Other BriefingsChina’s Health Supplements Market: Trends and Opportunities for Businesses
China’s health supplements market, valued at US$45.5 billion in 2023, is growing rapidly due to increased health awareness post-COVID-19, with strong demand across vitamins, herbal products, sports nutrition, and weight management. We explore the latest trends and market dynamics.
China’s health supplements market is experiencing a significant surge, driven by a blend of cultural influences and contemporary health consciousness. As health awareness heightens, particularly in the wake of the COVID-19 pandemic, Chinese consumers are more inclined to invest in dietary supplements to enhance their overall well-being.
In 2023, the market’s estimated value reached approximately US$45.5 billion, with increasing demand for vitamins, minerals, herbal supplements, and other health products. This growth is not only attracting domestic players but also drawing international brands eager to tap into China’s burgeoning wellness market.
In this article, we delve into the key trends shaping the health supplements market in China, exploring the main segments, consumer behaviors, and effective strategies for international brands to succeed in this dynamic environment.
Market size and growth trends
The health supplements market in China is experiencing significant growth, driven by increased consumer awareness and demand for preventive healthcare solutions. According to iiMedia Research, the market size was estimated at around RMB 328.2 billion (US$45.5 billion) in 2023 and is projected to grow to RMB 423.7 billion (US$58.2 billion) by 2027.
The COVID-19 pandemic has fundamentally shifted consumer behavior towards preventive healthcare, significantly increasing the demand for health supplements. Chinese consumers are now more inclined to invest in high-quality supplements that can bolster their immune systems and overall health. Despite initial disruptions in the supply chain for imported supplements, the market has adapted quickly, leveraging online sales channels to reach consumers effectively.
Market segmentation
China’s health supplements market can be divided into four primary categories: vitamins and dietary supplements (VDS), herbal and traditional products, sports nutrition, and weight management. These segments address various consumer needs and preferences, showcasing the diverse health priorities of the Chinese populace.
Vitamins and dietary supplements
Vitamins and dietary supplements (VDS products), which include essential nutrients like vitamins and minerals, are designed to fill dietary gaps in everyday nutrition. This segment holds the largest share of the health supplements market and boasts a wide consumer base.
China imports many of these supplements from the United States, Australia, Germany, the Netherlands, and Japan. These countries supply a variety of products, including vitamins, glucosamine, coenzyme Q10, fish oil, grape seed extract, and lactoferrin.
Herbal and traditional products
This category includes supplements derived from TCM (traditional Chinese medicine) ingredients, such as ginseng, astragalus, angelica, and goji berries. Historically, the Chinese have valued these ingredients for their believed benefits in enhancing physical fitness, health improvement, and anti-aging properties. Young professionals in China, who often face significant work-related stress, turn to these supplements.
The post-90s and Generation Z demographics are key drivers in this market, showing a preference for green, organic, and natural products, including health teas and convenient bird’s nest drinks.
International products, such as Korea’s Zhengguanzhuang ginseng drink and Indonesia’s instant bird’s nest, have gained popularity on Chinese e-commerce platforms.
Sports nutrition
This segment caters to athletes and fitness enthusiasts with products such as protein powders, amino acids, energy supplements, and minerals. As more Chinese integrate regular exercise into their daily routines, the demand for sports nutrition supplements has surged. These products, including testosterone boosters and protein powders, have become more specialized to enhance performance and support fitness goals.
Men often prefer high-protein supplements to aid muscle growth and exercise performance, while women tend to select composite products that focus on taste and ingredients. For example, Australia’s Maxines protein powder has become popular among male consumers focused on body shaping. Chinese women consumers, on the other hand, tend to prefer products in the form of snacks.
Weight management
The weight management category includes nutritional supplements and meal replacements aimed at helping individuals lose or maintain weight by controlling calorie intake and boosting metabolism. With obesity rates in China now exceeding 20 percent, there is a heightened focus on weight management. Consumers are increasingly willing to invest in high-quality, effective products.
Meal replacement shakes with flavors resembling ice cream are particularly popular on e-commerce platforms. These products help control calorie intake by substituting meals, and fiber-based products like Japan’s “aojiru” are favored for their ability to curb appetite and enhance satiety.
Consumer behavior and preferences
Millennials and Gen Z are the primary drivers of growth in China’s health supplement and vitamin market. Baidu Index data indicates that the age distribution of those searching for ‘vitamin’ online skews younger, emphasizing their significant role in this market.
These younger consumers are especially interested in products that strengthen immunity, boost energy, reduce stress, and improve sleep quality.
A 2022 Rakuten Insights survey of 2,340 respondents found that 77 percent of Chinese consumers bought healthcare products for immunity enhancement. Additionally, 44 percent sought to reduce stress and improve sleep, while 35 percent aimed to enhance their hair, nails, and skin. These priorities reveal the key health concerns among Chinese consumers today.
In 2023, the most purchased products included concentrated supplements like calcium, iron, and zinc, followed by immunity-boosting items such as fish oil, colostrum, and probiotics, as well as nutritional supplements like protein powder, honey, and glucose.
When choosing vitamins and supplements, Chinese consumers prioritize function (91.7 percent), ingredients (91.2 percent), and product qualifications (88.1 percent).
Vitamin B was the most popular vitamin in China in 2022, accounting for nearly a third of the market. It is crucial for energy release from food and the maintenance of healthy nervous and immune systems. Vitamin C, important for forming blood vessels, muscles, and collagen, was the second most popular, followed by Vitamin E, which supports brain, skin, and blood health.
Major players in the market
Leading foreign brands
One of the most prominent foreign brands in China’s health supplement market is the Australian brand Swisse. Known for its extensive range of vitamins and mineral-based nutritional supplements, Swisse has captured an impressive 29 percent of the overall market. This makes it the best-selling health supplement brand in China.
Swisse’ success can be attributed to several strategic initiatives:
- High-quality products: Swisse has built a strong reputation for offering premium quality products, which resonates well with health-conscious Chinese consumers who prioritize safety and efficacy.
- Market penetration: Swisse has effectively penetrated the Chinese market through multiple channels. Their revenue streams are driven by local sales in Australia and New Zealand, Chinese overseas purchases, and direct sales within China.
- Brand recognition and trust: The acquisition by H&H Group in 2015 and consistent brand positioning as a leading natural health brand have bolstered consumer trust and recognition.
In 2022, Swisse reported a revenue growth of 20.8 percent, with its Chinese market sales increasing by 22.8 percent, which constituted 62.8 percent of its total sales within the ANC (Adult Nutrition and Care) unit.
Besides Swisse, several other foreign brands have made significant inroads into the Chinese health supplement market:
- GNC (General Nutrition Centers): An American brand known for its extensive range of vitamins, minerals, and herbal supplements. GNC’s strong emphasis on scientific research and high-quality standards has helped it gain a foothold in China.
- Amway Nutrilite: Another American brand, known for its plant-based supplements, Nutrilite has leveraged its strong global brand reputation and extensive direct selling network to capture a significant market share in China.
- Blackmores: An Australian brand, Blackmores, is well-regarded for its natural health products. The brand’s strategic partnerships and e-commerce presence have facilitated its growth in China.
Leading domestic brands
On the domestic front, BY-Health stands out as a significant player in the Chinese health supplement industry, holding over 22 percent of the market share. Its success can be attributed to several key factors:
- A deep understanding of local consumer preferences, allowing for tailored product offerings;
- Innovative marketing strategies such as collaborations with local influencers and targeted advertising campaigns; and
- A diversified product portfolio catering to a wide range of health needs.
Proya, originally known for cosmetics, has successfully expanded into health supplements, focusing on beauty and wellness products. Infinitus integrates TCM principles into its supplements to promote overall well-being. Dong-E-E-Jiao specializes in gelatin-based supplements, while Amway China, part of the global direct selling giant, maintains a significant presence with continuous innovation and product line expansion to meet increasing health awareness among Chinese consumers.
Emerging trends
COVID-19 impact and older Chinese consumers
The aging population in China, now totaling approximately 280.04 million people over the age of 60, has created a significant demand for supplements targeting immune and cardiovascular health. The COVID-19 pandemic has accelerated this trend, highlighting the vulnerability of the elderly population and the critical need to strengthen their immunity. As older adults are at higher risk of severe illness from infectious diseases, there has been a substantial shift towards preventive healthcare practices.
Older consumers, in particular, show a strong preference for supplements that incorporate TCM, a trend evident in the best-selling products across various sales channels.
The rise of dietary supplements
The dietary supplements sector in China has witnessed a remarkable growth trajectory, driven largely by female consumers who are keen on weight management products. The COVID-19 pandemic has further amplified consumer awareness, leading to increased interest across various age groups.
In 2022, the industry reached an estimated market value of RMB 200.2 billion, more than doubling since 2013. Supplements that aid in weight loss are particularly popular, with ingredients like calcium and vitamin D being valued for their immune-boosting properties and daily nutritional benefits.
Mineral supplements for maternal and baby health food
Several factors have contributed to the increased demand for health food products aimed at mothers and babies. These include women tending to give birth at an older age and the readily available child-rearing knowledge shared on social media. According to an iResearch study, the market value for this segment reached around RMB 81.9 billion (US$11.28 billion) in the year following the policy announcement, with expectations for continued growth.
Between 2020 and 2022, mineral supplements emerged as the most popular category in online sales for maternal and baby health foods, comprising over 40 percent of total sales in this segment. Calcium supplements alone accounted for 46.3 percent of these sales, highlighting their importance in this market.
A preference for portable health food
Modern, fast-paced lifestyles have led young Chinese consumers to seek convenient health foods that offer nutritional benefits on the go. These products, often packaged in small, portable packets, are designed for easy consumption during a busy day. Young consumers view these supplements as effective ways to reduce stress, improve sleep quality, boost immune support, and enhance overall health without the need for lengthy preparation.
On platforms like JD.com, sales of portable nutrition products have surged. According to Sekkei Digital, in 2023 protein powders and spoon-fed honey packs have seen sales increases of 68 percent and 1,095 percent year-over-year, respectively. Additionally, there is a growing trend in the sales of immunity-boosting mini tablets and oral liquids, which have doubled their sales during the same period, due to their excellent portability.
Distribution channels
Vitamins and health supplements can be purchased at various physical locations in China, including supermarkets, drugstores, and health food stores. These traditional outlets remain popular among consumers who prefer to see and select products in person.
To enhance customer engagement and education, innovative marketing strategies such as pop-up stores and sports events are utilized. For example, local brand By-health has created a discovery center that educates people about nutrition and provides health examinations. By integrating AI and hologram technology, By-health can engage the public more effectively and familiarize them with their product offerings.
On the other hand, with the rapid growth of e-commerce, the share of health supplements sold online has significantly increased. Major e-commerce platforms and social media channels have become crucial in reaching a broader audience. Health product sales on platforms like Douyin (China’s TikTok) have surged, driven by influential marketing campaigns and celebrity endorsements. For instance, the Australian brand Swisse, which has 123,000 followers on Douyin, regularly publishes promotional content and collaborates with celebrities such as the actress Qin Lan to attract and retain customers.
Challenges and opportunities
Navigating China’s health supplements market presents both promising opportunities and significant hurdles for prospective entrants. Driven by increasing health consciousness and an aging population, the market offers substantial growth potential. Millennials and Gen-Z consumers, particularly interested in immunity enhancement, sleep improvement, and cosmetic benefits, are driving demand for popular market segments.
However, entering this market requires compliance with stringent regulatory standards. For example, for products categorized as “health food”, they must obtain the ‘Blue Hat’ certification from China’s State Administration for Market Regulation (SAMR), signifying adherence to rigorous health and safety criteria.
For more specific information on health foods registration in China, refer to our dedicated article here.
Moreover, establishing trust and brand recognition in such a competitive sector may present notable challenge. As competition intensifies, ensuring product efficacy and safety while navigating regulatory complexities will be essential for success in China’s dynamic health supplements industry.
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Dezan Shira & Associates assists foreign investors into China and has done so since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Haikou, Zhongshan, Shenzhen, and Hong Kong. We also have offices in Vietnam, Indonesia, Singapore, United States, Germany, Italy, India, and Dubai (UAE) and partner firms assisting foreign investors in The Philippines, Malaysia, Thailand, Bangladesh, and Australia. For assistance in China, please contact the firm at china@dezshira.com or visit our website at www.dezshira.com.
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