Table of Contents
Executive Summary
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- The market
- Increasing health awareness and investment drives market growth
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- Figure 2: Retail value sales forecast of the health supplement market (RMB bn), China, 2020-25
- Future outlook considering the impact of COVID-19
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- Figure 3: Short- medium- and long-term impact of COVID-19 on health supplement market, China, December 2020
- Companies and brands
- A long tail of others emerge due to entry of CPG brands and products using cutting-edge formulae
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- Figure 4: Market share of leading companies in health supplement market, China, 2018-19
- Investing in better transparency, targeting health-conscious experience seekers, and balancing mouthfeel and effectiveness
- The consumer
- Rising usage for self-consumption
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- Figure 5: Usage of health supplements, August 2020
- Immunity playing a leading role, and specific functional options worthy of attention
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- Figure 6: Reasons for using health supplements, China, August 2020
- Oral liquid receives overall great feedback in terms of format preferences
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- Figure 7: Preference in format, China, August 2020
- Demand for food-based formats that contain well-known edible beauty ingredients
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- Figure 8: Awareness of edible beauty ingredients, China, August 2020
- The gap between offline and online channels narrows
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- Figure 9: Purchasing channels, China, 2020 vs 2018
- Young consumers show stronger belief in the effectiveness of boiled TCM
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- Figure 10: Attitude towards TCM, China, August 2020
- Personalised supplements are welcomed by food-format seekers
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- Figure 11: Attitude towards personalised supplements, China, August 2020
- Beauty supplements are evolving towards being an overall health improvement tool
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- Figure 12: Attitude towards beauty supplements, China, August 2020
- What we think
Issues and Insights
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- Marketing TCM supplements to young consumers
- The facts
- The implications
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- Figure 13: Examples of manufactures that leverage their TCM ingredients’ transparency, China, 2019-20
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- Figure 14: Examples of brands that balance taste, effectiveness and interactivity in products using TCM ingredients, China, 2019-20
- Adopting the edible beauty supplement trend in different ways
- The facts
- The implications
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- Figure 15: Examples of skincare brands expanding their product offerings to include beauty supplements, Global, 2017-19
- Figure 16: Examples of products leveraging the concept of “collagen booster”, Global, 2020
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- Figure 17: Examples of food-based edible beauty products, China and Overseas, 2018-20
- Using shot formats to convey effectiveness and better mouthfeel
- The facts
- The implications
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- Figure 18: Examples of health supplements in drinking formats, Global, 2019
The Market – What You Need to Know
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- Increasing health awareness and investments drive market growth
- Faster product registration for health food using special ingredients
- New e-commerce law creates market challenges for cross-border sales channels
- Future outlook considering the impact of COVID-19
Market Size and Forecast
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- Increasing health awareness and investments drives market growth
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- Figure 19: Retail value sales forecast of the health supplement market (RMB bn), China, 2020-25
- Future outlook considering the impact of COVID-19
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- Figure 20: Short- medium- and long-term impact of COVID-19 on health supplement market, China, December 2020
Market Factors
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- What’s driving
- Growth of healthcare expenditure exceeds total consumer expenditure
- Growing demand from younger generations and less affluent consumers
- Faster product registration for health food using special ingredients
- Entry of big CPG manufacturers will drive health supplement product awareness
- What’s challenging
- New e-commerce law creates market challenges for cross-border supplement brands
- Tightening regulations for offline drugstore channels
Market Segmentation
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- Dietary supplements gaining share
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- Figure 21: Retail value sales share of health supplements, by market segments, China, 2015-20 (est)
- Vitamins
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- Figure 22: Retail value sales forecast of vitamin segment (RMB bn), China, 2020-25
- Minerals
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- Figure 23: Retail value sales forecast of mineral segment (RMB bn), China, 2020-25
- Dietary supplements
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- Figure 24: Retail value sales forecast of dietary supplement segment (RMB bn), China, 2020-25
Key Players – What You Need to Know
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- A long tail of others emerge due to entry of big CPG brands
- Direct selling companies building on better transparency
- Engaging with younger consumers
- Targeting sub-health issues
- Balancing better mouthfeel and effectiveness in supplement formats
- Personalised supplements appeal
Market Share
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- Who’s doing well?
- By-Health doing well by building brand awareness
- Brands using emerging ingredients and traditional CPG brands enter the game, giving rise to a long tail of others
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- Figure 25: Health supplement products developed by Yili and Wonderlab, China, 2019-20
- Who’s struggling?
- Direct selling and Dong-E-E-Jiao are losing share
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- Figure 26: Market share of leading companies in health supplement market, China, 2018-19
Competitive Strategies
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- Direct selling companies building better transparency
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- Figure 27: Infinitus and Amway promoting transparent production processes, China, 2020
- Engaging with younger consumers
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- Figure 28: Examples of product innovations and marketing activities targeting younger consumers, China, 2020
- Targeting sub-health issues
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- Figure 29: Supplement brands that leverage precise marketing, China, 2019-20
- By-Health: turning health experts into KOLs
Trends and Innovations
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- Immunity worthy of attention
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- Figure 30: Examples of Immunity claimed supplements featuring both Western and botanical/fermented ingredients, China and Overseas, 2019
- Address specific functional needs
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- Figure 31: Examples of supplement products targeting stress relieving, eyesight improvement and weight management, Global, 2020
- Balancing better mouthfeel and effectiveness in supplement formats
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- Figure 32: Examples of supplement products that highlight both good mouthfeel and effectiveness, Global, 2020
- New methods of TCM consumption by leveraging on-the-go and better mouthfeel
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- Figure 33: Infinitus’s Yang Gu Jian branded TCM supplements, China, 2020
- Beauty supplements tailoring to specific ages
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- Figure 34: Fancl’s supplements for men and women tailored to their age, Japan, 2020
- Personalised supplements appeal
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- Figure 35: Examples of supplement products blending with personal health tests, China and Overseas, 2020
The Consumer – What You Need to Know
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- Rising usage for self-consumption
- Huge gaps between functions sought after and related new product launches
- Oral liquid receives great feedback in terms of format preferences
- Embracing a combination of Western and Chinese ingredients to improve beauty
- The gap between offline and online channels narrows
- Younger people have stronger belief in boiled TCM
- Personalised supplements are more welcomed by food format enthusiasts
Usage of Health Supplements
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- Self-consumption dominates
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- Figure 36: Usage of health supplements, August 2020
- Females are key demographic for supplements
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- Figure 37: Self-usage of select supplements, by gender and age, August 2020
- Consumers aged 18-24 are catching up in self-consumption of selected health supplements
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- Figure 38: Self-usage of select supplements, by age, China, August 2020
- Vitamins and dietary supplements for tier one while minerals for lower tier city consumers with children
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- Figure 39: Usage of select supplements amongst children, China, August 2020
Reasons for Using Health Supplements
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- Immunity improvement and dietary complement purposes stand out
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- Figure 40: Reasons for using health supplements, China, August 2020
- Gaps between new product launches and perceived reasons for using supplements
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- Figure 41: Gaps between health supplement launches with selected functions and consumers’ reasons for using supplements, China, 2020
- Not just for consumers of high income
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- Figure 42: Reasons for using select health supplements, by monthly household income, China, August 2020
- Multivitamins are multi-functional while single vitamins and Western dietary supplements for specific needs
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- Figure 43: Self-usage of select supplements, by select reasons for using health supplements, China, August 2020
Preference in Format
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- Oral liquid receives great feedback in terms of format preferences
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- Figure 44: Preference in format, China, August 2020
- Unprocessed medicinal materials and granule formats may fit special usage occasions
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- Figure 45: Product format innovations targeting weight management and eye health, China and Germany, 2020
- Females and males have distinct preferences in formats (gummies and shots)
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- Figure 46: Preference on gummy and shot formats, by gender, China, August 2020
Awareness of Edible Beauty Ingredients
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- Embracing a combination of Western and Chinese ingredients
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- Figure 47: Awareness of edible beauty ingredients, China, August 2020
- Females are well-rounded and males are specific
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- Figure 48: Awareness of select edible beauty ingredients, by gender, China, August 2020
- Young consumers aged 18-29 embrace melatonin and grape seeds’ effectiveness
- A desire for food-based beauty supplements using widely-known beauty ingredients
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- Figure 49: Attitudes towards food format health supplements, by select awareness of edible beauty ingredients, China, August 2020
Purchasing Channels
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- The gap between offline and online channels narrows
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- Figure 50: Purchasing channels, China, 2020 vs 2018
- Consumers going for omnichannel services
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- Figure 51: Select purchasing channels, by age, China, August 2020
- Multiple channels to purchase direct selling branded products are desired
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- Figure 52: Select purchasing channels, by consumers who have bought health supplements from direct selling, China, August 2020
- Different purchasing channels for distinct product types
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- Figure 53: Self-usage of select supplements, by select purchasing channels, China, August 2020
- Supermarkets of imported products and direct selling appeal to high earners
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- Figure 54: Select purchasing channels, by monthly household income, China, August 2020
Attitudes towards Health Supplements
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- Young consumers aged 18-29 show stronger belief in the effectiveness of boiled TCM
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- Figure 55: Attitude towards TCM, China, August 2020
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- Figure 56: Attitude towards TCM, by age, China, August 2020
- Personalised supplements are more welcomed by “food therapy” enthusiasts
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- Figure 57: Attitude towards personalised supplements, China, August 2020
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- Figure 58: Attitude towards personalised supplements, by attitude towards supplements made into food formats, China, August 2020
- Although beauty supplements are welcomed at all life stages, males have slight concerns
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- Figure 59: Attitude towards beauty supplements, China, August 2020
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- Figure 60: Attitudes towards beauty supplements, China, by gender, August 2020
Meet the Mintropolitans
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- Craving more personalised supplements
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- Figure 61: Attitude towards personalised supplements, by consumer classification, China, August 2020
- Seeking better offline store experience when it comes to retailer choices
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- Figure 62: Purchasing channels, by consumer classification, China, August 2020
Appendix – Market Size and Forecast
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- Figure 63: Retail value sales of the baby nutrition market (RMB bn), China, 2015-25
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Appendix – Methodology and Abbreviations
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- Methodology
- Abbreviations
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