Health Supplements - China - November 2018

OVERVIEW

What you need to know

Covered in this report

 

EXECUTIVE SUMMARY

The Market

Figure 1: Best- and worst-case forecast of total value sales of health supplement market, China, 2013-23

Companies and Brands

Figure 2: Market share of leading companies in health supplement market, China, 2016-17

The Consumer

Figure 3: Health supplements purchased in the last 12 months, July 2018

Figure 4: Purchasing channel of health supplements in the last 12 months, July 2018

Figure 5: Top 10 brands purchased in the last 12 months, by channel, July 2018

Figure 6: Offline shopping drivers, July 2018

Figure 7: Online shopping drivers, July 2018

Figure 8: Attitudes towards probiotic supplements, July 2018

Figure 9: Attitudes towards beauty supplements, July 2018

Figure 10: Attitudes towards brand origins, July 2018

What we think

 

ISSUES & INSIGHTS

Opportunity for probiotic supplements

Figure 11: Example of probiotic supplements targeting seniors

Figure 12: Example of probiotic supplements targeting young consumers in the US

Figure 13: New beauty benefit functional claim of digestive & detoxifying treatments and vitamins & dietary Supplements launch, US,

Japan and China, January 2017 – October 2018

Figure 14: Examples of probiotic supplements targeting kids

Figure 15: Example of probiotic supplements targeting on-the-go occasions, US

The importance of online channels

Figure 16: Keylid running through Yangzi River activity, China, 2018

How can offline channels maintain consumers?

Figure 17: Amway experience store, Beijing

Figure 18: Infinitus AR and health detectors experience, China

Figure 19: JD Supermarket nostalgic subway trains, China, 2018

Figure 20: By-health health management program, China

 

THE MARKET

What you need to know

Sustained growth in all segments

Multi-party fertilisation of the market

Market size and forecast

Stable growth continues

Figure 21: Best- and worst-case forecast of total value sales of health supplement market, China, 2013-23

Market Factors

More aging population

Kids and pregnant women also driving demand

Sub-health issues driving adult market

Purchase of imported products made easier by cross-border e-commerce

Figure 22: Tmall Global Health Supplement Trace Program

Online platforms team up with pharmacies

Rectify direct-selling and marketing to bring more transparency

More standardised regulation of function claims

Market Segmentation

Dietary supplements lead the total market growth

Figure 23: Total value sales of health supplements, by segment, China, 2013-18 (est)

Vitamins

Figure 24: Best- and worst-case forecast of total value sales of vitamin market, China, 2013-23

Minerals

Figure 25: Best- and worst-case forecast of total value sales of mineral market, China, 2013-23

Dietary supplements

Figure 26: Best- and worst-case forecast of total value sales of dietary supplement market, China, 2013-23

 

KEY PLAYERS

What you need to know

Fierce competition continues

Embracing online channels and experiences

Market share

Direct-selling dependent companies are losing share

Fiercer competition with a long tail of small players

Figure 27: Market share of leading companies in health supplement market, China, 2016-17

Figure 28: Top 10 items on domestic ecommerce platforms* (based on value sales), China, 2017

Who’s doing well?

What products sold more on e-commerce platforms?

Figure 29: Top 10 items on cross-border ecommerce platforms* (based on value sales), China, 2017

Competitive Strategies

Enhance online channels

International brand image

Cater to younger consumers

Figure 30: 21 Super-Vita marketing

Who’s Innovating?

Bone, brain & nervous system are areas for growth

Figure 31: New vitamin and dietary supplements launch, by functional claim, China, January 2017 - October 2018

Capsules become more popular

Figure 32: New vitamin and dietary supplements launch, by format type, China vs Global, January 2017 – October 2018

More formats

Figure 33: New health supplement launches with new format, UK and Vietnam, 2017-18

BPC brands expand to health supplement category

Figure 34: New beauty supplement launches by skincare brands, US, 2017-18

Boosting beauty from hair to toe

Figure 35: New health supplement launches targeting specific body spots, UK and US, 2018

Probiotic supplements

Figure 36: New probiotic supplement launches, China and New Zealand, 2017

Sports nutrition

Figure 37: New sports nutrition launches, Sweden and Japan, 2018

Anti-pollution claim

Figure 38: New health supplement launches with anti-pollution claim, US, 2018

 

THE CONSUMER

What you need to know

Rising usage for self-consumption

Offline channels also appeal to young consumers

Diverse brands in market

No need to wait for products drives offline channels

Convenience and niche brands encourage consumers to buy online

Probiotic supplements more effective than yogurt

Purchased Health Supplements

Self-consumption is increasing

Figure 39: Health supplements purchased in the last 12 months, 2018 vs 2017

Probiotic supplements have broad consumer base

Figure 40: Health supplements purchased in the last 12 months, July 2018

Figure 41: Probiotic supplements purchased in the last 12 months, July 2018

Purchasing Channel

Drugstores/pharmacies is the top channel for purchasing health supplements

Figure 42: Purchasing channel of health supplements in the last 12 months, July 2018

No big difference for gifting occasion

…and neither for western supplements and TCM supplements

Figure 43: Purchasing channel of health supplements in the last 12 months, by purchased health supplements, July 2018

Young adults and over-50s more reliant on drugstores

Buying offline for different reasons

Figure 44: Purchasing channel of health supplements in the last 12 months, by select demographics, July 2018

Figure 45: Purchasing channel of health supplements in the last 12 months, by select demographics, July 2018

Affluent consumers visit more overseas channels and fewer drugstores/pharmacies

Does direct-selling appeal to high earners?

Figure 46: Purchasing channel of health supplements in the last 12 months, by select demographics, July 2018

More cross-channel shopping in tier one cities

Figure 47: Purchasing channel of health supplements in the last 12 months, by select demographics, July 2018

Online and offline coexist

Figure 48: TURF analysis of purchasing channel of health supplements in the last 12 months, July 2018

Purchased Brands by Channel

By-health domains domestic market

Figure 49: Top 4 brands purchased in the last 12 months, by channels, July 2018

By-health is perceived as an international brand sold on overseas online shopping sites

Dispersive market with long tail

Melatonin and Yangshengtang capture young adult’s attention

Amway and Nutrilite appeal to different age groups

Figure 50: Top 10 brands purchased in the last 12 months, by channels, July 2018

Figure 51: Top 10 brands purchased from offline channels in the last 12 months, by select demographics, July 2018

Offline Shopping Drivers

Getting the right, authentic product immediately

Figure 52: Offline shopping drivers, July 2018

Avoiding knockoffs is important for offline shoppers only

Figure 53: Top five reasons for shopping offline (offline shoppers only), July 2018

Instantaneity and sales advice especially to elder consumers

Figure 54: Offline shopping drivers, by select demographics, July 2018

How to attract affluent consumers to physical stores?

Figure 55: Offline shopping drivers, by select demographics, July 2018

Online Shopping Drivers

Convenience and perception that online is cheaper

Figure 56: Online shopping drivers, July 2018

Convenience is not the top driver for online shoppers only

Figure 57: Top five reasons for shopping online (online shoppers only), July 2018

Don’t trust online channels but still using

Figure 58: Online shopping drivers, July 2018

Younger consumers looking for niche products

Figure 59: Online shopping drivers, by select demographics, July 2018

Attitudes towards Health Supplements

Probiotic supplements or yogurt?

Figure 60: Attitudes towards probiotic supplements, July 2018

Figure 61: Shanxianwei probiotic supplement education

Figure 62: New probiotic healthcare launch, by format, China vs Global, January 2017 – October 2018

Consumers aged 50-59 are more positive towards probiotic supplements

Figure 63: Attitudes towards probiotic supplements (effectiveness), by select demographics, July 2018

Figure 64: Attitudes towards probiotic supplements (convenience), by select demographics, July 2018

Majority consumers believe the effect of beauty supplements

Figure 65: Attitudes towards beauty supplements, July 2018

Figure 66: HUM Nutrition Collagen Pop, US, 2018

Early 20s and over-50s are most likely to believe beauty supplements can work

Figure 67: Attitudes towards beauty supplements, by select demographics, July 2018

Imported products win more trust

Figure 68: Attitudes towards brand origins, July 2018

But younger consumers are showing more confidence in domestic brands

Figure 69: Attitudes towards brand origins, by select demographics, July 2018

Food formats perceived as safer and more effective simultaneously

Figure 70: Attitudes towards health supplements made into food format, July 2018

Figure 71: Vitafusion SleepWell Sugar Free Gummy Adult Sleep Support Dietary Supplement

Effect outweighs taste

Figure 72: Attitudes towards taste of health supplements, July 2018

Prevent illness rather than treat illness

Figure 73: Attitudes towards health supplements, July 2018

Meet the Mintropolitans

Mintropolitans shop at more channels

Figure 74: Purchasing channel of health supplements in the last 12 months, by select demographics, July 2018

Offline experience matters to Mintropolitans

Figure 75: Offline shopping drivers, by select demographics, July 2018

Efficiency drives Mintropolitans to purchase online

Figure 76: Online shopping drivers, by select demographics, July 2018

 

APPENDIX

Market Size and Forecast

Figure 77: Total value sales of health supplement market, China 2013-23

Market Segmentation

Figure 78: Total value sales of vitamin market, China 2013-23

Figure 79: Total value sales of mineral market, China 2013-23

Figure 80: Total value sales of dietary supplement market, China 2013-23

Word Cloud of Purchased Brands

Figure 81: Brands purchased from offline channels in the last 12 months, July 2018

Figure 82: Brands purchased from domestic comprehensive online shopping websites in the last 12 months, July 2018

Figure 83: Brands purchased from overseas online shopping websites in the last 12 months, July 2018

Figure 84: Brands purchased from Daigou in the last 12 months, July 2018

Methodology and Abbreviations

Methodology

Fan chart forecast

Abbreviations

 

RESEARCH METHODOLOGY

China Research Methodology

Confidence levels

Sample sizes by city

Sampling methodology and sampling structure