HONG KONG (Reuters) - The global market for traditional Chinese medicines, which include such remedies as amber, peach pits and pine pollen, is seen growing to more than US$23 billion this year as their popularity amongst aging Western populations grows, Hong Kong's top trade body said on Monday.

"For some illnesses, particularly among the older aged, some people find that conventional Western medicines have side effects or just may not be as effective as Chinese medicines," said Edward Leung, chief economist at the Hong Kong Trade Development Council (TDC).

Leung said people in older age groups are also attracted to traditional Chinese herbal remedies because they are seen as "natural" compared to their Western counterparts.

He was speaking to reporters at the launch of the council's report on the Chinese traditional medicine market.

The report sees global annual sales of Chinese medicines growing to US$23.2 billion for 2002, up from US$19.6 billion at end-2000, the report said. No figures for 2001 were available.

On average, sales have been increasing by about 8% a year since 1994, the TDC's report said.

Some Web sites selling traditional Chinese medicines claim their herbal remedies successfully treat ailments ranging from high blood pressure to even HIV, the virus that causes AIDS.

Europe is the biggest single market for traditional Chinese medicines, snapping up 35% of world demand, with Germany buying the most on that continent, the report said.

North America accounts for 15% of global demand, while China's home market accounts for only about 10% of sales, even though the country is showing the fastest growth in demand of over 22% per year.

China's accession to the World Trade Organisation is expected to put the country's 6,000 drugmakers under severe pressure in coming years and is expected to force many into producing traditional Chinese remedies as international patent scrutiny forces them to abandon manufacturing copies of Western drugs.

Guangzhou Pharmaceutical, one of China's largest drug companies said earlier this month that it expects 2002 revenue growth to slow to 10% to 15%, down from 26% in 2001, as the country opens its doors to foreign competition.

Meanwhile, Margery Tam, the author of the report said she does not expect the sale of traditional Chinese herbs to greatly impact the territory's overall trade picture.

Hong Kong acts as a trans-shipment point for many raw materials, such as ginseng coming from the US to be processed and packaged in China, and for cheaper herbs to be exported from China to foreign destinations.

The territory on Friday reported that the total value of its exports rose 2.2% in March year-on-year to US$124 billion, beating most analysts expectations of a contraction. The government said the pick up in exports was mainly due to increased demand in East Asian countries including China.

Reference Source 89

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