Global-Famous Gulong Star Anise (Teng County, Guangxi) Industry Performance Report and SWOT Analysis

Sep 26, 2025
4 min read

As the core production base of China’s star anise industry, Gulong star anise draws constant attention from industry players worldwide. Its outstanding market standing makes its market performance a barometer for the entire star anise sector.

Guangxi Deng’s Spices Co., Ltd., the sole deep-processing enterprise located in Gulong’s star anise producing area, keeps close track of local market conditions. Below is the latest update on local production and industry trends.

I. Core performance report of Gulong Star Anise Industry in Teng County, Guangxi, China

1. Planting Scale & Regional Standing

In 2025, Teng County maintained a star anise planting area of 400,000 mu, accounting for 10% of Guangxi’s total star anise acreage, ranking it among Guangxi’s top star anise production counties.

Gulong Town, the core producing zone, hosts over 65% of the county’s star anise plantations, forming an industrial cluster built around the geographical indication “Gulong Star Anise” with solid industrial foundations and distinct regional recognition.

2. Output & Industrial Value Contribution

The county yielded 24,400 tons of dried star anise fruits in the year. At the prevailing market price of roughly 18 RMB per jin, the dried fruit output value exceeded 878 million RMB.

Star anise oil output hit 95 tons, a key deep-processed product valued at around 124 million RMB based on a market rate of 130 RMB per kilogram.

Combined, the two core products drove an industrial chain output value exceeding 1 billion RMB, directly benefiting over 30,000 farming households. The star anise sector stands as a pillar industry fueling rural revitalization in Teng County.

II. SWOT Analysis of Gulong Star Anise Industry in Teng County

Strengths

Superior natural growing conditions
Teng County features a subtropical monsoon climate with an average annual temperature of 21°C and annual rainfall above 1,500 mm. Its red and yellow soils have ideal pH levels for star anise growth.
Known as China’s “Hometown of Star Anise”, Gulong boasts over 300 years of star anise cultivation history, mainly growing high-quality, stable soft-branch star anise varieties.
Large-scale production & strong brand advantages
The 400,000-mu plantation base forms a large industrial cluster, facilitating unified field management and technical promotion.
Certified as a national geographical indication product, Gulong Star Anise enjoys high recognition across domestic spice and Chinese medicinal herb markets. It sells widely to Guangdong, Yunnan and Southeast Asia, carrying strong brand premium value.
Complete preliminary industrial chain
A full value chain has taken shape: planting → harvesting → primary processing (drying, threshing) → deep processing (star anise oil extraction, star anise powder production) → sales.
The county runs 82 star anise drying factories and 15 star anise oil refineries, with a 35% deep processing rate that boosts product added value and cuts fresh fruit storage losses.

Weaknesses

Low mechanization, heavy reliance on manual labor
Mountainous terrain and the tree’s growth characteristics make harvesting entirely manual, requiring 3–5 workers per mu. Manual labor accounts for 40% of total production costs, dragging down efficiency.
While mechanical drying is mainstream, sorting and packaging still rely on manpower, with overall mechanization coverage below 30%.
Short deep-processing chain, homogeneous low-end products
Over 90% of processed goods remain primary products: star anise oil and powder. The county has no manufacturers producing high-value derivatives such as star anise essence, flavonoid extracts or health drinks. Homogenized products leave the industry vulnerable to violent price swings.

Opportunities

Favorable supporting policies
National rural revitalization authorities prioritize characteristic crop cultivation. Guangxi issued the Guangxi Star Anise Industry High-Quality Development Plan (2023–2027), offering subsidies up to 30% of investment for seed improvement and deep-processing projects.
Teng County rolled out the Gulong Star Anise Industry Upgrade Initiative, setting aside a 20 million RMB special fund to fund industrial upgrades.
Expanding market demand
As consumers pursue healthy food, demand for star anise (a medicinal-edible herb recorded in the Chinese Pharmacopoeia, used to dispel cold and regulate vital energy) rises 8% annually in herbal medicine markets.
Demand from food seasoning sectors (hot pot bases, braising sauces) grows 12% each year. Southeast Asian markets, sharing similar culinary traditions, import over 5,000 tons of star anise yearly, opening vast market space.
New technologies to drive industrial upgrading
Modern agricultural tools including drone plant protection and integrated water & fertilizer irrigation cut mountain farm management costs. Advanced bio-extraction technology unlocks high-value uses for anethole in star anise oil, for premium flavors and pharmaceutical intermediates.
E-commerce livestreaming and group buying create new sales channels for Gulong Star Anise, slashing intermediate circulation costs.

Threats

Natural disasters and plant diseases & pests
Though Teng County rarely suffers direct typhoon hits, heavy rains triggered by nearby typhoons can cause fruit drop and branch breakage.
Star anise anthracnose and looper caterpillars affect roughly 30,000 mu of plantations each year. Poor pest control may cut yields by 10%–15%. Local farmers have rich prevention experience, yet risks remain persistent.
Substitute competition and volatile market prices
Synthetic anise oil costs only 60% of natural star anise oil and replaces natural products in low-end food seasoning markets. In herbal medicine, price fluctuations of similar warming herbs like cinnamon and clove divert buyers.
Over the past five years, dried star anise prices have fluctuated by 40%, ranging from 15 to 25 RMB per jin. Unstable earnings dampen farmers’ willingness to maintain cultivation.

III. Recommendations for Future Industrial Development

Upgrade seed varieties and expand modern farming tech
Partner with Guangxi Academy of Agricultural Sciences to build a Gulong star anise seed breeding base. Complete graft renovation of 50,000 mu of aging trees within three years. Popularize drone crop care and water-fertilizer integration to lift mechanization coverage to 50% and reduce labor expenses.
Extend the high-value deep-processing chain
Introduce 2–3 advanced deep-processing manufacturers to develop star anise essence, flavonoid extracts and health beverages. Raise the deep processing rate to 50%, shifting production from low-end primary goods to high-value derivatives.
Build sound marketing and brand systems
Construct a cold chain logistics center in Gulong to cut post-harvest losses. Boost brand visibility via livestream sales and Southeast Asian trade fairs. Launch a market price monitoring and early warning system to stabilize farmers’ incomes.
Establish a comprehensive risk prevention system
Improve emergency response plans for typhoons and crop diseases. Adopt a shared risk model jointly supported by local government, agricultural insurance and farmers to cushion shocks from natural disasters and market volatility.