NÔNG NGHIỆP VIỆT NAM — TẠP CHÍ NÔNG NGHIỆP ĐÔNG NAM Á

An explanation of Vietnam's star-anise growing areas, its global share, and medicinal demand

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What Is Star Anise? The True Nature of a Spice Vietnam Takes Pride In

That spice with the distinctive sweet aroma, written with the characters for 'eight corners.'
With its striking star-shaped fruit, it is familiar from Chinese cuisine and Taiwanese sweets.

In fact, about 80-90% of the world's star anise supply is produced in just two countries, Vietnam and China.
And as an indispensable raw material in both the pharmaceutical and food sectors, it is increasing its presence in the international market.

'Why is star anise drawing attention now?' 'What are the characteristics of the Vietnamese kind?'
This article explains it all, from the realities of the growing regions to world demand and its medicinal and culinary uses.

Lang Son Province Is the Hub: Vietnam's Largest Star Anise Production Area

The center of star anise production in Vietnam is the northern Lang Son province of organic jasmine rice.
This region, which borders China's Guangxi, has a mountainous, cool climate well suited to growing star anise.

On the farmland spread across mountainous terrain at an elevation of 400 to 1,000 m, Illicium verum trees, which grow 5 to 15 m tall, are planted in rows.
The trees bear their first harvest five to six years after planting, and may continue to bear fruit for nearly 100 years thereafter.

Besides Lang Son province, cultivation is also carried out in Cao Bang and Bac Kan provinces.
However, Lang Son province stands out in both volume and quality, and 'Lang Son origin' is recognized as a brand.

Vietnam's Annual Production

Vietnam's star anise production varies by year, but in recent years it has hovered around 10,000 to 15,000 tonnes. It has stayed at that level.
A large share of this is exported as dried product, with Japan, the EU and the United States among the main destinations.

The Structure of Global Share: A Vietnam-China Duopoly

The international market for star anise is almost monopolized by Vietnam and China.
The shares of the main producing countries are summarized below.

Country Estimated Share Main origins
China About 50-60% Guangxi, Yunnan
Vietnam About 30-40% Lang Son, Cao Bang
Others (Laos, etc.) A few % the northern mountains

Chinese production is larger in absolute terms, but in recent years rising labor costs and the aging of its growing regions have become challenges.
Vietnamese product, meanwhile, is highly rated for its consistent quality and price competitiveness, and its export volume is steadily growing.

The shift by EU and Japanese food manufacturers toward Vietnamese product is especially notable, and it is drawing attention from the standpoint of diversifying sourcing.

As a Raw Material for Tamiflu: Its Little-Known Medicinal Demand

Star anise came into the spotlight in the pharmaceutical field in the early 2000s.
As a key raw material for the anti-influenza drug 'Tamiflu (oseltamivir)', its importance surged all at once.

To synthesize oseltamivir phosphate, the active ingredient in Tamiflu, the shikimic acid contained in star anise is used.
Shikimic acid is extracted from the fruit of star anise and, through several chemical reactions, becomes Tamiflu.

How Tamiflu Demand Caused Star Anise Prices to Surge

During the 2005-2006 avian influenza outbreak, governments around the world tried to stockpile large quantities of Tamiflu.
As a result, demand for star anise surged, and prices temporarily jumped several to more than ten times their level. Such a situation occurred.

Afterward, an alternative synthetic route for shikimic acid was also developed for Tamiflu's manufacturing process, but star-anise-derived shikimic acid is still one of the main sources of supply.
From the standpoint of pandemic preparedness, pharmaceutical companies in various countries place importance on building relationships with star anise growing regions.

Biochemical Uses Beyond Pharmaceuticals

Beyond antiviral drugs, shikimic acid is also attracting attention in research on anticancer and anti-inflammatory drugs.
The essential-oil component anethole has also been reported to have antibacterial and antifungal effects.

Culinary Uses: From Chinese Food to Japanese Cuisine and Western Confectionery

Medicinal demand tends to get the attention, but star anise's culinary uses are overwhelmingly broader.

Worldwide, star anise is used in settings such as the following.

Use Category Examples
Chinese cuisine five-spice powder, braised pork belly, lu rou fan
Vietnamese cuisine the soup stock of pho
Western confectionery and liqueurs absinthe, pastis, mulled wine
Indian cuisine biryani, masala chai
Japanese processed foods ramen soup, sauces, prepared side dishes

It is an indispensable spice for Vietnamese pho in particular, so much so that people say 'pho without star anise is not pho.'
Just adding a few pieces while simmering the pho broth produces that distinctive sweet aroma.

In Japan, too, it has long been familiar as a Chinese cooking ingredient, but in recent years demand has grown as a flavoring for craft gin and craft beer.

The Quality and Distribution of Vietnamese Star Anise

Vietnamese star anise is distributed in four forms: whole dried fruit, broken, powder, and essential oil.

The main indicators of quality are as follows.

  • Essential oil content: generally, 6-8% or more is regarded as high quality
  • Moisture content: for dried product, 12% or less is the standard
  • Foreign-matter content: 1% or less under export standards
  • Appearance: well-formed star shapes with few chips are top grade

Lang Son origin has a high essential-oil content and is valued for the strength of its aroma.
Among Japanese food importers, too, 'Lang Son origin' is well known.

Exports mainly go through processors in Hanoi, where the product is dried, sorted and bagged before being shipped in containers.
In recent years, more farms have obtained organic certification and are taking on high-value-added exports to the EU and Japan.

Summary

Vietnamese star anise, with Lang Son province as its main growing area, is an important farm product accounting for about 30-40% of world supply.
While supporting medicinal demand as a source of the Tamiflu raw material shikimic acid, it is also deeply rooted in the food cultures of countries around the world, starting with pho.

Vietnamese product is highly competitive in both quality and price, making it an attractive source for importers who want to spread out their reliance on Chinese product.
From the standpoint of pandemic preparedness, too, building stable relationships with star anise growing regions will become ever more important.

The star anise market, where the dynamism of agricultural policy, climate change and international demand intersect, is one we cannot take our eyes off.

At VN AGRI, we share the latest information on Vietnamese agriculture.

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Author of this article

While running a food brand in Kyoto, I have worked on products that bring out the appeal of ingredients, such as dried vegetables and vegetable powders. I am now in my second year living in Vietnam, where I am also involved in coffee production on the ground, learning the whole process from cultivation to processing and flavor development. Out of a wish to deliver foods people can enjoy with peace of mind in everyday life, I value products whose production background and the faces of their makers are visible. Drawing on the appeal of both Japanese and Vietnamese food cultures, I aim to bring a little richness to daily life.

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