Health Supplements - China - November 2018
“Parents have the intention to purchase health supplements for their children, especially probiotic supplements. Brands should develop a professional and international brand image to earn consumers’ trust, particularly since e-commerce is emerging. Enhancing product options and innovations is also important to attract consumers.”
– Vicky Zhou, Research Analyst
This report looks at the following areas:
Opportunity for probiotic supplements
The importance of online channels
How can offline channels maintain consumers?
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
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook