Immunity Management After COVID-19 - China - May 2020

OVERVIEW
What you need to know
Key issues covered in this Report
Report scope
Excluded
Subgroup definition
Figure 1: Definition of low/mid/high MHI groups, by monthly household income and city tier
EXECUTIVE SUMMARY
The market
Desire for better life quality drives investment in immunity management at every life stage
COVID-19 will further drive product and service innovations for immunity management
Opportunity for upgraded products and services integrating more angles of immunity improvement
Credibility remains as an issue in marketing communications
Impact of COVID-19 on Immunity Management
COVID-19 is expected to fuel market growth in both short and long term
Figure 2: Short, medium and long term impact of COVID-19 on Immunity Management market, May 2020
Companies and brands
The consumer
Digestive, skin and mental health playing active roles in immunity association
Figure 3: Perceived signs of poor immunity, April 2020
More detailed solutions are in demand
Figure 4: Approaches for improving immunity, April 2020
Awareness of effective ingredients is a result of years of market education
Figure 5: Nutrients and botanical ingredients associated with immunity, April 2020
Diversify media channel and build credibility in professionalism
Figure 6: Trust in different information sources, April 2020
Early adopters (Mintropolitans) go for exotic ingredients
What we think
THE IMPACT OF COVID-19 ON IMMUNITY MANAGEMENT
Figure 7: Short, medium and long term impact of COVID-19 on Immunity Management market, May 2020
Opportunities and Threats
Health supplements benefit from increasing awareness of proactive wellbeing management after COVID-19
COVID-19 increases need for stress relief
Professional human expertise is in demand
Impact on the market
What we’ve seen so far
Growing demand for health supplements from the less affluent consumers
Figure 8: % of consumers who have ever done the following activities in the last month, Feb to May 2020
Demand for wider application of fresh fruits and vegetables
Figure 9: Examples of packaged drinks highlighting fruits and vegetables, China, 2018-20
Shifts in consumer behaviour
Protection from the inside: naturalness now matters to mass consumers
Protection from the outside: COVID-19 will reshape traditional meal-sharing habits
How COVID-19 will affect key consumer segments
Seniors will become more engaged with functional food and drinks and omnichannel health services
Stressed women will pay more attention to mental wellbeing
COVID-19 has raised health and immunity awareness in lower tier cities
Figure 10: Selected health issues and issues associated with immunity, by city tier, September 2019- April 2020
How a COVID-19 will reshape the industry
A more competitive marketplace for health supplements
“Professional experts” becoming an indispensable part of the business
The health tech market powers up
Impact on the marketing mix
Opportunity for upgraded product and service innovations integrating more angles of immunity improvement
Rethink about targeting consumers and occasions
Marketing communication could emphasis expertise
Family gifting packages to offer good price value
Figure 11: Examples of family package supplements meeting different family members’ needs, China, 2020
COVID-19: China context
Figure 12: Accumulative confirmed cases of COVID-19 in China, January to May 2020
Figure 13: Status of returning to work, China, March and May 2020
ISSUES AND INSIGHTS
Expanding the territories of probiotics
The facts
The implications
Figure 14: Examples of category expansion in using probiotics ingredients, Global, 2017-20
Figure 15: Meiji’s Probio Yogurt R-1, Japan, 2017
Marketing botanical ingredients as a "natural boost" for total wellbeing
The facts
The implications
Figure 16: Examples of food and drink products combining additional botanical ingredients for extra immunity benefits, global, 2018-20
Figure 17: Intenson’s superfood bar, Poland, 2018
Professional human expertise in demand for making lifestyle and product choices
The facts
The implications
Figure 18: Dingxiang Doctor’s paid advisory services, China, 2018
Figure 19: Weis ‘SmartFood+’ sports nutrition subscription services, China
THE MARKET – WHAT YOU NEED TO KNOW
Immunity needs to stay at every life stage
The wider food and drink category sees huge opportunities
Other opportunities lie beyond exploring new formula interest and product-service integration
MARKET OVERVIEW
Importance of immunity management reaches mass awareness
Desire for better life quality drives investment in immunity management
Attention to COVID-19 creates opportune time in health supplements
Wider acceptance of TCM concept
Standardized regulation to strengthen product reassurance
MARKET SEGMENTATION
The big picture
Figure 20: Share of food, drink and healthcare launches with an immune system claim, by region, May 2015-April 2020
Figure 21: Share of food, drink and healthcare launches with an immune system claim, Global vs China, May 2015-April 2020
Category spotlight: healthcare
Figure 22: Share of healthcare launches with an immune system claim, by markets across APAC region, May 2015-April 2020
Vitamins and dietary supplements are predominant product segments
Figure 23: Product type estimation on vitamins and dietary supplements with an immune system claim, China, May 2015-April 2020
Category spotlight: food and drink
Figure 24: Top 10 categories in food* and drink launches with functional claims** related to immunity, China, May 2015-April 2020
Figure 25: Top growing categories in food* and drink launches with functional claims** related to immunity, China, May 2015-April 2020
Dairy is the most common category with immunity claims
Figure 26: Top five sub-categories in dairy launches with functional claims* related to immunity, China, May 2015-April 2020
Figure 27: Examples of drinking yogurt offering immunity benefits, China, 2018-20
Beverage ‘blurring’ trend creates new usage occasions
Figure 28: Examples of blurring beverages offering immunity benefits, China, 2019-20
Additional nutrition starts to become a new purpose for snacking
Figure 29: Examples of snack foods offering immunity benefits, China, 2019-20
Ingredient spotlight
Micronutrients dominate
Figure 30: Top 10 ingredients in food* and drink launches with functional claims** related to immunity and healthcare launches with an immune system claim, China, May 2015-April 2020
Figure 31: Top 10 micronutrients in food* and drink launches with functional claims** related to immunity and healthcare launches with an immune system claim, China, May 2015-April 2020
TCM provides a shortcut to holistic healing
Figure 32: Examples of TCM products that highlight evidence-based benefits, China, 2020
Gut health focus will drive interest in prebiotics and probiotics together (synbiotics)
Figure 33: Share of food* and drink launches with functional claims** related to immunity and healthcare launches with an immune system claim, by probiotics and prebiotics as an ingredient, China, May 2015-April 2020
Figure 34: Examples of food, drink and supplement products highlighting prebiotics/synbiotics as an ingredient, China, 2019-20
Services spotlight
Connecting with consumers via professional health experts
Figure 35: ‘Fight for my immunity’ online health consulting service by By-Health and Chunyu doctor, China, 2020
Figure 36: By-Health combined its protein powder offerings with online fitness classes on Tmall, China, 2020
Personalisation via consumer biometrics
Figure 37: Examples of personalised test kits and wearable devices targeting immunity improvement, China
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Big Chinese supplement brands eyeing awareness expansion
Embracing product/service innovations by integrating more angles of immunity management
Global trend: creating new usage occasions for immunity management product applications
Global trend: personalisation will become next normal
COMPETITIVE STRATEGIES
By-Health actively building brand awareness via mass media
Figure 38: By-Health’s protein powder TV ads, China, 2019
Pfizer leverages precision marketing to expand wider consumer reach
Figure 39: Centrum’s Nutrition Package Model, China, 2020
Biostime focuses on highlighting endorsement from trusted health experts
Figure 40: ‘Immunity College’ webinars by Biostime and healthcare experts from Beijing Union Medical College Hospital, China, 2020
Dairy brands promoting immunity claims in different ways
Figure 41: Mengniu’s Guanyiru and Yili’s Ambrosial Greek-style yogurt marketing messages, China, 2020
Fitness services go omnichannel
Figure 42: Keep’s offline gym studio and light meal products, China, 2018-20
GLOBAL TRENDS/INNOVATIONS
Micronutrients in greater varieties and new occasions
Figure 43: Examples of products highlighting novel micronutrients for immunity, Global. 2019
Figure 44: Flat Tummies highlights fresh oranges as top ingredients, India, 2019
Botanicals show overriding trend as natural sources of nutrients
Figure 45: Share of food, drink and healthcare launches with an immune system claim, by select herbal ingredients, Global, May 2015-April 2020
Figure 46: Examples of products highlighting botanical ingredients for immunity, Global, 2018-20
Boosting immunity from maintaining healthy gut mucous lining
Figure 47: Examples of products offering immune and digestive health benefits, Global, 2019-20
Personalisation is trending
Figure 48: Examples of functional yogurt products, Japan, 2017-20
Figure 49: Examples of personalised supplements, Global, 2019
Putting adequate sleep and rest into the equation
Figure 50: Examples of food, drink and supplement manufacturers communicating the importance of sleep and immunity, Global, 2020
THE CONSUMER – WHAT YOU NEED TO KNOW
Digestive, skin and mental health playing active roles in immunity association
More detailed solutions are in demand
Lack of knowledge and spending power for supplements barriers in low income groups
Awareness of effective ingredients is a result of years of market education
Early adopters (Mintropolitans) go for exotic nutrition
Professional human lifestyle expertise in demand
PERCEIVED SIGNS OF POOR IMMUNITY
Multiple signs of poor immunity on consumers’ watch list
Figure 51: Perceived signs of poor immunity, April 2020
Setting up relevant ‘scenario’ for a defined audience
Figure 52: Perceived signs of poor immunity, by age, April 2020
Early middle-aged females are more cautious about stress and fatigue
Figure 53: Perceived signs of poor immunity, by gender and age, April 2020
Figure 54: Natura’s meditation app, Brazil, 2018
Seniors care more about chronic disease
Affluent young males are more driven by skin immunity
Figure 55: Perceived signs of poor immunity, by monthly household income, April 2020
Consumers in lower tier cities stay up-to-date
Figure 56: Perceived signs of poor immunity, by city tiers, April 2020
Signs of poor immunity can be related
Figure 57: Perceived signs of poor immunity, by consumers who are aware of certain signs of poor immunity, April 2020
APPROACHES FOR IMPROVING IMMUNITY
Consumers view immunity management as best tackled holistically
Figure 58: Approaches for improving immunity, April 2020
Solutions to sleep, fitness and nutrition issues are desirable
Figure 59: Analysis of perceived importance and frequency of approaches taken to improve immunity, April 2020
Consumers look for sugar reduction and less processed food and drinks
Figure 60: Reducing sugar intake and eating less processed foods – important but I haven’t done enough, by age, April 2020
Barriers from taking health supplements: lack of knowledge and spending power
Figure 61: Taking supplements regularly – important and I have been doing it regularly, by monthly household income, gender and age, education and family structure, April 2020
Figure 62: Taking supplements regularly – not important to me, by monthly household income, family structure and education, April 2020
Students have sleep management problems
Figure 63: Getting enough sleep – important but I haven’t done enough, by selected employment types, April 2020
Figure 64: Goodnight water by Wan An Technology, China, 2019
High income earners: exercise for stress management
Figure 65: Exercise regularly and maintaining a positive mindset – important and I have been doing it regularly, by selected employment types and monthly household income, April 2020
Figure 66: Exercise regularly – important and I have been doing it regularly, by different age groups with high household income, April 2020
NUTRIENTS ASSOCIATED WITH IMMUNITY
Multivitamins, protein and probiotics are most acknowledged
Figure 67: Nutrients associated with immunity, April 2020
Protein and iron for females but zinc and selenium for males
Figure 68: Nutrients associated with immunity, by gender, April 2020
Figure 69: Examples of protein, probiotics and iron formulated products designed for females, Global, 2017-19
Figure 70: OneDayMore’s muesli for males, Poland, 2018
Young people go for single nutrients
Figure 71: Nutrients associated with immunity – zinc, single vitamins, iron, by age, April 2020
High income earners are more interested in fish oil
Figure 72: Nutrients associated with immunity – fish oil*, by monthly household income and consumer classification, April 2020
Probiotics see opportunity targeting kids
Figure 73: Nutrients associated with immunity – probiotics, by family structure, April 2020
Combining immune-boosting nutrients to offer synergic functions
Figure 74: Nutrients associated with immunity – multivitamins, protein and probiotics, by consumers who associate selected nutrients with immunity, April 2020
BOTANICAL INGREDIENTS ASSOCIATED WITH IMMUNITY
Ginseng is the most widely accepted botanical ingredient
Figure 75: Botanical ingredients associated with immunity, April 2020
Ginseng and ginger for the young and garlic and mushrooms for the older
Figure 76: Botanical ingredients associated with immunity – ginseng, Ganoderma spore powder, garlic, ginger, by age, April 2020
Figure 77: Share of selected surveyed botanical ingredients in food* and drink launches with functional claims** related to immunity, China, May 2017-April 2020
Targeting more educated consumers with exotic botanicals
Figure 78: Botanical ingredients associated with immunity – anthocyanin, curcumin, quercetin, by education, April 2020
Green tea, curcumin and maca to help consumers feel calm
Figure 79: Botanical ingredients associated with immunity – green tea, curcumin, maca, by consumers who perceive feeling stress as a sign of poor immunity, April 2020
Figure 80: Examples of products containing green tea, curcumin or maca for stress-relief benefits, Global, 2019-20
Hybrid ingredients to boost product appeal
Figure 81: Selected botanical ingredients associated with immunity, by consumers who associate probiotics with immunity, April 2020
TRUST IN DIFFERENT INFORMATION SOURCES
Professional human expertise is in demand
Figure 82: Trust in different information sources, April 2020
Figure 83: Trust in accredited nutritionists – yes, by consumers who perceive sensitive digestive system as a sign of poor immunity, April 2020
Online channels are yet to build credibility via offering human advice
Figure 84: Analysis of perceived trust and level of uncertainty towards different information sources, April 2020
Figure 85: Trust in different information sources – accredited nutritionists, health info websites/apps, by age, April 2020
“Word of mouth” is a key opinion driver among middle-aged and senior consumers
Figure 86: Trust in different information sources – family/friends, by age, April 2020
Moving from health experts to KOLs
Figure 87: Trust in selected information sources – yes, by consumers who trust in online influencers, April 2020
ATTITUDES TOWARDS IMMUNITY
Immunity is a long-term demand yet too many choices can be confusing
Figure 88: Attitudes towards immunity, April 2020
Claims are perceived as more trustworthy among lower tier consumers
Figure 89: Attitudes towards immunity – products with immunity claims are trustworthy, by city tier, April 2020
Descriptive claims are key to marketing stress-relief products
Figure 90: Selected attitudes towards immunity – any agree, by consumers who perceive ‘often feel stress’ as a sign of poor immunity, April 2020
Disconnection between ingredients and their functions is a barrier
Figure 91: Selected attitudes towards immunity, by consumers who find selected ways of immunity management being important but haven’t done enough, April 2020
Figure 92: Attitudes towards immunity – nutrients sourced from food are better absorbed than from supplements, by consumers who find taking supplements regularly important and have been doing it regularly, April 2020
MEET THE MINTROPOLITANS
Mintropolitans see more signs of poor immunity
Figure 93: Perceived signs of poor immunity, by consumer classification, April 2020
Figure 94: Trust in selected information sources – yes, by consumer classification, April 2020
Mintropolitans spend more effort on holistic health improvement
Figure 95: Selected approach to improve immunity, by consumer classification, April 2020
Mintropolitans go for exotic ingredients
Figure 96: Selected nutrients and botanical ingredients associated with immunity, by consumer classification, April 2020
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Abbreviations