A nutrient extraction technology developed by Kiwi scientists is set to transform the US$60 billion global Traditional Chinese Medicine (TCM) sector, modernising production methods that have remained largely unchanged for 5,000 years.
The global TCM sector is projected to grow to USD 98.3 billion by 2032 at a compound annual growth rate of 5.5%. China alone has more than 60,000 licensed TCM hospitals and clinics, while international demand is increasing rapidly as herbal formulations expand into export markets across Asia, Europe, and North America.
A Kiwi company that began as a West Auckland garage start-up nearly three decades ago, Alpha Group has grown into one of New Zealand’s largest dual-market export operations. Today it operates as a vertically integrated nutraceutical exporter at the international forefront of fermentation and extraction technologies, with research and manufacturing operations across New Zealand and China.
The company’s patented low-temperature, low-pressure extraction system is capable of isolating active compounds from a wide range of sources including fungi, plants and fruit by-products.
This process ensures bio-actives retain their efficacy after extraction, while using significantly less energy and generating less waste than conventional methods such as decoction or high-pressure extraction. The adaptability of the system also allows it to be applied to fruit waste, functional foods, and nutraceuticals, broadening its commercial potential.
The company is now applying its technology to staples of Traditional Chinese Medicine such as ginseng, astragalus, licorice root and reishi mushrooms, herbs widely prescribed across China’s 60,000 licensed TCM hospitals. It is also being used with consumer-friendly botanicals such as goji berry and ginger, already popular in Western diets for their antioxidant and digestive benefits. By isolating active compounds from these well-known plants, Alpha ensures consistent potency and convenience for both practitioners and patients, while retaining the natural efficacy valued in traditional use.
Alpha Group, which last year reported revenues in excess of NZ$93 million, is now using the technology to extract compounds from more than 100 herbal medicines, delivering them in precise, practitioner-specified formulations.
The products are supplied in convenient, ready-to-consume packs, eliminating the need for lengthy traditional preparation while ensuring accuracy and consistency. The company already produces thousands of individual formulations annually and supplies them through both hospital networks and consumer healthcare markets across China and Hong Kong.
The firm is also expanding its infrastructure to meet rising demand, with new production lines to be established from its China base in 2026. Supported by its Manukau R&D hub in Auckland, its Alpha - Massey Natural Nutraceuticals Research Centre in Palmerston North, and its Tongji University Natural Medicine Research Institute in Shanghai, Alpha is scaling its operations to manufacture advanced herbal formulations for both hospital and consumer markets.
The expansion builds on more than NZ$830 million the company has already invested in global infrastructure and is expected to create 50 new jobs locally. It will form a core part of its vertically integrated supply chain, linking New Zealand-led research and development with international distribution channels.
Professor Yihuai Gao, founder and chief scientist of Alpha Group, said the company’s breakthrough represents a turning point for the sector.
“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 innovation has the potential to transform both domestic and export markets for herbal medicine by introducing greater reliability, efficiency and sustainability into an industry traditionally dependent on manual processes.
He says that Alpha’s long-term ambition is to position New Zealand as a global centre for biotech innovation and exports, building on the country’s reputation for high-quality science and natural health products.
