The massive growth in China’s health supplement market has continued through the Covid-19 pandemic, reports iiMedia Research, the China-based third-party data mining and integrated marketing company.
In 2015, the Chinese health supplements market reached US$20.3 billion. Four years later, China became the second largest consumer of heathcare products after the US, with annual revenues of US$35.3 billion.
By the end of 2023, iiMedia forecasts that sales of health supplements in China will surpass US$52.3 billion (AU$72.7 billion).
Trusted international brands rule the roost. According to a study by the Chinese Nutrition Society, 60 per cent of respondents said they had purchased imported supplements. The four countries most popular with Chinese consumers are: Australia, New Zealand, Canada and the US.
Online sales in the sector represent 30 per cent of overall sales and at the end of last year the number of cross-border purchasers of health supplements in China exceeded 200 million people.
Gen Zers and younger Millennials have been key drivers in the Chinese health care supplements market, reveals Azoya Consulting, the China cross-border e-commerce enabler.
What are they looking for? Major categories in demand include products with hair and skin benefits, immunity, better digestion and functional support for sleep and mental awareness.
Busy work and study schedules are also prompting younger Chinese consumers to seek out anti-fatigue and anti-stress supplements, probiotics and liver detox ranges.
More younger Chinese are taking up sports and fitness programs, causing sales of protein powders, meal replacements and joint health products to soar in popularity. The beauty-from-within market is also on fire amongst younger female consumers and the sector grew 100 per cent year-on-year in 2020. Functional gummies and vitamins, in particular, have enjoyed explosive growth.
Older Millennials and Gen Xers are also a lucrative market for health supplement brands in China. Healthy skin and anti-aging products such as collagen drinks, sleep support and biotin supplements to prevent hair loss are top of the shopping list in both age groups.
As many Australian and New Zealand brands have discovered, Alibaba’s Tmall Global and JD Worldwide remain the best channels for international DTC brands to enter the Chinese health supplements market, notes Azoya.