iiMedia Research, the health care product industry is developing steadily. It is estimated that in 2021, China's health care product market will exceed 330 billion yuan. The country pays more attention to national health. Under strong policy and regulation, the image of the industry and consumer trust have gradually recovered. Under the influence of the new crown epidemic, the awareness of national health care has accelerated, residents’ consumption concepts have upgraded, and the demand for health products has increased. The product industry brings long-term benefits. (The full HD PDF version of the "2019-2020 China Health Products Industry Research Report" has 50 pages, and you can click the report download button at the bottom of the article to download the report)
Core Views
The scale of China's health care products industry continues to expand, and it is expected to exceed 330 billion yuan in 2021
China's health care products market has maintained steady growth in the past five years. In 2019, the market size of China's health care products industry reached 222.7 billion yuan, an increase of 18.5% year-on-year. It is expected to reach 330.7 billion yuan in 2021. With the improvement of consumers' health awareness, the "silver-haired people" and "young generation" will be the main drivers of industry growth. In addition, the upgrading of products and services brought about by technological advancement, the health care product industry has a promising future.
Over 40% of respondents purchase health care products spontaneously, and direct sales channels are more favored by consumers.
43.8% of respondents said they would actively buy health care products for themselves or their family members; 55.9% of respondents said they bought the most health products. Focus on product features; in terms of purchase channel preference, 41.5% of consumers surveyed mainly purchase health care products through direct sales channels.
Over 70% of respondents believe that compliance in the health care product industry has improved, and 50% of respondents are optimistic about the prospects of the health care product industry.
Over 70% of respondents believe that the health care industry as a whole after the "Quanjian incident" Compliance has improved; 50% of respondents are optimistic about the development prospects of the health care product industry.
The following is an excerpt from the report:
Chinese health care product concept definition and feature introduction
health food is also called functional food, commonly known as health care product. In 2016, China's "Health Food Registration and Filing Management Measures" strictly defined the definition of health food. "Health food refers to foods that claim to have specific health functions or are for the purpose of supplementing vitamins and minerals, that is, suitable for consumption by specific groups of people. Foods that have the function of regulating the body, are not aimed at curing diseases, and do not cause any acute, subacute or chronic harm to the human body."
China's health care product industry policy environment-strengthen supervision to ensure orderly market standards
Chinese health products Industry Economic Environment—increased income releases healthy consumption demand
Data shows that the disposable income of Chinese residents continues to grow, but the level of healthcare consumption expenditure is still at a low level. In 2019, the per capita healthcare consumption expenditure of residents was 1,902 yuan, accounting for per capita 6.19% of disposable income. IiMedia Consulting analysts believe that the increase in income levels and the increase in national health awareness will continue to stimulate residents to release health consumption demand, and the proportion of healthcare consumption expenditure is expected to increase significantly, highlighting the huge development potential of the health care product market.
The social environment of China's health care products industry-the strong growth of the industry driven by national health care
China is entering an aging society. Data show that in 2018, China's population over 60 years old reached 249 million, accounting for 17.9% of the total population. In addition, problems such as high work and life pressure, irregular work, rest, and diet have further aggravated the sub-health status of Chinese residents, leading to an increasingly obvious trend of younger disease. IiMedia Consulting analysts believe that the health problems faced by the three generations of old, middle and young people mean that health preservation and health care are not the exclusive needs of the "silver-haired people". As society pays more attention to health, more and more people will join the health care team in the future. Under the trend of national health preservation, the health care products industry will maintain strong growth.
China's health care product industry market environment-"self-discipline + transformation" to maintain the image of the industry
The Quanjian incident in 2019 triggered a major rectification of the health care product industry. Issues such as false propaganda, illegal pyramid schemes, illegal additions, and fraudulent sales have become key issues.In order to maintain the brand and image of the industry, health care products companies have launched a self-help model of "self-discipline + transformation". IiMedia Consulting analysts believe that although the Quanjian storm has greatly affected consumers' trust in the health care products industry, the top brand companies have "blessed in disguise." On the one hand, the lack of industry trust will encourage consumers to favor high-quality brand companies operating in compliance with regulations, which will help brands enhance user loyalty; on the other hand, the industry reshuffle will increase market concentration and at the same time provide health care products companies. With the opportunity of transformation and upgrading, the advantages of the top brand are highlighted.
China's health products industry value chain analysis-weakening of channels, brand rise
China's health products industry chain mainly includes four links: raw materials, production, operation, and circulation. In the past, due to issues such as weak market health awareness and information asymmetry, channel providers that directly connect consumers have become the most critical factor affecting market development, and therefore enjoy a strong voice in the industry chain, and thus become the core link of the industry chain. IiMedia Consulting analysts believe that with the tightening of industry supervision, brands have become more scarce due to qualification barriers; at the same time, the development of information technology has accelerated the expansion of online channels, squeezing the share of traditional channels; comprehensive comparison, brand The value of merchants in the industry chain tends to rise, while the value of channel merchants is declining. In order to obtain more value distribution, some top brands have begun to build their own channels or conduct in-depth cooperation with channel vendors.
The leading position of direct selling companies remains, but innovation and change are indispensable.
China opened its direct sales license in 2006. In the extremely fragmented health care market, direct selling company brands quickly seize the market by virtue of more convenient consumer education and faster product circulation. Share and develop into the main force in the health care products market. As of 2019, the leading companies in China's health care products industry are still dominated by direct selling companies. IiMedia Consulting analysts believe that under the influence of regulatory policies, the approval of direct selling licenses will be restricted in the short term, which eases the external competition of existing direct selling companies. It is worth noting that with the development of Internet information technology, residents' consumption habits and consumption characteristics have changed, and the advantages of traditional direct sales channels have been weakened by online channels. Leading companies need to accelerate the innovation and reform of products and models to consolidate their own advantages status.
China's health care products industry market size and forecast data from
iiMedia Research shows that the market size of China's health care products industry in 2019 reached 222.7 billion yuan, a year-on-year increase of 18.5%, and it is expected to reach 330.7 billion yuan in 2021. IiMedia Consulting analysts believe that although the domestic health care product market is affected by the ban on the use of medical insurance cards in pharmacies, the "Hundred Days Action" and the official implementation of the cross-border e-commerce law in the short term, in the long run, as consumers’ health awareness increases, The "silver-haired people" and the "young generation" will be the main drivers of industry growth, and with the promotion of marketing methods and channel upgrades brought about by technological advancement, the health care product industry has a promising future.
Nearly 60% of the interviewees consider dietary supplements as their preferred way of health care.
iiMedia Research (iiMedia Consulting) data shows that the top three most popular health regimens by consumers are dietary supplements, dietary supplements, and exercise fitness, accounting for 57.8. %, 48.6%, 35.3%. IiMedia Consulting analysts believe that under the influence of traditional culture, Chinese consumers have generally higher awareness and acceptance of Shibu. With the increasing emphasis on health in recent years, health preservation through diet has become the first choice for more and more people. The widespread popularity of food supplement culture has laid a good mass foundation for Chinese herbal health products.
More than 40% of the respondents will buy health products spontaneously.
iiMedia Research data shows that more than 40% of the respondents will actively buy health products for themselves or their family members, and nearly 40% of the respondents said they will be affected by external factors. Only 14.7% of respondents have no buying scenarios at all. IiMedia Consulting analysts believe that with the improvement of living standards, people's health awareness and acceptance of health care products are constantly improving. Health care products companies can cater to consumers' different purchasing motives through diversified marketing strategies, thereby promoting the release of consumers' purchasing power.
product function is the primary consideration when consumers buy health products. According to data from
iiMedia Research, among the factors consumers pay more attention to when buying health products, the top three factors are function, product qualification, and brand. , Accounting for 55.9%, 47.1%, and 40.1% respectively, and price factors ranked fourth, accounting for 33.5%. IiMedia Consulting analysts believe that consumers buy health care products to meet their health demands, so product function is the most important element. However, in the actual purchase process, the homogeneity of the functions of various products is more serious, and it is more difficult to select products depending on the strength of the function, and the brand is more easily distinguished by consumers and becomes the main consideration factor in their purchasing decision.
Guochao health promotion promotes the improvement of local health care product brand recognition in China.
iiMedia Research (iiMedia Consulting) data shows that the health care product brands with higher recognition by respondents are Amway, Infinitus, and By-Health. 46.5%, 44.3%, 36.2%. IiMedia Consulting analysts believe that in the past, overseas health care product brands have shown strong brand power in the Chinese market because of the relatively mature product and service development. In recent years, under the background of the rise of national tide culture, the market position of Chinese local brands, especially Chinese herbal health products brands has been recognized, and consumers' awareness of brands has also increased significantly.
More than 20% of the respondents have average monthly consumption of health care products exceeding 500 yuan.
iiMedia Research data shows that 70% of consumers’ average monthly consumption of health care products is more than 100 yuan. Visitors accounted for 24.6%, and monthly spending of more than 1,000 yuan accounted for 5.5%. IiMedia Consulting analysts believe that with the improvement of health care awareness of Chinese consumers, the consumption of health care products is becoming more and more common and gradually showing a kind of rigidity. However, compared with developed regions such as the United States and Japan, Chinese consumers are spending more There is still much room for improvement in the amount.
More than 70% of respondents believe that industry compliance has improved in the past year.
iiMedia Research data shows that more than 70% of respondents believe that after the "Quanjian Incident", the health care industry as a whole Regulations have improved, of which 6.6% think it has improved significantly. IiMedia Consulting analysts believe that after the "Quanjian Incident", the government has strengthened the supervision of the health care product market, organized the "Hundred Days Action" and conducted random compliance inspections. The standardization of the industry has improved, but the health care product industry has been healthy for a long time. Development is inseparable from industry self-discipline and consumer supervision.
Fifty percent of respondents are optimistic about the development prospects of the health care products industry
iiMedia Research data shows that 10.7% of the respondents are very optimistic about the development prospects of the health care products industry, and 39.4% are more optimistic about the development of the health care products industry. Consumers with a pessimistic outlook accounted for 13.6%. IiMedia Consulting analysts believe that, on the one hand, as the aging trend intensifies and young consumers’ health awareness increases, the rigid demand for health care products is gradually strengthened; on the other hand, under the strategic background of Healthy China, government regulatory agencies and related companies Will increase efforts to improve the current supply situation of the industry, and the health care product industry is expected to develop well in the long term.
Infinitus-deep cultivating Chinese herbal health products and implementing a diversified brand strategy
Infinitus was established in 1992 and belongs to the Lee Kum Kee Health Products Group, focusing on the R&D, production, sales and service of Chinese herbal health products. At present, Infinitus has 2 production bases, 30 branches, 30 service centers, and more than 7,500 specialty stores. As of the end of 2019, the company has listed products including five series, six brands, and a total of more than 150 products. Its first compound polysaccharide Chinese herbal medicine health product has been on the market for more than 20 years.
Infinitus-raw material traceability + R&D investment to ensure product quality
iiMedia Consulting analysts believe that although the Chinese herbal health care product market has a bright future, it has long faced problems such as insufficient product research and development, product homogeneity, and difficult quality standards. Severely restricted ZhongcaoThe development potential of medicine and health products. With the improvement of consumers' health literacy and economic level, they will pay more attention to the functional quality of products, which means that the practice of "light R&D and heavy marketing" in China's health product industry needs to be reformed. As a leading company in the health care product industry, Infinitus has always attached great importance to R&D technology investment, and its scientific research strength has been steadily improved. Through the unique Chinese herbal medicine planting management model, Infinitus has achieved the whole process of monitoring and traceability of the raw materials of the products, which increases the guarantee for product quality control.
Infinitus-vigorously promote compliance operations and actively fulfill social responsibilities
As a leading company in the industry for many years, Infinitus actively implements standardized practices, but the significant scale effect in many aspects such as marketing personnel and the number of business premises is invisible Increase the difficulty of business management. During the 100-day operation, Infinitus further strengthened standard education through active cooperation, self-examination and self-correction, and implementation of special rectification measures. IiMedia Consulting analysts believe that at the critical stage when the industry needs to strengthen the establishment of consumer trust, Infinitus needs to uphold and strengthen its standard operation philosophy, play an active role as an example, and work with peer companies to build a fair, safe and stable industry order. Promote the healthy development of the entire industry.
By-Health-dietary supplement head brand, strategic transformation restarts the road to growth.
By-Health was founded in October 1995 and introduced dietary supplements into non-direct sales in 2002, successfully avoiding the international direct sales giants Facing competition, and relying on the rapid expansion of offline pharmacy channels to achieve rapid growth of the company. However, with the increase in channel penetration, the pharmacy channel's pulling effect on the company gradually weakened, and the company's revenue growth nearly stagnated in 2016. To this end, the company initiated three major strategic transformations, namely large single products, e-commerce brands, and cross-border e-commerce, and comprehensively reformed the company's brand, channels, and operations, and achieved remarkable results. In 2017, the company's revenue returned to growth. .
Tomson ByHealth-short-term performance is under obvious pressure, and the long-term online moat needs to be deepened.
The reform of medical insurance policy in 2019 and the tightening of supervision in the health care product industry will have a greater impact on Tomson ByHealth, whose main channel is pharmacies. IiMedia Consulting analysts believe that the tightening of medical insurance policies will be a long-term trend, which will prompt By-Health to accelerate online transformation. However, the current online channels of By-Health have not established a deep moat, as the cost of online customer acquisition With the rise of the market and the omni-channel development of other health product brands, BY-HEALTH will face greater competitive pressure.
Herbalife-Targeting sports people and continuously optimizing products
Herbalife was founded in 1980 and is a direct-sales company of health products with sports people as its main target. It satisfies people's weight management, sports nutrition, energy supplementation and other aspects through various products. demand. In 2019, affected by the regulation of health care products in China, Herbalife's performance in the first three quarters declined. IiMedia Consulting analysts believe that compared with other market segments, the weight management market is relatively concentrated. Herbalife quickly occupied the weight management market by virtue of its early entry, precise positioning, and product optimization, and formed a dominant structure. However, weight loss products have certain backward selection problems. With the continuous improvement of health awareness, consumers also pay more attention to the control of their own nutritional intake, rather than taking drugs to lose weight after obesity. This will affect the later development of the weight management market. Has a certain inhibitory effect.
2020 China's health care product industry development trend analysis
The health China strategy is accelerating, and the health care product industry trend is improving
iiMedia Consulting analysts believe that the State Council issued and implemented the "Healthy China 2030" planning outline in 2016, which is important for health care products. The industry has formed the most powerful support, and the health industry has received extensive attention from the whole society. The release of relevant documents such as the "Healthy China Action (2019-2030)" in 2019 means that the implementation of the Healthy China strategy has accelerated, which has greatly promoted the improvement of health industry policies and regulations, the improvement of social health awareness, and the promotion of health industry investment effect. As an important branch of the big health industry, the health care product industry will also fully benefit from the relevant policy dividends, and the overall development trend of the industry is positive.
Market consumption potential is gradually released, and the industry ushered in a blue ocean of development
IiMedia Consulting analysts believe that the current audience of health care products has gradually penetrated into young people, and this trend will be further expanded with the implementation of the Healthy China strategy. At the same time, China's aging population has increased, and the rigid demand for health products has increased. Compared with developed foreign markets, the overall market size of health care products in China is still small. With the expansion of consumer groups and the improvement of consumption power, the consumption potential of the health care products market will gradually be released, and the industry will usher in a blue ocean of development.
Industry regulation has become stricter, and corporate risk response requirements have been improved.
iiMedia Consulting analysts believe that the outbreak of the "Quanjian Incident" has forced an upgrade in the regulation of the health care product industry. Relevant departments have tightened the issuance of licenses and increased their review efforts. The overall industry supervision trend Strictly will become the norm. Although stricter supervision is conducive to the long-term and healthy development of the industry, in the short term, restrictions on business operations will increase, and the regulatory risks they face will also increase. In this regard, companies need to strengthen internal management, pay attention to external public opinion, identify and eliminate problems as soon as possible, in order to improve the ability to avoid and respond to risks.
strengthen brand building and reverse the negative image of the industry
iiMedia Consulting analysts believe that for a long time, the social reputation of the health care product industry has been low, and the reversal of the negative image of the industry requires relevant companies to carry out long-term brand building and market education. At the same time, the homogenization competition in the health care product industry is fierce. Brand building through diversified means such as brand promotion, social responsibility, universal health education, and improvement of service quality is an effective means for companies to increase their visibility and recognition. Help enterprises to enhance their comprehensive competitiveness.
Strengthening product R&D and innovation will become a key element for health product companies to enhance their competitiveness.
iiMedia Consulting analysts believe that compared with the pharmaceutical market, the entry barrier for the health product industry is relatively low, the market is long-term mixed, and product quality is uneven , And even the bad phenomenon of false products, which greatly consumes the trust of consumers. Strict control of product quality is particularly necessary to increase consumer trust. Moreover, the homogeneity of products in the health care product industry is serious. With the expansion and segmentation of consumer groups, the market's requirements for enterprise product innovation will also increase. In the future, only companies that return to the product itself and continuously strengthen product development and innovation will be able to withstand the long-term test of the market.
Refined operation and management is imperative, and health care products companies need to strengthen the use of new technologies and new methods.
iiMedia Consulting analysts believe that driven by Internet technology, many areas of the C-end consumer market have undergone changes. Compared with the traditional health care products industry, it is slightly lagging behind in the application of new technologies and new methods. The extensive operation and management in the past has been unable to meet the needs of corporate development and growth. Accelerating the integration of Internet technology, expanding online sales channels, strengthening new media marketing, and deepening user management will help companies to better establish and expand brand awareness, and Better meet the needs of the new generation of consumers, and ultimately enhance user loyalty.
Part of the data and image content in this article are excerpted from the "2019-2020 China Health Products Industry Research Report" released by iiMedia Research Institute. To download the full HD PDF version of the report, please click "Learn More" below.
Research institution: iiMedia Research (艾Media Research) Media Consulting) is a world-renowned third-party data mining and analysis organization for the new economy industry. IiMedia publishes or customizes more than 2,000 frontier reports on the new economy every year, covering new technologies, new retail, education, biology, healthcare, travel, real estate, marketing, entertainment, media, finance, manufacturing, blockchain, environmental protection and public Governance and other emerging areas. IiMedia Consulting’s data reports and analyst opinions are quoted by more than 100 global mainstream media, 1500 (a) self-media, and industry KOLs on average every day, covering language types including Chinese, English, Japanese, French, Italian, German, Russian, Await about twenty mainstream official versions. IiMedia has successfully provided year-round big data consulting services to more than 3,000 government and enterprise organizations. IiMedia is also the undertaking unit of major projects such as the outstanding key research projects of the nine representatives of the China Association for Science and Technology, the Guangzhou Advanced Manufacturing Innovation Development Project, and the research project of Guangzhou's construction of a national science and technology think tank. For more industry data analysis reports, please visit iiMedia Report Center (https://report.iimedia.cn?acPlatCode=tt)
(Follow iimedia Report Center's WeChat official account, fresh industry data and information, get it now!)
