[Exclusive Insight] Dealer: A Dendrobium Craze Sweeps the Market—Can I Jump on This Trend?
Dec 09,2021
In recent years, a "Dendrobium craze" has swept through the market, with Dendrobium-based products—such as Dendrobium wine—gradually emerging in various cities and regions. Many distributor friends have reached out via the Jin Xiaomei WeChat platform, eager to know: Is it even feasible to get into the Dendrobium wine business? Today, Jin Xiaomei will share insights from industry experts, offering a detailed analysis of this product category’s unique features and promising prospects. Our goal is to help distributors spot the trends clearly and seize valuable market opportunities.
Coming back to the question—can Dendrobium wine actually be made? Before answering this, we first need to clarify exactly what Dendrobium is.
Dendrobium, also known as Xianhu Lanyun, Immortal Herb, Reviving Grass, Ziying Xianzhu, Hanging Orchid, Linlan, Jinsheng, and Jinchaihua, among other names. According to the "Shennong Bencao Jing," a medical text from the Qin and Han dynasties, iron-skin Dendrobium "treats injuries of the middle energizer, alleviates numbness and pain, regulates qi flow, and tonifies the five internal organs, particularly in cases of weakness, emaciation, and fatigue—strengthening yin and promoting longevity with long-term consumption." More than a thousand years ago, the Taoist medical classic "Daozang" ranked iron-skin Dendrobium as the foremost among China's "Nine Immortal Herbs." Li Shizhen, in his "Bencao Gangmu," praised it as "powerfully strengthening yin, enriching essence, nourishing the stomach and intestines, replenishing deficiencies within, harmonizing stomach qi, promoting muscle growth, enhancing intelligence, calming the spirit, relieving anxiety, and ultimately contributing to a lighter body and extended lifespan." In folk tradition, it’s affectionately called the "Life-Saving Immortal Herb." Today, the stems of iron-skin Dendrobium are renowned for their ability to clear heat, generate body fluids, reduce inflammation, relieve pain, and soothe the throat—making them highly effective in treating voice hoarseness. Additionally, Dendrobium exhibits remarkable anti-fatigue and hypoxia-resistant properties.
It’s clear that Dendrobium, as the foremost of China’s nine legendary medicinal herbs in traditional Chinese medicine, has been highly regarded by TCM practitioners for centuries. In fact, the cultural and market foundations of Dendrobium are beyond question, and the product’s market potential—particularly for Dendrobium wine—is undeniably promising. However, as a relatively new category of alcoholic beverage, how much operational value does Dendrobium wine hold for distributors? And could it potentially evolve into a major branch of China’s future alcohol market, becoming an essential everyday product that consumers can’t do without?
Looking at the rise of all new product categories, their emergence is broadly determined by four key factors: industry development trends, the level of market awareness, the target customer demographic, and the foundational role played by leading companies. By examining these four aspects, we can easily assess a new category's market potential and long-term prospects.
First, from the perspective of industry development trends, Dendrobium wine presents an opportunity.
We often joke that if a "pig" happens to be standing at the right spot in the wind—literally, on the "windward edge"—even the clumsiest pig could take flight. As a health-focused alcoholic beverage category, Shihu Wine is perfectly positioned at the forefront of today’s booming trend toward healthier baijiu, riding the wave of China’s growing consumer awareness of wellness. At the same time, China’s per capita GDP has just crossed the $8,000 mark. According to statistical analyses by U.S. economists, once a country’s GDP per capita reaches $8,000, people tend to place greater emphasis on health—and as a result, households are increasingly investing in health-related products. That’s precisely why, despite the challenging economic climate over the past two years, public interest in health and wellness has continued to soar. This is reflected not only in the rising popularity of health-related topics and media coverage but also in high-profile endorsements, such as the recent appearance of Peng Liyuan, wife of Chinese President Xi Jinping, on Beijing TV’s popular program *Yangsheng Tang* this year.
As one of the leading examples of health-oriented wines, Shihu Wine is undoubtedly positioned at the forefront of the market, with a clearly promising future ahead.
Second, in terms of market awareness, Dendrobium wine is relatively scarce.
The operational risk of a product largely depends on how well it’s perceived in the market—though greater awareness isn’t always better, nor is less awareness necessarily ideal. Instead, the right level of product recognition is crucial, as too much media hype can lead to an "overhyped" situation, while insufficient attention might result in being "underestimated."
Maca wine was quickly doomed largely because consumers had very little awareness of it—once the media started hyping it as something extraordinary, it instantly became a craze. But as soon as negative feedback emerged, the market collapsed almost overnight. This happened precisely because both the market and the media were unfamiliar with maca, lacking the cultural depth and established consumer understanding to sustain its reputation over time.
True scarcity perception lies somewhere between familiarity and déjà vu—this makes it easy to educate the market while simultaneously fostering purchasing behavior. Some argue that *Dendrobium* is virtually unknown among northern consumers, with its popularity concentrated mainly in southern regions, making the market challenging to penetrate. However, this very context of category awareness actually provides both a solid foundation and significant room for market education. As a result, the product can easily establish itself in markets where it’s already recognized, while simultaneously gaining traction and widespread adoption in areas where it remains relatively unfamiliar.
This is precisely why Wang Laoji was able to expand from Guangdong and Guangxi provinces to nationwide success—it leveraged the strong market awareness already present in its home region, while capitalizing on the vast untapped potential for broader consumer adoption across the rest of China.
A strong category should strike a delicate balance—its market perception should feel both familiar and yet subtly unique. This way, it’s less likely to fall victim to media hype or outright criticism. After all, the market itself holds the ultimate compass for clarity, ensuring that such a category won’t be easily swayed by public opinion.
Once again, in terms of the target population for this product, Dendrobium wine demonstrates broad applicability.
Many products are highly distinctive, but because they lack broad appeal, it’s difficult for their markets to grow significantly.
The maca wine mentioned earlier focuses primarily on enhancing male vitality. While the product stands out with its unique appeal and quickly sparked a trend in the market, its applicability is limited to adult men, which significantly restricts its reach. In fact, traditional health tonics like ginseng wine or deer antler wine haven’t achieved widespread popularity—partly because they tend to be too "yang" in nature, making them less suitable for consumption during summer months or among certain demographics. As a result, their sales remain constrained. This highlights a common challenge: the more distinctive and specialized a product’s benefits are, the narrower its target audience tends to be, limiting its potential for nationwide market success and broader distribution channels.
Compared to other specialty liquors, Dendrobium wine boasts broad versatility. Its naturally mild and refreshing nature makes it suitable for people of all ages and genders—men, women, young and old alike. As a rising star in China's health-focused baijiu category, this beverage is perfect for any occasion, serving as an ideal choice for individuals seeking both wellness and enjoyment. For distributors, it represents a strategic new product worth exploring as they expand their market offerings.
Finally, looking at the foundational role of the enterprise, Dendrobium wine demonstrates sustainability.
Many emerging product categories in China disappear within just 3 to 5 years, largely due to the influence of leading companies. These industry leaders often lack patience and sustainability, causing the categories they launch to quickly rise—and just as swiftly fade away. Maca wine is a prime example, and the currently popular "black water" trend is likely to follow the same fate.
A nascent category must have one or a few core founding companies that serve as its stabilizing force, firmly establishing the industry chain and building a solid foundation for product development. At the same time, these companies should thoughtfully craft a rational pricing strategy for their products—crucial steps to prevent market disruption caused by rampant imitation and copycat offerings when the category first enters the market. Without such safeguards, the category could experience rapid growth followed by an equally swift decline, leading to extreme volatility in both market dynamics and consumer confidence.
As an emerging category, Dendrobium wine currently has few operating companies, with Yunnan Pinhu Tang Biotechnology Co., Ltd. being the largest. Pinhu Tang is a well-established, modern, joint-stock enterprise backed by Yunnan—the largest Dendrobium-producing region in China. The company operates as a full-industry-chain business, integrating Dendrobium cultivation, advanced processing, and brand marketing. Its main product lines include purple-skin/iron-skin Dendrobium extract tablets, "Fengdou" products, nano powder, fresh Dendrobium, and health-enhancing Dendrobium wines.
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