Dietary Supplements in China

PROSPECTS

Positive conditions for development

Conditions are favourable for the development of dietary supplements, with increasing consumer purchasing power and increasing consumer health-awareness boosting volumes and spurring an upmarket trend in demand. The ageing of the population is also contributing to a rise in demand, as consumers look to prevent age-related conditions from developing.

Government cracks down on illegal practices in health products market

The Chinese Government’s scrutiny of health companies in the direct selling sector intensified after high-profile incidents of violations by direct selling enterprises that started in December 2018. The Ministry of Commerce stated that it would conduct a comprehensive investigation of the direct selling industry in China, strengthen the management of direct selling enterprises, and deal with violations of regulations in conjunction with relevant departments.

Non-herbal segmented products showing strong growth

With consumers becoming ever more knowledgeable about health matters and the population ageing, there are growing opportunities for segmentation and the development of products with more precise functionality within dietary supplements. The demand for products offering specific functions drove strong growth in glucosamine, eye health and probiotics at the end of the review period.

COMPETITIVE LANDSCAPE

By-health extends lead through focus on key growth areas

By-health Co Ltd significantly extended its lead in dietary supplements in 2019, benefiting from its successful targeting of key growth areas, including glucosamine, in which it is the largest player, and probiotic supplements, in which it established a presence in 2018 through the acquisition of Life-space. The company adopts a strategy of concentrating on key single products, focusing on one category with consumer education and marketing activity.

Developing new retail strategies to support international expansion

Leading players are increasingly shifting their competitive emphasis from products to supply chains. GSK Consumer Healthcare signed a Joint Business Plan with Alibaba Group's flagship platform in the healthcare sector in Hangzhou.

Swisse expanding retail presence and product offer

Swisse Wellness Pte Ltd maintained a trend of double-digit growth in dietary supplements in 2019. The company’s growth derived largely from its online operations, though it is actively exploring the offline market.

Files are delivered directly into your account within a few minutes of purchase.