What is driving the recent downturn in China's chondroitin sulfate market?

What is driving the recent downturn in China's chondroitin sulfate market?
Dongcheng Pharma, the world's largest chondroitin sulfate producer, saw revenue fall for a third consecutive year in 2024, down 12.4% year-on-year and below 2019 levels. Overseas sales, once nearly 60% of revenue, dropped to 45.5% amid tariff pressures and heparin price volatility. Gross margins for raw materials rebounded but remain below pre-pandemic peaks. The company's net profit is now less than half its peak. This mirrors broader industry stress: Jiyuan Group lost its largest customer By-Health, with chondroitin sales collapsing from 143.5 tons in 2021 to near zero by 2023, despite price concessions. The market remains highly fragmented with numerous Chinese manufacturers competing fiercely on price.