Health and Wellness in China

Health and Wellness in China

EXECUTIVE SUMMARY

COVID-19 impact on health and wellness

COVID-19 country impact

Company response

Retailing shift

Foodservice vs retail split

What next for health and wellness?

MARKET DATA

Table 1 Sales of Health and Wellness by Type: Value 2015-2020
Table 2 Sales of Health and Wellness by Type: % Value Growth 2015-2020
Table 3 Sales of Health and Wellness by Category: Value 2015-2020
Table 4 Sales of Health and Wellness by Category: % Value Growth 2015-2020
Table 5 Sales of Health and Wellness by Prime Positioning: Value 2015-2020
Table 6 Sales of Health and Wellness by Prime Positioning: % Value Growth 2015-2020
Table 7 NBO Company Shares of Health and Wellness: % Value 2016-2020
Table 8 LBN Brand Shares of Health and Wellness: % Value 2017-2020
Table 9 Distribution of Health and Wellness by Format: % Value 2015-2020
Table 10 Distribution of Health and Wellness by Format and Category: % Value 2020
Table 11 Forecast Sales of Health and Wellness by Type: Value 2020-2025
Table 12 Forecast Sales of Health and Wellness by Type: % Value Growth 2020-2025
Table 13 Forecast Sales of Health and Wellness by Category: Value 2020-2025
Table 14 Forecast Sales of Health and Wellness by Category: % Value Growth 2020-2025
Table 15 Forecast Sales of Health and Wellness by Prime Positioning: Value 2020-2025
Table 16 Forecast Sales of Health and Wellness by Prime Positioning: % Value Growth 2020-2025

GLOBAL MACROECONOMIC ENVIRONMENT

GLOBAL INDUSTRY ENVIRONMENT

DISCLAIMER

SOURCES

Summary 1 Research Sources

Better For You Beverages in China

KEY DATA FINDINGS

2020 IMPACT

BFY reduced sugar beverages remains the main category

New product development helps to maintain growth

Reduced sugar non-cola carbonates grows from a low base

RECOVERY AND OPPORTUNITIES

BFY beverages set to maintain solid growth as health awareness rises

Chinese health plan set to maintain new launches

A move towards natural sweeteners is expected

CATEGORY DATA

Table 17 Sales of BFY Beverages by Category: Value 2015-2020
Table 18 Sales of BFY Beverages by Category: % Value Growth 2015-2020
Table 19 NBO Company Shares of BFY Beverages: % Value 2016-2020
Table 20 LBN Brand Shares of BFY Beverages: % Value 2017-2020
Table 21 Distribution of BFY Beverages by Format: % Value 2015-2020
Table 22 Forecast Sales of BFY Beverages by Category: Value 2020-2025
Table 23 Forecast Sales of BFY Beverages by Category: % Value Growth 2020-2025

Fortified/Functional Beverages in China

KEY DATA FINDINGS

2020 IMPACT

COVID-19 hampers growth of FF sports drinks and energy drinks

Sprite Fibre + drives growth in FF non-cola carbonates

Red Bull Vitamin Drink maintains its lead despite trademark dispute

RECOVERY AND OPPORTUNITIES

Growth for FF sports and energy drinks due to Health China 2019-2030 Initiative

More product launches with a mix of HW attributes likely

Continued decline for FF fruit/vegetable juice

CATEGORY DATA

Table 24 Sales of Fortified/Functional Beverages by Category: Value 2015-2020
Table 25 Sales of Fortified/Functional Beverages by Category: % Value Growth 2015-2020
Table 26 Key Functional Ingredients in Fortified/Functional Bottled Water: % Value 2015-2020
Table 27 Key Functional Ingredients in Fortified/Functional Non-Cola Carbonates: % Value 2015-2020
Table 28 Key Functional Ingredients in Fortified/Functional Juice Drinks (up to 24% juice): % Value 2015-2020
Table 29 Key Functional Ingredients in Fortified/Functional Nectars (25-99% juice): % Value 2015-2020
Table 30 NBO Company Shares of Fortified/Functional Beverages: % Value 2016-2020
Table 31 LBN Brand Shares of Fortified/Functional Beverages: % Value 2017-2020
Table 32 Distribution of Fortified/Functional Beverages by Format: % Value 2015-2020
Table 33 Forecast Sales of Fortified/Functional Beverages by Category: Value 2020-2025
Table 34 Forecast Sales of Fortified/Functional Beverages by Category: % Value Growth 2020-2025

Naturally Healthy Beverages in China

KEY DATA FINDINGS

2020 IMPACT

Bottled water drives growth as consumers stockpile due to COVID-19

Players aim to rejuvenate NH tea

Nongfu Spring extends its lead thanks to its strong position in NH bottled water

RECOVERY AND OPPORTUNITIES

Positive outlook due to health-consciousness and new product development

New national standard for bottled water set to change the competitive landscape

Innovation will drive growth in NH RTD tea

CATEGORY DATA

Table 35 Sales of NH Beverages by Category: Value 2015-2020
Table 36 Sales of NH Beverages by Category: % Value Growth 2015-2020
Table 37 NBO Company Shares of NH Beverages: % Value 2016-2020
Table 38 LBN Brand Shares of NH Beverages: % Value 2017-2020
Table 39 Distribution of NH Beverages by Format: % Value 2015-2020
Table 40 Forecast Sales of NH Beverages by Category: Value 2020-2025
Table 41 Forecast Sales of NH Beverages by Category: % Value Growth 2020-2025

Organic Beverages in China

KEY DATA FINDINGS

2020 IMPACT

Organic beverages remains small and limited to organic green tea

Difficulty and cost of getting and maintaining certification limits the products available

Several other obstacles to growth

RECOVERY AND OPPORTUNITIES

Some consumers are becoming more positive about organic products

New players and new launches in organic tea will maintain growth

Low availability of organic fruit/vegetable juice will limit opportunities

CATEGORY DATA

Table 42 Sales of Organic Beverages by Category: Value 2015-2020
Table 43 Sales of Organic Beverages by Category: % Value Growth 2015-2020
Table 44 NBO Company Shares of Organic Beverages: % Value 2016-2020
Table 45 LBN Brand Shares of Organic Beverages: % Value 2017-2020
Table 46 Distribution of Organic Beverages by Format: % Value 2015-2020
Table 47 Forecast Sales of Organic Beverages by Category: Value 2020-2025
Table 48 Forecast Sales of Organic Beverages by Category: % Value Growth 2020-2025

Better For You Packaged Food in China

KEY DATA FINDINGS

2020 IMPACT

BFY packaged food is negatively impacted by COVID-19

Lockdown leads to less accessibility and a channel switch

Nestlé extends its lead thanks to the brand’s influence and wide accessibility

RECOVERY AND OPPORTUNITIES

Higher growth set to return as the impact of COVID-19 fades

Dynamic growth for BFY reduced fat packaged food

BFY packaged food well-positioned to help tackle rising rates of obesity and diabetes

CATEGORY DATA

Table 49 Sales of BFY Packaged Food by Category: Value 2015-2020
Table 50 Sales of BFY Packaged Food by Category: % Value Growth 2015-2020
Table 51 NBO Company Shares of BFY Packaged Food: % Value 2016-2020
Table 52 LBN Brand Shares of BFY Packaged Food: % Value 2017-2020
Table 53 Distribution of BFY Packaged Food by Format: % Value 2015-2020
Table 54 Forecast Sales of BFY Packaged Food by Category: Value 2020-2025
Table 55 Forecast Sales of BFY Packaged Food by Category: % Value Growth 2020-2025

Free From in China

KEY DATA FINDINGS

2020 IMPACT

Free from dairy declines due to COVID-19 and the demand for unpackaged products

Free from meat substitutes sees rising demand

Free from products for babies maintain constant growth as they are necessities

RECOVERY AND OPPORTUNITIES

Growth for meat mimickers from a low base

New launches will contribute to rebound for free from dairy milk

Lack of awareness of gluten intolerance

CATEGORY DATA

Table 56 Sales of Free From by Category: Value 2015-2020
Table 57 Sales of Free From by Category: % Value Growth 2015-2020
Table 58 NBO Company Shares of Free From: % Value 2016-2020
Table 59 LBN Brand Shares of Free From: % Value 2017-2020
Table 60 Distribution of Free From by Format: % Value 2015-2020
Table 61 Forecast Sales of Free From by Category: Value 2020-2025
Table 62 Forecast Sales of Free From by Category: % Value Growth 2020-2025

Fortified/Functional Packaged Food in China

KEY DATA FINDINGS

2020 IMPACT

COVID-19 attracts consumers’ attention to FF dairy

FF milk formula sees static volume sales

Non-necessities drag down overall growth in FF packaged food

RECOVERY AND OPPORTUNITIES

Players in FF milk formula will have to change their focus

FF powder milk will focus on segmenting consumer needs

FF yoghurt set to see strong growth despite an already high base

CATEGORY DATA

Table 63 Sales of Fortified/Functional Packaged Food by Category: Value 2015-2020
Table 64 Sales of Fortified/Functional Packaged Food by Category: % Value Growth 2015-2020
Table 65 Key Functional Ingredients in Fortified/Functional Breakfast Cereals: % Value 2015-2020
Table 66 Key Functional Ingredients in Fortified/Functional Bread: % Value 2015-2020
Table 67 Key Functional Ingredients in Fortified/Functional Sugar Confectionery: % Value 2015-2020
Table 68 Key Functional Ingredients in Fortified/Functional Milk: % Value 2015-2020
Table 69 Key Functional Ingredients in Fortified/Functional Sweet Biscuits: % Value 2015-2020
Table 70 Sales of Fortified/Functional Yoghurt by Standard Fat vs Reduced Fat: % Value 2015-2020
Table 71 NBO Company Shares of Fortified/Functional Packaged Food: % Value 2016-2020
Table 72 LBN Brand Shares of Fortified/Functional Packaged Food: % Value 2017-2020
Table 73 LBN Brand Shares of Fortified/Functional Bread: % Value 2017-2020
Table 74 Distribution of Fortified/Functional Packaged Food by Format: % Value 2015-2020
Table 75 Forecast Sales of Fortified/Functional Packaged Food by Category: Value 2020-2025
Table 76 Forecast Sales of Fortified/Functional Packaged Food by Category: % Value Growth 2020-2025

Naturally Healthy Packaged Food in China

KEY DATA FINDINGS

2020 IMPACT

Sales of staple products shift from foodservice to retail

NH snacks negatively impacted

Disruption to Chinese New Year hampers growth for NH nuts, seeds and trail mixes

RECOVERY AND OPPORTUNITIES

NH high fibre food set to continue to perform well due to demand for digestive health

Growth in NH nuts, seeds and trail mixes to continue, although will slow

Taste for NH olive oil set to continue to develop

CATEGORY DATA

Table 77 Sales of NH Packaged Food by Category: Value 2015-2020
Table 78 Sales of NH Packaged Food by Category: % Value Growth 2015-2020
Table 79 NBO Company Shares of NH Packaged Food: % Value 2016-2020
Table 80 LBN Brand Shares of NH Packaged Food: % Value 2017-2020
Table 81 Distribution of NH Packaged Food by Format: % Value 2015-2020
Table 82 Forecast Sales of NH Packaged Food by Category: Value 2020-2025
Table 83 Forecast Sales of NH Packaged Food by Category: % Value Growth 2020-2025

Organic Packaged Food in China

KEY DATA FINDINGS

2020 IMPACT

Rebound to growth in 2020, although it remains a small category

Organic baby food popular due to premium positioning rather than organic status

Organic milk turns to growth due to demand for quality and new launches

RECOVERY AND OPPORTUNITIES

Growth set to be driven by organic baby food

Continued dynamism forecast for organic milk formula

Potential for development in organic dairy

CATEGORY DATA

Table 84 Sales of Organic Packaged Food by Category: Value 2015-2020
Table 85 Sales of Organic Packaged Food by Category: % Value Growth 2016-2020
Table 86 NBO Company Shares of Organic Packaged Food: % Value 2016-2020
Table 87 LBN Brand Shares of Organic Packaged Food: % Value 2017-2020
Table 88 Distribution of Organic Packaged Food by Format: % Value 2015-2020
Table 89 Forecast Sales of Organic Packaged Food by Category: Value 2020-2025
Table 90 Forecast Sales of Organic Packaged Food by Category: % Value Growth 2020-2025

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