
successive introduction of national poverty alleviation policies, rural
e-commerce has become the main focus of helping farmers and invigorating
agriculture, and rural e-commerce will usher in a period of vigorous
development.
（2） The demand for cross-border e-commerce professional services is
growing
As the new ecosystem of cross-border e-commerce services begins to
take shape, businesses such as logistics and supply chain services,
cross-border e-commerce third-party payment, cross-border e-commerce
consumer financial services and overseas marketing promotion services are
becoming more and more perfect and innovative, and a number of

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cross-border e-commerce supply chain integrated service providers will

emerge in the future.
（3） Digitalization of foreign trade has gradually become a new field of
e-commerce services
In recent years, the rapid development of digital technology represented
by cloud computing, big data, artificial intelligence and blockchain has
spawned new areas of e-commerce services, such as cross-border payment
services, overseas warehouse services, cross-border e-commerce language
services, cross-border data services, etc;
（4） The e-commerce market of digital life services is maturing
With the wide application of emerging technologies such as 5G, artificial
intelligence and cloud computing, the life service e-commerce super platform
combined with the Internet will develop rapidly.
2. Supermarket
（1） There is a clear trend of cross-border collaboration in multiple
business types
The extensive development mode relying solely on commodity sales can
no longer meet the market demand, and the future retail industry will continue
to transform towards multi-format, multi-field aggregation and synergy. In the
new retail era, supermarket enterprises will also focus on diversified and
personalized consumer demand and cultivate new consumption growth points.
（2） Reconstruct intelligent and efficient supply chain system
As a circulation link connecting production and consumption, the
traditional supermarket enterprises have weak control over the whole supply
chain, and the information transmission response is not timely. The mismatch
between supply and demand leads to high inventory, low turnover rate, and
homogenization of goods. With the development of information technology and
the improvement of digitalization level, restructuring the
consumption-dominated, responsive and fast fashion supply chain, and
achieving the efficiency improvement of integration of production end, channel
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and customer will become an important measure for the transformation and
upgrading of China's supermarket industry.
（3） Increase the proportion of private brands
With the increasingly fierce competition of Chinese supermarket chains
and the narrowing of the margin of commodity sales, more and more
supermarket enterprises choose to increase their profit margin by developing
their own brands. For consumers, the price of private brand products is lower;
For supermarket enterprises, private brand goods can not only attract
customers, but also save brand use costs and intermediate supply links to
ensure high profits.

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Chapter VI Comparative analysis of key

areas of bird's nest industry

Section I Development of Bird's Nest Industry in

the Yangtze River Delta

1、Development environment of bird's nest industry in

the Yangtze River Delta

The Yangtze River Delta Urban Agglomeration （hereinafter referred to as

the Yangtze River Delta Urban Agglomeration） is centered in Shanghai and
located in the alluvial plain before the Yangtze River enters the sea. According
to the 2019 Yangtze River Delta Regional Integrated Development Plan, the
planning scope is officially set as the whole region of three provinces and one
city in Jiangsu, Zhejiang, Anhui and Shanghai. With 27 cities in Shanghai,
Nanjing, Wuxi, Changzhou, Suzhou, Nantong, Yangzhou, Zhenjiang,
Yancheng and Taizhou in Jiangsu Province, Hangzhou, Ningbo, Wenzhou,
Huzhou, Jiaxing, Shaoxing, Jinhua, Zhoushan and Taizhou in Zhejiang
Province, Hefei, Wuhu, Maanshan, Tongling, Anqing, Chuzhou, Chizhou and
Xuancheng in Anhui Province as the central areas （covering an area of
225000 square kilometers）, it radiates and drives the high-quality development
of the Yangtze River Delta.

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Schematic Diagram of Yangtze River Delta Region

Source: sorting out public data

The Yangtze River Delta urban agglomeration is an important intersection
of the "the Belt and Road" and the Yangtze River Economic Belt. It plays an
important strategic role in the overall situation of China's national
modernization and opening up pattern. It is an important platform for China to
participate in international competition, an important engine for economic and
social development, a leader of the Yangtze River Economic Belt, and one of
the regions with the best urbanization foundation in China. The economic
hinterland of the Yangtze River Delta urban agglomeration is vast, with modern
river and sea port clusters and airport clusters. The expressway network is
relatively sound, the density of highway and railway traffic trunk lines is leading
in the country, and the three-dimensional comprehensive traffic network is
basically formed.
The Yangtze River Delta Urban Agglomeration Development Plan points
out that the Yangtze River Delta Urban Agglomeration should build a
world-class urban agglomeration that faces the world, radiates the Asia-Pacific

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region and leads the country. Build a resource allocation center with the most
economic vitality, a scientific and technological innovation highland with global
influence, an important modern service industry and advanced manufacturing
center in the world, an important international gateway in the Asia-Pacific
region, a pioneer in the new round of reform and opening up in the country,
and a demonstration area for the construction of a beautiful China.
Analysis of GDP of major provinces and cities in the Yangtze River Delta
from 2005 to 2022 （100 million yuan）

particular year Shanghai Jiangsu Zhejiang Anhui

2005 9247.66 18598.69 13417.68 5350.17

2006 10572.24 21742.05 15718.47 6112.5

2007 12494.01 26018.48 18753.73 7360.92

2008 14069.86 30981.98 21462.69 8851.66

2009 15046.45 34457.3 22990.35 10062.82

2010 17165.98 41425.48 27722.31 12359.33

2011 20009.7 48839.2 31854.8 16284.9

2012 21305.6 53701.9 34382.4 18341.7

2013 23204.1 59349.4 37334.6 20584

2014 25269.8 64830.5 40023.5 22519.7

2015 26887 71255.9 43507.7 23831.2

2016 29887 77350.9 47254 26307.7

2017 32925 85869.8 52403.1 29676.2

2018 36011.8 93207.6 58002.8 34010.9

2019 37987.6 98656.8 62462 36845.5

2020 38963.3 102807.7 64689.1 38061.5

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2021 43653.2 117392.4 74040.8 42565.2

2022 44652.8 122875.6 77715.4 45045

Year-on-year growth Shanghai Jiangsu Zhejiang Anhui

2006 14.32% 16.90% 17.15% 14.25%

2007 18.18% 19.67% 19.31% 20.42%

2008 12.61% 19.08% 14.44% 20.25%

2009 6.94% 11.22% 7.12% 13.68%

2010 14.09% 20.22% 20.58% 22.82%

2011 11.82% 18.55% 16.58% 23.80%

2012 6.48% 9.96% 7.93% 12.63%

2013 8.91% 10.52% 8.59% 12.23%

2014 8.90% 9.24% 7.20% 9.40%

2015 6.40% 9.91% 8.71% 5.82%

2016 11.16% 8.55% 8.61% 10.39%

2017 10.16% 11.01% 10.90% 12.80%

2018 9.38% 8.55% 10.69% 14.61%

2019 5.49% 5.85% 7.69% 8.33%

2020 2.57% 4.21% 3.57% 3.30%

2021 12.04% 14.19% 14.46% 11.83%

2022 2.29% 4.67% 4.96% 5.83%

Source: National Bureau of Statistics

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2、Development status of bird's nest industry in the

Yangtze River Delta

From the perspective of regional market, the retail market size of bird's
nest in the Yangtze River Delta region was 1.829 billion yuan in 2015, and the
regional retail market size increased to 11.074 billion yuan in 2022.

Size of retail market in the Yangtze River Delta region of China's bird's nest industry in 2015-2022

Source: research from Intelligence Research Group

3、Competition pattern of bird's nest industry in the

Yangtze River Delta

Analysis of Bird's Nest Enterprises in the Yangtze River Delta

enterprise Development analysis

Shuanglian Company authorizes Shanghai Tailian Trading Co., Ltd.

Shanghai
to act as the agent of China Twin Lotus Shuanglian official website. In
Tailian
1977, Dr. Boonkit Lee Lertphan founded the brand of Shuanglian; In
Trading Co.,
2004, Shuanglian toothpaste products ranked first in the list of market
Ltd
share in Thailand, ranked among the royal tributes of Thailand, and won

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many honors such as "Thailand National Quality Products" and

"Consumer Love Award"; In 2006, Shuanglian officially entered China.

Launch oral care product line and bird's nest product line; In 2011, the

professional industrial chain operation of bird's nest was launched; In

2019, Shuanglian launched a new independent factory, with all the top

production equipment imported from Germany and Italy; In 2020, it was

certified by SGS, an international authoritative testing agency, and the

National Export-grade Instant Bird's Nest Standard Chemical Factory

issued by the Ministry of Agriculture of Thailand; In 2021, it will enter

Tmall Global's 100 million yuan club for two consecutive years.

Nanjing Jiyan Food Co., Ltd. was registered and established in

Jiangning District Market Supervision and Administration Bureau of

Nanjing on August 18, 2015. The business scope of the company

includes research and development, production, processing and sales of

Nanjing Jiyan food; Self-operated and agent import and export business of various

Food Co., Ltd goods and technologies （excluding goods and technologies that are

restricted or prohibited by the state）, etc. The company's products

include: ready-to-eat bird's nest with rock sugar, fresh stewed bird's nest

with red dates, fresh stewed original bird's nest, brewed bird's nest, dried

bird's nest, etc.

BRAND'S, a well-known health care brand in Asia, has always

adhered to the spirit of continuous exploration, refinement and change,

Shiyibu
and continued to surpass, bringing trustworthy high-quality health care
（Shanghai）
and beauty products. BRAND’S is owned by Cerebos Pacific Limited, a
Trading Co.,
listed company in the main edition of the Singapore Exchange, and has
Ltd
set up factories and companies in many countries and regions in the

Asia-Pacific region.

Laohangjia The "Laohangjia" was founded in Hong Kong in 1996. The concept

（Shanghai） of the Laohangjia's fresh stewed bird's nest has won praise from all walks

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Food Co., Ltd of life in just a few years since 1996. For more than 20 years, the

Laohangjia has established a famous brand of fresh stewed instant bird's

nest in Hong Kong, Taiwan, China, the mainland, Singapore and

Malaysia. With the purpose of "living healthily", "Laohangjia" has been

providing customers with high-quality healthy food for many years,

starting from the leading research and development of fresh stewed

instant bird's nest. With years of experience and good reputation,

"Laohangjia" has established its leading position in the bird's nest

industry. " Laohangjia " have strict requirements on product quality,

choose natural ingredients and production process that are more suitable

for human absorption, and never add any harmful chemical ingredients to

human body, including additives and stabilizers; Starting from the

ready-to-eat bird's nest, it is very convenient and affordable to avoid

soaking, picking and stewing, which is popular with customers. Based on

the bird's nest business, the Group continues to develop more diversified

products and strives for excellence. In addition to fresh stewed and

instant bird's nest, " Laohangjia " also provide fresh and instant aloe vera,

spirulina, deep-sea collagen, and tonic drinks, which meet the needs of

different people. In the future, " Laohangjia " will continue to develop

more health care products with high-end technology and strict standards,

and make more breakthroughs.

Source: research from Intelligence Research Group

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Section II Development of Bird's Nest Industry in

the Pearl River Delta Region

1、Development environment of bird's nest industry in

the Pearl River Delta

The Pearl River Delta, a geographical term, is located in the south-central

region of Guangdong Province. It was called the Guangzhou government in
the Ming and Qing dynasties. It is the core area and prosperous place of the
Guangfu culture. It covers nine cities, including Guangzhou, Foshan, Zhaoqing,
Shenzhen, Dongguan, Huizhou, Zhuhai, Zhongshan and Jiangmen, with a
total area of 56000 square kilometers. It is one of the regions with the highest
degree of openness and the strongest economic vitality in China, and has an
important strategic position in the overall development of the country.

Diagram of the Pearl River Delta

Source: sorting out public data

The Pearl River Delta is the largest plain area in Guangdong Province.
The advanced manufacturing base and modern service industry base with
global influence, the main area of China's participation in economic
globalization, the national scientific and technological innovation and

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technology R&D base, the important engine of the national economic

development, the gateway of the south to the outside world, and the leader of
radiating and driving the development of South China, Central China and
South-West China. It is one of the three major urban clusters with the largest
population concentration, the strongest innovation ability and the strongest
comprehensive strength in China, It is known as "Pearl of the South China
Sea".
On September 29, 2015, the National Independent Innovation
Demonstration Zone in the Pearl River Delta was officially approved by the
State Council. The goal is to build the Pearl River Delta into a leading zone for
China's open innovation, a leading zone for transformation and upgrading, a
collaborative innovation demonstration zone, and an innovation and
entrepreneurship ecological zone, and to become an international first-class
innovation and entrepreneurship center.
On January 26, 2015, the World Bank reported that the Pearl River Delta
surpassed Tokyo, Japan, and became the world's largest urban agglomeration
with the largest population and area.
On February 18, 2019, the Central Committee of the Communist Party of
China and the State Council issued the Outline of the Development Plan for
the Greater Bay Area of Guangdong, Hong Kong and Macao. According to the
planning outline, Hong Kong Special Administrative Region, Macao Special
Administrative Region and Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou,
Dongguan, Zhongshan, Jiangmen and Zhaoqing in Guangdong Province
jointly build the Guangdong Hong Kong Macao Greater Bay Area, which is not
only a dynamic world-class city cluster, an international scientific and
technological innovation center, an important support for the construction of
the "the Belt and Road", but also a demonstration area for in-depth
cooperation between the mainland and Hong Kong and Macao, We should
also build a high-quality life circle suitable for living, business and travel, and
become a model of high-quality development. The Great Bay Area of
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Guangdong, Hong Kong and Macao, together with New York Bay Area, San
Francisco Bay Area and Tokyo Bay Area, is known as the four largest bay
areas in the world.
Analysis of Guangdong's GDP from 2005 to 2022 （100 million yuan）

particular year Guangdong

2005 22557.37

2006 26587.76

2007 31777.01

2008 36796.71

2009 39482.56

2010 46013.06

2011 53072.8

2012 57007.7

2013 62503.4

2014 68173

2015 74732.4

2016 82163.2

2017 91648.7

2018 99945.2

2019 107986.9

2020 111151.6

2021 124719.5

2022 129118.6

Year-on-year growth Guangdong

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2006 17.87%

2007 19.52%

2008 15.80%

2009 7.30%

2010 16.54%

2011 15.64%

2012 7.41%

2013 9.64%

2014 9.07%

2015 9.62%

2016 9.94%

2017 11.54%

2018 9.05%

2019 8.05%

2020 2.93%

2021 12.21%

2022 3.53%

Source: National Bureau of Statistics

2、Development status of bird's nest industry in the

Pearl River Delta

From the perspective of regional market, the retail market size of bird's
nest in the Pearl River Delta region was 835 million yuan in 2015, and the
regional retail market size increased to 5.229 billion yuan in 2022.

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Size of retail market in the Pearl River Delta region of China's bird's nest industry in 2015-2022

Source: research from Intelligence Research Group

3、Competition pattern of bird's nest industry in the

Pearl River Delta

Analysis of Bird's Nest Enterprises in the Pearl River Delta

enterprise Development analysis

The company's main business is the production and sales of

Chinese herbal slices, which belongs to the processing industry of

Chinese herbal slices. The business system covers the production of

Shenzhen
traditional Chinese medicine slices, chain direct retail stores, direct
Baomingtang
sales, e-commerce and other comprehensive and multi-level marketing
Health
networks. The company's key resources include authentic raw
Pharmaceutical
materials and terminal sales channels. The company independently
Co., Ltd
produces and distributes "Baomingtang" brand of Cordyceps sinensis,

ginseng antler, bird's nest and other precious and fine Chinese

medicinal materials.

Guangzhou Guangzhou Longbiao Xinyan Food Co., Ltd., a branch of Malaysia

Longbiao Longbiao Bird's Nest Co., Ltd., established in Guangzhou, China in

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Xinyan Food 2004, is a foreign-funded general taxpayer enterprise with

Co., Ltd standardized food production plants, professional technical teams,

advanced production equipment and management technology. The

company specializes in the production, processing and sales of

"Xinyan Bird's Nest" brand advanced bird's nest series products,

Yanzhisu beauty and skin care products. All the raw materials for the

bird's nest of Xinyan are from Yandong and Yanwu, which are

headquartered in Sarawak, Malaysia. They have passed the inspection

of China Customs and the Inspection and Quarantine Bureau and

entered China with complete certificates. Products include: rock sugar

medlar flavor, rock sugar jujube flavor, rock sugar ginseng flavor, xylitol

flavor, concentrated flavor, etc.

Since 1995, the brand of bird's nest chain store, which was

established earlier in China, is committed to providing customers with

natural and pollution-free bird's nest. It has its own bird's nest and

processing plant, and its products cover bird's nest/cordyceps

sinensis/seafood/flower gum/health care products/ginseng. In

December 1995, the first bird's nest special store was set up, creating

a precedent for retail of ginseng and seafood in Hong Kong in the form
ZhanJi
of a clear price and special store, and innovating the traditional

business model of the industry. Zhanji is committed to providing

customers with natural and pollution-free bird's nest; There are more

than ten completed Yanwu and processing plants in Java and Sumatra,

Indonesia. They closely monitor the whole process from collection,

screening, cleaning, verification, storage to export, and ensure the

health and safety of products.

Upstairs Upstairs Bird's Nest Villa Co., Ltd. pioneered to operate in the form

Yanwozhuang of upstairs shops, and introduced the form of self-created

Co., Ltd supermarkets to sell diversified products. Based on the business

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philosophy of "customer first, quality first", we focus on providing

customers with high-quality products and high-quality sales services.

The products upstairs are diversified, including bird's nest, cordyceps

sinensis, dried abalone with sea cucumber, seafood, tonic, Japanese,

Korean and international products, and a series of ready-to-eat

products are produced in Hong Kong.

Guanyan Restaurant is an international health care company

based on Chinese-style health care. Its business covers the

production, retail, distribution and wholesale of hundreds of traditional

nourishing and modern simple health care foods. Guanyan Inn has

more than 20 specialized retail stores, and also distributes products to

nearly 1000 chain pharmacies, supermarkets, traditional Chinese

Guanyandun
medicine stores, convenience stores and health centers in Greater
International
China and North America, as well as hotels in Hong Kong, Macao and
Co., Ltd
the Philippines. Since Guanyan Inn has its own production plant in

Hong Kong that has obtained the certification of the international food

safety management system, and there is also a quality inspection team

that strictly implements the supervision of high-quality food, which

exempts the third party from profits, it is also popular with major

restaurants, catering groups, hotels and food producers.

Yu Rensheng aims to become a trusted leading enterprise in the

field of comprehensive health care and health preservation, while

continuing to preserve the unique foundation of traditional Chinese

Yu Rensheng
medicine. Yu Rensheng International Group is listed on the Singapore
Trading
Stock Exchange, and is also one of the largest Chinese medicine and
（Guangdong）
health care enterprises outside Chinese Mainland. It is recognized as a
Co., Ltd
leader in the Chinese medicine and health care industry. For

generations, Yu Rensheng has been committed to providing customers

with the best quality Chinese medicine and health care products. The

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company supplies thousands of Chinese herbal medicines, which can

be regarded as one of the retailers with the most complete supply of

Chinese herbal medicines in Asia. With the growth of business, Yu

Rensheng brand has launched more than 300 products on the market,

including its flagship products, the gold medal white phoenix pill

（women's medicine） and baby protection pill （children's medicine）.

Some of the best-selling products include Yu Rensheng's bottled bird's

nest （promoting health）, Ganoderma lucidum "broken wall" spore

powder （immune health care）, Houning （relieving cough） and

chicken essence （replenishing qi and activating blood）. Generations

of customers have obtained extraordinary benefits from the company's

products. The company continues to expand its product range, and the

products it has launched now also include food supplements, health

food, drinks, packaged soup supplements and personal care products.

Source: research from Intelligence Research Group

Section III Development of Bird's Nest Industry

in Bohai Rim Region

1、Development environment of bird's nest industry in

Bohai Rim

"Bohai Rim Area" or "Bohai Rim Economic Circle", in a narrow sense,

refers to the Beijing-Tianjin-Hebei, Liaodong Peninsula, Shandong Peninsula
Bohai Rim Coastal Economic Zone, and extends to Liaoning, Shandong,
Shanxi and the central and eastern Inner Mongolia.
The Bohai Rim region includes Beijing, Tianjin, Shijiazhuang, Tangshan,
Baoding, Cangzhou, Shenyang, Dalian, Jinan, Qingdao, Yantai, Qinhuangdao,
Huludao and other cities.

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Schematic diagram of Bohai Rim

Source: sorting out public data

With the rapid development of China's economy for more than 40 years,
the Bohai Rim Economic Circle has become China's third large-scale regional
manufacturing center after the Pearl River Delta and the Yangtze River Delta.
Relying on the original industrial base of the region, the Bohai Rim region not
only maintains the advantages of resource-based products such as steel,
crude oil and raw salt, but also develops rapidly in emerging high-tech
industries such as electronic information, biopharmaceuticals and new
materials.
The economic interaction of the economic circle around the Bohai Sea
has broken its long-term "vassal economy" pattern. Through the
complementarity of resources and the integration of advantages in the region,
the Bohai Rim Economic Circle has formed an industrial cluster dominated by
high-tech industries, electronics, automobile and machinery manufacturing
industries, and various distinctive industrial belts have begun to form. Beijing
has the largest scientific research, trade and production base of
Zhongguancun electronic information industry in China, and has concentrated
outstanding talents in software development and information technology;
Tianjin Development Zone has grown into the area with the highest economic

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activity and the fastest development speed in the coastal area around the
Bohai Sea. It manufacturing industry is in the leading position in the country. It
is also a huge production base for electronic communication equipment, LCD
and other products; After many years of construction, Hebei Province has now
formed special economic development areas such as shipping industry,
pharmaceutical industry and ecological agriculture, and foreign investment
areas and fields have been constantly expanded; Shandong Peninsula has
also become an important production base for home appliances and
electronics in China. The Bohai Rim has formed a distinctive high-tech
industrial belt, which has contributed to the rapid growth of China's high-tech
industrial output in recent years.
On July 27, 2006, the Reply of the State Council on the Overall Urban
Planning of Tianjin （GH [2006] No. 62） clearly pointed out that Tianjin is one
of the municipalities directly under the Central Government of China and the
economic center of the Bohai Rim region. In November 2018, the Central
Committee of the Communist Party of China and the State Council explicitly
requested Beijing and Tianjin as the center to lead the development of
Beijing-Tianjin-Hebei urban agglomeration and drive the coordinated
development of the Bohai Rim region.
Analysis of GDP of major provinces and cities in the Bohai Rim region
from 2005 to 2022 （100 million yuan）

particular year Beijing Tianjin Hebei Shandong Liaoning

2005 6969.52 3905.64 10012.11 18366.87 8047.26

2006 8117.78 4462.74 11467.6 21900.19 9304.52

2007 9846.81 5252.76 13607.32 25776.91 11164.3

2008 11115 6719.01 16011.97 30933.28 13668.58

2009 12153.03 7521.85 17235.48 33896.65 15212.49

2010 14113.58 9224.46 20394.26 39169.92 18457.27

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2011 17188.8 8112.5 21384.7 39064.9 16354.9

2012 19024.7 9043 23077.5 42957.3 17848.6

2013 21134.6 9945.4 24259.6 47344.3 19208.8

2014 22926 10640.6 25208.9 50774.8 20025.7

2015 24779.1 10879.5 26398.4 55288.8 20210.3

2016 27041.2 11477.2 28474.1 58762.5 20392.5

2017 29883 12450.6 30640.8 63012.1 21693

2018 33106 13362.9 32494.6 66648.9 23510.5

2019 35445.1 14055.5 34978.6 70540.5 24855.3

2020 35943.3 14008 36013.8 72798.2 25011.4

2021 41045.6 15685.1 40397.1 82875.2 27569.5

2022 41611 16311.3 42370.4 87435.1 28975.1

Year-on-year growth Beijing Tianjin Hebei Shandong Liaoning

2006 16.48% 14.26% 14.54% 19.24% 15.62%

2007 21.30% 17.70% 18.66% 17.70% 19.99%

2008 12.88% 27.91% 17.67% 20.00% 22.43%

2009 9.34% 11.95% 7.64% 9.58% 11.30%

2010 16.13% 22.64% 18.33% 15.56% 21.33%

2011 15.15% 22.58% 20.21% 15.81% 20.42%

2012 10.68% 11.47% 7.92% 9.96% 9.13%

2013 11.09% 9.98% 5.12% 10.21% 7.62%

2014 8.48% 6.99% 3.91% 7.25% 4.25%

2015 8.08% 2.25% 4.72% 8.89% 0.92%

2016 9.13% 5.49% 7.86% 6.28% 0.90%

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2017 10.51% 8.48% 7.61% 7.23% 6.38%

2018 10.79% 7.33% 6.05% 5.77% 8.38%

2019 7.07% 5.18% 7.64% 5.84% 5.72%

2020 1.41% -0.34% 2.96% 3.20% 0.63%

2021 14.20% 11.97% 12.17% 13.84% 10.23%

2022 1.38% 3.99% 4.88% 5.50% 5.10%

Source: National Bureau of Statistics

2、Development status of bird's nest industry in Bohai

Rim

From the perspective of regional market, the retail market size of bird's
nest in the Bohai Rim region was 1.347 billion yuan in 2015, and the regional
retail market size increased to 7.634 billion yuan in 2022.

The retail market size of China's bird's nest industry in the Bohai Rim from 2015 to 2022

Source: research from Intelligence Research Group

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3、Competition pattern of bird's nest industry in Bohai

Rim

Analysis of Bird's Nest Enterprises in Bohai Rim

enterprise Development analysis

Beijing Tongrentang Health Pharmaceutical Co., Ltd. is affiliated to

Beijing Tongrentang （Group） Co., Ltd., China. The trinity of

production, research and development, and sales of the company is a

Beijing
modern enterprise integrating Chinese health culture and modern
Tongrentang
high-tech. The company mainly sells American ginseng capsule,
Health
vitamin E soft capsule, Wuweifang capsule, bird's nest and other
Pharmaceutical
products, which cover four categories: nourishing and health care,
Co., Ltd
nutrition and health care, natural herbs, and health wine; There are

more than 300 varieties, more than 1300 SKUs; The large independent

store has more than 600 kinds of Chinese herbal medicines.

Xiaoxian Stewed Bird's Nest was founded in 2015 by Lin Xiaoxian,

a health manager and executive vice chairman of the National Bird's

Nest Committee, and established five standards for stewed bird's nests.

Beijing The fresh stewed and cold fresh bird's nests are distributed on the same

Xiaoxian day, so that users can enjoy fresh, nutritious and sufficient bird's nests

Stewed more easily. Xiaoxian stew is a light luxury fresh stewed bird's nest

Biotechnology brand that provides periodic bird's nest nourishing programs for women

Co., Ltd who love beauty and fashionable hot mothers （especially during

pregnancy and lactation）. Since its establishment, it has maintained a

high sales of fresh stewed bird's nest. So far, it has been sought after

and praised by more than 200000 users.

Qingdao Zhengdian Bird's Nest, registered in China with No. A0A002, is a

Zhengdian multinational bird's nest brand in the whole industrial chain. The

Bird's Nest Co., Zhengdian Bird's Nest brand is affiliated to Qingdao Zhengdian Bird's

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Ltd Nest Co., Ltd, Ranked first in the total number of edible bird's nests

imported from Malaysia to China for seven consecutive years （data

source: data statistics of the National Food Safety HACCP Application

Research Center from 2014 to 2019; traceability statistics of bird's nests

in 2020 by the Food Safety HACCP Application Research Institute of

the Chinese Academy of Inspection and Quarantine Sciences.） In

2012, it was awarded the "1 MALAYSIA BEST" brand certification by the

Ministry of Agriculture of Malaysia. In 2017, Alibaba Group signed a

strategic cooperation memorandum with Malaysia's Canon Bird's Nest

in Kuala Lumpur. Because of his outstanding contribution to the

Malaysian bird's nest industry, Mr. Tan Chengzhe, founder of the Canon

Bird's Nest in 2018, was awarded the lifetime title of Datuk of Malaysia.

In 2020, the Bird's Nest Processing Center will be opened in Hangzhou

Comprehensive Bonded Area, becoming an enterprise with food

processing and production license in Hangzhou Comprehensive

Bonded Area. In the same year, the Bird's Nest Processing Center was

opened in Haikou Comprehensive Bonded Zone, Hainan, and

incorporated into the major duty-free stores in Hainan.

Source: research from Intelligence Research Group

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Part III Analysis of competition pattern

Chapter VII Analysis of the competitive

pattern of bird's nest industry

Section I Analysis of the competitive structure of

bird's nest industry

1、Competition among existing enterprises

The global bird's nest deep processing and consumption centers are all
located in China. In recent years, the domestic bird's nest consumption market
has shown a rapid development trend, driving the rapid increase in the number
of enterprises engaged in the industry. China's bird's nest market has great
potential, but there are also situations of intensified industry competition and
low market concentration. Take Tmall Mall for example, there are nearly 600
stores and nearly 200 brands selling bird's nest products. With the increasing
attention of consumers to the authenticity of raw materials and the high and
low quality of products, the competition in the bird's nest industry is
increasingly brand-driven, and enterprises with high brand awareness and
good product reputation have obvious advantages in the current competition in
the bird's nest industry. At present, well-known enterprises in the bird's nest
industry mainly include Yanzhiwu, Tongrentang, Xiaoxian stew, etc.

2、Analysis of potential entrants

In addition to new resources and new production capacity, new entrants

also include market competition pressure. That is, to form market competition
with existing enterprises and reduce industry profits. Improper handling may

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also affect the survival and development of existing enterprises. The size of
the barriers to new entrants and the reaction of existing enterprises to the
entrants jointly determine the potential threats of new entrants.
The barriers to entry are mainly reflected in various aspects, including the
development of sales channels, conversion costs, capital needs, product
differences, geographical environment, natural environment, etc. This includes
obstacles that cannot be overcome through imitation and replication. The
response of existing enterprises to the entrants mainly depends on the
financial situation of existing enterprises, the degree of industrial growth, the
scale of fixed assets, etc. To sum up, the following three factors jointly
determine whether a new enterprise will enter a new industry: first, the risks to
be borne by entering the industry; The second is the cost of entering the
industry; The third is to subjectively estimate the potential benefits that can be
created by entering new industries.
The price elasticity of the bird's nest market is relatively small, and the
entry threshold of the industry is quite high. However, it is not limited by the
production environment, so as long as new entrants break through the
threshold to enter the industry, they may pose a threat to existing competitors.

3、Substitute threat analysis

Because the production of alternative products may cause different

industries to compete with each other. That is to say, the threat of substitutes
will be formed and will have a greater impact on existing competitors.
First of all, if the user's acceptance of the substitute is high or easy to use,
it will inevitably affect the price of the existing products, and is not conducive to
improving the profit potential of the existing products.
Second, under the threat of substitutes, existing enterprises have to
reduce product prices or improve product quality, create distinctive products to
stabilize sales and achieve the goal of profit growth.

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Third, the low price of the products converted by the buyer determines the
threat and competitive intensity that the substitute may bring to the existing
competitors. It is generally believed that the better the quality of the substitute,
the lower the price, the lower the cost required by the buyer to convert the
product, and the greater the competitive pressure of the substitute on the
existing product. Generally, the pressure on existing competitors can be
evaluated by factors such as the expansion of profitability, production capacity
and sales growth rate of substitute manufacturers.
In terms of core functions, bird's nest does have many alternatives, but
bird's nest has many advantages that other health products do not have. In
principle, the so-called "substitutes" in the market are difficult to replace bird's
nest. In short, bird's nest will not be greatly threatened by substitutes.

4、Supplier bargaining power

从 From the perspective of the buyer's market, the suppliers of bird's nest
products in a passive position do not have strong bargaining power. Further
analysis found that the market concentration of suppliers in the industry is low,
and some suppliers with superior resources have strong bargaining power. For
ordinary suppliers, the proportion of purchase volume in the total sales volume
determines how much discount they can form.
The health care products on the market generally have not formed a high
technical content, and are usually invested by the largest supplier. This also
means that there is a large space for manufacturers to choose, that is, it is
difficult for suppliers to achieve monopoly supply of inputs. The more suppliers,
the fiercer the competition of suppliers, and the more influence their bargaining
power. However, in terms of the current situation of the development of the
bird's nest market, the huge suppliers still have great bargaining power, and
they are in a relatively equal state with the manufacturers.
However, high-grade health care products, especially cordyceps sinensis,

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bird's nest and other natural nourishing health care products have certain
particularity. When people buy these natural health products, they usually pay
attention to their origin, because the efficacy of health products will vary with
the origin. At the same time, as rare and natural health products, such as bird's
nest and cordyceps sinensis, its market price is mainly subject to consumer
demand, as well as the impact of various objective factors such as climate, and
the price fluctuation on the market. China mainly relies on Southeast Asia and
other countries to import bird's nest products, which means that the domestic
bird's nest price largely depends on the overall situation in East Asia. In
addition, as an imported product, the price of bird's nest is subject to relevant
national policies, which determine that its suppliers have strong bargaining
power.

5、Customer bargaining power

Customers, as the name implies, refer to buyers and consumers. They

can take individuals or families as units, or organizational departments and
government departments as units. With the rapid development of
contemporary society, people will form increasingly rational consumption
demand, and will consider all aspects when choosing health care products.
From the perspective of consumers, in addition to the need for the product
itself, we also attach importance to the services contained in the product and
its added value, such as the feeling of being respected and realizing self-worth.
This is the key for enterprises to cultivate customer loyalty.
China mainly imports bird's nest from Southeast Asia, with limited output
and limited supply. Compared with other areas, the bargaining power of bird's
nest buyers is relatively low. Industry data shows that consumers, including
potential consumers, generally do not know bird's nest products and have
limited information, so it is difficult to form a high bargaining power.
Today, with the rapid development of the market environment, consumers'

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consumption ability and quality of life have been improved qualitatively.

Contemporary people have a strong sense of health care, and their
consumption tends to be rational and will comprehensively evaluate products.
At the same time, higher requirements are put forward for all aspects of bird's
nest products, especially for personalization. Generally speaking, modern
customers have higher requirements on all aspects of bird's nest products. It is
easy to say that modern customers have a higher bargaining power for bird's
nest products. With the improvement of the bargaining power of the buyers,
higher requirements will be put forward for the research and development,
marketing and other aspects of the business.

Section II Analysis of bird's nest industry

concentration

1、Market concentration analysis

At present, most of the products of the domestic bird's nest industry come
from abroad, with a small proportion of imports, and most of them are
smuggled.

China's Bird's Nest Consumption Market Concentration in 2022

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Source: research from Intelligence Research Group

2、Analysis of enterprise concentration

According to the 2022 Bird's Nest Traceability Report released by CAIQ,

by the end of 2022, 125 domestic bird's nest production enterprises and 21472
bird's nest traceability enterprises have been included in CAIQ traceability.
Considering that some enterprises have not been included in CAIQ traceability,
there are a large number of production and processing enterprises and
circulation enterprises in the domestic bird's nest industry.
Traditionally, the main way to eat bird's nests is that consumers directly
buy dried bird's nests and then soak, pick hair and stew by themselves. The
bird's nest sales enterprises are mainly engaged in subcontracting and
circulation. The industry threshold is low and the product standardization is low.
All practitioners rely on their own retail channels to sell, and the market is very
fragmented. The rise of ready-to-eat bird's nest has only been more than ten
years, and the development of standardization and standardization is still
relatively short. Consumers' awareness of standardized products is gradually
strengthening. At the same time, a large number of consumers still retain the
consumption habit of self-buying and self-stewing. The proportion of
ready-to-eat bird's nest production enterprises in the whole bird's nest industry
is still low. Although in the short period of competition and development, the
bird's nest consumption industry has grown several bird's nest brands with
wide popularity, such as Yanzhiwu, Tongrentang, Xiaoxian stew, etc., due to
the existence of many small workshops, the prevalence of agent processing
mode, various sales channels and other factors, there are a large number of
small and medium-sized bird's nest brands in the industry, and the industry
concentration is low.

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3、Regional concentration analysis

According to the statistical data, 90% of edible bird's nests enter China
from Guangzhou, Xiamen, Shanghai and Shenzhen ports. Guangdong, Fujian,
Shanghai, Zhejiang and other provinces are still the distribution centers and
main consumption centers of imported bird's nests.

Distribution of import ports of edible bird's nest in China in 2022

Source: China Academy of Inspection and Quarantine

Section III Comparison of international

competitiveness of bird's nest industry

1、Production factors

Because the bird's nest only needs to attract the swiftlet to build its nest
without artificial feeding, the bird's nest sales income is considerable. In recent
years, the bird's nest industry in Indonesia and Malaysia has developed rapidly,
laying a good foundation for the growth of bird's nest production. The
development of Yanwu has provided more and safer living places for the
swiftlet, which is conducive to the growth of the swiftlet and the expansion of

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the swiftlet population. In general, the supply of raw materials in the upstream
of the bird's nest industry is relatively sufficient.

2、Demand conditions

1. With qualified production qualification certificate

The corresponding qualified production qualification certificate is a
requirement for the foundation of a ready-to-eat bird's nest factory. If the agent
factory cannot provide relative certificates, it may be operating without a
certificate. It is impossible to guarantee the quality and safety of products in the
production process. Once these products leave the market, consumers will
inevitably have problems in using them, which will seriously affect the
reputation and development of brands.
2. Professional clean production workshop
Bird's nest factory must also have a qualified purification workshop.
Laboratory equipment, production equipment and advanced laboratory
equipment are important factors that determine whether the Bird's Nest OEM
factory can develop new formula; The production equipment in the workshop is
an important factor affecting the hygiene, safety, feel and appearance of
cosmetics, so the selection of the Bird's Nest OEM processing plant must
depend on whether the equipment is advanced.
3. With mature production formula
Bird's nest is a kind of nourishing food. Therefore, there must be mature
technology to ensure the quality of bird's nest products. With an independent
research and development room and continuous improvement of scientific
technology, we can meet the customization needs of different customers.
4. One-stop after-sales service tracking
All qualified processes will provide one-stop bird's nest oem service. From
R&D, production, packaging design, logistics and transportation, brand
incubation, etc., professional OEM can solve all the worries of customers.

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Good after-sales service is the beginning of the next cooperation, is also the
main way to improve customer satisfaction and loyalty, and is an important way
to establish public praise and spread corporate image.

3、Support and related industries

With the increasing market demand in 2023, the bird's nest category has
ushered in a new era. At present, the bird's nest industry has experienced a
development trend of product differentiation and category differentiation. For
example, beauty bird's nest, fresh stewed bird's nest, pregnant women's edible
bird's nest and other segments of the track go hand in hand, showing a thriving
growth trend. However, the current market is still mixed, and the competition
between brands is increasingly fierce. In addition, many problems such as the
production standards and quality specifications of various products in the bird's
nest industry have yet to be solved, so after the market gradually recovers, it is
also possible to usher in a reshuffle period.

4 、 Enterprise strategy, structure and competitive

status

At present, the domestic bird's nest market has such strong brands as
Yanzhiwu and Xiaoxian stew. In the growing market, brand alternation is not
uncommon, and the 100 billion market is still calling for new entrants.
From the experience of Yanzhiwu and Xiaoxian stew, it is unlikely that new
brands will win by single point. For example, the following brands, Yanzhichu,
Zhanji and Yananju, which share the same track with Xiaoxian stew, all take
"instant stew" and "instant stew" as their main selling points, but they still have
a long way to go in terms of brand construction and sales network
construction.
Under the constant "inside-out" of the industry, the bird's nest brand with

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only a single advantage may not be able to develop for a long time. If the newly
entered brand wants to make a difference, it needs to innovate.
From the perspective of consumer psychology, beauty is the biggest
appeal of consumers who buy bird's nest. At present, no bird's nest brand can
occupy this consumer's mind, which leaves a huge opportunity for new brands
to enter the bird's nest market.
From the perspective of consumers, the post-85 and post-90 generations
have gradually become the main consumers of bird's nest. For young people
who are infatuated with new things, bird's nest products with high beauty
packaging, cross-border joint bird's nest products or products playing new
tricks on "bird's nest+" are more attractive.
From the perspective of consumption trend, under the two concepts of
healthy diet and "body management", the bird's nest brand that can develop
"sugar-reducing" and "sugar-free" products may be more able to capture
consumers' wallets.

5、The role of government

At present, China's legal basis for the supervision of imported bird's nest
includes the Food Safety Law of the People's Republic of China, the Animal
and Plant Quarantine Law of the People's Republic of China, the Import and
Export Commodity Quarantine Law of the People's Republic of China and its
implementation regulations, the Special Provisions of the State Council on
Strengthening the Supervision and Administration of the Safety of Food and
Other Products, and the Administrative Measures of the People's Republic of
China on the Safety of Imported and Exported Food Provisions of the People's
Republic of China on the Registration and Administration of Overseas
Production Enterprises of Imported Food, as well as the relevant agreements
signed between China and the countries （including regions） exporting bird's
nest to China.

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The officially imported bird's nest must come from the entry country and
the registered production enterprise. Before entering the country, it must obtain
the quarantine approval license and have the official certificate issued by the
exporting country. Importers and exporters at home and abroad need to
register, and manufacturers and Yanwu need to register. At the same time, the
documents review and on-site inspection shall be completed at the import port.
In addition to the inspection of the veterinary health certificate, health
certificate and certificate of origin attached to this batch of bird's nests, the
customs shall also check the registration of the bird's nest production
enterprises, compare the external packaging and identification of the goods,
and ensure that the source of the goods is legal and the channel is formal. If
necessary, the imported bird's nest shall also be subject to sampling inspection,
and the qualified inspection and quarantine certificate of imported goods shall
be issued and released into the market; The unqualified ones shall be returned
or destroyed after issuing the Inspection and Quarantine Treatment Notice. It
should be noted that there is no Maoyan imported to China that meets the
requirements of the General Administration of Customs.
At the same time, according to the Law of the People's Republic of China
on the Entry and Exit Animal and Plant Quarantine and its implementation
regulations, bird's nest （ except canned bird's nest ） and other animal
products are prohibited from carrying and mailing into the country as listed in
the List of Animals and Plants, Their Products and Other Quarantine Objects
Prohibited from Carrying and Mailing into the Country of the People's Republic
of China （Announcement No. 470 of the Ministry of Agriculture and Rural
Affairs and the General Administration of Customs）, Before entering the
country, it is necessary to go through the formalities of examination and
approval of animal and plant quarantine, declare to the customs with the
quarantine certificate of the exporting country or region, and enter the country
after passing the quarantine inspection.

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Chapter VIII Analysis of competitive

strategies of enterprises in the bird's
nest industry

Section I Analysis of market competition

strategy of bird's nest industry

1、Analysis of market growth potential of bird's nest

industry in 2022

China has become the second largest consumer of healthy food after the
United States. Especially with the increasing awareness of group immunity, the
consumption of bird's nest is showing a trend of continuous growth, which
mainly depends on the fact that bird's nest itself is a big healthy food. In
addition, the traditional edible bird's nest has a history of more than 600 years,
and bird's nest acid has become an irreplaceable first choice tonic to improve
immunity, which makes the market potential of bird's nest unlimited.
At present, the scale of China's health care market has exceeded trillion
yuan, of which the proportion of young people aged 18-35 is as high as 83.7%.
In recent years, health care has gradually become younger. Young people
have joined the health care product team early and gradually mastered the
market consumption dominance. These new generation of people dare to
consume, advocate trends and are willing to improve the quality of life. They
flocked to join the bird's nest consumption camp, which undoubtedly injected a
lot of vitality into the industry. China's strong health culture has bred a huge
nourishing market, and the bird's nest, famous for its high-end, decent, healthy,
nutritious and nourishing, has always been the darling of this market. In 2015,
the size of China's bird's nest retail market was only 6.864 billion yuan,
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reaching 41.307 billion yuan in 2022. Young people are becoming the new
driving force for the development of the nutrition industry, and the nutrition and
health care market is also constantly introducing new concepts, new ideas and
new ways to promote product innovation. In recent years, after the emergence
of products such as room-temperature ready-to-eat bird's nest and fresh
stewed bird's nest, the consumption of bird's nest has become more
convenient. The market has generally shown a double-growth pattern on the
supply side and the demand side, and the industry has entered the fast lane of
development.

2、Analysis of main potential varieties of bird's nest

industry in 2022

From the perspective of current consumption trends, under the two

concepts of healthy diet and "body management", the bird's nest brand that
can develop "sugar-reducing" and "sugar-free" products may be more able to
grasp consumers' wallets. "Sugar free" has become an obvious trend in the
consumer market, driving the increasing demand for sugar-free bird's nest. At
present, while pursuing bird's nest nutrition, many consumers also need 0
sugar, 0 fat and 0 calories to nourish and keep fit. Shangshang Bird's Nest
brand is also well aware of consumer demand, and its products are all
sugar-free formula, with only pure water and bird's nest as ingredients. It also
occupies a certain share in the sugar-free bird's nest market.
Bird's nest also has a good nourishing effect on pregnant women, which is
conducive to enhancing immunity. At the same time, because the bird's nest
contains epidermal growth factor, which can promote cell division and prevent
pregnancy marks, the bird's nest acid contained in bird's nest also helps
promote the development of baby's brain. Because of this, in the rapidly
advancing bird's nest market, pregnant women's bird's nests are also
experiencing explosive growth, with huge storage space and unlimited

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development prospects.

3、Analysis on the competitive strategy of the existing

bird's nest industry products

At present, the domestic bird's nest market has been in full swing and is
constantly calling for new people to enter the market, but the industry is also
seriously involved. If entrepreneurs want to enter the bird's nest market, it is
difficult to play a role if they choose a brand with a relatively single product
system. For example, for consumers, there is a demand for gift giving, self-use,
fresh stew, instant stew, instant food, or bird's nest and other derivative
products. Only diversified products can meet the market demand.

4、Analysis of product competition strategy of typical

enterprises

1. Xiaoxian Stewed
Xiaoxian Stewed innovates its category and creates its brand, and stands
out from the fierce competition in the Red Sea. Break through the bottleneck of
traditional bird's nest and ready-to-eat bird's nest, innovate and develop the
fresh stew technology, and better retain the nutrition and taste of bird's nest. It
is positioned as "expert of stewed bird's nest" to refine and display the core
value of the brand and the core selling points of the product; To provide
consumers with more nutritious, fresh and high-end bird's nest products, and
win the trust of consumers.
Xiaoxian Stewed has improved its strategic balance and laid the
foundation for product development and production. Xiaoxian Stewed brand
strategy selects bird's nest raw materials from Malaysia, Indonesia and other
regions; Select high-quality polycrystalline rock sugar; Through accurate
matching calculation, the sweetness of bird's nest can be reasonably

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controlled to ensure the taste and nutrition of bird's nest. Constantly excavate
and improve product strength, thus enabling brand positioning strategy.
Xiaoxian Stewed is market demand-oriented and carries out product
development and production according to brand positioning strategy. They
launched 100g bird's nest to meet the needs of deep nourishment, 70g bird's
nest to focus on daily nourishment, and 45g bird's nest to meet the market
needs of trial and gift giving. The rich product matrix can meet the diversified,
diversified and personalized needs of consumers, thus creating more
customers, and doing a good job in deepening the existing market and
developing new markets.
Then, refine and show the core value of the brand, conceive the way of
communication, and improve the brand awareness. Xiaoxian Stewed brand
strategy integrates diversified and cross-border marketing resources to jointly
promote product marketing.
Xiaoxian Stewed, jointly with Tmall, launched the IP cross-border product
of "Dream of Red Mansions" to improve brand awareness and affinity; Jointly
with JD.com to hold a press conference on "Fresh Stewed Bird's Nest Gift
Card Leading the New Nourishing Fashion" to improve brand awareness; Take
advantage of the "Daily Reading" column on the client side of People's Daily to
achieve strong endorsement and improve brand affinity and industry attribute
recognition. So as to reduce the cost of consumers' cognitive decision-making
and the cost of enterprise publicity.
The Xiaoxian Stewed food brand strategy builds an effective channel of
communication and interaction with consumers, pulls the distance between
brands and consumers, and consolidates the brand moat. Promote
consumers' awareness, understanding, memory and dissemination of brands
and products by shooting the documentary of tracing the origin of fresh stewed
bird's nest; Create a thoughtful and exclusive user experience by holding salon
membership activities; The whole service of the nutrition consultant is provided
in the flagship store to provide consumers with timely and efficient solutions,
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so as to obtain consumer satisfaction and help consumers make purchase

decisions quickly.
The brand strategy of Xiaoxian Steweded Bird's Nest Food innovates the
marketing model and breaks through the traditional marketing bottleneck.
Launch self-service small programs to provide fresh stew and periodic
distribution services; They also set up one-on-one online tonic butler to bring
customized services to consumers. So as to cultivate loyal consumer groups
and further consolidate the brand moat.
2、Zheng Dian Yan Wo
（1） Innovative ideas and technologies
In order to provide consumers with high-quality bird's nest, Zheng Dian
Yan Wo carries out scientific and technological research and development on
bird's nest products, has a number of research results, and has been widely
recognized by consumers. Among them, the standard bird's nest uses FTIR
infrared spectrometer to detect the food safety of the bird's nest one by one,
which is different from the same industry sampling test method to ensure that
each bird's nest is not polluted by the natural environment and processing
process.
Zheng Dian Yan Wo Nest R&D Center has developed the technology of
producing ready-to-eat bird's nest by low-temperature sterilization （ a
multi-stage low-temperature sterilization ready-to-eat bird's nest production
method ） and the technology of vacuum freeze-dried production of
ready-to-stew bird's nest. Adopt multi-stage low-temperature stewing
technology to produce ready-to-eat bird's nest, so that sialic acid is not easy to
lose. The vacuum lyophilization technology is used to produce instant stewed
bird's nest, which is used to produce pasteurized instant bird's nest and
vacuum lyophilized instant foam convenient bird's nest.
（2） Perfect sales network
Zheng dian Yan Wo is a strategic partner of Beijing Tongrentang, Alibaba
and other brand enterprises; Based on its strong resource integration and
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product innovation capabilities throughout the industry chain, it has become

the main product of China's mainstream Internet sales platforms such as Tmall
Global, Tmall, Vipshop, JD, Netease, etc. We will continue to expand the scale
of offline experience stores and facilitate more consumers to choose safe and
high-quality bird's nest through mobile internet and new retail system.
At present, Zheng dian Yan Wo has settled in the China Exemption Sanya
International Duty Free City, the China Exemption Sanya Phoenix Airport Store,
the China Exemption Haikou Sun Moon Plaza Duty Free Store, the China
Exemption Haikou Meilan Airport Store, the Sanya Sea Travel Duty Free City,
the Haifa Control Duty Free City, the Yangpu Free Trade Zone, etc. It allows
consumers to buy duty-free, authentic and high-end imported bird's nest
without going abroad, which also marks that the classic bird's nest has entered
the international mainstream retail market.

Section II Analysis of competitive strategy of

bird's nest industry

1 、 Analysis of competitive strategy of bird's nest

industry from 2023-2029

1. Differentiation strategy
The so-called differentiation strategy refers to a strategy adopted to make
the products of an enterprise distinct from those of its competitors and form
distinctive characteristics. The core of this strategy is to obtain some
uniqueness that is valuable to customers. There are four basic ways for
enterprises to highlight the differences between their products and
competitors:
（1） Product differentiation strategy
The main factors of product differentiation include: characteristics, working
performance, consistency, durability, reliability, maintainability, style and
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design.
（ 2 ） Service differentiation strategy Service differentiation mainly
includes delivery, customer training, consulting services and other factors.
（3） Personnel differentiation strategy
Trained employees should be able to reflect the following six
characteristics: competent, polite, credible, reliable, responsive and good at
communication.
（4） Image differentiation strategy
2. Build brand and implement famous brand strategy
Brand building is particularly important, even a matter of vital importance
to the survival of enterprises. Brand is a sign that a product or even an
enterprise is different from other products and enterprises, and it is an
intangible asset of an enterprise. For enterprises, it represents a potential
competitiveness and profitability; For consumers, it is the guarantee of quality
and reputation, reducing the purchase cost and risk of consumers. Therefore,
the benefits that brands bring to enterprises are internal and lasting, and
enterprises should consciously shape their own unique brands. If the
enterprise brand determines the current profit and strategy of the enterprise,
then the famous brand determines the long-term development strategy and
future sustainable development ability of the enterprise.
3. Innovation strategy
Constantly consolidate the research and development and technological
innovation capabilities of bird's nest, improve the technical barriers and
gradually improve the production height, make the process technology more
advanced and the standards more strict, and require itself to provide more
delicious, safer and high-quality products with higher standards, so as to add
value and advance the bird's nest products.

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2、Analysis of competitive strategy of enterprises in

bird's nest industry from 2023-2029

1. Price strategy
Price strategy is an important part of enterprise marketing mix strategy.
Whether the price strategy is reasonable or not is not only related to whether
the enterprise's products can be sold, thus realizing the profit goal of the
enterprise and ensuring the virtuous circle of the enterprise's reproduction, but
also directly related to the immediate interests of consumers and the interests
of society. Reasonable pricing strategy should be cost-oriented,
consumer-oriented and competitor-oriented. In addition, the price strategy
must also meet the requirements of relevant government legislation and
ethical standards. In short, a correct pricing strategy should take into account
the interests of consumers, society and enterprises.
Content of price strategy:
Pricing strategy, price structure design, price elasticity management, price
design in peak season, new product listing price design, volume price
relationship design.
At present, the bird's nest industry has a good development space in the
domestic market, but foreign enterprises still occupy a large market share in
the high-end product market. With the further development of China's bird's
nest industry, its market competitiveness will gradually increase. With the
development of technology in the domestic bird's nest industry, it is expected
that the market share of high-end bird's nest products independently
developed and produced by domestic enterprises will gradually expand in the
future.
In the future, the competition in the bird's nest industry market will
inevitably become more intense, and the price competition is inevitable. The
price competition will be more intense in the future. Because of the fierce

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competition, the price of the products at the bottom will gradually decrease,
and the final competition will be the micro-price gap competition, while the
competition for high-end products will be slightly eased, and the price gap may
be relatively large.
2. Channel strategy
Channel strategy refers to the main principles adopted by enterprises to
achieve their distribution objectives in the target market. The marketing
channel strategy and its marketing strategy are equally important, even more
important. At the same time, it is also an important part of the overall goal and
strategy of the enterprise.
Channel strategies include:
Sales channel analysis, regional market planning, channel development
design, channel member selection, channel promotion design, and duplex
channel design.
The "Internet plus" model is a business operation and organizational
structure model that integrates traditional business types and connects various
business channels through the Internet. Premier Li Keqiang proposed the
"Internet plus" action plan in the government work report, marking that the
"Internet plus" model has been upgraded to the height of national industrial
strategy. The "Internet plus" model is usually expressed as B2B e-commerce
in the industry. B2B e-commerce refers to the e-commerce activities of
products, services and information exchange between enterprises through the
Internet. In the wholesale industry, the B2B e-commerce platform can establish
stable sales channels for upstream suppliers, help downstream buyers find
high-quality goods in a short time, effectively reduce the transaction links and
transaction costs of the industry, and promote the industry to transform to an
efficient and low-consumption model.
China's bird's nest industry is actively promoting the transformation to
e-commerce. In the future, with the accelerating pace of Internet
transformation in traditional industries and the huge transaction volume in
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China's bird's nest market, it is believed that B2B e-commerce mode will be
more significantly developed in the bird's nest wholesale industry.
3. Analysis of product positioning strategy
The significance of bird's nest market positioning Market positioning is a
very important concept in marketing and modern advertising. The so-called
market positioning is to create and cultivate certain characteristics for the
product, establish a certain market image, and find or form competitive and
differentiated product features in a large number of product concepts
according to the degree of attention consumers attach to the attributes of the
product.
Market positioning is the soul of the whole marketing. A successful brand
has a feature that is to connect the function of the brand with the psychological
needs of consumers in a consistent manner and accurately convey the
information of brand positioning to consumers. Market positioning is not about
taking action on the product itself, but about creative thinking activities on
existing products and taking action on the psychology of potential consumers.
Therefore, it is a key link in marketing to extract the most attractive competitive
advantages for the target group, convey them to consumers through certain
means, and then transform them into consumers' psychological awareness.
The main methods are:
（1） Efficacy positioning is to highlight the special functions of the
product in the advertisement, so that the product has obvious differences and
advantages in similar products, so as to enhance the selective requirements.
（2） Quality positioning is to highlight the good specific quality of goods
in advertisements. When the performance, shape, use and other aspects are
similar to those of similar products, the characteristics of cheap products shall
be highlighted. This is an effective way to defeat competitors in the competition
of homogeneous products.
（3） Market positioning means that the target of product promotion is the
most favorable target market.
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4. Media selection strategy

Bird's Nest products should be promoted through appropriate media. At
present, TV advertising, radio advertising, print media and online advertising
are widely used in the industry. With the rapid development of China's Internet
industry, the status of Internet media will become more and more important in
the future. Therefore, China's bird's nest production enterprises should pay
attention to the online publicity of brands.

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Chapter IX Analysis of competition

among enterprises in the main bird’s
nest industry

Section 1 YanPlace

1、Enterprise profile

YanPlace ,focusing on high-quality bird’s nest for 25 years, it has written

the history of bird’s nest industry with ingenuity and innovative technology. So
far, YanPlace has opened more than 700 physical stores in the core areas of
200 cities across the country and established a high-end sales network; Online
development of Tmall, JD, Vipshop, Youzan and other sales channels. From
2016 to 2019, YanPlace ranked first in the sales of bird’s nest category of
Tmall's Double 11 for four consecutive years （source: Tmall's business
consultant 2016-2019 ） . In addition, YanPlace anked first in the CAIQ
Traceable bird’s nest Domestic Importers List from 2019 to 2021 for three
consecutive years （ source: China bird’s nest Traceability Management
Service Platform）. At present, YanPlace has set up bird’s nest production
bases in Xiamen Xiang'an, Gansu YanPlace and Shanghai Songjiang, with a
total area of more than 38500 square meters. From Ms. Carina Lau's ten-year
company of "Eat Bird’s nest, Choose Bird’s nest" to Ms. Lin Zhiling's beautiful
endorsement of "Live with Love, Nourish with Love", and then to holding hands
with the famous actress Ms. Zhao Liying, the Bird’s nest of the House of Yan
has been creating a lifestyle of enjoying bird’s nests at any time for people of
taste with high-quality bird’s nest products.

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2、Competitive advantage analysis

From the royal delicacies to the nourishing delicacies of thousands of

families, every step of innovation of YanPlace has promoted a new pattern of
bird’s nest industry. In 2002, YanPlace introduced franchising and opened a
YanPlace franchise store to create a business model of "order, eat, stew and
deliver" for stewed bird’s nest. Strict selection of high-quality bird’s nest raw
materials in Southeast Asia, supplemented by innovative technology, will
present high-quality collocalia bird’s nest to every taster. In 2012, YanPlace
innovated again, creating a high-end nourishing brand "ONE NEST", a single
product made of natural, environmental, high-quality and safe bird’s nest raw
materials, and opening a new era of instant bird’s nest nutrition. 0 fat, 0
preservative, 0 thickener, 0 additive （0% preservatives potassium sorbate,
sodium benzoate, 0% thickener agar are added in the production process of
the product）, so that more people can enjoy the "good bird’s nest that can be
eaten when the bowl is opened".
YanPlace's ultimate pursuit of quality has not only been recognized by the
national authority, but also become the drafter of industry standards. In 2011,
the craftsmanship and strict quality control of "YanPlace" were recognized by
the authority and recognized as "well-known trademark" by the State
Administration for Industry and Commerce. In 2014, YanPlace, together with
the China Institute of Standardization and other units, took the lead in drafting
and launching the first domestic bird’s nest industry standard GH/T 1092-2014
"Quality Grade of Bird’s nest in the Supply and Marketing Cooperation Industry
Standard of the People's Republic of China", ending the long-term state of the
bird’s nest industry without standards, which is the beginning of the
standardization development of the bird’s nest industry, and also the milestone
of the standardized development of the bird’s nest industry. In 2018, the
National Health and Health Commission entrusted the Xiamen Customs
Technical Center to take the lead in formulating the National Food Safety

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Standard Bird’s nest and its Products. As an industry leader, YanPlace was
invited to participate in the formulation of the national food safety standard. In
2019, YanPlace and China Fermented Food Industry Research Institute led
the development of the People's Republic of China Light Industry Standard
Bird’s nest Products.
In 2021, YanPlace reached an official cooperation with the Chinese
National Fencing Team and became the designated bird’s nest product of the
Chinese National Fencing Team. YanPlace uses safe, high-quality and healthy
nourishment products to help Olympic athletes compete and win glory. In
December of the same year, YanPlace was selected into the National Brand
Project of Xinhua News Agency, fully affirming YanPlace's leading role in the
high-quality development of the industry as a leading enterprise in the bird’s
nest industry, and promoting the overall high-quality development of the
industry with the practical action of "improving quality and creating brand". In
2022, YanPlace was successfully awarded the title of "the thirty-second batch
of provincial enterprise technology centers" after the evaluation of the technical
strength of YanPlace Bird’s nest Research Institute by Fujian Provincial
Department of Industry and Information Technology, reflecting the affirmation
of the technical strength of YanPlace enterprises by relevant professional
institutions and experts. In September of the same year, YanPlace and the
Medical Department of Peking University established the Bird’s nest Nutrition
and Health Collaborative Innovation Joint Laboratory, which deeply integrated
innovative forces such as medical industry, university and research capital,
and is committed to producing a batch of high-quality innovative achievements
that can truly serve the national health and clinical needs, jointly enabling the
innovative development of Chinese medicine, and further promoting the
high-quality development of the bird’s nest industry.
Adhering to innovative ideas and advanced technology, YanPlace
presents natural, pure and nutritious high-quality bird’s nest raw materials to
consumers in a safe and healthy state, so that every consumer can be
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nourished by the love of nature. YanPlace built its own production base, and
hired Zhang Yukui of the Chinese Academy of Sciences and Zhu Beiwei of the
Chinese Academy of Engineering to lead the product research and
development team. It has advanced bird’s nest processing production line,
research and development equipment and technical team, and has won a
number of national invention patents. In 2015, YanPlace Technology Center
was reviewed by China National Accreditation Service for Conformity
Assessment （CNAS） and became the first bird’s nest exclusive enterprise
with CNAS accredited laboratory（certificate No.: CNAS L8129）. The data test
results issued by YanPlace Technology Center meet the internationally
recognized standards, with authority and credibility. In 2017, YanPlace took the
lead in passing the certification of BRC （BRC Food Technical Standard）
Global Food Safety Standard, marking that YanPlace has obtained the quality
pass for export to Europe. In 2020, YanPlace took the lead in passing the IFS
International Food Standard certification with high-quality bird’s nest, and
became the first bird’s nest brand in China and the world to obtain the BRC
and IFS dual certification.
In 2020, the membership service system of YanPlace will be
comprehensively upgraded and strive to create more value for consumers.
Make products with ingenuity and love public welfare. 2020 is the final year of
the fight against poverty. YanPlace actively responded to the government's call
to open two phases of poverty alleviation factories in Guanghe County, Linxia
Prefecture, Gansu Province, to create a large number of jobs for the local
people, while donating donations and materials, and purchasing education,
sports and other basic living facilities. By February 2021, a total of 277 people
had completed the poverty alleviation target, and the "YanPlace poverty
alleviation model" was highly praised by the government. On May 14, 2021,
YanPlace won the honorary title of "Fujian Province's Advanced Group in
Poverty Alleviation" at the Fujian Provincial Poverty Alleviation Summary and
Recognition Conference. In July 2021, YanPlace, together with the China
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Women's Development Foundation, jointly established the "Yanhutu Public

Welfare Growth Plan", which started from Guanghe County, Linxia Prefecture,
Gansu Province, to carry out activities such as helping women and children in
difficult situations and spiritual construction. In November 2022, YanPlace and
the China Women's Development Foundation officially launched the Guizhou
Miao Embroidery Dream Workshop of YanPlace "Genius Mother" through the
"YanPlace Public Welfare Growth Plan" to provide support for rural
revitalization and development. In the coming days, YanPlace will radiate more
areas, bring more support and help to rural education and women's
development, and become a solid force for rural revitalization.

3、Business status

Business status analysis of XIAMEN YAN PALACE BIOENGINEERING CO.,LTD.

Economic indicators 2021 2020 2019

Total assets （10000 yuan） 44192.47 31929.03 34143.92

Operating income （10000 yuan） -- -- --

Total profit （10000 yuan） -- -- --

Net assets （10000 yuan） 26099.95 16742.75 21745.4

Total liabilities （10000 yuan） 18092.52 15186.28 12398.52

Source: National Bureau of Statistics

4、Development strategy

Customer first, integrity and altruism, innovation and practical work, and
stability and farsightedness. The House of Swallows inherits the Chinese
culture of bird’s nest health preservation, with the mission of benefiting
mankind and enabling hundreds of millions of families to enjoy the healthy life
brought by bird’s nest. In the future, YanPlace will continue to lead the global

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bird’s nest industry, build a century-old national brand as the goal, meet and
create customer needs, use technology and ingenuity to create the ultimate
products, let the ancient bird’s nest glow again, let more people enjoy the
beauty and health brought by bird’s nest.

Section 2 ZongTongPai

1、Enterprise profile

Tongrentang brand was founded in 1669 （the eighth year of Kangxi reign
of the Qing Dynasty）. Since 1723 （the year of Emperor Yongzheng of the
Qing Dynasty）, the imperial medicine for the Qing Palace has lasted for 188
years for eight generations of emperors.
The founding of the People's Republic of China in 1949 gave Tongrentang
a new life. In 1992, Beijing Tongrentang Group Co., Ltd. was established and
restructured into a wholly state-owned company in 2001. The modern
enterprise system was gradually established and improved in Tongrentang
Group.
In 1997, its Tongrentang shares were listed on the Shanghai Stock
Exchange. In 2000, Tongrentang Technology was listed on the Hong Kong
Stock Exchange. In 2013, Tongrentang Traditional Chinese Medicine was
listed on the Hong Kong Stock Exchange. The overall strength of Tongrentang
Group has risen to a new level.
In 2019, we fully implemented the decision and deployment of the CPC
Central Committee on the development of the cause of traditional Chinese
medicine, focused on the "two centenary" goals, planned the strategic thinking
of the development of Tongrentang Group in the new era, hired a third-party
professional company to carry out strategic consulting, and started a new
journey towards high-quality development.
Tongrentang Group adheres to the main direction of traditional Chinese

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medicine. At present, it has formed five major sectors with the pharmaceutical
industry as the core and the health care, medical care, commercial retail and
international pharmaceutical industry as the support. It has built a big health
industry chain integrating planting （breeding）, manufacturing, sales, medical
treatment, health care and research and development.
It has seven sub-groups, two hospitals and many direct subsidiaries, and
more than 2400 retail terminals and medical institutions can provide health
services to consumers all year round. With 36 production bases and more than
110 modern production lines, it can produce six categories, more than 20
dosage forms, more than 2600 kinds of drugs and health food, and a large
number of famous brands of medicines, such as Angong Niuhuang Pill,
Tongren Niuhuang Qingxin Pill, Tongren Wuji Baifeng Pill, are known to
everyone.
The President's Bird’s nest of Tongrentang Group is from Malaysia.
Because Malaysia is located in the broad waters of the Indian Ocean and the
Pacific Ocean, it is rich in algae and fish, which can provide sufficient food for
the collocalia; In addition, the temperature and humidity in Malaysia are more
suitable for the collocalia to inhabit. The Presidential Bird’s nest has been
tested for sulfur dioxide, nitrite, mold and gelatin. All tests meet relevant
standards and can be safely consumed.
Tongrentang Group has carried out in-depth education of socialist core
values, implemented the "four belts and four promotion" party building
innovation culture inheritance action, and promoted the double assessment of
party building and operation, so that the enterprise spirit of cherishing brand,
united struggle, doing pioneering work, and pursuing excellence has been
carried forward, and injected new impetus into the development of the
enterprise.

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2、Competitive advantage analysis

With the establishment of the production base of Tongrentang Chinese

Medicine Group in Hong Kong as the symbol, it has realized the leap from
"Tongrentang in Beijing" and "Tongrentang in China" to "Tongrentang in the
world". At present, it has set up business service terminals in 28 countries and
regions on five continents, accelerating the pace of internationalization of
traditional Chinese medicine.
It has a national engineering center and post-doctoral research
workstation, and a sound scientific and technological research and
development system. Since the "13th Five-Year Plan" alone, 265 new products
have been developed, and Morinda Oligosaccharide Capsule, which won the
first prize in Beijing Science and Technology, has filled the gap in the treatment
of depression with traditional Chinese medicine. Adhering to innovative
technology to solve common technical problems in the industry has completely
changed the backward situation of traditional Chinese medicine production
manual operation.
As the first batch of Chinese time-honored enterprises, Tongrentang
Group has adhered to the path of coordinated development of economic
entities and cultural carriers, conscientiously fulfilled the economic, political,
social and cultural inheritance responsibilities of state-owned enterprises, and
played a unique role in promoting the development of traditional Chinese
medicine and inheriting traditional Chinese medicine culture.
Tongrentang's original intention is to "cultivate benevolence and help the
world maintain health", and "serve the people's health wholeheartedly" is
Tongrentang's unchanging purpose. Tongrentang internalized the ancient
precepts of "no one can see how to repair, and the heart knows how to make",
"Although it is complicated, it is not afraid to save labor, and if it is expensive, it
is not afraid to reduce material resources", "I hope that people in the world will
be free from disease, even if the medicine on the shelf will generate dust" into

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the code of conduct of the enterprise, which created Tongrentang's

pharmaceutical characteristics of "unique formula, superior materials,
exquisite workmanship, and significant curative effect", and laid the foundation
of Tongrentang's quality and integrity culture.
Adhere to the spirit of craftsman, inherit and innovate, and continue to
make progress. Tongrentang Group has three national intangible cultural
heritage projects, including Tongrentang traditional Chinese medicine culture,
traditional Chinese medicine processing technology and Angong Niuhuang pill
manufacturing technology, and a number of municipal and district-level
"intangible cultural heritage" projects. There are 37 national, municipal and
district-level representative inheritors of intangible cultural heritage, 41
Tongrentang traditional Chinese medicine masters, 8 traditional Chinese
medicine masters, and 20 stunt inheritors.

3、Business status

In 2018, Tongrentang Group had a total operating income of 19 billion

yuan, a total profit of 2.7 billion yuan, and a total asset of more than 29 billion
yuan. Since the establishment of the Group in 1992, it has achieved a
cumulative profit and tax of 36.5 billion yuan, and achieved the maintenance
and appreciation of state-owned assets. It has successively won the "China
Trademark Gold Award - Trademark Application Award", "Madrid Special
Award for International Trademark Registration", "The First Beijing Municipal
People's Government Quality Management Award", "The 70th Anniversary of
the founding of the People's Republic of China Pharmaceutical Industry
Backbone Enterprise Award" and other honorary titles.

4、Development strategy

Adhere to the policy of "being better, better, stronger and longer", adhere
to the inheritance of essence, integrity and innovation, adhere to high-quality

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party building to lead high-quality development, actively implement the

"three-step" strategy, strive to build the three cornerstones of party building,
quality and integrity, make every effort to build a world-class TCM health
industry group with global influence, and strive to realize the strategic vision of
"where there is health demand, there is a Tongrentang".
"Tongrentang will be preserved for ten thousand years" is the high
expectation that Chairman Mao Zedong placed on Tongrentang in 1956 when
he talked with the head of the Civil Construction and the Federation of Industry
and Commerce.
On the long march of the new era, the Tongrentang Group will cherish the
expectations of the Party and the people, firmly grasp the great opportunity for
the development of the Chinese medicine industry at present, keep the original
aspiration, shoulder the mission bravely, forge ahead with determination, and
create glory again. With the performance of high-quality development, the
Tongrentang Group will take on the glorious mission of "serving the people's
health and promoting the revitalization of Chinese medicine", and write a new
chapter in the history of the development of the cause of Tongrentang.

Section 3 First Edible Nest Limited（Zhanji）

1、Enterprise profile

[Zhanji] In December 1995, the first bird’s nest special store was set up,
creating a precedent for the retail of ginseng and seafood in Hong Kong in the
form of a special store with clear prices, and innovating the traditional business
model of the industry.

2、Competitive advantage analysis

[Zhanji] Starting from a single bird’s nest, it has gradually developed into a
specialized store for high-quality food materials, actively searching for local

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delicacies and providing consumers with healthy, diversified and high-quality

choices. In addition, quality is also the most important part of the business
philosophy of [Zhanji]. Therefore, the company will closely monitor the whole
process from receiving to shipping to highlight its concept of "eating at ease"
for consumers. Following the "Hong Kong Brand" first awarded by the
authoritative sponsor - Hong Kong Brand Development Council and the Hong
Kong Chinese Manufacturers Association in 2005, [J] Bird’s nest won the
"Hong Kong Brand Excellence" again in 2012, and later won the "Hong Kong
Brand Ten Year Achievement Award" in 2014; This is the recognition of
[Zhanji]'s outstanding performance in brand development, products and
services, as well as the full affirmation of its market leading position.

3、Business status

The word "zhan" in [zhanji] clearly indicates that the core business of the
brand is to provide high-quality and high-purity bird’s nest lanterns; Its
advertising slogans "I believe in Zhanji" and "Zhanji Bird’s nest. It is a bird’s
nest" highlight the brand image of sincerity, credibility and good quality. [Zhanji]
The sales network is extensive, covering Hong Kong （33）, China and Macao;
It also has a central warehouse and logistics center with an area of nearly
30000 square feet at its headquarters in Hong Kong, and is equipped with a
high and low temperature refrigerator with an area of nearly 5000 square feet
and a professional transport fleet.

4、Development strategy

[Zhanji] is committed to providing customers with the most natural and

pollution-free bird’s nest; There are more than ten completed Yanwu and
processing plants in Java and Sumatra, Indonesia. They closely monitor the
whole process from collection, screening, cleaning, verification, storage to
export, and ensure the health and safety of products.

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Section 4 Guangzhou Guanyanzhan

Commerce&Trade Co.,Ltd.

1、Enterprise profile

Guangzhou Commerce&Trade Co.,Ltd. is an international health care

company based on Chinese-style health care. Its business covers the
production, retail, distribution and wholesale of hundreds of traditional
nourishing and modern simple health care foods.
The parent company of Guangzhou Guanyanzhan Commerce&Trade
Co.,Ltd. was established in 1964, specializing in the re-export trade and
wholesale of bird’s nest. By 1998, the concept of "specialty store" retail was
introduced in Guanyanzhan to innovate the business model of the local
old-style ginseng antler supplement retail industry, establish excellent
standards for product quality and inject new and comprehensive customer
service into the industry.
By 2005, it launched a new brand "Health Care Vera", and cooperated
with TCM scholars to develop diversified timely health care and dietotherapy
products. Guangzhou Guanyanzhan Commerce&Trade Co.,Ltd. directly
collects high-quality and healthy seafood imported from all countries of origin,
such as abalone, scallops, mushroom and gelatin, and provides customers
with hand-picking and delicious goods. At the festival, we will launch various
holiday gift boxes and baskets for customers and prepare wedding gift baskets
and honorable instant bird’s nest gifts for the wedding banquet.

2、Competitive advantage analysis

Guanyanzhan has more than 20 specialized retail stores, and also

distributes products to nearly 1000 chain pharmacies, supermarkets,
traditional Chinese medicine stores, convenience stores and health centers in

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Greater China and North America, as well as hotels in Hong Kong, Macao and
the Philippines. Since Guanyanzhan has its own production plant in Hong
Kong that has obtained the certification of the international food safety
management system, and there is also a quality inspection team that strictly
implements the supervision of high-quality food, which exempts the third party
from profits, it is also popular with major restaurants, catering groups, hotels
and food producers.
Guanyanzhan has strict requirements for food safety. Its own production
and research and development center in Hong Kong is a ready-to-eat bird’s
nest manufacturer with international food safety management system
certification ISO 22000, GMP and HACCP. As an expert in health care
products, Guanyanzhan will provide customers with one-stop services for
market expansion, including procurement, production, design, packaging,
market analysis and sales, logistics and after-sales services. With its
professional and rich experience, it can give customers valuable opinions and
professional suggestions on product development, equip customers with all
important elements, develop a successful marketing mix, and provide perfect
after-sales service to ensure customers' continuous satisfaction with the
quality of the company's products.
Guanyanzhan is the first member to sign a contract with the "Hong Kong
Dendrobium officinale Verification Center" and "Hong Kong Cordyceps
sinensis Verification Center" authorized by "Baptist University Scientific
Research Development Co., Ltd.". All batches of samples have been identified
by international patented technology. The Dendrobium officinale and
Cordyceps sinensis sold have obtained the authentication certificate, which is
absolutely a guarantee of confidence.

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3、Business status

Business status analysis of Guangzhou Guanyanzhan Commerce&Trade Co.,Ltd.

Economic indicators 2019

Total assets （thousand yuan） 5,732

Operating income （thousand yuan） 9,556

Total profit （thousand yuan） 31

Net assets （thousand yuan） -1,687

Total liabilities （thousand yuan） 7,419

Source: National Bureau of Statistics

4、Development strategy

Guanyanzhan has been developing diversified high-quality products and

services based on the development concept of "better than better" for many
years. More strictly abide by the three major product principles, adhere to the
principle of quality, satisfy the taste enjoyment, and innovate the packaging
design, so as to let customers feel the trend of Chinese-style health care,
promote the popularization of Chinese-style health care, and "share, maintain,
and enjoy" with customers.

Section 5 TwinLotus

1、Enterprise profile

Twin Lotus brand was established by Dr. Boonkit Lee Lertphan in 1977.
Based on the Thai Herbal Pharmacopoeia passed down from generation to
generation by the family, the doctor developed a botanical toothpaste that can
solve oral problems. Once it was introduced, it was a great success. Since

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then, it has continued to develop a number of personal care products, and has
repeatedly won the Thai consumer satisfaction awards. By 2004, the plant
toothpaste product was listed in the market share list of Thailand, and was
praised as the national brand of Thailand by the public, and ranked among the
royal tribute.
Since entering the new millennium, TwinLotus has combined the strong
demand of young consumers for a new model of health with its own
advantages of rich resources such as the origin of bird’s nest, established a
large independent bird’s nest factory, and successfully obtained the factory
inspection certification of the international testing agency SGS. It is the
manufacturer that China has obtained the certification of the national
export-grade instant bird’s nest standard chemical factory issued by the
Ministry of Agriculture of Thailand in the sale of Thai instant bird’s nest, The
double-lotus ready-to-eat bird’s nest series developed by the company has
entered the domestic market and is very popular.
Today, TwinLotus Bird’s nest has become a well-known imported
ready-to-eat bird’s nest product for Chinese consumers, and has led Tmall
Global in the sales of ready-to-eat bird’s nests for three consecutive years.
While guarding the original intention, TwinLotus has always been in line with
the times and has stepped out of its own brilliance.

2、Competitive advantage analysis

TwinLotus Company selects the essence of the powerful tropical unique

precious plants in the mountains of Thailand, adheres to the traditional manual
selection of bird’s nest raw materials, and maximizes the protection of
nutritional ingredients and the purity of bird’s nest; Together with the
international R&D team composed of global elites, we have introduced
Germany's advanced production line, integrated technology with traditional
wisdom and the power of natural origin, and created high-quality products that

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condense the essence of humanity in the world.

3、Business status

Business status analysis of Shanghai Tailian Trade Co.,Ltd.

Economic indicators 2018

Total assets 6129905.19 million yuan

business income 2082.158953 million yuan

Total profit 26.064771 million yuan

Net profit 26.064771 million yuan

Total tax 118.588781 million yuan

Source: annual report of the company

4、Development strategy

TwinLotus Company has always adhered to the brand concept of "natural

quality, natural color nourishment". With the continuous innovation and release
of various products, it has become the company's unremitting goal to let more
people use high-quality products that are natural, natural color, and healthy.

Section 6 DragonBrand

1、Enterprise profile

Mr. Chen Jinbiao founded "Jinxing Food Company" in Singapore in 1957.

For more than 60 years, the company has worked hard to create today's
"DragonBrand Bird’s nest" brand by virtue of its excellent selection of materials,
unique processing and excellent quality, and has successfully pushed it into
the international market.

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2、Competitive advantage analysis

Today, "DragonBrand" has become a consensus mark of overseas fame,

and its products are sold well in Australia, Hong Kong, Japan, Malaysia,
Taiwan, the United States and other places. In Southeast Asia, "DragonBrand"
is synonymous with bird’s nest.

3、Business status

Business status analysis of SINGAPORE FOOD （XIAMEN） CO., LTD.

Economic indicators 2021 2020 2019

Total assets （10000 yuan） 260.42 389.97 555

Operating income （10000 yuan） -- -- 740.34

Total profit （10000 yuan） -- -- 5.8

Net assets （10000 yuan） -175.34 -45.85 86.83

Total liabilities （10000 yuan） 435.76 435.82 468

Source: National Bureau of Statistics

4、Development strategy

Over the past 60 years, Jinxing Bird’s nest Company has not only created
the brand of "DragonBrand Bird’s nest", but also improved a series of
production management systems, quality inspection systems and sales
service systems. As early as the 50th birthday of the company, "DragonBrand
Bird’s nest" entered China, and now it has developed and expanded. The
company will make further efforts to dedicate the sweet, delicious, nourishing
and nourishing bird’s nest to Chinese consumers.

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Section 7 Yananju

1、Enterprise profile

XIAMEN EVERNEST CHAIN OPERATION CO.,LTD., founded in 2004, is

headquartered in Xiamen, a beautiful coastal city. At present, there are
hundreds of sales outlets across the country.

2、Competitive advantage analysis

The company have been deeply involved in the bird’s nest industry for
more than ten years and are committed to building a century-old bird’s nest
brand. Yananju is a group company integrating Southeast Asian bird’s nest raw
material base, domestic production and research base, chain operation
management organization and perfect sales network. Jointly built an integrated
platform for the inspection, temporary storage and designated processing of
imported bird’s nest with the local government, and invested in building the
Yananju • Southeast Yandu Project, and built a professional platform that runs
through the whole industrial ecological chain of bird’s nest.
Yananju · Southeast Yandu Project is a key bird’s nest industry ecological
chain project built by the company. Centering on the core purpose of building
bird’s nest "imported raw materials of wool swallow", the project integrates
industry resources, realizes industrial upgrading, improves the credibility of the
industry, unites the industry to take a healthy, standardized and sustainable
development path, and ultimately achieves win-win and win-win results for
consumers, industry, and enterprises. Upon completion, it will become the
largest bird’s nest distribution center in Southeast Asia.

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3、Business status

Business status analysis of XIAMEN EVERNEST CHAIN OPERATION CO.,LTD.

Economic indicators 2021 2020 2019

Total assets （10000 yuan） 7781.68 5468 5669.03

Operating income （10000 yuan） -- -- --

Total profit （10000 yuan） -- -- --

Net assets （10000 yuan） 338.47 -1201 -551.67

Total liabilities （10000 yuan） 7443.21 6669 6220.7

Source: National Bureau of Statistics

4、Development strategy

Yananju Southeast Yandu Project is not only one of the key platforms of
Fujian Pilot Free Trade Zone, but also one of the key projects of Xiamen's
integration into the "the Belt and Road". After six years of tempering, the
project has gradually achieved the creation of two physical carriers, four
professional platforms and industry associations. As the two physical carriers
of Yananju • Southeast Yandu Project, the integrated platform for the
inspection, temporary storage and designated processing of imported bird’s
nest and the Southeast Yandu Industrial Park run through the entire bird’s nest
industrial ecological chain to realize the circulation process of "raw material
import - production and processing - terminal sales" of bird’s nest. At the same
time, the traceability platform, the testing and certification research and
development platform, the B2B e-commerce platform, and the supply chain
finance platform are the four professional platforms to escort the bird’s nest
entire industrial ecological chain, and effectively ensure the safety, research
and development and circulation of products.

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Section 8 EuYanSang

1、Enterprise profile

EuYanSang began in 1879. Singapore national health brand, whose

products are popular in Singapore, Malaysia, Indonesia, Australia, Cambodia,
Chinese Mainland, Hong Kong, Macao and other places. Over the past
hundred years, EuYanSang has adhered to his original intention, inherited the
wisdom of the secret recipe of traditional Chinese medicine for thousands of
years, adhered to the principle of taking nature as the foundation and scientific
research as the evidence. His fist and fist ingenuity only aims to create
superior Chinese medicine nourishment, provide natural health care programs
accessible to everyone, and help everyone achieve the best quality of life.
Over the past hundred years, EuYanSang has made continuous progress
in product research and development, producing and selling nearly 1000 kinds
of high-quality Chinese herbal medicine, proprietary Chinese medicine,
traditional Chinese medicine health products and health food. Among them,
Ganoderma lucidum spore powder, bird’s nest, Dendrobium candidum,
Cordyceps sinensis, American ginseng, and female imported supplements sell
well at home and abroad.
To this day, EuYanSang has gone through four generations, and has been
unswerving for more than 140 years. He has adhered to the ancient motto of
"benevolence to all living beings" and "natural medicine". With his enthusiasm
for traditional Chinese medicine, he has made continuous progress in product
quality, innovation and research, and has been recognized by overseas
Chinese. His business has expanded to Singapore, Hong Kong, Macao,
Indonesia and other places.

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2、Competitive advantage analysis

Professional Chinese medicine talent team

A number of TCM doctors, herbalists, pharmacists and nutritionists have
provided rich TCM guidance experience for product research and development,
sales stores and medical centers.
4 GMP certified pharmaceutical plants
It has successively opened 4 pharmaceutical plants with good
manufacturing practice （GMP） and ISO9001 certification. 1 in Hong Kong,
China and 3 in Malaysia.
Agricultural scientific norms of excellent traditional Chinese medicine
The world's first safety evaluation standard for traditional Chinese herbal
medicine ensures the safety and traceability of traditional Chinese herbal
medicine from cultivation, collection, production, sales, storage and
transportation.
Fingerprint technology of traditional Chinese medicine
Identification and analysis of traditional Chinese medicine and traditional
Chinese medicine products. Chromatographic fingerprints depict and mark
their chemical composition, weight and characteristics to ensure the stability
and safety of the quality of different batches of products.
Hospital clinical research cooperation
In 1990, it was put into clinical research and scientific research
development. It has cooperated with major hospitals in Beijing, Wuhan and
Guangzhou to carry out clinical research on traditional Chinese medicine.
Joint research of universities at home and abroad
It has set up a brand research laboratory, carried out joint research with
many universities at home and abroad, innovatively developed new products
and improved existing products, and has obtained several patents.

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3、Business status

Business status analysis of EuYanSang Trading （Guangdong） Co., Ltd.

Economic indicators 2018

Total assets （thousand yuan） 22,761

Operating income （thousand yuan） 4,369

Total profit （thousand yuan） -3,367

Current assets （thousand yuan） 16,063

Total liabilities （thousand yuan） 1,474

Source: National Bureau of Statistics

4、Development strategy

4.1.Main markets: Malaysia, Singapore, Hong Kong, Macao, Chinese

Mainland
4.2.Export markets: Indonesia, Cambodia, the United States, Canada,
Australia
4.3 32 TCM clinics/medical centers: 24 in Singapore, 6 in Malaysia, and 2
in Hong Kong, China
4.4 More than 300 retail stores&franchise stores: located in
Singapore/Malaysia/Australia/Hong Kong, China/Macao, China/Chinese
Mainland
4.5.3 healthy restaurants

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Part IV Industrial dynamic analysis

Chapter X Analysis of the development

trend of bird’s nest industry

Section I Development Environment Outlook in

2022

1、Prospects for macroeconomic situation in 2022

In 2022, China's economy has withstood the strong impact of multiple

internal and external factors, such as the COVID-19 and the Ukrainian crisis.
However, under the circumstances of efficient and coordinated epidemic
prevention and control, economic and social development, and a number of
policies to stabilize the macroeconomic market have been launched and
accelerated to implement, China's gross domestic product （GDP） has
reached 121 trillion yuan, an increase of 3.0% over the previous year at
constant prices; With 2019 as the base period, the average annual compound
growth rate in the three years after the epidemic was 4.5%, which is the
absolute top among the major economies in the world. From a quarterly
perspective, the real GDP of the first, second, third and fourth quarters of 2022
increased by 4.8%, 0.4%, 3.9% and 2.9% respectively year on year, and the
volatility of economic growth increased. In 2022, China's consumer price index
（CPI） rose 2.0%, 1.1 percentage points higher than the previous year; The
industrial producer price index （PPI） rose 4.1%, down 4.0 percentage points
from the previous year, with a relatively significant decline. Since October, it
has been mainly affected by the rise of the base in the same period last year,
and the year-on-year growth rate of PPI has changed from positive to

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negative.
From the production side, the growth rate of China's industrial economy
has fallen back to the level before the epidemic in 2022; The service industry
has been disturbed by the epidemic, and its recovery has been hindered and
the structure has been significantly differentiated. In 2022, the added value of
industries above designated size nationwide increased by 3.6% year-on-year,
2.5 percentage points lower than the average growth rate of the previous two
years, 2.1 percentage points lower than that of 2019 before the epidemic, and
fell back to the level before the epidemic. After the outbreak of the COVID-19
epidemic, China coordinated the epidemic prevention and control and
economic and social development. Domestic production, especially industrial
production, recovered rapidly, and the gap between overseas supply and
demand expanded. In the first two years after the outbreak of the epidemic, the
average annual growth rate of China's industrial production was 6.1%, higher
than the level of 5.7% in 2019; However, with the narrowing of the gap
between overseas supply and demand and the continuous disturbance of the
domestic epidemic, China's industrial economic growth rate, although still
higher than GDP growth rate, has fallen back to the level before the epidemic.
The trend of China's industrial production rising first and then falling is also
reflected in the industrial capacity utilization rate. In 2022, China's industrial
capacity utilization rate was 75.6%, 1.9 percentage points lower than the
previous year; Among them, the capacity utilization rate of manufacturing
industry decreased by 2.0 percentage points, and that of power, heat, gas and
water production and supply industries decreased by 2.2 percentage points.
Only the mining industry was affected by the guaranteed supply and stable
price of industrial basic products, and the capacity utilization rate increased by
0.6 percentage points. Under the condition that the growth of industrial
economy is still faster than the overall GDP growth, the ratio of industrial
added value to GDP in China will increase to 33.2% in 2022, which will
continue to increase by 0.6 percentage points over the previous year. This
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should be the second consecutive year after the ratio of industrial added value
to GDP has declined for ten years since 2011.
In 2022, the added value of the national service industry increased by
2.3% year-on-year, 0.7 percentage points lower than the GDP growth rate, 2.8
percentage points lower than the average growth rate of the previous two
years, and the recovery of the service industry was significantly affected by the
disturbance of the epidemic. From a quarterly perspective, the year-on-year
growth rate of the added value of the service industry from the first quarter to
the fourth quarter was 4.0%, - 0.4%, 3.2% and 2.3% respectively, and the
fluctuation was significantly larger than before the epidemic. In 2022, with the
year-on-year increase of 2.3% in the whole service industry, the added value
of the accommodation and catering industry, transportation, warehousing and
postal industry will be reduced by 2.3% and 0.8% respectively due to the
impact of the epidemic. The real estate industry will be affected by multiple
factors, and the added value of the industry will be decreased by 5.1%, while
the added value of the information transmission, software and information
technology service industry and the financial industry will be increased by
9.1% and 5.6% respectively, The recovery and structural differentiation of the
service industry is very obvious.
In 2023, China's fixed asset investment may show a slight decline in the
growth rate of infrastructure investment; The growth rate of manufacturing
investment is high before and low after, and the annual growth rate is relatively
large; Real estate investment is low at the front and high at the back, and it is
difficult to have a significant growth throughout the year. The growth rate of
policy-driven infrastructure investment may be ahead of the growth rate of the
other two types of investment. Under the background of continuing to
implement the active fiscal policy and increasing the financing support of
policy-based finance for major projects in line with the national development
plan, as an important means to organically combine the expansion of domestic
demand with supply-side structural reform, the growth rate of infrastructure
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investment in 2023 will lead the growth rate of other two types of investment,
but because the base of the previous year has risen significantly, the
year-on-year growth rate will fall slightly compared with the previous year.
Considering that real estate has the dual attributes of investment goods and
consumer goods at the same time, the year-on-year growth rate of real estate
investment in 2023 will continue to decline for a period of time, and it is difficult
to have a significant increase throughout the year. In fact, real estate is the
main asset holding form of Chinese households, accounting for nearly 70% of
total assets in recent years; After purchasing a house through mortgage loan,
residents need to continue to use future income to repay the house loan for a
long time. At present, China's purchase restriction and loan restriction policies,
as well as the adjustment of the interest rate and tax rate of the purchase loan
will change the cost of owning the real estate. However, the stabilization of the
real estate sales end still needs the improvement of the residents' income
growth expectation and the real estate price rise expectation, which may be
realized after the recovery of the economic growth rate for several consecutive
quarters. Affected by the contraction of external demand and the decline of
capacity utilization rate, the growth rate of manufacturing investment will be
high before and low after the year, and the decline of the annual growth rate
may exceed that of infrastructure investment.
Affected by the contraction of international demand and the rise of the
base, China's export growth will turn to negative growth, and the net export
may form a certain drag on economic growth. In the first two years after the
outbreak of the epidemic, China's foreign trade exports have achieved a more
than expected growth, with a compound growth rate of 26.7% in the two years;
However, due to the continuous tightening of monetary policies in some
economies and other factors, the global economic growth will significantly slow
down in 2023. At the same time, as inflation in some countries may decline
rapidly, the contribution of prices to the growth of China's exports will also tend
to decline. In the case of weak external demand and strong domestic demand,
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the pulling effect of net exports on China's economic growth may turn negative.

2、Policy trend in 2022

In 2022, in order to cope with the "triple pressure" faced by China's

economic development, the proactive fiscal policy will take the lead in
supporting the smooth operation of the economy by increasing the intensity of
fiscal expenditure, large-scale tax rebates, and accelerating the issuance of
special bonds. The policy dividend will continue to be released, placing stable
growth in a more prominent position.
First, the strength of fiscal expansion has increased significantly, and the
combined fiscal policy has made significant contributions. On the one hand, a
number of incremental fiscal policies have been implemented, which are
mainly reflected in the obvious relief effect of the combined tax and fee
reduction policy, the transfer payment and direct access of financial funds to
enhance the ability of local finance to ensure people's livelihood, and the
accelerated issuance of special bonds to help the steady growth of
infrastructure investment. On the other hand, we will increase the space for
fiscal development by transferring funds, using carry-forward balance funds,
and actively activating stock assets. The deficit rate in 2022 will be 2.8%. On
the basis of the deficit rate, the cross-year transfer in funds and the use of
carry-forward balance funds can be supplemented, which can more
comprehensively show the scale of active fiscal policy. According to the report
of the draft budget, the funds transferred in and used in the carry-forward
balance in 2022 reached 2.3 trillion yuan, significantly exceeding 1.2 trillion
yuan in 2021, reflecting the timely use of the stock policy tools. At the same
time, from the perspective of expenditure, the national general public budget
expenditure from January to October was 20633.4 billion yuan, an increase of
6.4% over the same period of the previous year. The scale of fiscal
expenditure increased significantly, reflecting the continued efforts of the active

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fiscal policy and maintaining the intensity of expenditure

Second, the amount of tax reductions and rebates reached a record high,
and the income of small and medium-sized enterprises and manufacturing
enterprises was obvious. As of November, the tax support policy implemented
in 2022 has reached more than 3.7 trillion yuan, of which 2.3 trillion yuan has
been refunded for the most important value-added tax rebate, more than the
total of the previous three years. For small, medium-sized and micro
enterprises, affected by the epidemic, a large number of enterprises are facing
operational difficulties. Tax reduction and fee reduction are more conducive to
the relief of real enterprises, and the policy effect of protecting the main body
and stabilizing employment is stronger. The results of a recent survey
conducted by the Ministry of Industry and Information Technology on 25000
small and medium-sized enterprises showed that 92% of small and
medium-sized enterprises believed that the tax burden of enterprises had been
reduced through the implementation of tax and fee reduction measures. For
manufacturing enterprises, the way of tax deduction and refund can help
technology enterprises and manufacturing enterprises with large initial
investment in equipment to reduce capital occupation, ease financing pressure,
enhance capital expenditure willingness and promote industrial upgrading. In
general, the combined tax and fee support policy has played an important role
in boosting the confidence of market participants, stabilizing market
expectations, expanding effective investment, and stimulating final
consumption, thus promoting economic recovery and development.
Third, we should fully release the effectiveness of the special debt policy
and help the steady growth of infrastructure investment. Special bonds are one
of the most direct policy tools to stimulate investment. Since 2022, various
regions have accelerated the issuance and use of special bonds to help the
steady growth of infrastructure investment. First, in terms of the quota, the new
special debt quota will be 3.65 trillion yuan in 2022. Of which, 3.45 trillion yuan
was used for project construction. On this basis, in August, the State Council of
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the People's Republic of China deployed 19 policies to stabilize the economy,

and arranged a special debt balance limit of more than 500 billion yuan,
requiring all regions to complete the issuance before the end of October. By
the end of October, a total of 3.69 trillion yuan of newly issued special bonds
had been issued, and the progress of issuance and use had been significantly
accelerated, which effectively stimulated effective investment. Second, from
the perspective of investment orientation, the main areas of issuance of
special bonds are infrastructure construction, shantytowns reconstruction,
social undertakings, etc. Among them, the proportion of capital construction
special debt is about 63%, mainly invested in various infrastructure
construction such as transportation （about 81%）, toll roads （7%）, industrial
parks （6%）, water conservancy projects, etc. Third, from the perspective of
the amount of physical objects formed, the State Council has repeatedly
requested that "funds follow the project". The faster the funds are allocated,
the more governments at all levels are required to reserve projects in advance.
At the same time, qualified government investment projects in the field of new
energy and new infrastructure are included in the support scope of local
government special bonds to help the development of emerging industries.
Fourth, the central government should give local financial support to alleviate
the contradiction between local financial revenue and expenditure. In 2022, the
complexity, severity and uncertainty of the economic development
environment will increase, and the risks caused by unexpected factors will
increase. The contradiction between revenue and expenditure has increased
in some local governments due to the decline of revenue and the
non-reduction of rigid expenditure. From the revenue side, in the first 10
months of 2022, the broad fiscal revenue was about 22.56 trillion yuan, down
about 9.4% year on year. From the perspective of expenditure, under the
normalization of the epidemic, the demand for people's livelihood expenditure
has further increased. Broad fiscal expenditure was about 29.22 trillion yuan,
up about 7.4% year on year. In general, under the normal development of the
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epidemic, the growth of tax revenue is slow, and the revenue of government
funds continues to decline under the background of the continuous downturn
of the real estate industry. Only the growth of non-tax revenue is difficult to
supplement the financial space. The expenditure in the first 10 months is more
than the income of about 6.66 trillion yuan, an increase of about 188% year on
year, and the contradiction between revenue and expenditure of some local
governments has increased. In the face of the downward trend of income, the
local government, on the one hand, has opened up financial resources in the
way of activating the stock assets, on the other hand, the central government
has also given strong support to local finance. On the one hand, the strength of
transfer payments has set a record. In 2022, the central government will pay
nearly 9.8 trillion yuan to local governments, with an increase of 18%, both of
which are the highest in history; The second is to promote the normalization of
the direct financial access mechanism. The total direct financial access in 2022
will be about 4 trillion yuan, which is mainly used to accurately support the
employment of residents at the grass-roots level and ensure the basic
livelihood of the people, and help to secure the bottom line of the people's
livelihood.

3、Prospects for international macroeconomic trends

in 2022

The global output shrank in the second and third quarters, the inflation
level exceeded expectations, the negative impact of the Russian-Uzbekistan
conflict intensified, the current economic outlook is relatively uncertain, and the
downward risk is dominant. According to the report, the global growth rate will
decline from 6.0% in 2021 to 3.2% in 2022, and will further decline to 2.7% in
2023. Among them, the growth rate of developed countries, including Europe
and the United States, will be 2.4% in 2022, and may fall to 1.1% in 2023.
Many developed countries are at risk of recession. While the economies of

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developing countries are relatively stable, with a growth rate of 3.7% in 2022
and a stable level in 2023.
For the United States, according to its judgment, the growth rate will be
1.6% in 2022, and may fall to 1% in 2023. For the countries in the euro area,
the economic growth of France, Germany and other Western European
countries will be 3.1% in 2022, and may fall to 0.5% in 2023. The report
specifically mentions that Germany, the largest economic power of the EU,
may have negative growth in 2022. In contrast, India has become the fastest
growing economy in the world, with a predicted growth rate of 6.1% in 2023.
However, due to the impact of the war, Russia showed a significant negative
growth in 2022 and 2023.
The trend of the world economy emphasizes that the United States, as the
world's largest country, has the largest economic aggregate, and the United
States dollar is the world's currency. The economic trend affects the global
economic trend. The biggest problem with the trend of the US economy is that
the inflation rate reached 9.1% in June, a 41-year high. Through a series of
macro-control, inflation remained high in October. As the main means of
solving inflation in the United States, interest rate increases have been raised
for six consecutive times in 2022. The interest rate has been raised from 0.5%
to 4% at the beginning of 2022, with unprecedented intensity. At the same time,
a large amount of funds arbitrage into the US dollar after the interest rate
increase, making the index higher. In terms of unemployment rate, although
inflation is relatively high, the unemployment rate is relatively low, currently
3.7%.

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Section II Analysis of the development trend of

bird’s nest industry in 2022

1、Analysis of technology development trend in 2022

The opportunity of Internet plus e-commerce has led to the rebirth of the
bird’s nest industry, and has also brought opportunities and hope to many new
brands. The new "marketing means" have made the bird’s nest market
attention continue to grow, and the shopping method has also made it easier
for users to buy bird’s nest. The supervision and sorting of the bird’s nest
industry by relevant departments have gradually shown effect, making the
bird’s nest once again develop to the present, Safety and health have been
raised to an unprecedented new level.
The new technology scenario in the bird’s nest industry enables industry
users to gain a better experience. Thanks to technology, the service effect and
products of the industry are favored by users. The emergence of new
technologies, such as cloud computing, big data and artificial intelligence, has
provided a new space for thinking about the issue of industry standardization.
By adding new technologies to the process of industry production and service,
it can better solve the industry pain points and problems, ensure the industry
service effect, and realize the dual improvement of industry efficiency and user
experience.

2、Analysis of product development trend in 2022

In recent years, people's living standards have continued to improve and

their ability to pay for consumption has continued to increase; Through
innovation, bird’s nest enterprises continue to introduce new products with
better eating convenience, such as ready-to-eat bird’s nest at room
temperature, fresh stewed bird’s nest, and fresh pickled bird’s nest, to attract

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more and more consumers. Fresh stewed bird’s nest has been popular in the
past two years. It is both convenient and "fresh", fresh and fast, and gradually
separated from ready-to-eat bird’s nest and developed into an independent
category. In 2019, the sales of Tmall's fresh stewed bird’s nest was about 700
million yuan, accounting for half of the sales of traditional ready-to-eat bird’s
nest. From October 2019, the proportion of fresh stew has surpassed that of
ready-to-eat bird’s nest. In the future, fresh stew will become the mainstream
bird’s nest product, which will put forward higher requirements for processing
technology, transportation and storage capacity.

3 、 Prospect of competition pattern of bird’s nest

industry in 2022

The bird’s nest market presents a duopoly competition pattern. The top
two brands in the market share are Xiaoxiandun and YanPlace, while the other
brands, such as TwinLotus, Jihuo and PT Swift Bird’s nest, have a market
share of less than 5%. In addition, with the entry of young consumers,
ready-to-eat bird’s nest products are popular with more young consumers,
which is also the largest growth. At present, the bird’s nest consumer
population is still mainly in the south, and Jiangsu, Zhejiang and Guangzhou
are the largest consumer provinces. Shandong, Beijing, Henan and Hebei are
the main purchasing regions in the north.

4、Development trend of product application field in

bird’s nest industry

With the improvement of national living standards and people's

unprecedented attention to health care, healthy food is becoming a new
growth point of consumption. With the release of the national second child
policy, the bird’s nest, which is a tonic with the same origin of traditional

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Chinese medicine and food, is popular with consumers who pay attention to
health preservation. At the same time, the unique and precious ingredient in
bird’s nest, sialic acid, as an important component of the brain, is
supplemented during brain development, which has also become the rigid
demand of pregnant women and infants. Gradually, the consumption habit is
gradually formed. Eating bird’s nest has become a healthy lifestyle for more
families.

Section III Market trend analysis of Chinese

bird’s nest industry in 2023-2029

1、Summary of Bird’s nest Industry Market Trends

2017-2022

Affected by consumption upgrading and the COVID-19 this year, Chinese

bird’s nest industry has accelerated its iteration and innovation upgrading, and
the consumption level has become younger. The post-80s and post-90s
generation have joined the health care tide, and the audience has higher
requirements for quality. The speed of product innovation is accelerated, and
the product functions are more high-quality, fashionable, diversified and
convenient. The competition of goods will turn into the competition of services,
and the importance of service quality will become more prominent, which will
become the latest status and future development trend of the bird’s nest
industry. With the continuous loosening of the bird’s nest import policy, the
emergence of various advantages and the rise of e-commerce, the bird’s nest
market has shown a rapid growth trend.

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2、 Analysis on the development trend of bird’s nest

industry in 2023-2029

The bird’s nest industry has become an important part of China's

consumer goods market. The relevant national administrative departments
have successively issued a series of management policies to promote the
increasingly standardized development of the industry. In the import of raw
materials, the former General Administration of Quality Supervision, Inspection
and Quarantine of the People's Republic of China issued the Announcement of
the General Administration of Quality Supervision, Inspection and Quarantine
of the People's Republic of China on the Inspection and Quarantine
Requirements of Imported Bird’s nest Products from Malaysia, the
Announcement of the General Administration of Quality Supervision,
Inspection and Quarantine of the People's Republic of China on the Inspection
and Quarantine Requirements of Imported Bird’s nest Products from Indonesia,
and the Announcement of the General Administration of Quality Supervision,
Inspection and Quarantine of Imported Bird’s nest Products from Thailand
Inspection and quarantine requirements are clearly specified; In the production
process, the key processing enterprises in the industry consciously abide by
the relevant food production and processing specifications, and actively
promote the introduction of national standards, industrial standards and group
standards of the bird’s nest industry; In the sales sector, the State
Administration of Market Supervision and Administration and other relevant
institutions have adopted increasingly strict management measures on product
marketing and the legal rights of consumers.

3、Market development space of bird’s nest industry in

2023-2029

With the increasing attention of consumers to the authenticity of raw

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materials and the high and low quality of products, the competition in the bird’s
nest industry is increasingly brand-driven, and enterprises with high brand
awareness and good product reputation have obvious advantages in the
current competition in the bird’s nest industry. There is still a lot of room for the
development of bird’s nest industry in China. On the one hand, the
consumption of bird’s nest in China has increased year by year; On the other
hand, with the improvement of consumption level, the consumption of bird’s
nest gift is also increasing gradually, which drives the consumption of bird’s
nest. With the vigorous development of large health care products, all kinds of
groups have realized the importance of immune enhancement. Even though
the post-90s group is young, they are also keen to maintain health through
sports and nutrition. The choice of the northern and southern regions is to eat
bird’s nest.

4、Analysis of the driving factors for the development

of bird’s nest industry

1. Policy factors
The Outline of the Fourteenth Five-Year Plan for the Development of
Bird’s nest Industry issued by the central government clearly requires that the
bird’s nest industry will increase by 62% by 2021. Local governments have
issued local policies to improve the industry penetration. In 2020, the bird’s
nest industry will become a market for policy dividends. The State Council
government report points out that the bird’s nest industry will help improve the
quality of life of the people.
2. Economic factors
The bird’s nest industry continues to have a hot demand. Capital is good
for the bird’s nest industry, and the industry is developing well for a long time.
The growth of the transaction scale of the downstream industry provides new
development impetus for the bird’s nest industry. The improvement of

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residents' consumption level provides an economic basis for the market

demand of bird’s nest industry.
3. Social factors
The traditional bird’s nest industry has low market threshold, lack of
unified industry standards, and lack of professional supervision of the service
process. The combination of Internet and bird’s nest can reduce intermediate
links and provide users with cost-effective services. The post-90s and post-90s
have gradually become the main consumers of the bird’s nest industry.

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Chapter XI Development Forecast of

Bird’s nest Industry in the Future

Section I Future Bird’s nest Industry Demand

and Consumption Forecast

1 、 Product consumption forecast of bird’s nest

industry in 2023-2029

With the improvement of residents' consumption ability, the launch of

convenient and safe products such as ready-to-eat bird’s nest at room
temperature and fresh stewed bird’s nest, and the expansion of the market
scale of e-commerce platform, bird’s nest consumer groups have become
increasingly diversified. In addition to the traditional middle-aged and elderly
health care groups and gift groups, more young consumers who love food,
taste fresh food and health care have gradually joined the consumer group of
bird’s nest consumption.
With the development of the national economy and the improvement of
the income level of residents, the main aspects of bird’s nest consumption
demand are the pregnant women market, the health care market, the gift
market and the food market. The market development momentum is expected
to maintain a good growth trend, which will provide broad development space
for the development of bird’s nest industry. It is estimated that the total
consumption demand of bird’s nest in China will reach 3340.2 tons by 2029.

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Product consumption forecast of bird’s nest industry in 2023-2029

Source: research from Intelligence Research Group

2、Forecast of Bird’s nest Industry Market Size from

2023 to 2029

In the future, the middle class will continue to expand, and the bird’s nest
market will continue to benefit from it. The size of the bird’s nest industry is
expected to maintain a good trend of development. It is estimated that the size
of Chinese bird’s nest retail market will reach 106743 million yuan by 2029, of
which the size of imported Bird’s nest retail will reach 80.144 billion yuan, and
the size of bird’s nest smuggled products will reach 26.599 billion yuan.

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Forecast of Bird’s nest Industry Market Size from 2023 to 2029

Source: research from Intelligence Research Group

Section II Supply and demand forecast of

Chinese bird’s nest industry in 2023-2029

1、Forecast of supply and demand balance of Chinese

bird’s nest industry in 2023-2029

The State strengthens the supervision of the bird’s nest industry, and
promotes the incorporation of overseas registered bird’s nest processing
enterprises into CAIQ traceability. It is expected that the scale of imported
bird’s nest will achieve rapid growth in the future, and the imported bird’s nest
will reach 1229.2 tons by 2029.

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Forecast of supply and demand balance of Chinese bird’s nest industry in 2023-2029

Source: research from Intelligence Research Group

2 、 Product price forecast of Chinese bird’s nest

industry in 2023-2029

It is expected that bird’s nest products will rise in the future. By 2029, the
average retail price of imported bird’s nest will be 65.2 million yuan/ton, and
the price of smuggled bird’s nest will be 12.6 million yuan/ton.

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Product price forecast of Chinese bird’s nest industry in 2023-2029

Source: research from Intelligence Research Group

Section III Key Trends Affecting Enterprise

Production and Operation

1、Market integration growth trend

As consumers pay more attention to food safety, the market space of

small workshop products that rely solely on low prices to obtain customers will
become smaller and smaller. With more standardized management of raw
material procurement, product processing, sales and circulation, large brand
products will have more guaranteed product quality and more consumer
confidence, and will be selected by more and more consumers. In addition, the
after-sales service ability of large brand products is stronger, and the rights
and interests of consumers are more protected. At the same time, the R&D
ability of large brand products is also stronger. For example, YanPlace
launched multi-flavor ready-to-eat bird’s nest products for pregnant women,
and the high beauty packaging, product taste and nutritional value are more

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popular with consumers. bird’s nest brand will become an important basis for
consumers to choose bird’s nest products.
At the same time, these large and medium-sized bird’s nest enterprises
have taken measures such as self-built factories, Bird’s nest R&D centers, and
increased brand exposure investment in order to obtain a larger market share.
The industry concentration has increased significantly, and the industrial
structure has been gradually optimized, showing a good development trend.

2 、 Demand change trend and new business

opportunities forecast

With the development of economy and society and the continuous

improvement of people's consumption level, high-end food materials such as
Bird’s nest, ginseng and abalone, which are traditionally only consumed by a
small number of people, are becoming the daily consumption options of the
masses. The expansion of bird’s nest consumer groups has brought about
differentiated consumer demands, such as the rapid pace of life and work has
led to the development of ready-to-eat bird’s nest products, and the demand
for higher freshness of ready-to-eat bird’s nest products on e-commerce
platforms has promoted the explosive growth of fresh stewed Bird’s nest. In
addition, the launch of diversified products such as Bird’s nest zongzi and
Bird’s nest convenient porridge meets the demands of different consumer
groups.

3、The trend of enterprise regional market expansion

Due to the complex processing network of Bird’s nest and the import of
Bird’s nest, bird’s nest has high added value, which is mainly targeted at
high-income consumer groups. chinese coastal cities, such as Guangzhou and
Xiamen, are the main circulation areas of bird’s nest. Local consumers have a

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high awareness of bird’s nest and a high penetration rate of consumption.

There are many high-income groups in Shanghai, where the economy is
prosperous and developed, and in Beijing, where the power is concentrated, It
is also the main consumption area of Bird’s nest.
Bird’s nest consumption continues to spread inland. With the continuous
promotion of reform and opening up, the imbalance of regional economic
development in China has gradually decreased. The leading development of
coastal areas has led to the development of inland areas. The consumption
level of residents in inland areas has continuously improved, and the
requirements for the quality of life have also continuously improved. At the
same time, the awareness of Bird’s nest has deepened, and the consumption
of Bird’s nest has continued to spread to inland areas. Bird’s nest enterprises
in China's coastal urban areas are expanding their market in inland areas by
developing ready-to-eat Bird’s nest products and increasing advertising and
marketing efforts.

4、Trends in scientific research and development and

progress in alternative technologies

4.1Intelligent production of the whole process of bird’s nest processing

Due to the particularity of the environment in which bird’s nest raw
materials are formed, processing enterprises need to spend a lot of manpower
to pick and purify the raw materials one by one after purchasing the bird’s nest.
A skilled picker can only complete the sorting of raw materials in a working day
with a weight of hundreds of grams. Therefore, the ready-to-eat bird’s nest
processing enterprises have the characteristics of labor-intensive. Self-owned
factories and enterprises that carry out the raw material sorting and processing
by themselves need to be equipped with a considerable number of pickers. It
will be an important trend for the future development of the bird’s nest industry
to realize the automation, intelligent identification and removal of impurities in

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the bird’s nest picking process and promote the intelligent production of the
whole process of bird’s nest processing.
4.2 Enterprises compete for "freshness" or become a development trend
Under the background of the popularity of ready-to-eat bird’s nest and
stewed bird’s nest, the bird’s nest brands represented by YanPlace and
Xiaoxiandun are trying to highlight the "freshness" of their own products to
attract consumers. The fresh-keeping period of ready-to-eat Bird’s nest and
fresh stewed bird’s nest is very short. If Bird’s nest wants to ensure nutrition
and freshness, it must work hard on processing technology and cold chain
transportation. For example, Xiaoxiandun adopts the method of first filling and
then stewing, and each pot is stewed separately to reduce food pollution and
further lock fresh. In the final delivery link, Xiaoxiandun adopts three-layer cold
fresh packaging to ensure the cold fresh temperature and freshness of the
product. YanPlace directly collects bird’s nests from the production area, and
then directly arrives at the exclusive inspection channel through air
transportation; Then use 0 ℃ to store "fresh"; In the processing process,
16 ℃ pure water is used to make "fresh"; Finally, "- 18 ℃ fresh lock"
packaging, and the whole cold chain distribution.

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Part V Development Strategy Research

Chapter XII Investment Opportunities

and Risks of Bird’s nest Industry

Section I Investment benefit analysis of bird’s

nest industry

1、Analysis of investment in bird’s nest industry from

2018 to 2022

Two investment events occurred in the bird’s nest industry in 2022, with
an investment amount of 33 million yuan.
In December 2022, the Nourishing Technology Brand Office announced
the completion of the B-round financing. This round of financing is jointly led by
Hongzhang Capital and Guangzhou Financial Holding, and co-invested by
Guangfa Qianhe and Huakai Capital. The old shareholder Binfu Capital has
made two consecutive rounds of additional investment. Light Source Capital
continues to act as the exclusive financial adviser. This round of financing will
mainly be used for industrial projects such as research and development of
core efficacy components, supply chain construction, cross-category
development, and the second phase of plant investment and construction.
In March 2022, Xiamen Sanqianyan Food Trade Co., Ltd. received
millions of angel rounds of investment from Lishi Capital. It has two
fashionable and healthy new national bird’s nest brands, "Three Thousand
Yan" and "Yan Zhuang Zhu". It is committed to providing convenient, safe and
fashionable Bird’s nest products for young people in the new era. It controls
the quality of Bird’s nest from the source of the supply chain, and only uses the

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way of hand-picking the hair of the ancient method to process the bird’s nest.

Investment profile of Chinese bird’s nest industry from 2019 to 2022

Source: IT Orange

2、Investment benefit analysis of Bird’s nest industry

from 2018 to 2022

With the improvement of the income level and consumption level of the
younger generation of consumers, their proportion in the bird’s nest consumer
group shows an expanding trend. Such people generally have a fast pace of
life and work, and lack enough time and energy to buy their own dried bird’s
nest and then process and make it by themselves. Convenient, safe and
ready-to-eat Bird’s nest products meet the demands of such consumer groups,
The diversification of consumer groups also provides a broad market space for
the development of bird’s nest deep processing industry.

3 、 Investment direction of Bird’s nest industry in

2023-2029

With the improvement of people's consumption level and the upgrading of

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consumption concept, the consumption of bird’s nest products will develop in

the direction of focusing on quality and brand selection. Relevant enterprises in
the industry need to pay attention to brand building, and further promote the
brand through relevant publicity means while ensuring product quality.

4、Suggestions for investment in Bird’s nest industry

in 2023-2029

There are many problems in traditional bird’s nest retail, such as the
difficulty in distinguishing the true and false products, the poor transparency of
product prices, and the difficulty in verifying the integrity of merchants and
product reputation, which largely limit the release of consumer demand for
bird’s nest. The development of e-commerce platforms, especially Tmall,
JD.com and other large trading websites that pay more attention to product
quality assurance, pay more attention to the quality of Bird’s nest products,
providing a better display platform for bird’s nest sales enterprises with better
product quality, more transparent product prices, higher business reputation
and product reputation, and further reducing the difficulty of consumers to
purchase safe and reliable bird’s nest products of good quality, and improving
consumer confidence, It has provided an important impetus for the
development of the bird’s nest industry. In addition, the development of
e-commerce platform combined with high efficiency logistics and distribution
services, and the fresh stewed Bird’s nest with higher freshness can be
delivered to consumers more quickly, promoting the development of
ready-to-eat bird’s nest products.

5、Analysis of obstacles that new entrants should pay

attention to

5.1 Brand barriers

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The price of Bird’s nest products is usually high. With the improvement of
people's consumption concept, the brand has increasingly become an
important factor affecting consumers' choice. Brand enterprises are more
trusted by consumers because of their high quality control standards, rich
product portfolio and stronger R&D capabilities. Consumer brands are
becoming a trend and necessity of Bird’s nest consumption. Building a good
brand image and deep customer reputation is a systematic project, which
requires a lot of capital and time costs for new entrants in the industry, thus
forming an important barrier to the industry.
5.2 Channel barrier
Bird’s nest products have many attributes, such as gifts and self-serving.
There are certain differences in consumer groups. However, it is necessary to
establish differentiated sales channels for different consumer groups to meet
the needs of different attributes. For example, consumers under the gift
attribute usually prefer to buy directly in offline physical stores, while young
consumers usually prefer to order online and deliver goods to their homes.
Generally speaking, the difficulty and threshold of opening online stores are
low, but it is difficult to build offline physical retail terminals. At present, the
enterprises in the Bird’s nest industry that have both large online and offline
stores are mainly Tongrentang and YanPlace. Compared with online channels,
offline physical stores can play multiple roles in meeting differentiated
consumer needs, improving brand influence, enhancing customer stickiness,
and improving market penetration. For new entrants in the industry, it takes
considerable time and capital costs to set up offline retail channels, establish
offline sales teams, and acquire offline customer groups, thus forming an
important barrier in the industry.
5.3 Product quality and food safety barriers
The country and consumers pay increasing attention to the product quality
and food safety of the Bird’s nest industry. The production and processing
enterprises need to obtain the relevant national production license to operate.
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At the same time, they also need to accept continuous supervision,

management and daily inspection. With the improvement of domestic food
safety, regulations and standards related to Bird’s nest production, the
threshold of Bird’s nest production and processing industry will be further
raised. Small workshop type non-standard processing, simple outsourcing
processing, brand only responsible for marketing and other models will be
gradually marginalized by the market in the future. For new entrants in the
industry, in order to fully control the quality and safety of products, they can
only build their own production plants and control all links of production, supply
and marketing. This requires a lot of investment in fixed assets and the
construction and training of corresponding operation teams, thus forming an
important barrier in the industry.

Section II Main factors affecting the

development of Bird’s nest industry

1、Analysis of favorable factors affecting the operation

of Bird’s nest industry in 2023-2029

As one of the two sunrise industries in the 21st century, the health industry
has broad prospects for development and has been praised as the cradle of
entrepreneurship and the blue ocean of investment by many commercial
investment institutions at home and abroad. At present, the health industry has
presented a phenomenon of polarization, one of which is the original
ecological pure natural tonic. With the significant improvement of material
living standards, people's attention to their own health has gradually changed
from relying on technology, medical treatment and drugs to focusing on the
maintenance and conditioning of their own bodies. People are more and more
advocating the lifestyle of returning to nature and taste pure natural.
Bird’s nest is a very important member of the original pure natural tonic. It
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is a nest built by the body fluid of the Southeast Asian Collocalia. As a unique
natural tonic, it also has the effects of conditioning, beauty, health care and
other health care, and is increasingly becoming a natural tonic food for
consumers. As far as the current market is concerned, six consumer groups,
including pregnant women, beauty, gifts, children, sub-health and the elderly,
have fully ignited the Bird’s nest market.
With the improvement of the living standard of the Chinese people, the
demand for natural healthy and nutritious food is also increasing. Today, with
the increasing awareness of people's health preservation, the consumption of
Bird’s nest in Shanghai, Jiangsu and Zhejiang provinces and Guangdong
provinces is also beginning to be popular in other regions. With the vast
territory and large population in the mainland of China and the rapid economic
development, the Bird’s nest industry has an unlimited and strong market
potential.

2、Analysis of adverse factors affecting the operation

of Bird’s nest industry in 2023-2029

Most domestic Bird’s nest enterprises are small in scale and low in
technology, while the number of enterprises with scale and technology
advantages is small and the market share is still not high enough. In the future,
as the competitive enterprises continue to make use of the advantages of
specialization and scale to become better and stronger, and their market share
is significantly increased, their comprehensive competitive strength in R&D,
production, sales and other aspects will be more fully reflected, thus improving
the technical level and profitability of the entire industry.

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3 、 Analysis of the challenges faced by the

development of Chinese bird’s nest industry in
2023-2029

Since Zheng He returned home from his voyage to the West, Bird’s nest
has firmly occupied an important position in China's nutrition. In the Qing
Dynasty, it was widely popular among the royal aristocracy, and even the
Emperor Qianlong, who always paid attention to health preservation, was very
fond of it. In recent years, with the improvement of people's income level and
the promotion of consumption upgrading, the consumption of health care
products, especially Bird’s nest consumption, has increased rapidly. This
nourishing food, which was only enjoyed by a few people before, has started to
"fly into ordinary people's homes". However, under the influence of market
turmoil, the price of Bird’s nest remains high. The label of "low cost
performance" has become an irremovable hat on the Bird’s nest.

4、Analysis of opportunities for the development of

Chinese bird’s nest industry from 2023-2029

With the improvement of urbanization level, the expansion of groups

above the middle class, and the increase of per capita income, consumers'
consumption concepts are undergoing great changes, which are reflected in
the reduction of sensitivity to the price of daily consumer goods, the increasing
demand for soft goods such as chain brands, shopping environment, and
commodity functions, and more residents are beginning to pursue safe and
healthy consumption patterns. Environmental pollution, accelerated pace of
life, work pressure, irregular diet and lack of exercise and other comprehensive
factors stimulate the consumption demand of domestic consumers to
supplement nutrition and strengthen their physique; With the improvement of

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people's quality of life and the enhancement of their awareness of self-care,

more and more consumers will increase their investment in health. At present,
people between the ages of 25 and 50 have become the main force of Bird’s
nest consumption. From eating by themselves to giving gifts for the holidays,
Bird’s nests are increasingly coming into people's eyes.

Section III Problems and Countermeasures in

Chinese bird’s nest Industry

1、Problems in Chinese bird’s nest industry

1.1Bird’s nest forgery

China is the main country of Bird’s nest consumption, and is popular with
people because of its long history of dietotherapy. However, due to its high
price, counterfeiting incidents are not uncommon, such as early illegal
operations such as bleaching, flavoring and gluing with chemical reagents.
However, with the approval of new food raw materials for bio-fermented sialic
acid and its influx into the market, the adulterated Bird’s nest has no longer
remained at the level of adulteration of physical components such as pig skin,
tremella, egg white, fish swim bladder and agar. For example, the "Sweetened
Bird’s nest" event in November 2020 was the use of bio-fermented sialic acid
and thickener to counterfeit Bird’s nest. Therefore, it is imperative to
strengthen industry management and introduce national standards related to
Bird’s nest.
1.2 Bird’s nest Nitrite
The interior of the swallow house is wet, opaque, and the air circulation is
not smooth all the year round. The faeces and uric acid excreted by the
collocalia are very easy to produce nitrite and nitrate under the action of
microorganisms. In order to maximize profits, some bad businesses put the
white Bird’s nest in the bird's droppings for several days and turned it into

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"blood Bird’s nest". The nitrite content of such "blood Bird’s nest" seriously
exceeded the standard. The "blood Bird’s nest incident" in 2011 reflected the
chaos of the Bird’s nest industry. Nitrite is extremely toxic and can cause
cancer. In order to remove nitrite and improve the yellowing of Bird’s nest,
some undesirable businesses will soak the net Bird’s nest in hydrogen
peroxide and ozone water to remove nitrite. The research shows that the nitrite
in Bird’s nest can be effectively removed by soaking and flowing water
treatment, especially by long-term soaking, and the removal rate can reach
more than 98%.
1.3 Bird’s nest Smuggling
Due to the rapid development of Bird’s nest industry and the increase of
Bird’s nest demand, Bird’s nest smuggling is also very serious. In June 2020,
the "World Finance and Economics" column reported that Shantou Customs
seized 536 tons of Bird’s nest, about 6 billion yuan. Because smuggled Bird’s
nest has not been inspected and quarantined, nitrite or heavy metals may
exceed the standard; When selling illegally, bad businesses may also
substitute inferior products to cheat consumers, which increases the safety risk
of Bird’s nest food. The rapid development of the Internet has also changed
the traditional mode of sales channels. The supervision of traditional sales
channels is relatively easy, while the popularity of Internet shopping has
increased the difficulty of supervision and also increased the confusion of the
Bird’s nest industry. Although the food safety traceability system is currently
being implemented, and the raw material of Bird’s nest is one swallow and one
code, so as to realize the traceability from raw material to product, the
problems of regional division and division of departments are still prominent,
and no effective linkage between departments has been formed.

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2、Suggested countermeasures for the development of

Bird’s nest industry

The national leading departments need to formulate national standards for

Bird’s nest food safety as soon as possible, and clarify the safety standards
and grading standards for Bird’s nest food. A sound standard can not only
ensure food safety, but also enable the supervision to cover the whole process
of import, production and sales of Bird’s nest. On the one hand, promote
industry self-discipline, promote the establishment of industry supervision and
restriction mechanism, implement the main responsibilities of producers and
operators in the Bird’s nest market, and take maintaining the healthy
development of the Bird’s nest industry as the consensus within the industry.
On the other hand, we should cultivate citizens' awareness of participation.
There is a close relationship between the repeated attacks of Bird’s nest
smuggling and the lack of correct understanding and weak legal concept of
some citizens. We should conduct propaganda and guidance through the
media to let consumers understand the food safety risks of smuggling Bird’s
nest and consciously resist smuggling Bird’s nest.

3、Key customer strategy implementation in the market

The leading enterprises in the industry adhere to the channel layout

strategy of online and offline integrated development. Compared with the pure
online sales model, the extensive offline physical store network can enhance
consumers' brand awareness, improve customer stickiness, and also fully use
the channels of dealers to expand the sales market, strengthen marketing
promotion, and provide corresponding preferential policies for key customers.

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Section IV Investment risk and control strategy

analysis of Bird’s nest industry

1 、 Market risk and control strategy of bird’s nest

industry in 2023-2029

With the continuous improvement of the income level of residents and the
continuous enhancement of consumption capacity, the size of the Bird’s nest
consumption market has shown a rapid growth trend in recent years, and the
prosperity of the industry is rising. It is attracting more and more new investors
to enter the Bird’s nest industry. The number of processing enterprises and
brands is increasing, and the competition in the Bird’s nest market tends to
intensify. Enterprises in the industry need to continuously optimize the
production process, improve product quality and enhance their
competitiveness.

2 、 Policy risk and control strategy of bird’s nest

industry in 2023-2029

China's current legal basis for the supervision of imported bird’s nest
includes the Food Safety Law of the People's Republic of China, the Animal
and Plant Quarantine Law of the People's Republic of China, the Import and
Export Commodity Quarantine Law of the People's Republic of China and its
implementation regulations, the Special Provisions of the State Council on
Strengthening the Supervision and Administration of the Safety of Food and
Other Products, and the Measures of the People's Republic of China on the
Administration of the Safety of Imported and Exported Food. With the
continuous development of the industry, The regulatory policy will be stricter.
In view of policy risks, enterprises in the bird’s nest industry should pay

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attention to various national policies and regulations of relevant industries in a

timely manner, and make timely responses and strategies. In addition, actively
adjust the business development strategy according to the policy guidance, so
as to realize the long-term and healthy development of the enterprise.

3、Operational risks and control strategies of bird’s

nest industry in 2023-2029

Operation and management risk refers to the possibility that the decision
makers and managers of an enterprise make mistakes in the process of
operation and management, resulting in the change of the enterprise's profit
level, thus resulting in the decline of investors' expected income. Management
risk is the main risk of enterprises. The operation status of bird’s nest
enterprises is ultimately reflected in the change of profit level and the increase
of asset value. The operation risk is mainly affected by the change of profit.
With the further development of the bird’s nest industry, the business
scale of bird’s nest enterprises continues to expand, and the asset scale and
operating income increase year by year. The scale of net assets of enterprises
will increase significantly and the scale of operation will expand further, which
puts forward higher requirements for enterprise market development, system
operation, production management and personnel management. If the
enterprise management level cannot adapt to the rapid expansion of the
enterprise scale, the organizational structure and management model cannot
be adjusted and improved in time with the expansion of the enterprise scale,
which may affect the comprehensive competitiveness of the enterprise.

4、Technical risks and control strategies of bird’s nest

industry in 2023-2029

Risk of untimely technology and product updates

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In order to meet the higher and higher consumer requirements of the

industry, nutrition enterprises such as bird’s nest insist on product structure
adjustment, strengthen the development of new products, and increase
scientific research investment, so as to continuously improve the technological
research and development capabilities of enterprises. Nevertheless,
enterprises may still face the risk of falling market share and product profit
margin because of the slow updating speed of technology and product
varieties, which can not meet customer needs in time. If competitors take the
lead in using advanced technology to launch updated products, it will pose
new challenges to the competitiveness of enterprise products.
Risk of brain drain in core technology
Having a stable and high-quality scientific and technological talent team is
crucial to the development and expansion of the bird’s nest and other tonic
enterprises. Although the enterprise has always paid attention to the scientific
management of human resources, according to the law of value, with
reference to the value level of human resources in the region and similar
enterprises, it has formulated a more reasonable employee compensation plan,
established a fair and reasonable performance evaluation system, managed
the management personnel by objectives, and improved the salary and
welfare level of scientific and technological talents, especially the technical
backbone. The interests of scientific research personnel are directly linked to
the annual technological innovation goals. However, at present, the
competition for scientific and technological talents among enterprises is very
fierce, which may cause the instability of the scientific and technological talents
team, thus bringing certain risks to the enterprise operation.
The countermeasures against technical risks are mainly to further
increase the investment in science and technology. On the one hand, we will
continue to improve the treatment of scientific research personnel, attract
high-quality professional and technical personnel, and enhance the scientific
research and development capacity of the industry; On the other hand,
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strengthen the comprehensive technical transformation, continuously improve

the technological development and pilot production capacity of the bird’s nest
industry, and maintain the leading position in the industry. In addition, we will
further strengthen technical cooperation with domestic key scientific research
institutions and foreign partners, track the development of domestic and
foreign technologies, and introduce, digest, absorb and fully utilize the new
and advanced technological achievements of international and domestic
counterparts.

5 、 Risks and control strategies of horizontal

competition in bird’s nest industry from 2023 to 2029

At present, the scale of enterprises related to bird’s nest in China is

generally small, the enterprises in the industry are distributed in a pyramid, the
industry concentration is low, and the competition among enterprises is
becoming increasingly fierce. Some enterprises with small scale, weak
competitiveness and non-standard management will be gradually eliminated
by the market. The development of the bird’s nest industry is still in its infancy.
The lack of brands, scattered resources, closed information, and poor product
circulation restrict the development of the bird’s nest industry. Disordered
competition in the industry has seriously disrupted the market competition
order. To sum up, the market competition in the industry is gradually
intensifying. If the enterprises in the industry fail to keep up with the market
demand and continue to improve in product innovation and product quality,
they may face the disadvantage of declining profitability or even losing money.

6、Other risks and control strategies of bird’s nest

industry in 2023-2029

In recent years, with the improvement of consumer consumption level and

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the improvement of national laws and regulations system, the quality

requirements of food and drugs have become higher and higher. Although
some enterprises in the industry have established a relatively complete quality
control system, they still cannot completely eliminate the possibility of quality
accidents. If an enterprise in the industry suffers from product quality defects
due to poor management or control, it will not only seriously damage the
enterprise's brand, but also cause consumer claims, regulatory authorities
revoke relevant licenses, investigate legal liabilities and other issues, which
will have a negative impact on the normal operation of the enterprise.
Production enterprises in the industry need to strictly ensure product quality
and eliminate quality problems.

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Chapter XIII Research on Investment

Strategy of Bird’s nest Industry

Section I Research on the development strategy

of Bird’s nest industry

1、Comprehensive strategic planning

First, determine the strategic objectives, then formulate the strategic plan,
and finally evaluate and approve the prepared strategic plan text, and modify it
if necessary. The first step is how to determine the strategic objectives of the
enterprise. The first step to determine the strategic objectives is to analyze the
current situation of the enterprise. The most common is to conduct SWOT
analysis. The so-called SWOT analysis is to analyze the strengths,
weaknesses, competitors, strengths and weaknesses of competitors, where
opportunities are, market conditions, etc,
Then give a judgment based on the results of the analysis, mainly
considering that in the next three or five years （according to the length of the
strategic planning cycle）, if the enterprise does not make changes, will the
leaders or shareholders of the enterprise be satisfied? If satisfied, keep the
current strategy of the enterprise and do not make changes; If you are not
satisfied, you should consider what changes the enterprise can make internally
and externally based on the analysis results. Compare the results of internal
and external changes with the results of no changes, and find out whether
these changes and differences can satisfy the enterprise,
Finally, decide whether to change, how to change, and determine the goal
of change. When the Bird’s nest enterprise decides to change and considers
how to change, it will write these changes into a formal document. These are

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the steps to determine the strategic objectives.

2、Technology development strategy

The technology development strategy is largely carried out at the talent

level. In terms of talents, domestic modern logistics enterprises should further
adjust and optimize the personnel structure （ including age structure,
educational background and ability structure, etc.）, establish a reasonable
talent incentive mechanism and training mechanism, strengthen the
introduction and training of talents, retain core talents, cultivate their loyalty to
the enterprise, and make good human resources reserves for the company's
future development.

3、Business portfolio strategy

With the increasing competition, because the development of an industry

has a life cycle, and at the same time, the development of an industry may also
be impacted by sudden changes in environmental factors, which are generally
unchangeable by a single enterprise, enterprises need at least two businesses
at different stages of the life cycle to eliminate the fatal impact on the survival
of enterprises caused by the fluctuation of a single business. Therefore, based
on the requirements of sustainable development of enterprises, In the long run,
the business portfolio of enterprises will eventually diversify. However, before
carrying out diversified operation, enterprises should have the resources and
capabilities, especially the core competencies, through specialized operation.
When the enterprise has the ability conditions, it will take a high starting point
to enter into the new business field, so that the enterprise can use the product
effect of the resources and capabilities established in the original business on
the new business on the premise of maintaining the competitive position of the
original business, so that the new business can quickly become stronger and
larger, and finally form a diversified operation composed of professional

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operation of various businesses.

4、Regional strategic planning

Regional selection strategy is very important for Bird’s nest enterprises.

When the enterprise chooses the right strategy correctly, it is easier to obtain
considerable benefits and realize the development of the enterprise. If the
strategy is wrong, it may struggle or even fail.
Specifically, the regional selection strategy is also divided into five ways,
which are: entry, development, maintenance, contraction and exit.
4.1 Entry strategy
Entry strategy refers to enterprises entering new areas. When an
enterprise enters a new region, it is generally a tentative entry. It will invest
appropriate resources to carry out exploratory work. When it is familiar with the
future regional environment and confirmed that the region has great prospects,
it will invest more. The entry strategy is mainly aimed at those areas where
enterprises have identified development prospects, but have not yet
established corresponding resources and capabilities. The main purpose of
the entry strategy is to get familiar with and understand the regional
environment and accumulate experience. Generally, a small amount of
exploratory investment will not have a significant impact on the enterprise's
operation even if it fails. There are many ways to enter the strategy, including
looking for distributors, establishing offices, directly establishing sales outlets,
regional advertising investment, regional production, global procurement, etc.
4.2 Development strategy
Development strategy means that enterprises increase investment in an
existing region to improve its competitive position and seek greater
development. The development strategy is mainly aimed at the regions that
have development prospects but the resources and capabilities of enterprises
are still lacking and need to be strengthened. Generally speaking, when an

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enterprise enters a new region, through a period of understanding, it is

determined that the region has great development prospects, and that it can
establish corresponding resources and capabilities to support the development
of the region, it is appropriate to adopt development strategies. The main
purpose of the development strategy is to expand the business scale in this
region, so as to gain a stronger competitive position and gain more profits in
the future. The development strategy is generally to appropriately reduce the
existing profit level to carry out large-scale investment. If it fails, it may have a
significant impact on the business operation. Therefore, the development
strategy is carried out when the development prospect is relatively clear. There
are also many ways to develop strategies, including the establishment of
research institutions, large-scale establishment of market channels,
large-scale advertising investment, large-scale production site construction,
and so on.
4.3 Sustainment strategy
Maintenance strategy means that enterprises maintain the original or
appropriate investment in an existing region to maintain the status quo and
maintain the existing competitive position. The maintenance strategy is mainly
aimed at regions with mature or uncertain development. At this time, further
investment will not bring greater development, but reducing investment will
lead to a rapid decline in competitive position, and enterprises usually adopt
maintenance strategy. The main purpose of the maintenance strategy is to
maintain the business scale in this region, maintain the current competitive
position and obtain the current profit level. The main way to maintain the
strategy is to maintain the status quo, and make no major changes to the
status quo, including advertising investment, market investment, production
investment, etc.
4.5 Contraction strategy
Contraction strategy means that enterprises reduce investment in a
certain area and increase cash flow recovery in order to convert some of the
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original investment into cash and recover the original investment. The
contraction strategy is like that enterprises have entered the season of
contraction results in this region, transforming the original investment into
returns, and obtaining more cash profits as much as possible. The main
purpose of the contraction strategy is to convert the original investment into
cash, appropriately reduce the investment level, and sacrifice the appropriate
regional operation scale and competitive position. There are also many ways
to shrink the strategy. Generally, it is appropriate to reduce investment,
including reducing research and development investment, reducing marketing
investment, reducing advertising investment, reducing production
improvement investment, reducing internal management investment, and so
on.

5、Exit strategy

Exit strategy refers to the complete exit of an enterprise from an existing

region, and the sale or liquidation of assets in the region. The exit strategy
generally occurs when the region is unprofitable or the enterprise transfers its
investment to a region with a higher return on investment in the future. The
main purpose of the exit strategy is to completely exit the region. Generally, the
methods are to sell the company, sell assets, liquidate assets, etc.
5、 Industrial strategic planning
Industrial development strategy and planning refers to the comprehensive
use of various theoretical analysis tools, starting from the local actual situation,
taking full account of the international, domestic and regional economic
development situation, and making more than one year's scientific plan for the
positioning, industrial system, industrial structure, industrial chain, spatial
layout, economic, social and environmental impact, and implementation plan
of local industrial development. The strategic planning of industrial
development is very important. Just as the industry is important to the

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development of a person, the industrial planning must tell the local industry
what to do, and demonstrate from the international and domestic industrial
development trend, market capacity, technical level and other aspects: it is
necessary and only to do these industries can have a future. Direction is
crucial.

6、Marketing brand strategy

The content of the enterprise's marketing strategic plan is very rich.

Formulating and selecting the best marketing mix is the core content of the
strategic plan.
When any modern logistics industry enterprise uses the marketing mix,
the marketing director usually highlights one or two factors in the marketing
mix and takes into account other factors according to the characteristics of
each strategy and the needs of the marketing strategy. An enterprise should
make a choice according to the internal and external environment of the
enterprise as to which strategy should be highlighted and what strategy should
be taken into account in its marketing strategy. This is the core content of
marketing strategy. With this as the core, it is used to formulate market
segmentation strategy, target market strategy, market positioning strategy,
market entry method strategy and market entry time strategy, etc.
Marketing brand planning
Brand evaluation: understand the social environment, customers,
competitors, enterprise status, business objectives, etc., and conduct a
comprehensive study of the enterprise's own situation, competitors and
customers;
Brand value: define the core value of the brand, and design functional
appeal, and experience, relationship or emotional appeal;
Brand positioning: carry out product positioning and market positioning,
and clarify the target market segment, market position, image and brand

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personality of the brand;

Extension strategy: plan brand extension strategy and establish a
systematic brand combination;
Communication strategy: plan brand communication strategy, and
transform brand value and positioning into targeted and accurate strategic
marketing activities.
Brand management: establish a brand management system, including the
organization and process arrangement of brand quality, brand relationship,
brand audit, brand protection and other activities.

7、Competitive strategic planning

The main purpose of the competitive strategy planning is to understand

the business status of competitors, understand the future needs of target
customers, and find new consumption points and new customer groups to
finally occupy a leading position in the future market competition. In the fierce
market environment, competitive strategy analysis has become a market
activity that every enterprise must do. Due to the broad prospect of modern
logistics industry, more enterprises will enter the industry. In order to seize
market share, the competition in the industry is intensified. When formulating
competitive strategic planning, enterprises need to combine their own and the
development status of the whole industry to find a breakthrough in
development and improve market share.

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Section II Background significance of strategic

planning for the development of enterprises in
the Bird’s nest industry

1 、 The need for enterprise transformation and

upgrading

With the deepening development of global economic integration, China's

economy has become an important part of the global industrial value chain and
economic cycle. The strong growth of China's economy in the past has also
added impetus to the development of the world economy. Because of the
long-term industrial structure mismatch （ only focusing on high-end
development such as information, technology and finance, while ignoring the
allocation of low-end industries） and economic structure imbalance （only
focusing on the prosperity of the consumer economy, while ignoring the growth
of the real economy） in western society, a large number of basic industries
have been transplanted to developing countries with low labor and resource
costs.
Although the current complex and dangerous global economic situation
and wave after wave of epidemic have a great impact on China, as the world's
second largest economy, China's future economic and social development will
still attract the attention of the world. The transformation of China's economic
growth mode, the restructuring and upgrading of industrial structure, and the
coordinated, sustainable and healthy development of economy and society are
all more important and urgent. In order to adapt to the restructuring of the
global industrial and economic structure and establish the commanding
heights of China's economic growth in the future, China must accelerate the
transformation of the mode of economic growth and the upgrading of the
overall industrial structure. We must change the traditional export dependence,

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high consumption of resources, low efficiency of production capacity and

environmental pollution economic growth mode as soon as possible; We
should quickly break through the bottlenecks in the reform of the system, the
development of social security and the construction of the legal system, and
quickly establish a modern socialist market economy pattern with a fair income
distribution, a wealth for the people, a sound social security system and an
expansion of domestic demand, and the consolidation of exports and the
development of modern services that complement each other.
Transformation and upgrading has become an enterprise consensus. To
make an enterprise truly become a "top five" enterprise with strong core
competitiveness, strong innovation adaptability, strong enterprise cohesion,
strong social influence and strong sustainable development, the key is to grasp
the "transformation and upgrading". Just as a person's health needs full body
exercise, taking advantage of the opportunity to formulate the "13th Five-Year
Plan" development strategy, enterprises should seize the opportunity to
improve their brains （effectively change the development mode） Turn around
（innovation and reform of management system and mechanism） and turn
around （ improve execution ） . As the transformation and upgrading of
traditional industrial enterprises, we should not only focus on demand-oriented,
innovation-driven and manufacturing-oriented transformation and upgrading,
but also pay attention to and intervene in the transformation and upgrading
oriented by new urbanization and foreign investment when conditions permit.

2、The need for enterprises to become stronger and

bigger

Through the analysis of the opportunities, challenges, advantages and

disadvantages faced by the enterprise in the next five years and even longer,
the enterprise can see the development prospects by reviewing the situation
and formulating the enterprise development strategy. It will be possible to seize

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the new round of urbanization tide, transform the industry to mature structure,
increase the strength of enterprise merger and reorganization, break through
the market in a new direction, expand and optimize the resource space, and
move towards comprehensive and integrated development of the regional
economy. The government will accelerate the transformation and increase the
opportunities for innovation and development, and further expand, strengthen
and long-term enterprises.
Large enterprises are the concentrated embodiment of a country's
comprehensive economic strength. In particular, a large country must have a
group of large enterprises with global influence to optimize the allocation of
various resources in the global scope to serve its economic construction and
the improvement of people's living standards. It can even be said that if an
economic power does not have a group of large enterprises with global
competitiveness and influence and only rely on low labor costs and products to
gain access to the international market, it will never become an economic
power with global influence. This is also the important significance that China
must promote the entrepreneurship and growth of Chinese enterprises, and
then become stronger, bigger and longer.
As an important achievement of China's reform and opening up, and one
of the main factors to promote the success of China's reform and opening up,
China's enterprises of all types of ownership continue to grow bigger and
stronger. At present, the situation of common development of enterprises of all
types of ownership has initially formed. However, as mentioned earlier, there
are still many problems in the development of China's large enterprises, so
that the supporting role of large enterprises in China's further economic
transformation, industrial upgrading and the rise of a big country has not been
fully played. Therefore, the Chinese government must continue to take
measures to provide good market order and infrastructure for enterprises of
different ownership and size, and continuously provide policy support for
Chinese enterprises to become stronger, bigger and longer. However, it must
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be pointed out that the government policy factor is very important, but the key
is the enterprise itself. From the latest economic data, China's macro economy
has begun to warm up, and the real economy shows obvious signs of recovery.
All these are conducive to the adjustment and development of enterprises.
Enterprises should grasp the opportunities brought by the financial crisis,
follow the principle of matching the resources and capabilities under their
control with a strategic perspective and height, based on building the long-term
competitiveness of enterprises, establish appropriate strategies and
implementation steps according to the different conditions of enterprises, and
make unremitting efforts to gradually achieve transformation and upgrading, so
that they can become adaptable to the changes in the economic environment
and be able to control large business scale Multinational enterprises that can
allocate resources globally.

3、Enterprise sustainable development needs

The formulation of enterprise development strategy is a good opportunity

to plan the rebirth of the enterprise. Look at the gains and losses of the
previous "three important and one big" and the weak links in management. If
there are loopholes, you can make "patches"; If there are too many and too
many forms of management, the effect is not good, and the leadership and
execution are not enough, we can apply the right medicine to the case, from
the system, mechanism and system management.
The sustainable development strategy of an enterprise means that in the
process of pursuing its own survival and sustainable development, an
enterprise should not only consider the realization of its business objectives
and the improvement of its market position, but also maintain the continuous
profit growth and ability improvement of the enterprise in the leading
competitive field and the business environment of future expansion, so as to
ensure that the enterprise will flourish for a long time.

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Sustainable development is to consider not only the needs of current

development, but also the needs of future development; We should not trade
for development and satisfy interests at the expense of interests in the later
stage. At the same time, sustainable development also includes a
development view of maintaining the development trend in the face of
unpredictable environmental shocks.

Section III Strategic thinking on the brand of

Chinese bird’s nest industry

1、The importance of corporate brand

The importance of brand building has penetrated into every link of

enterprise construction and development. Especially for small and
medium-sized enterprises, brand building has become a magic weapon for
their rapid rise in the increasingly competitive environment:
1. Brand is the soul of an enterprise's existence and development
The product itself has no vitality, only products, no brands, or only labels.
Enterprises without brands have no vitality and continuity. Only by attaching
importance to the brand and building the soul of its own development can
enterprises become bigger and stronger.
2. Brand represents the competitiveness of enterprises
There are three levels for enterprise products to participate in market
competition. The first level is price competition, the second level is quality
competition, and the third level is brand competition. Today's competition has
developed into brand competition. Brand means high added value, high profit
and high market share. Brand means high quality and high taste, which is the
first choice of consumption. A good brand can bring higher sales to the
enterprise and make its products or services more competitive at less cost.
Brand has become the most valuable asset of an enterprise. It is more

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important to own the market than to own the enterprise. The only way to own
the market is to own the brand that dominates the market. It can be seen that
brand and brand strategy have become the key for enterprises to build market
competitiveness.
3. Brand means customer base
A brand represents a certain product and service quality, condenses the
image of the enterprise and the evaluation of customers, the public and the
society, and attracts a relatively stable and loyal customer base. For most
enterprises, brand means customer loyalty, stable customer base and lasting
and constant benefits under the same brand.
4. Brand is an important intangible asset with its value
To develop a brand, establish a brand, and promote a brand, an enterprise
needs to invest a certain amount of people, talents, and materials and form
various costs, which constitutes the economic value of the brand. In addition,
on the basis of comparison with other products, consumers' reputation and
reputation in the public's mind constitute the intangible value of the brand. The
size of brand value depends on the people's opinion and evaluation of the
brand characteristics. Therefore, brand is one of the most important assets of
an enterprise.

2、The significance of implementing brand strategy in

Bird’s nest industry

2.1 Brand strategy can establish a good corporate image. Brand strategy
is closely related to corporate image. A good corporate image is an important
intangible asset of an enterprise, and also a powerful weapon for an enterprise
to win in the market competition. The brand strategy is conducive to the
improvement of the corporate image, and a good corporate image is also
conducive to the implementation of the brand strategy. The two promote and
guarantee each other.

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2.2Brand strategy helps to improve economic efficiency. The advantages

of brand intangible assets can be used to reduce costs at the input stage, such
as low-cost procurement, low-cost financing, etc; In the sales stage, brand
strategy is used to increase unit price and sales volume, thus increasing sales
volume and total profit. This potential brand effect is a valuable resource that
should be well used in the business process of enterprises, and its use is not
inferior to that of tangible assets.
2.3Brand strategy can improve employee centripetal force. Brand strategy
is a part of corporate culture and an adhesive to enhance corporate cohesion.
The brand strategy can also improve employees' spiritual satisfaction and
sense of belonging, mobilize employees' enthusiasm and improve labor
productivity.
2.4Brand strategy can promote product sales. As a means of promotion,
brand strategy can make consumers increasingly aware of the value of the
brand and have a growing preference for the brand.
2.5 Brand strategy is the leader of regional economic development. Brand
strategy can revitalize the economic development of one side, give full play to
regional advantages, and form "Internet" with brand enterprise products as the
core. By virtue of the quality of brand products, improve the regional
awareness and quality, establish the regional image, improve the soft
environment of internal and external communication in the region, and
promote the overall development of regional economy; For enterprises, it can
form brand product series and promote the rise of related products.

3 、 Analysis of the current situation of enterprise

brands in bird’s nest industry

With the continuous intensification of competition in the bird’s nest industry,

mergers and acquisitions and capital operations among large Bird’s nest
institutions are becoming increasingly frequent, and domestic excellent Bird’s

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nest enterprises are paying more and more attention to the research of the
industry market, especially the in-depth study of the current market
environment and development trend changes, with a view to occupying the
market ahead of time and gaining the first-mover advantage.
Brand and profile of some Bird’s nest enterprises

Brand brief introduction

In 1997, the founder of the company, Mr. Huang Jian, returned

from Singapore and founded a Bird’s nest franchise enterprise in

Xiamen with the product brand of "Shuangdanma". He opened Bird’s

nest counters in shopping malls and pharmacies in many provinces and

cities across the country.

In 2002, the "Bird’s nest House" brand was born and officially

YanPlace launched a one-stop service of "Bird’s nest Sales, Bird’s nest Eating

and Bird’s nest Takeout". It solves the problem that people are afraid of

stewing when eating Bird’s nest. The "order now, eat now, stew now,

and deliver now" model of YanPlace has been rapidly spread across

the country. In August 2011, due to the "Blood Bird’s nest Incident", the

national Bird’s nest industry crisis broke out, and YanPlace enterprises

were the first to bear the brunt.

Beijing Tongrentang Group, founded in 1669 in the eighth year of

Emperor Kangxi's reign of the Qing Dynasty, originated in Malaysia,

zongtongpai enjoys the reputation of "Oriental Treasure", and is a high-tech

enterprise integrating drugs/hospital preparations/health

food/food/cosmetics

Born in 1964, it is a famous brand in Hong Kong and a pioneer of

Bird’s nest chain stores. It has a long reputation in Hong Kong and
Zhanji
Macao for operating Bird’s nest and cordyceps sinensis. It is a

diversified large Bird’s nest retailer in Hong Kong

Guanyanzhan Hong Kong Guangzhou Guangzhou Guanyanzhan

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Commerce&Trade Co.,Ltd. Commerce&Trade Co.,Ltd. International

Co., Ltd., founded in 1964, is a famous brand in Hong Kong, an

international large chain Bird’s nest brand, and an international health

care company based on Chinese health care

The old connoisseur international Bird’s nest group, the famous

brand in Hong Kong, the famous chain Bird’s nest brand in the
LaoHangJia
Asia-Pacific region, the top ten Bird’s nest brands, and the enterprise

specialized in the development of health food

The top ten brands of Bird’s nest began in Singapore in 1957.

Southeast Asia enjoys a high reputation as a Bird’s nest brand, the

DragonBrand
brand that produced instant Bird’s nest in glass bottles earlier in China,

and the well-known health food manufacturer in Asia

Ten brands of Bird’s nest, a comprehensive Bird’s nest enterprise

yananju integrating domestic production and research bases, chain operation

and management institutions and improving sales network

Its low-temperature stewing and sterilization technology enjoys a

high reputation in the industry. It is a Bird’s nest enterprise in the whole

PT Swift industrial chain integrating Bird’s nest collection/Bird’s nest

processing/scientific research/storage/import and export trade/brand

operation

Founded in 1879, it is a century-old brand of traditional Chinese

EuYanSang medicine health care, a well-known brand in the field of health care and

health care, and a large Chinese medicine health care enterprise

Source: sorting out public data

4 、 Brand Strategy of Chinese bird’s nest Industry

Enterprises

Further enhance the importance of building the independent brand of

Bird’s nest and implement the brand development strategy. The first is to

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strengthen brand awareness, form a good atmosphere for promoting brand

construction in the whole process and all aspects of the enterprise, and
implement it in terms of capital investment and human resource allocation. The
second is to formulate the independent brand development strategy, clarify the
market positioning and select the personalized and differentiated brand
development mode according to the enterprise's own characteristics and
business objectives. The third is to strengthen the brand management ability,
encourage enterprises to set up brand management departments, establish
practical brand management mechanisms, implement brand management,
cultivate brand culture, and realize brand appreciation. Fourth, explore the
establishment of a whole-process management system for intellectual property
rights, and realize the scientific layout and effective use of intellectual property
rights. Fifth, improve the brand evaluation method, establish the evaluation
index system of bird’s nest brand value, and provide guidance and support for
improving the brand value. Sixth, actively carry out brand publicity and
promotion, comprehensively use various brand communication channels such
as publications, networks, mobile terminals, etc., to effectively enhance the
popularity of the Bird’s nest brand.

5、Strategy of brand strategy management in bird’s

nest industry

To carry out brand strategy management, first of all, is to position the

enterprise brand, that is, how to differentiate itself from other enterprises. With
the intensification of competition, different enterprises imitate each other and
learn from each other's successful practices. The homogenization trend of the
market is increasingly obvious. Brand has become an important symbol for
enterprises to guide customers to identify themselves and distinguish their
products from competitors, It is a more important and lasting intangible asset
than the enterprise's products, and also the core competitiveness of the

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enterprise. Brand is a complex symbol, which is the integration of commodity

attributes, name, packaging, price, history, reputation and advertising forms. In
contemporary society, brand and its meaning may be more symbolic,
perceptual, experiential and intangible, that is, related to the concept and spirit
represented by brand, and it expresses the relationship between enterprise's
products or services and consumers. Strategic brand management is the
management of the whole process of establishing, maintaining and
consolidating the brand. Its core idea is to effectively monitor the development
of the relationship between the brand and consumers. Only through brand
management can the brand vision be realized.

Section IV Research on Investment Strategy of

Bird’s nest Industry

1、Research on industry investment strategy in 2022

At this stage, the concentration of Bird’s nest industry is low and has not
yet formed a leading enterprise with influence in the national market. The
brands that have taken shape in the market and formed certain brand
influence include: YanPlace, Yananju, Yanfu, Jiayan Bird’s nest, Tianfu Yan,
Qingdao Zhengdian, Tongrentang, etc. Tongrentang brand has great influence
and focuses on high-end products; YanPlace, Qingdao Zhengdian and other
brands rely on their own product characteristics to continuously improve the
brand influence by creating differentiated products. In recent years, with the
help of Internet exhibition, online Bird’s nest brands such as Xiaoxiandun and
Aishangyan have also developed rapidly and gradually expanded the offline
market. There are still a large number of small and medium-sized brands in the
market, with weak brand awareness, imperfect marketing channel construction
and insufficient support for dealers. As a valuable tonic, the price and brand of
Bird’s nest are the main factors for consumers to consider when purchasing

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Bird’s nest. Consumers pay more attention to the quality and reputation of
Bird’s nest products, and the consumption of Bird’s nest gradually tends to be
rational. In the future, enterprises in the market that focus on the quality and
brand building of Bird’s nest products will achieve long-term development.

2 、 Investment situation of bird’s nest industry in

2023-2029

1. Consumption upgrading drives high-end food consumption

People's consumption ability has been rapidly improved in recent years,
and their consumption demand has become increasingly diversified. The
personal consumption market and gift market demand of bird’s nest products
have continued to expand. At the same time, with the development of the bird’s
nest industry, the output of bird’s nest continues to increase, the cost of
manual picking and processing decreases, the factory scale production, and
the ready-to-eat bird’s nest products continue to introduce new products. The
consumption of bird’s nest products is becoming an acceptable and affordable
option for more and more people. The development of Bird’s nest industry is
facing good market opportunities.
2. Diversified consumer group structure
Traditionally, the consumption group of bird’s nest is mainly the
middle-aged and elderly people. Their bird’s nest consumption habit is to soak
hair, pick hair and stew after purchasing dry Bird’s nest, which limits the
development of industrial production of Bird’s nest products. With the
improvement of the income level and consumption level of the younger
generation of consumers, their proportion in the bird’s nest consumer group
shows an expanding trend. Such people generally have a fast pace of life and
work, and lack enough time and energy to buy their own dried Bird’s nest and
then process and make it by themselves. Convenient, safe and ready-to-eat
Bird’s nest products meet the demands of such consumer groups, The

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diversification of consumer groups also provides a broad market space for the
development of bird’s nest deep processing industry. From the perspective of
age generation, the consumption habits of the middle class are more fixed,
and the young generation with strong willingness to try will become an
important incremental group. From the perspective of urban line, in order to
achieve the goal of common prosperity, the national economic policy will be
inclined to lower-tier cities and ordinary workers. Benefiting from this, the
number of new middle classes in second-tier, third-tier and lower-tier cities is
expected to increase significantly in the future, and the demand scale and
activity of the Bird’s nest market in non-first-tier cities are expected to increase
significantly.
3. Increased consumer brand attention
When the number of brands on the product market is large, consumers
who are increasingly accustomed to fast consumption lack enough energy and
expertise to fully judge the quality of different brands of products. High brand
awareness and significant market position will become important indicators for
consumers to make consumption decisions, and then the industry
concentration will show an upward trend.
At present, the bird’s nest product market is characterized by numerous
brands and complicated sales channels. With the improvement of consumption
ability, consumers' focus on product consumption has gradually shifted from
product price to product quality. The well-known leading brands in the industry
have large production scale, good standardization, and more guaranteed
product quality. Consumers prefer to choose high-quality brands and products
of high quality, forming a benign interaction mode, Jointly promote the
increasingly healthy development of the industry.

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3 、 Investment strategy of Bird’s nest industry in

2023-2029

3.1 New products

The innovation direction of bird’s nest products should be based on the
theory of traditional Chinese medicine nutrition and health preservation,
integrate the modern nutrition perspective, focus on the current consumer's
focus on health issues, and focus on the new generation of consumer's health
concept, lifestyle, diet structure, scene needs, and carry out innovation in food
ingredients, nutrients, processing methods, use methods, portability and other
aspects. The characteristics of urban new and cutting-edge consumption, the
main age circle, consumption circle, and the appearance of bird’s nest
products show the following characteristics:
（ 1 ） Health: light nourishing, functional, nutritious, sugar-free and
sugar-resistant
（2）Technology: extract, freshness control and freeze-drying technology
（3） Sense of quality: short term warranty, sense of design, sales scene
（4）Life aesthetics: environmental protection, sense of ceremony, social
currency, circle label
3.2 New type
（1）Low sugar/no saccharification
With the improvement of people's health awareness and concept of health
preservation, the traditional concept of nutrition and modern concept of
nutrition have been deeply integrated, and the concept of low sugar, sugar free,
and sugar resistance has gradually become a consensus. Consumers have
more strict screening and requirements for the heat and sugar content of
products while meeting the needs of nutrition. The proportion of "sugar free"
and "low sugar" products in the market of ready-to-eat Bird’s nests and fresh
stewed Bird’s nests and the proportion of their sales volume and amount have

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increased year by year.

（2）Free from picking and bubble
The fast-paced modern people pursue efficiency and instant availability,
which also means that the traditional Bird’s nest selection and stewing process
is too cumbersome, and freeze-dried, instant and instant stewing are more in
line with the modern people's pursuit of timely possession.
3．3 New category
（1）Bird’s nest Snacks
For the young people who "I want it all", the pursuit of nourishing function
does not mean giving up the taste. The innovative direction of Bird’s nest
snacks, such as Bird’s nest jelly, Bird’s nest enzyme, Bird’s nest soft candy,
etc., is not only convenient to carry beauty and nourishment, but also a blue
ocean of snacks in the refined women's bag that pursues quality.
（2）Solar term cakes, regional delicacies
As a traditional gift gift, Bird’s nest has always occupied the third place in
the gift market. Combining with traditional food corresponding to the New Year
and the solar term, it will provide a new and competitive supplement to the gift
market. In recent years, innovations such as Bird’s nest moon cakes and Bird’s
nest dumplings have achieved good results. In the future, we can further try to
combine solar term cakes with traditional regional delicacies and create
innovative gift categories.
（3）High-end drinks/wines
Urban business and social occasions have always been dominated by
alcohol products. There is a lack of female business and social drinks with both
health and high-end labels. The Bird’s nest drink/wine has a healthy and
high-end positioning, and has the social currency attribute, which can fill the
gap in this use scenario. In some large shopping malls, comprehensive stores
that focus on the trendy female label have begun to appear in the form of Bird’s
nest drinks.

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（4）Functional derivatives
The nutrition and health labels of Bird’s nest have a high acceptance
among women. Focusing on the theme of beauty and skin care, functional
derivatives made of Bird’s nest extracts, such as facial mask, face cream and
other topical products, have begun to appear in the market with promising
prospects.

4、Development strategy of Bird’s nest industry in

2023-2029

4.1Develop online sales platform

With the popularity of the Internet and the prosperity of e-commerce,
online channel sales have gradually become a new trend in bird's nest sales.
Enterprises have two advantages in selling bird's nest through online channels:
① through e-commerce platforms, bird's nest products can be better
displayed, so that consumers can understand bird's nest and expand
consumer coverage; ② WeChat business fosters initial consumers through
its new social retail, promotes the popularity of bird's nest and expands the
consumer group of bird's nest. The price of bird's nest launched by WeChat is
relatively low, which can be accepted by ordinary consumers, which is
conducive to the promotion of bird's nest and promotes the growth of bird's
nest sales. The bird's nest sales model of e-commerce and WeChat has been
accepted by the majority of consumers, and this sales trend will be more
obvious in the future.
4.2 Focus on brand building
With the continuous improvement of the living standards of Chinese
residents, food safety has become the focus of consumers' attention. At
present, the aquatic bird's nest in China's bird's nest market is the main cause
of the food safety problems of bird's nest. The government supervision
department] is difficult to achieve comprehensive supervision over smuggling

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of bird's nest, the abuse of chemical additives in the processing of bird's nest is
difficult to be fully controlled, and the quality and safety of bird's nest cannot be
guaranteed.
The famous Bird’s nest brand has a certain production scale and social
influence, and the cost of food safety violations is high. Once the brand
enterprises have food safety problems, they will be severely punished, which
will have an irreversible impact on their reputation. Therefore, well-known
Bird’s nest brands will pay more attention to food safety, provide consumers
with high-quality Bird’s nest products, protect consumer interests and ensure
the sustainable development of enterprises. Well-known Bird’s nest
enterprises attach importance to brand construction and enhance consumer
confidence with brand influence to meet consumer demand for high-quality
Bird’s nest. At the same time, the brand has continuously launched Bird’s nest
iterative derivative products to meet the differentiated needs of consumers. For
example, YanPlace has launched a variety of flavors of ready-to-eat
rock-sugar Bird’s nest drink for pregnant women, and the high-beauty
packaging, product taste and nutritional value are favored and trusted by
consumers. In the future, the Bird’s nest brand will become an important basis
for consumers to choose Bird’s nest.

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