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.

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.

The post New trends in China’s health and wellness industry appeared first on Focus - China Britain Business Council.

The rise of the health-conscious consumer

The health-conscious consumer tribe in China has experienced significant growth over the past decade. This expansion has been driven by rising incomes, increased access to health information, the impact of the Covid-19 pandemic, and government initiatives like Healthy China 2030. As a result, consumers across different age groups, from young professionals to the elderly, are increasingly focused on maintaining a healthy lifestyle – and are willing to invest in products and services that promote health, from robust vitamin regimes to exercise classes.

Key drivers

• Cultural shift: Rising incomes and the Covid-19 pandemic have contributed to a widespread cultural shift towards preventive healthcare, where maintaining health through diet, exercise, and lifestyle choices is prioritised. This trend has also been fuelled by the rising availability of health information online and through social media. In many ways, China’s health awareness boom aligns with that in Western markets.
• Product categories: Nutraceuticals, supplements, organic food, and fitness-related products are popular among this group of health-conscious Chinese consumers. Traditional Chinese Medicine (TCM) products also play a significant role, combining modern wellness trends with more established cultural practices. Chinese consumers also demonstrate a distinct preference for “consumables” in promoting health, creating an especially large opportunity for nutraceuticals and supplements.

Effective marketing strategies

• Content and livestreaming: To effectively engage with health-conscious consumers, brands should focus on delivering educational content that highlights product benefits, proper usage and real-life testimonials. Platforms like Douyin (China’s version of TikTok) are crucial for reaching this tribe, as they tend to prefer authentic, informative content. Livestreaming, in particular, has become a powerful tool for brands to explain product efficacy and function in real-time, providing the transparency that health-conscious consumers value.
• Influencers: Collaborating with health and wellness influencers is another effective strategy. These influencers are often seen as trusted sources of advice, and their endorsements can significantly enhance a brand’s credibility. By partnering with influencers who resonate with this audience, brands can extend their reach and build stronger connections with health-conscious consumers.

Learn more at China Consumer 2024

The health-conscious consumer is just one of several influential tribes shaping China’s consumer landscape. Each tribe offers unique insights into China’s evolving market dynamics and understanding these tribes is key to unlocking new opportunities for growth.

For a deeper dive into these consumer tribes, join the upcoming China Consumer 2024 conference on October 14th, where WPIC will be taking part in a panel session on “Navigating Subcultures and Tribes” and hosting a breakout session on “The Douyin Playbook: Growing in China through Social Commerce”. This event will offer invaluable insights into the latest trends, backed by expert analysis and real-world examples. Don’t miss out on this opportunity to stay ahead in China’s competitive market!

Click here to register

The post How to appeal to China’s health conscious consumers appeared first on Focus - China Britain Business Council.