Gut Health Management - China - August 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
Preference for holistic natural approaches challenge OTC remedies and supplements while presents opportunity for functional food and drink
Opportunity for upgraded products and services featuring more detailed benefits
Impact of COVID-19 on gut health 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 gut health management Market, August 2020
Companies and brands
The consumer
Gut health management is more driven by sub-health issues instead of specific diseases
Figure 3: Gut health issues, April 2020
Consumers view gut health as best tackled holistically and prioritising probiotic products
Figure 4: Methods to improve gut health, April 2020
Probiotic product consideration factors are getting sophisticated
Figure 5: Probiotics purchase consideration factors, April 2020
Seeking to diversify gut health benefits with rising mental health association
Figure 6: Perceived benefits of gut health, April 2020
Prebiotics and postbiotics are niche – better recognised amongst sophisticated consumers
Figure 7: Knowledge about gut microbiota, April 2020
Wide interest in more food and drinks with added probiotics and fibre
Figure 8: Product format preferences, April 2020
What we think
ISSUES AND INSIGHTS
Prioritising “syn/prebiotics” to improve gut health product efficacy
The facts
The implications
Figure 9: Icome probiotics powder, Taiwan, 2020
Figure 10: Examples of prebiotic-formulated products tapping into specific health needs, Global, 2020
Figure 11: Emma & Tom’s probiotic + prebiotic straight orange juice, Australia, 2020
Make gut health more important by highlighting gut-brain axis
The facts
The implications
Figure 12: Examples of brands communicating the gut/brain axis in marketing activities, Global
Figure 13: Examples of food and drink products featuring digestive and mental health benefits, Global, 2018-19
Figure 14: Examples of personalised supplements featuring gut-brain health as part of the service, Global
Tap into the postbiotics trend for new ways to provide gut health benefits
The facts
The implications
Figure 15: Examples of products highlighting postbiotics’ benefits, Global, 2019
Figure 16: Examples of different category applications of postbiotics ingredients, Global, 2018-19
Figure 17: House Wellness Food’s powder stick and jelly drink featuring L-137, Japan, 2019-20
THE MARKET – WHAT YOU NEED TO KNOW
Preference for holistic natural approaches challenge OTC remedies and supplements while presenting opportunity for functional food and drink
Everyday food and drink categories can target young people with gut health benefits
Opportunities lie beyond exploring new formula interest
MARKET OVERVIEW
Young generation offer an untapped opportunity for gut health market
Desire for a holistic and natural approach for gut health management
Deepening of science research to expand gut health products’ claims
More detailed benefits of probiotics are in demand, and postbiotic concept is emerging
The impact of COVID-19 on gut health management
Figure 18: Short, medium and long-term impact of COVID-19 on gut health management market, August 2020
MARKET SEGMENTATION
The big picture
Figure 19: Share of food*, drink and supplement launches with functional claims related to gut health**, China, July 2015-June 2020
Category spotlight: food and drink
Trends in product claims
Figure 20: Share of food* and drink launches with functional claims** related to gut health, China, July 2017-June 2020
Probiotic claims
Figure 21: Share of food* and drink launches with a probiotic claim, by top five categories, China, July 2017-June 2020
Figure 22: Top five categories for food* and drink launches with a probiotic claim, by moving annual total, China, July 2017-June 2020
Dairy continues to innovate
Figure 23: Examples of yoghurt highlighting detailed features of probiotics, China, 2020
Boost Juice drink’s functional profile with added probiotics
Figure 24: Examples of juice drinks featuring a probiotic claim, China, 2019
Prebiotics claims
Figure 25: Share of food* and drink launches with a prebiotic claim, by top five categories, China, July 2017-June 2020
Figure 26: Top five categories for food* and drink launches with a prebiotic claim, by moving annual total, China, July 2017-June 2020
Figure 27: Examples of sugar confectionary combining probiotics and prebiotics, China, 2018
High/added fibre claims
Figure 28: Share of food* and drink launches with a high/added fibre claim, by top five categories, China, July 2017-June 2020
Figure 29: Top five categories for food* and drink launches with a high/added fibre claim, by moving annual total, China, July 2017-June 2020
Figure 30: Examples of dairy and dairy alternatives featuring a high/added fibre claim, China, 2019-20
“High-fibre” could be used for sugar reduction in snacks
Other opportunity: high-fibre digestive claim warrants attention in weight management
Figure 31: Examples of meal replacement products featuring high/added fibre and general digestive health claims, China, 2019
Figure 32: Ideal Fuel’s bulletproof tea, China, 2020
Category spotlight: healthcare
Figure 33: Share of healthcare launches with functional claims* relate to gut health, China, July 2015-June 2020
Gut health supplements are big business
Figure 34: Product segmentation – Vitamins and dietary supplements with functional claims* related to gut health, China, July 2015-June 2020
Ingredient spotlight
Probiotics, fibre and prebiotics explore opportunities beyond gut health
Figure 35: Food*, drink and supplement launches with a ‘probiotic’ claim, by top five functional claims, China, July 2015-June 2020
Figure 36: Food*, drink and supplement launches with a ‘high/added fibre’ or prebiotic’ claim, by top five functional claims, China, July 2015-June 2020
Postbiotics could thrive in categories like ambient food and drink
Figure 37: Top 10 food*, drink and supplement launches featuring postbiotics** as ingredients, APAC, July 2015-June 2020
Service spotlight
The gut health diagnostics market gets specialised
Benefits from fitness and mental wellbeing could drive the gut health market
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Big Chinese dairy brands eyeing awareness expansion
Chinese yoghurt brands promote gut health benefits in different ways
Diagnostic companies get specialised
Global trend: tapping into multiple benefits of gut health ingredients
Global trend: gut/brain axis will become the next normal
COMPETITIVE STRATEGIES
Figure 38: Leading companies’ share of new product launch with functional claims relate to gut health, China, June 2015-May 2020
Mengniu: invest in education to the public
Figure 39: Mengniu’s gut health white paper and educational animation and posters, China, 2020
Yili: experimenting functional product expansion with social network launch
Figure 40: Foodcode’s Yi Xiao Jun and Yi Xiao Sheng probiotic products, China, 2019
Quaker: age-old brand reaching a broader usage occasion
Figure 41: Quaker’s oats rye high fibre multigrain, China, 2020
Junlebao is active in innovating natural flavour
Figure 42: Junlebao Purjoy’s probiotic yoghurt, China, 2020
Newhope: overcome technical challenges that limit probiotic effectiveness
Figure 43: Newhope’s Huaxi Huo Run yoghurt, China, 2020
Small food and drink brands are communicating on detailed bacterium features
Figure 44: Examples of yoghurt highlighting a specific bacteria type and its health benefits, China, 2019-20
Supplement brands head to gut/brain connection innovation
Figure 45: Umeta Yi Xiu GABA + Probiotics Pressed Candy and Bened Biomedical Psychobiotic PS128, China
Diagnostic companies get specialised
Figure 46: At-home gut microbiome testing services by We Health Gene and BGI Nutrition, China
GLOBAL TRENDS/INNOVATIONS
Expanding into more food and drink categories
Figure 47: Examples of food and drink category expansion in using probiotics, probiotics and fibre ingredients, Global, 2018-19
Tapping multiple benefits of functional fibre
Figure 48: Examples of products embracing multiple angles of functional fibre benefit, Global, 2019
Fortifying probiotics, prebiotics and botanicals in fermented drinks to increase product relevance
Figure 49: Examples of fermented drinks promoting gut health benefits, Global, 2018-19
Postbiotics shows an overriding trend
Figure 50: Examples of products using postbiotics, Overseas, 2018
Ease of use format for more convenient usage
Figure 51: Share of food, drink and healthcare launches with functional claims relate to gut health, by ‘ease of use’ as a convenience claim, Global vs China, July 2015-June 2020
Figure 52: Examples of innovative yoghurt and probiotic supplement formats, Global, 2018-19
Looking beyond digestion to cover various health benefits
Figure 53: Examples of products offering gut and other functional health benefits, Global, 2018-19
Adding simple educational message to mental wellness
Figure 54: Examples of food, drink and supplement brands using simple communication to highlight the importance of mental wellness and gut health, Overseas, 2018-19
Personalisation becomes more accurate by combining technology and human expertise
Figure 55: DayTwo’s gut microbiome testing service, Israel
THE CONSUMER – WHAT YOU NEED TO KNOW
Minor gut ailments coupled with lifestyle changes
Seeking to diversify gut health benefits with rising mental health association
Probiotic product consideration factors are getting sophisticated
Emerging ingredients (eg prebiotics, postbiotics) are in demand
Wide interest in product formats with added probiotics or fibre
GUT HEALTH ISSUES
Gut health management is more driven by ailments instead of specific diseases
Figure 56: Gut health issues, April 2020
Setting up relevant ‘scenarios’ for a defined audience
Figure 57: Gut health issues, by age, April 2020
Parents with kids are susceptible to digestive health symptoms
Figure 58: Gut health issues (flatulence, poor skin conditions, abdominal cramps), by family structure, April 2020
Poor appetite is ticked more by lower-tier city consumers
Figure 59: Gut health issues (poor appetite), by city tiers, April 2020
Consumers in Northern region are burdened by heartburn
Figure 60: Gut health issues (heartburn), by region, April 2020
Turn gut troubles to product bundles
Figure 61: Gut health issues (poor appetite, abdominal cramps), by consumers who claim to have nausea in past 12 months, April 2020
METHODS TO IMPROVE GUT HEALTH
Consumers view gut health as best tackled holistically
Figure 62: Methods to improve gut health, April 2020
Female consumers are key audiences for gut health management
Young females are more aware of mental health
Figure 63: Methods to improve gut health (food with high fibre, exercise, positive mindset), by gender and age, April 2020
Figure 64: Xplor Sugar-Free Holy Basil Carom Seeds Cookies by Happymate Foods, India, 2019
Middle-aged and senior females go for supplements
Figure 65: Methods to improve gut health (probiotic and prebiotic supplements), by gender and age, April 2020
Usage of prebiotic supplements is higher in lower tier cities
Figure 66: Methods to improve gut health (probiotic and prebiotic supplements), by consumers who think probiotic and prebiotic supplements can improve gut health, April 2020
PROBIOTICS PURCHASE CONSIDERATION FACTORS
Containing live culture is the major consideration factor
Figure 67: Probiotics purchase consideration factors, April 2020
Probiotic supplements are less taste and price-driven as compared to yoghurt and lactobacillus drinks
Figure 68: Probiotics purchase consideration factors, April 2020
Potential for adding additional nutrients to lactobacillus drinks
Figure 69: Probiotics purchase consideration factors (lactobacillus drinks – with additional nutrients), by gender and age and family structure, April 2020
Figure 70: AGV’s Okina probiotic water, Taiwan, 2020
PERCEIVED BENEFITS OF GUT HEALTH
Immunity playing central role in gut health association
Figure 71: Perceived benefits of gut health, April 2020
Figure 72: Perceived benefits of gut health, by age, April 2020
Gut health associations are related to education and income levels
KNOWLEDGE OF GUT MICROBIOTA
Improving nutrient absorption and metabolism playing active roles in gut microbiota association
Figure 73: Knowledge of gut microbiota, April 2020
Spotlight on synbiotics/postbiotics
Prebiotics are yet to build awareness via highlighting it in supplements and fermented food and drinks
Figure 74: Select knowledge of gut microbiota, by family structure and education, April 2020
Figure 75: Knowledge of gut microbiota (I know the difference between probiotics and prebiotics), by methods to improve gut health, April 2020
Although scarce, awareness of postbiotics’ benefits is emerging
Figure 76: Perceived benefits of gut health, by knowledge of gut microbiota (I have heard about postbiotics*), April 2020
Consumers expect Chinese medicine to be multifaceted
Figure 77: Knowledge of gut microbiota, by methods to improve gut health (Chinese medicinal food*), April 2020
Figure 78: Vida Glow beauty mind food supplement, UK, 2019
Leverage diversified gut microbiota in conversation with supplements users
Figure 79: Knowledge of gut microbiota (A healthy gut needs diversified types of bacteria), by methods to improve gut health (probiotic supplements), April 2020
PRODUCT FORMAT PREFERENCES
Wide interest in more food and drinks with added fibre or probiotics
Figure 80: Product format preferences, April 2020
Spotlight on product ideas with added probiotics
Looking for probiotic chocolate to improve brain function
Figure 81: Product format preferences (add probiotics in chocolate), by perceived benefits of gut health (improving brain function), April 2020
Spotlight on product ideas with added fibre
Adding fruit and vegetables as natural touch to innovative high-fibre biscuits
Figure 82: Product format preferences (add fibre in biscuits), by selected perceived benefits of gut health, April 2020
MEET THE MINTROPOLITANS
Mental health plays an active role in Mintropolitans’ gut health association
Figure 83: Number of health benefits associated with gut health, by consumer classification, April 2020
Figure 84: Benefits of gut health (reducing anxiety, improving brain function), by consumer classification, April 2020
Mintropolitans are more knowledgeable about functional ingredients
Figure 85: Knowledge of gut microbiota, by consumer classification, April 2020
Mintropolitans are interested in imported strains
Figure 86: Probiotics purchase consideration factors (using imported strains), by consumer classification, April 2020
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Abbreviations