Outlook

Demand growth for both bamboo shoots and bamboo trees is likely to continue to be strong in the future for the following reasons:

  • Bamboo is a renewable resource and a substitute for other wood species
  • Changing consumer preferences in favour of sustainable materials and organically grown vegetables
  • Government support

Bamboo is a renewable resource and a substitute for other wood species

As a restorable and renewable forest resource, bamboo is receiving more and more attention because of its biological features such as its short growth cycle, high output, multiple uses, ecological adaptability, ornamental value and the nutritional qualities of bamboo shoots. As a result bamboo is now considered to be one of the most promising plants of the 21st century. As the bamboo industry brings economic, biological and social benefits, it has been ranked alongside the flower, forest tourism and the forest food industry as the four rising industries in the Chinese forestry sector. Indeed, China’s bamboo industry has made great contributions to environmental protection, soil and water conservation, modernising the agriculture industry and increasing farmers’ income.

In recent years, there has been a remarkable increase in demand for hard woods in China as a result of high single-digit growth in consumption of furniture, flooring and paper as well as a booming construction industry. Rising prices for traditional hard woods have led to a search for alternatives. Due to its low cost, high quality and environmental friendliness, bamboo is increasingly being used as a substitute for traditional hard woods.

Changing consumer preference in favour of sustainable materials and organically grown vegetables

Consumers are now increasingly choosing products which use sustainable materials. Bamboo, which has developed into a global symbol of sustainability due to its fast and renewable growth, is a popular choice for environmentally concerned consumers. As a result, we have experienced growing demand for flooring, paper and textiles produced using bamboo as a raw material. Bamboo can be used for the production of a surprisingly large number of products and we believe that the use of bamboo trees will expand into many new industries in the future.

As bamboo shoots are organically grown, delicious and nutritious, we have seen a sharp increase in demand in recent years. Our plantations are 100% organic and we have been accredited with organic product labels in China, Japan, Europe and the US. In addition, bamboo shoots, which have traditionally been eaten mainly in the south-eastern parts of China, are gaining in popularity all across the country as a result of rising living standards and a growing interest in quality food. The growth has been particularly strong in the Beijing area where we estimate that consumption has increased by 100 times in terms of volume during the last 20 years.

Government support

China’s bamboo industry has grown and modernised rapidly in recent years. The overall output value of the industry in China has exceeded USD10 billion and is growing at an annual rate of 10%.

Although government support has not had a direct effect on demand for bamboo, we believe that it has had an indirect impact. The central government is concerned with protecting natural resources, improving the ecological balance, boosting economic development in rural areas and increasing farmers’ incomes. Therefore, the government at various levels has been supportive during our land lease negotiations and by implementing favourable policies towards the agriculture industry, such as tax incentives. Without this support, it would be more difficult for us to create an integrated business and to generate economies of scale.

Legals | © 2015 Asian Bamboo AG

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