supplements Archives - Focus - China Britain Business Council https://focus.cbbc.org/tag/supplements/ FOCUS is the content arm of The China-Britain Business Council Wed, 23 Apr 2025 09:48:26 +0000 en-GB hourly 1 https://wordpress.org/?v=6.9 https://focus.cbbc.org/wp-content/uploads/2020/04/focus-favicon.jpeg supplements Archives - Focus - China Britain Business Council https://focus.cbbc.org/tag/supplements/ 32 32 New trends in China’s health and wellness industry https://focus.cbbc.org/new-trends-in-chinas-health-and-wellness-industry/ Wed, 12 Feb 2025 14:00:00 +0000 https://focus.cbbc.org/?p=15325 On Monday, 10 February 2025, the Holland & Barrett headquarters in London played host to an event that delved into the rapidly evolving landscape of China’s health and wellness industry. CBBC’s first China Chat of 2025 brought together industry leaders, strategists and innovators to discuss the ongoing seismic shifts in Chinese consumer behaviour and the opportunities these changes present for global brands. The event was a timely exploration of how…

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On Monday, 10 February 2025, the Holland & Barrett headquarters in London played host to an event that delved into the rapidly evolving landscape of China’s health and wellness industry. CBBC’s first China Chat of 2025 brought together industry leaders, strategists and innovators to discuss the ongoing seismic shifts in Chinese consumer behaviour and the opportunities these changes present for global brands.

The event was a timely exploration of how China’s health and wellness market, already the second-largest in the world after the US, is set to nearly double in value by 2030, reaching $1.6 trillion. Chinese consumers are increasingly shifting their focus to holistic wellbeing, redefining what it means to live a healthy life. This shift is not just about physical health, but encompasses mental resilience, work-life balance, and a growing appetite for traditional Chinese medicine (TCM) fused with modern products and techniques.

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The rise of holistic wellbeing in China

Antoaneta Becker, Director of Consumer Economy at the China-Britain Business Council (CBBC), set the stage with a compelling overview of the market. “China’s health and wellness industry is driven by young consumers, particularly Gen Z and millennials, who are the most curious and impulsive buyers in the market,” she explained. “Post-1995 generations are especially concerned about boosting immunity, a legacy of the Covid-19 pandemic, while the silver population – 300 million strong – are adopting a more rational, preventative approach to health.”

Becker highlighted key trends shaping consumer behaviour, from “lazy health” strategies that require minimal effort, to the resurgence of TCM, which has become “cool” among younger generations. “People want drinks that taste good but also offer health benefits,” she noted. “Baking, which isn’t traditionally Chinese, is now incorporating TCM ingredients. Even slow exercises like Tai Chi and Qigong are making a comeback.”

Nick Parker, International Development Director at Holland & Barrett, echoed this sentiment, emphasising the importance of understanding China’s diverse and dynamic market. “We’re three and a half years into our business in China, and consumer demands have evolved significantly,” he said. “Today’s consumers are more discerning and digitally savvy. Everything is visible online, from positive reviews to negative feedback, so transparency and engagement are crucial.”

A new approach to product development

Emily Fischer, International Product Development Lead at Holland & Barrett, shared insights into how the brand is tailoring its offerings to meet the unique needs of Chinese consumers. “We take inspiration from TCM and back it with scientific research,” she explained. “Our approach is cross-category, looking at customer needs holistically. Instead of just vitamins and supplements, we’re exploring how to support immunity through food, beverages, and even beauty products.”

Fischer highlighted the growing trend of “beauty from within,” where consumers seek products that enhance their appearance through internal health. “Gut health, beauty supplements and topical solutions are all part of this trend,” she said. “It’s about creating a holistic experience that resonates with the consumer’s lifestyle.”

Becker added that the line between beauty and skincare is increasingly blurred in China. “Everything you eat has to contribute to your beauty within,” she said. “Female consumers in particular are driving this market, seeking products that offer both health and aesthetic benefits.”

Navigating China’s complex sales channels

One of the most striking aspects of China’s health and wellness market is its reliance on digital platforms. E-commerce accounts for 51% of sales, a figure that is expected to grow. Supermarkets, once a dominant channel, are declining in importance, while direct sales are also on the wane due to a lack of consumer trust.

Desiree Wong, Senior E-commerce Consultant at Pattern, emphasised the importance of localising brand stories for the Chinese market. “Content is key,” she said. “You might have a great global brand and strong health claims, but does it suit the China market? Localisation goes beyond language and video – it’s about adapting the entire brand story to resonate with Chinese consumers.”

Wong also highlighted the rising costs of marketing in China. “Organic traffic is limited, so brands need to invest in performance marketing, influencers, and key opinion leaders (KOLs) to drive sales,” she explained. “Livestreaming, in particular, has become a powerful tool for engaging consumers and building trust.”

Jonny Kennedy, Founder of British health supplement brand Neubria, shared his experience of entering the Chinese market through a KOL partnership. “We launched in China via a livestream with a popular KOL and generated 3 million RMB from just three sessions,” he said. “It was a great way to test the market and see how our products were received.”

Lessons from China: A global perspective

While the event focused on China, the insights shared have broader implications for global markets. Parker noted that Holland & Barrett is learning valuable lessons from China that can be applied elsewhere. “The digital trends and innovations we’re seeing in China are influencing our strategies in Southeast Asia and the Middle East,” he said. “It’s not just about selling to China; it’s about leveraging these insights to drive growth globally.”

Wong agreed, predicting that Chinese shopping habits will soon influence Western markets. “Shopertainment – combining shopping with entertainment – is already making its way to the UK through platforms like TikTok and Temu,” she said. “AI-powered recommendations and hyper-personalisation will become the norm, offering consumers products tailored specifically to their interests.”

Fischer added that Chinese consumers’ proactive approach to health could also shape global trends. “In the UK, consumers tend to be reactive, seeking solutions to specific health issues,” she said. “But in China, there’s a growing emphasis on prevention and long-term wellbeing. This shift towards proactive health management is something we’ll likely see more of in the West.”

As China’s health and wellness market continues to grow, brands face both challenges and opportunities. Parker pointed out that the Chinese government’s focus on stimulating the domestic economy has led to a rise in patriotic consumption. “Consumers are spending more wisely, prioritising quality over prestige,” he said. “This poses interesting questions for international brands looking to adapt to the Chinese market.”

Parker acknowledged the challenges but remained optimistic. “China is a hugely important and exciting market for us,” he said. “We’re early in our journey, but we’re already seeing the benefits of investing in local teams, diversifying our channels, and creating products tailored to Chinese consumers.”

The event underscored the transformative changes taking place in China’s health and wellness industry. From the rise of holistic wellbeing to the growing influence of digital platforms, the market is evolving at a rapid pace, presenting both challenges and opportunities for global brands.

As Chinese consumers continue to prioritise health, fitness, and mental resilience, the demand for innovative, high-quality products will only grow. For brands like Holland & Barrett, understanding these trends and adapting to the unique needs of the Chinese market will be key to success.

As Becker aptly summarised, “China’s health and wellness market is not just lucrative – it’s a window into the future of global consumer behaviour. Brands that can navigate this dynamic landscape will be well-positioned to thrive in the years to come.”

As the event concluded, one thing was clear: the future of health and wellness is being shaped by the choices and aspirations of Chinese consumers, and the world is watching.

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Practical Guide to China’s Nutrition and Supplements Market https://focus.cbbc.org/practical-guide-to-chinas-nutrition-and-supplements-market/ Fri, 23 Jun 2023 06:30:53 +0000 https://focus.cbbc.org/?p=12583 China’s nutrition and supplements market is experiencing record growth thanks to rising health awareness and increasing disposable income among Chinese consumers, writes Kristina Koehler-Coluccia, Head of Business Advisory for Woodburn Accountants & Advisors China is facing problems, such as an ageing society, social stress, environmental problems – including air and water pollution – and the end of the Zero-Covid policy. To prevent and shield themselves from the consequences of these…

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China’s nutrition and supplements market is experiencing record growth thanks to rising health awareness and increasing disposable income among Chinese consumers, writes Kristina Koehler-Coluccia, Head of Business Advisory for Woodburn Accountants & Advisors

China is facing problems, such as an ageing society, social stress, environmental problems – including air and water pollution – and the end of the Zero-Covid policy. To prevent and shield themselves from the consequences of these problems, Chinese people of all generations are turning to health supplements.

The health supplement market has only started to grow in recent years, making it one of the sectors with the greatest potential for domestic and foreign brands. According to a report issued by the consulting firm Roland Berger, China may soon overtake the United States as the most significant nutritional supplement market in the world. The market is expected to reach US$ 40 billion by 2023, growing at a CAGR of 14%.

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Consumers in China tend to trust traditional Chinese medicines and prefer natural dietary supplements. However, they are becoming more interested in Western health supplements and are educating themselves on the subject. There are many different products available on the market in this category, ranging from Chinese traditional medicine and vitamins to minerals, herbal products and functional foods.

What are the most popular supplement categories in China?

Since the Covid-19 pandemic, and especially in the post-pandemic era, Chinese consumers have shown increased health awareness, which has fuelled the consumption of consumer healthcare products such as vitamins and food supplements, with a preference for imported brands.

According to a survey done by Statista in 2020, most of the people (77%) that consume dietary supplements do it to strengthen and improve their immune systems. This is especially important in the post-pandemic era, as people are more aware of the risk of getting sick from Covid or another virus. 

Older adults are the demographic known to be most at risk of developing serious health complications from Covid-19. This is creating an opportunity for supplements that address the health needs of older adults, including ensuring that micronutrient needs are met for optimal health and immune support.

Figures from e-commerce platforms in China show that older customers are interested in multi-vitamins, calcium, iron and zinc. Meanwhile, nutrients such as coenzyme Q10, which plays an antioxidant role in the cardiovascular system, are in-demand for “precise nutrition” among the middle-aged and elderly.

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Weight loss supplements are also catching up with immunity-focused supplements in China. New vitamin and supplement products with slimming claims rose from 3.9% in 2020 to 10.3% in 2021, while those making immune system claims dropped from 9.2% to 2.2%. This shift was pushed by a higher incidence of obesity among Chinese people, especially after several long Covid lockdowns.

Another significant reason for ingesting health supplements is to cope with stress and improve sleep. Many young people in China stay at work late, six days a week, and they are notoriously stressed, which causes problems such as insomnia. Integrated nutrition, melatonin and anti-fatigue products that reduce stress, boost energy, and improve sleep quality are the products that these customers are most interested in.

Improving skin, hair and nails is another major reason for taking food supplements, with beauty enthusiasts paying more attention to the “beauty from within” concept. Nearly 70% of beauty enthusiasts are female, and they are concerned about issues such as weight control, skincare and preventing hair loss. The Chinese Women Consumption Report 2022, released by JD.com in March 2023, showed that purchases by female users of astaxanthin and collagen, which benefit the skin and have antioxidant properties, grew by 63% and 49% year-on-year in 2022, respectively.

Finally, even pet owners can be a target for nutritional supplements. Affluent pet owners in first and second-tier cities are more than willing to invest in their furry family member’s health. Cat owners prefer vitamin supplements and intestinal health for their pets, while dog owners prefer bone and joint health and oral health. Adding a supplement has become the new refined feeding trend, and it is driving growth in the online pet health and nutrition market too.

An advert for 618 deals on British nutraceutical company Vitabiotics’ Tmall Global store

What formats of supplements are popular in China and where do people buy them?

A 2021 change in China’s supplement regulations led to rapid growth in alternative supplement formats. While tablets remain the top format, new formats have replaced capsules and powders, formerly the second and third most common in new product launches.

Chews and gummies jumped from 2.6% of the supplement market in 2020 to 17.6% in 2021. The “other” category, which includes cake, seed, jelly and candy formats, rose from 2.6% to 12.5%. More enjoyable formats like these can help fight pill fatigue and increase compliance.

Due to the increasingly fast pace of life, young people pursuing optimal nutrition and health prefer convenient products. Packaging convenience has been improved to support the daily habit of taking nutritional supplements, and convenient and small bags have become hot search keywords. Easy-to-carry products resolve customers’ pain points in diverse scenarios, including going to the office, on vacation, on business trips and at the gym.

On JD.com, sales of portable sports protein powder and spoon honey surged by 68% and 1,095% year-on-year, respectively. Sales of mini tablets are growing the fastest, and sales of oral liquids are doubling.

Consumers are also less likely to forget to take the product, be confused about how much to take each time, or suffer the burden of carrying the entire bottle or box of supplements.

One of the most important trends reshaping China’s supplement market is e-commerce. The three major companies that gained market share between 2019 and 2020 – By-Health, H&H and Dong-E-E-Jiao – all shared an expansion in e-commerce that allowed consumers to purchase their products even during lockdowns.

According to NutraIngredient- Asia, food supplements also have a record high in sales in terms of GMV (Gross Merchandise Volume) among all imported goods on Tmall. Although experts say that Tmall’s Singles’ Day has reached its peak in terms of sales, health supplements performed very well in the most recent Singles’ Day sales. In November 2022, the total health supplements products sales grew to RMB 4.78 billion from RMB 4.52 billion in 2021, with the average transaction price rising to RMB 340 from RMB 308.

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What do British companies need to know before entering the nutrition and supplements market in China?

Although there are many interesting opportunities for foreign brands in the health supplement market in China, there are several aspects to consider and know before entering the segment.

In China, the regulation of nutrition and dietary supplements is governed by the State Administration for Market Regulation (SAMR) and the National Health Commission (NHC). All supplements sold in China must be tested and approved by the State Food and Drug Administration (SFDA). The government also continues to strengthen and update its regulations to ensure that the dietary supplement market is regulated and operates effectively.

The nutritional supplement market is classified by ingredients and end-users. Ingredients are further sub-classified into vitamins, proteins, amino acids, enzymes and botanical supplements. End-users are classified into infants and adults. 

Due to the relatively recent growth history of the healthcare product industry, consumers have limited brand awareness, and the choice of channels for healthcare companies has become the core of corporate competition.

Chinese customers are very tech-oriented and tend to do extensive product research online. This is why it is important to focus on branding and your online reputation to gain consumers’ trust.

The first step is to develop a Chinese website hosted in China, where consumers can read about the company and its brands, access information about all the brands, and find links to social media accounts. Having a website also requires good Baidu SEO to increase visibility in this popular search engine.

Baidu works like Google. E-reputation is important in China, and Baidu can help you get it. In general, Chinese consumers don’t trust unknown brands and prefer products with a good reputation that are perceived as premium and reliable. This makes e-commerce and community word-of-mouth recommendations essential for nutrition supplement sales. You can participate in online forums like Zhihu or Baidu Tieba to make your name known and to start conversations around your brand. This will also increase your SEO score.

Similarly, social media can help you gain the trust of your audience in China. For example, social media is responsible for popularising nutraceuticals among younger people. Not long ago, nutraceuticals were the choice of middle-aged and elderly people. However, they have gained significant popularity thanks to the conversations among younger consumers on social media.

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Different social media platforms can serve different purposes. WeChat is an all-in-one platform where you can send newsletters, sell through private traffic or own your store within the platform. Weibo will help you reach people of all age groups, while Xiaohongshu and Douyin will help you address young Chinese women and men looking for vitamin supplements recommended by their favourite KOLs and live-streaming videos.

For example, Chinese company By-Health created the “By-Health Nutrition Academy” official account on WeChat and invited more than 200 nutritionists and more than 100 experts in medicine and nutrition to share knowledge and reply to followers’ questions about health. This increased brand awareness and promoted the reliability of its products among Chinese target markets.

By-Health has also been active in engaging its audience through community management. The company offers money to its followers in the form of a weekend bonus, and as a result, it has attracted the attention of additional users that now follow the brand and know its products.

In conclusion, the demand for nutraceutical products is growing rapidly in China, causing changes in the industry. Consumers are becoming more mature, and traditional distribution channels are changing, creating new opportunities for British brands.

China Consumer 2023

This article was produced as part of a series for China Consumer 2023.

Learn more about CBBC’s flagship consumer event of 2023 here.

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How to tap into China’s growing wellness culture https://focus.cbbc.org/how-to-tap-into-chinas-growing-wellness-culture/ Mon, 04 Jul 2022 07:30:15 +0000 https://focus.cbbc.org/?p=10501 From sleep supplements to skincare, Chinese consumers are putting wellness and self-care back on the agenda. For Holland & Barrett and others, it’s about tapping into social and cultural phenomena as well as educating consumers on the benefits… As the repercussions of the Covid-19 pandemic continue to impact people in China, young, urban consumers are increasingly acknowledging the importance of self-care – and buying products to help them on their…

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From sleep supplements to skincare, Chinese consumers are putting wellness and self-care back on the agenda. For Holland & Barrett and others, it’s about tapping into social and cultural phenomena as well as educating consumers on the benefits…

As the repercussions of the Covid-19 pandemic continue to impact people in China, young, urban consumers are increasingly acknowledging the importance of self-care – and buying products to help them on their wellness journey. People are looking for solutions to previously ignored issues such as anxiety, insomnia and work-related stress, and putting more effort into looking after themselves.

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“There has been an attitude shift in China post-Covid,” Joanna Zhou, China Manager for Holland & Barrett, tells FOCUS. “Especially after the recent strict Covid lockdowns, people are reprioritising health.” And it is not just fear of the virus that is driving this shift. It comes at a time when many people in China – particularly Gen Z – are questioning the value of the country’s all-or-nothing 996 work culture, which leaves little time for exercise or nutritionally balanced meals.

Despite this revaluation, people continue to lead hectic work lives, and as a result, interest in products to improve sleep quality or combat the effects of repeated late nights such as melatonin is growing. Holland & Barrett has observed that ‘sleep’ as a sub-category is one of the top three categories that Tmall is promoting.

With time at a premium, Zhou says that many consumers are looking for convenient, on-the-go wellness solutions, i.e., products that they can consume “in the gym, in the office, on the go and at night.” This includes protein drinks and nutrient dense snacks, as well as vitamin supplements in the form of gummies or jellies.

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For Chinese consumers, prevention is better than cure

When it comes to health supplements, young Chinese consumers are sophisticated and well-educated. “Rather than generic solutions, they are looking for targeted solutions for immunity or bone health, for example, or probiotics with a range of benefits,” says Zhou. Consumers often compare the formula, dosage and ingredients of different overseas and Chinese brands to find the product that best fits their wellness goal. As a result, brands need to clearly market the specific functionalities and selling points of their products.

Compared to the UK, Chinese consumers are more likely to take supplements for prevention, rather than to cure existing conditions. As Zhou notes, the concept of yangsheng in traditional Chinese medicine, which can be loosely defined as a sort of holistic approach to self-care that targets the root causes of conditions rather than the symptoms, has always been influential in China. “While international brands have often struggled to find common ground with TCM, the current focus on wellness actually offers unique opportunities to tap into this cultural value within the Chinese market,” says Pearl Zhu, UK Sector Lead, Retail & E-Commerce, China-Britain Business Council.

Prevention is also the watchword in the skincare market, where anti-ageing products are not exclusively reserved for those of advancing years. “Chinese consumers are willing to invest in anti-ageing products from a younger age,” says Zhou, pointing to the popularity of products containing grape seeds or rose hips.

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How to market wellness solutions in China

For Holland & Barrett, influencer marketing has been key to accessing the company’s target consumers. “We work with different influencers across different social platforms, with clear purposes for each collaboration. We make sure individual influencers have shared target consumers that are aligned with our brand positioning,” Zhou says. This targeted approach extends to e-commerce, where Holland & Barrett targets health-conscious affluent consumers in Guangdong, Shanghai, Zhejiang, Jiangsu and Shanghai via cross-border e-commerce platform Tmall Global.

She cautions that healthcare brands need to think carefully about the positioning of their content, especially when introducing new products or products with technical formulations. “There needs to be a fine balance between hardcore educational brand content and light-hearted content that taps into social and cultural phenomena.”

Holland & Barrett has also seen success working with influencers who create British lifestyle content, taking advantage of the brand’s popularity among current or previously UK-based Chinese consumers, particularly students. “For Chinese consumers pursuing a British-style lifestyle, it may be one of only a few ways to experience a taste of the UK while China’s zero Covid policies are still in place.”

Call +44 (0)20 7802 2000 or email enquiries@cbbc.org now to find out how CBBC’s Launchpad service gets your company boots on the ground in China quickly and cost effectively.

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How to tailor your vitamin brand to the China market https://focus.cbbc.org/how-to-tailor-your-vitamin-brand-to-the-china-market/ Thu, 06 Jan 2022 07:30:08 +0000 https://focus.cbbc.org/?p=9236 An increasingly health-conscious China still has an appetite for foreign vitamin and supplements brands, despite growing domestic competition. RedFern Digital spoke to Benji Lamb from British supplement brand Vitabiotics about how British brands can tailor their offering to maximise success in China Benji Lamb is the director of China and South Asia at Vitabiotics, the UK’s number one vitamin and supplements brand. China is one of Vitabiotics’ top three markets…

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An increasingly health-conscious China still has an appetite for foreign vitamin and supplements brands, despite growing domestic competition. RedFern Digital spoke to Benji Lamb from British supplement brand Vitabiotics about how British brands can tailor their offering to maximise success in China

Benji Lamb is the director of China and South Asia at Vitabiotics, the UK’s number one vitamin and supplements brand. China is one of Vitabiotics’ top three markets globally, and they sell around 50 of their 450 sub-brands in Asia. Lamb leads the company’s growth in China, focusing on e-commerce, wholesale, marketing, brand exposure and localised appeal.

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How would you characterise China’s health supplements and vitamins market today?

When it comes to characterising China’s health supplements market, key features include speed of market pace, speed of consumption, and speed of growth, all of which make it a very dynamic market that requires constant learning and constant adjustments to marketing strategy.

If overseas brands are able to enter the market and get it right in terms of localising their products and retaining their foreign identity while still being highly relevant to Chinese consumers, then they can perform extremely well. We are a 50-year-old business that sells products across multiple categories including mother and baby, healthcare, and beauty, and we employ hybrid branding that combines our British identity with an aesthetic that appeals to Chinese consumers.

Chinese consumers are also generally very savvy when it comes to researching formula, dosage, and ingredients, and will frequently compare different overseas and domestic brands to find the product that best fits their lifestyle.

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What has been the impact of Covid-19 on this market?

Covid-19 accelerated the already growing market and led to more savvy consumers. I would also say that there is a rising demand for domestic brands. However, there is still the argument that supplements is strongly supported as a cross-border industry, since Chinese consumers have a lot of trust in overseas formulas for products they ingest, especially from established overseas brands. Since Vitabiotics has been selling supplements for 50 years and has that strong heritage, we are a little more sheltered from the rise in domestic brands.

The sector is becoming more and more competitive, and overseas brands need to up their game. Brands cannot expect Chinese consumers to buy their products simply because they are foreign. Instead, they need to ask themselves how they can resonate with Chinese consumers, develop proper localisation strategies for branding and different product formats, and understand what tones to use in their marketing.

Covid-19 has also caused an acceleration in social media plans. Brands need to be on media channels such as Douyin, Weibo, WeChat, Kuaishou and Xiaohongshu. Brands also need to have appropriate video assets for the China market, as video is currently huge. Most of the offsite display ads that we’re doing for Tmall are in video.

Although Covid-19 has strained the supply for us and many other brands in the sector, maintaining supply in China is essential because it is a decade long investment market. When it comes to repeat retention products, like vitamins and supplements, it’s about the cumulative effects. Therefore, not being able to put the product into the hands of Chinese consumers would affect long-term strategy and cause consumers to switch to other brands, especially as domestic brands continue to grow in popularity.

Homepage of the Vitabiotics store on Tmall Global, with an ongoing live stream featuring its Pregnacare range

Have you seen a difference in how domestic and foreign brands approach the markets in China?

There are certain limitations that overseas brands have if they are selling through cross-border e-commerce and do not have full domestic registrations, such as limitations on claims that can be made in terms of product function, use and health efficacy. As domestic brands do not have these restrictions, there is a difference in the scope of marketing that can be done.

What are some key differences between the vitamins and health supplements industry in China compared to that of other countries, such as the UK?

China is a very digitally-led market, which for vitamins and supplements can include online pharmacies, e-commerce platforms and cross-border platforms. In contrast, the UK still places a greater emphasis on offline retail and doctor’s recommendations. In China, physical retail presence is still important, but for many brands, it just isn’t feasible for market entry due to the complexities of registration and the investments required.

Compared to our initially offline strategy in the UK, in China, Vitabiotics launched through cross-border e-commerce, and have the long-term goal of launching offline after a few years.

Are there specific Chinese consumer demographics that are driving sales and growth in the vitamins and supplements sector?

Consumer demographics are hugely dependent on category, formula and specific vitamin products. However, as a whole, the supplements and vitamins sector in China is heavily focused on prevention rather than cure. Chinese consumers tend to begin taking supplements at a younger age compared to overseas customers, which makes Gen-Z and millennial consumers important demographics.

One of our sub-brands focused on eye care and lutein-based products, Visionace, is an example of this. In the UK, we primarily sell Visionace to consumers that are over 50 years old, whereas in China, our main consumers are among millennials or younger.

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Are there any ingredients, product formats, or product functions that are trending among Chinese consumers?

One would be prune juice in the mother & baby category, which is seeing huge growth and is now a trending pregnancy product. Brands that are looking at new product development can use e-commerce tools to look at what keywords are trending, and what keywords consumers are searching. There is a lot of insight to be had when it comes to what consumers are actively searching for, both in terms of ingredients and product functions. This is one of the reasons we ended up selling a lutein-based eye care product  because lutein search volumes were high. Other keywords that have been strong in search include iron, folic acid and calcium liquid.

There is a lot of insight to be had when it comes to what consumers are actively searching for, both in terms of ingredients and product functions. This is one of the reasons we ended up selling a lutein-based eye care product because lutein search volumes were high

Gummies as a product format are becoming increasingly popular, along with soft-capsule products, although I’d still say that tablets remain the definitive form of health supplements for vitamins. My opinion on gummies is that they resemble sweets quite heavily, so are very separate from the more serious pharma and nutraceutical products. If your doctor prescribes you something, it’s usually in the form of a pill that is ingested, so I think there is a fundamental association between healthcare and capsules.

What has the significance of social commerce in the vitamins and health supplements sector been?

Social commerce is quite a unique phenomenon to China. For example, the key opinion consumer (KOC) community don’t necessarily sell products directly, but they share product reviews through their networks. One platform for this type of social commerce is Xiaohongshu, which allows for the seeding of products and building up of brand ranking and indexing through hashtags, notes and images of the product and brand.

KOCs can drive engagement by generating their own content that includes recommendations for other users. These recommendations are not coming from the brand or from an obviously paid KOL or live streamer, and so are more trusted and can be very powerful for promoting the product to the masses. Social commerce is incredibly important for us and for many other brands.

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What should new entrants to the market be aware of or take into consideration when entering the China market?

It is important to consider the minimum threshold of investment that is required and to understand that a brand will not necessarily have a guaranteed ROI. Brands need to be ready to invest a significant amount over the first 12-18 months of market entry, while knowing that at this stage, the return on investment is not guaranteed and no brand equity has yet been built in China. However, the vitamin and health supplements sector is still separated into small niches that can be highly profitable, so I certainly believe that most brands will find ROI in China, among their target demographics.

Another important aspect to consider is finding partnerships with the right trade partners (TPs) and wholesale distributors. Brands need to be cautious about what their long-term strategy is when signing contracts and what they are prepared to give away in the early stages of market entry – for example, we didn’t give away any exclusivity in China.

There are so many different models to choose from, and no clear right or wrong method. Instead, brands should think about where they want to be because they should only enter China if they are aware of their long-term plan after 10-15 years. Building up sales and brand equity in China takes time.

Prior to entry, brands also need to understand the eco-system and educate themselves on how different the channels are and know which channels are the most appropriate at each point in the China journey.

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A version of this article first appeared in China market-focused magazine, The RED Edition – Special Issue 2021, published by RedFern Digital

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Are health foods and supplements popular in China? https://focus.cbbc.org/are-health-foods-and-supplements-popular-in-china/ Wed, 29 Dec 2021 07:30:17 +0000 https://focus.cbbc.org/?p=9188 China’s appetite for health products and services has exploded in recent years, with those seeking supplements and health foods now representing a larger market than ever before. Khanya Gundwana from RedFern Digital investigates the opportunities for UK brands The consumer health foods market in China is heavily regulated by the Chinese government. Despite this, the market value amounted to RMB 2.9 billion (£338 million) in 2020 and can still be…

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China’s appetite for health products and services has exploded in recent years, with those seeking supplements and health foods now representing a larger market than ever before. Khanya Gundwana from RedFern Digital investigates the opportunities for UK brands

The consumer health foods market in China is heavily regulated by the Chinese government. Despite this, the market value amounted to RMB 2.9 billion (£338 million) in 2020 and can still be considered a promising market, expected to continue to grow annually by 8.5% between 2021-2025. In October 2021, the sales revenue for the overseas food and supplement market was greater than RMB 1.1 billion (£128.5 million), and during this year’s Double 11 (Single’s Day) shopping festival alone, the total sales volume of imported health supplements reached an impressive RMB 2 billion (£233.6 million).

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The most popular product form for health supplements is still tablets, capsules, powders, granules and liquids. It is worth noting that the chewable or gummy format has also been demonstrating strong growth recently. Some of the newer brands in the health foods category that are popularising chewables and gummies are American vitamin brand Olly, and Australian brand Unichi. Unichi has differentiated itself by focusing on its “bear gummies.” In innovating their product formats and moving away from traditional capsules, these brands have attracted the younger generation, which has allowed them to achieve fast development in the China market.

What are the most popular health food supplements in China?

The categories and health effects that Chinese consumers were most concerned about during this year’s Double 11 shopping season included heart health and other cardiovascular issues, bone and joint care, beauty nutrition (e.g., supplements aimed at strengthening hair and nails), and probiotics and other microbial supplements.

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According to Alibaba’s 2021 Tmall Healthcare Trend Report, products addressing hair loss, weight loss and a lack of sleep also continue to be popular categories. Sales of sleep aids, including supplements, sleep patches and electronic devices, demonstrated a 220% growth rate this year. This feeds into the growing backlash again China’s notoriously gruelling work culture.

Alibaba Health also identified a 56% rise in healthy foods that are conveniently packaged to eat on-the-go, including products such as sesame balls, bird’s nests and goji-berry beverages. The report described their growing popularity as part of the “fragmented healthcare” trend, meaning increasing numbers of Chinese consumers are looking for products or treatments to manage their health in their spare time.

An advertisement from the front page of Australian supplement brand Unichi’s Tmall Global page

What are the top five health supplement brands in China?

As of October 2021, there were 2,605 international brands operating within the China market. The top five international health food and supplement brands in ascending order are GNC, Life Space, Blackmores, Move Free, and Swisse.

Swisse achieved RMB 266 million (£31 million) in sales during the November 2021 sales period. Their top products are supplement complexes targeted at specific consumer groups such as active people, pregnant women or the elderly. Swisse reported double-digit growth in gross merchandise value (GMV), and retained the top spot on several e-commerce platforms during the Double 11 sales.

The above brands achieved success in China by continuously developing deep insights into the Chinese consumer, paying attention to how consumers shop, tailoring products and marketing to those insights and creating new consumer segments. They have built strong relationships with key sales and distribution partners, media, and their consumers as key opinion leaders (KOLs). They have also managed to maintain leading positions in their respective home countries, thereby building consumer trust.

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Brands such as Swisse have established strategic partnerships with all five of China’s largest e-commerce platforms: Tmall, JD.com, Kaola.com, VIP.com and Xiaohongshu. This has, in turn, led to them establishing offline retail trading partnerships. Douyin (the Chinese version of TikTok) has also become increasingly popular as an online shopping destination, particularly among Gen Z. For example, Swisse’s GMV on Douyin increased by 316% during the 2021 618 shopping festival.

Of the top-performing brands this past Double 11 season on Tmall, it is worth noting the Chinese health food brands such as By-Health, Simeitol and Keylid were also strong competitors. By-Health has continued its dominance three years in a row by leading the vitamin and dietary supplements charts on both JD and Alibaba. It achieved RMB 600 million in sales and a year-on-year growth of 38.3%.

By-Health also has an international range that currently has just 10 to 15 products, all manufactured in the US or Australia. Its bestseller during the Double 11 festival was milk thistle, as well as its newly launched melatonin product, which gained popularity among Chinese consumers. Their second best-seller this season, Sleep Pro, was only launched in the middle of 2021. The company found that the type of consumer that chooses to purchase milk thistle usually works long hours, is inclined to protect their liver and tends to experience issues with sleep. As such, the company observed that consumers who purchased Sleep Pro were the same ones who purchased the milk thistle product.

A version of this article first appeared in China market-focused magazine, The RED Edition – Special Issue 2021, published by RedFern Digital

The post Are health foods and supplements popular in China? appeared first on Focus - China Britain Business Council.

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