Unleashing Consumption Potential and Welcoming the Blue Ocean of Development in the Health Products Industry
Steady growth in market size
The data shows that the disposable income of Chinese residents continues to grow, but the level of healthcare consumption expenditure is still at a relatively low level. In 2022, the per capita healthcare consumption expenditure of residents was 2120 yuan, accounting for 5.75% of the disposable income of each person. With the increase of income level and the enhancement of national health awareness, it will continue to stimulate residents to release their demand for health consumption, and the proportion of healthcare consumption expenditure is expected to significantly increase, highlighting the huge development potential of the healthcare product market.
Over the past 5 years, the scale of China's health product market has been steadily increasing: the market size of China's health product market is expected to reach 328.2 billion yuan in 2023 and 423.7 billion yuan in 2027.
With the increasing awareness of consumer health, the "silver haired generation" and "younger generation" will be the main driving groups for industry growth: 72.0% of respondents consider health products as nutritional supplements, and most respondents have a clear understanding of the use of health products to regulate human functions, gradually increasing their awareness of health products. Among the factors that consumers pay attention to when purchasing health products, the top three are function, product composition, and product qualification, accounting for 91.7%, 91.2%, and 88.1%, respectively.
Enhanced demand for health consumption
In the early stages of development, the Chinese health product industry was still in its early stages, and it was not yet mature in terms of production and market regulation. A large number of overseas brands flooded into the Chinese market, occupying the majority of the market share. Until 2020, due to the impact of the epidemic and the support of relevant policies, people's attention to health became increasingly high, and the Chinese health product market reached a period of development and opening up.
Intensive health products, immune enhancing health products, nutritional health products, and anti fatigue health products are highly favored by consumers, accounting for 64.6%, 56.9%, 52.9%, and 43.0%, respectively. Analysts from iMedia Consulting believe that with the change in people's attitudes towards health preservation, health products are more responsible for supplementing nutritional supplements in health.
The survey shows that 70% of consumers consume health products at an average monthly cost of over 100 yuan, with the majority of consumers consuming between 100-500 yuan per month. Among them, 9.0% of consumers consume 0-100 yuan per month, 34.2% consume 100-300 yuan, 33.9% consume 300-500 yuan, 16.6% consume 500-1000 yuan, and 6.0% consume 1000 yuan and above, while only 0.3% are unwilling to spend.
With the increasing awareness of health care among Chinese consumers, the consumption of health products is becoming more and more common, gradually showing a sense of necessity. Compared to developed regions such as the United States and Japan, Chinese consumers still have significant room for improvement in spending amounts.
With the changes in people's understanding of health and the increase in their expectations for health, the current audience of health products has gradually penetrated into the young population, and this trend will further expand. China's aging population is intensifying, and the essential attributes of health products are strengthening. Compared with developed foreign markets, the overall market size of Chinese healthcare products is still relatively small. With the expansion of consumer groups and the improvement of consumption capacity, the consumption potential of the healthcare product market will gradually be released, and the industry will usher in a blue ocean of development.
Emphasize product functionality and quality
With the improvement of health literacy and economic level, consumers will pay more attention to the functional quality of products.
As a leading enterprise in the health product industry, Infinite attaches great importance to investment in research and development technology, and its scientific research strength has steadily improved. As of September 2021, Infinite has applied for a total of 1173 patents and granted a total of 633 patents. Through the management mode of traditional Chinese medicine cultivation, the full process monitoring and traceability of product raw materials are achieved without limit, providing additional guarantee for product quality.
When Thompson Bejian first entered the dietary supplement market, he chose a non direct market track. With the pioneering model of counter+nutrition consultant, Thompson Bejian quickly increased its market share in the pharmacy market. In 2019, with the reform of medical insurance policies and stricter regulation of the healthcare industry, Thomson Bejian accelerated its online transformation. By optimizing online channels, it refined the division of consumer groups and developed customized products tailored to the needs of different groups. Currently, online channels account for about 30% of Thomson Bejian's domestic revenue. According to data, the total sales revenue of Tang Chenbei Jian on the 2022 "Double 11" promotion line reached 700 million yuan.
The revenue of the Swisse brand mainly comes from local sales in Australia and New Zealand, overseas purchasing in China, and direct sales in China. According to H&HGroup's financial report, Swiss's ANC unit maintained growth in the first three quarters of 2022, with a revenue of 3.37 billion yuan, a year-on-year increase of 20.8%. Among them, sales in the Chinese market increased by 22.8% year-on-year, accounting for 62.8% of the group's ANC sales.
In the short term, the Chinese health product market has been affected by the ban on the use of medical insurance cards in the pharmacy channel, the "Hundred Day Action", and the official implementation of the cross-border e-commerce law, resulting in a pullback in market growth. In the long run, with the improvement of consumer health awareness, the "silver haired generation" and "younger generation" have become the main driving groups for industry growth. With the support of marketing methods and channel upgrades, the future of the health product industry is promising.
With the development of technology, digital platforms and tools provide healthcare product enterprises with a wider range of sales channels and more effective management methods. After the epidemic, consumer habits and lifestyles have changed, forcing enterprises to increase online platforms and deepen Digital transformation. The competition in the healthcare product industry is fierce, with prominent issues such as false advertising and product safety. With stricter regulation, the industry is becoming increasingly standardized. Health product enterprises still need to improve product quality and safety, expand diversified categories, and comprehensively embrace new opportunities and challenges in the health industry.
