NZ Nutrient Extraction Tech Set to Modernise Traditional Chinese Medicine Sector
A breakthrough in nutrient extraction technology developed by Kiwi scientists is poised to reshape the global Traditional Chinese Medicine sector, introducing precision, efficiency and sustainability to an industry valued at more than US$60 billion.
While Traditional Chinese Medicine has been practised for more than 5,000 years, many of its preparation methods remain rooted in time-intensive processes such as boiling and decoction. Now, a New Zealand-developed system is helping bring modern biotech capability to a rapidly expanding global industry projected to reach USD 98.3 billion by 2032, according to data from Precedence Research.
How Nutrient Extraction Technology Is Transforming the Traditional Chinese Medicine Sector
Founded nearly three decades ago in a West Auckland garage, Alpha Group has grown into one of New Zealand’s largest vertically integrated nutraceutical exporters. Operating across New Zealand and China, the company sits at the forefront of fermentation and extraction science.
At the centre of its expansion is a patented low-temperature, low-pressure extraction system designed to isolate active compounds from fungi, botanicals and fruit by-products. Unlike traditional decoction or high-pressure extraction methods, this system preserves the efficacy of heat-sensitive bio-actives while using less energy and generating significantly less waste.
The technology is now being applied to core staples of the Traditional Chinese Medicine sector including ginseng, astragalus, licorice root and reishi mushrooms. These herbs are prescribed across more than 60,000 licensed TCM hospitals and clinics in China alone. It is also being used for botanicals such as goji berry and ginger, which are already familiar to Western consumers for their antioxidant and digestive benefits.
Delivering Precision and Consistency in Herbal Medicine
One of the longstanding challenges within the Traditional Chinese Medicine sector has been consistency. Traditional preparation methods can vary between practitioners, leading to differences in potency and therapeutic effect.
Alpha’s extraction system isolates active compounds and delivers them in practitioner-specified formulations with measurable precision. The finished products are supplied in ready-to-consume formats, removing the need for lengthy preparation while ensuring reliability.
Last year, the company reported revenues exceeding NZ$93 million and is currently extracting compounds from more than 100 herbal medicines. Thousands of individual formulations are produced annually and supplied through hospital networks and consumer healthcare markets across China and Hong Kong.
Professor Yihuai Gao on a Step Change for the Traditional Chinese Medicine Sector
Professor Yihuai Gao, founder and chief scientist of Alpha Group, believes the innovation marks a defining moment for the industry.
“For thousands of years, Traditional Chinese Medicine has relied on methods that are effective but time-consuming and inconsistent.
“Traditionally, bioactive compounds are released through boiling or decoction, a process that can take several hours and often destroys heat-sensitive ingredients. Other modern methods, such as high-pressure extraction, require large amounts of energy and can leave behind chemical residues.
“Our patented extraction process retains the natural efficacy of bio-actives while delivering them in a form that is modern, convenient, and scientifically precise. This is a step change in how TCM can be prepared and consumed, ensuring it remains relevant for future generations of patients and practitioners.”
Professor Gao says the breakthrough has the potential to strengthen both domestic and export markets by embedding reliability and sustainability into a sector historically dependent on manual processes.
Scaling Infrastructure to Support Global Demand
To meet rising international demand, Alpha is expanding its infrastructure, with new production lines scheduled to be established from its China base in 2026. This growth builds on more than NZ$830 million already invested in global infrastructure and is expected to generate 50 new roles locally.
Research and development continues to be supported by its Manukau hub in Auckland, the Alpha – Massey Natural Nutraceuticals Research Centre in Palmerston North and the Tongji University Natural Medicine Research Institute in Shanghai. Together, these facilities underpin a vertically integrated supply chain linking New Zealand-led science with international distribution channels.
Positioning New Zealand at the Forefront of Biotech Innovation
The wider ambition extends beyond commercial success. Professor Gao says the long-term goal is to establish New Zealand as a recognised centre for biotech innovation and export growth in natural health products.
With global demand for herbal formulations expanding into Asia, Europe and North America, advanced nutrient extraction technology offers a pathway for modernising the Traditional Chinese Medicine sector while maintaining its core therapeutic philosophy.
This story attracted coverage across major outlets including NZ Herald and Stuff, reflecting strong interest in how New Zealand science is reshaping global health markets.
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