Healthcare Products Industry Recovered in The Post Epidemic Era, Functional Segmentation And Diversification into A New Trend

The nutraceutical industry is beginning to recover after the New Crown epidemic.

During the 14th China International Health Products Exhibition, 2024 Asia Natural & Nutritional Health Products Exhibition (HNC Health & Nutrition), Kang Jun-yeong, CEO of Kolmar Mipo, a wholly owned subsidiary of South Korea's original nutraceutical developer Kolmar BNH, told UI News that, after the outbreak, the public's awareness of healthy functional foods in China and South Korea had greatly increased. John O'Doherty, CEO of the CMA, also mentioned that some Australian nutraceutical companies experienced a small drop in sales in China during the epidemic, but have since recovered.

This has also been reflected in changes in the performance of Chinese healthcare companies. in 2023, Chinese industry leaders BY-HEALTH and Xanadu Health reported revenues of RMB 9.407 billion and RMB 3.582 billion respectively, up 19.66% and 42.87% year-on-year, with growth rates far exceeding 2022 levels. BY-HEALTH mentioned in the current annual report that in January of that year, the demand for categories such as immune enhancement erupted in a blowout, and the penetration rate of the dietary supplement (VDS) industry completed a rapid increase in a short period of time.

In fact, the history of the health care industry in China is not long, the penetration rate and consumption level is not high. At present, the concept of ‘health products’ is relatively vague in China. There is a clear regulatory definition of ‘health food’, which includes nutrient supplements and food with specific health functions. In addition, health food, special food and infant formula food are special food, as opposed to ordinary food. Functional foods, which have become more familiar in recent years, also have no clear regulatory definition and are essentially ordinary foods.

According to IQVIA, which includes imported functional food health food statistics show that in 2021, China and the United States health food market size of $48.5 billion, $85.3 billion, accounting for 18% of the world, respectively, 31%, China is the world's second largest market.

And according to the relevant data, in 2022, China, Australia, the United States per capita annual consumption of health care products for $ 38, $ 205, $ 194, respectively. Also comparable, Kang Jun-ying said that in 2023, about 80% of South Korean households purchased major health products, with an annual expenditure scale of about RMB 2,000 per household.

In terms of categories, dietary supplements and traditional tonic products are the two main choices for consumers in the health sector. in 2019, the growth rate of both showed a relatively large decline. Since then, the growth rate of dietary supplements has been significantly higher than that of traditional tonic products.

According to the China Chamber of Commerce for Import and Export of Medicines and Health Products (CCCCMHP), in terms of imported products, Australia and the U.S. have been competing for the position of the No. 1 exporter of healthcare products to China.Since 2018, Australia has been the No. 1 source of dietary supplements in China until 2021 when it will be overtaken by the U.S. again.

The health care products industry research report analyses that health care is not an immediate need for young people, and this group prefers products that are lifestyle, interest and relaxing. Compared with the product form, packaging and specifications of the ‘drug state’ of health food, functional food is rich in form, snacks, beverages as a carrier, functionality as an added value, packaging value is higher, the product innovation space is greater, can be health care and health into the life.