Once Niche, Birch Tree Sap Becomes China’s New Health Craze Thanks to a Determined Investor

China’s latest wellness trend comes not from ancient herbs or exotic teas but from the humble birch tree. As birch tree sap’s popularity surges, Zhang Xuegang, a seasoned investor, is leading the charge, turning an overlooked forest product into a multi-million dollar industry. His journey reflects an ambitious vision: transforming birch sap, previously unknown to many, into a daily health beverage for millions in China and potentially beyond.

Zhang, a 70s-born entrepreneur with nearly two decades in investment, first encountered birch sap in 2015. Though financially secure, Zhang’s interest was piqued by birch sap’s health benefits and untapped market potential. Often referred to as “liquid life” or “liquid diamond” in promotional material, birch sap is known for its rich nutrients, including betulinic acid and phenolic compounds, which advocates claim offer antioxidant, anti-inflammatory, and immune-boosting properties. This natural, slightly sweet liquid is popular among certain forest-dwelling communities in northern China, where locals have long harvested and enjoyed it.

After a $5 million initial investment in a processing plant in Yichun, Heilongjiang province, Zhang faced numerous challenges. Birch sap’s brief harvesting window of just two to three weeks in early spring and its sensitivity to air exposure, which can quickly degrade its quality, complicated efforts to produce it on a large scale. The high processing costs are unavoidable: each year, the plant and workers operate intensively for just weeks, requiring year-round maintenance and preparation. Recognizing these complexities, Zhang’s company, Jiahua, developed specialized collection bags with individual barcodes to monitor quality and enforce sustainable practices. Each collection bag is replaced daily, a costly but necessary step for maintaining freshness.

Jiahua’s technical achievements didn’t end with logistics. The company patented innovative equipment to preserve birch sap’s freshness and has since earned several processing patents. To prevent overharvesting, Jiahua led the establishment of industry standards for sustainable tapping practices, emphasizing techniques that allow trees to heal and regenerate.

Despite a rocky start and low early sales, Jiahua persisted, capitalizing on rising consumer health consciousness. By 2021, the company had begun to gain traction through private online sales channels, reaching $4.5 million in sales. In 2023, birch sap went mainstream in China’s competitive beverage market, reaching over $13 million in sales. Zhang attributes this success to the rise of e-commerce platforms like Douyin (the Chinese version of TikTok), where influencers helped create buzz around the sap’s unique story and purported health benefits.

However, with success has come scrutiny. As birch sap gained fame, critics have questioned its high retail prices, while others have raised environmental concerns. Zhang defends the cost, explaining that both the production and raw materials demand substantial investment, and insists his company’s careful extraction methods protect forest sustainability.

Looking forward, Zhang envisions birch sap branching into beauty and skincare products, thanks to its potential as a natural substitute for water in cosmetic formulations. He believes the birch sap market could eventually rival established beverage giants like coconut water. Zhang’s commitment to this niche product underscores a broader mission to champion sustainable development within China’s natural resources industry. Despite the competition, he welcomes responsible players to join him, convinced that birch sap’s best days are still to come.

Zhang, who once thrived on high-stakes investments, now finds fulfillment in the quiet forests of northern China.