2.3 Billion Yuan Annual Revenue For Functional Gummies: Chinese Demands Signals Global Opportunity for Southeast Asian Health Brands!

The healthcare supplement market, particularly in China, is thriving. With the Chinese market expected to reach 328.3 billion yuan in 2023, and imported supplements making up nearly half of this revenue, there's immense potential for brands. For China's rapidly rising middle-class population, choosing internationally healthcare supplement brands has become their preferred choice. While North American and Australian brands have capitalised on this, Southeast Asian brands have yet to establish a presence. SCI, as the no.1 Cross-border Ecommerce Digital Solution provider, is dedicated to assisting Southeast Asian brands in seizing this opportunity. We'll offer tailored insights, strategies, and support to ensure your brand’s success in China's dynamic health supplement market by the following:

a. How should brands lay out in the current market?

b. And what are the upcoming business opportunities that need to be seized?

c. SCI will assist Southeast Asian healthcare supplement brands in seizing the opportunity, clarifying their strategies, and grasping the dividend period of China's health care product market.

In the Chinese market, E-commerce surpasses traditional retail, propelling sales beyond the 300 billion yuan threshold.

A. Market Size:

Projected to Exceed 300 Billion Yuan in 2023, with Significant Room for Per Capita Consumption Growth

The Chinese healthcare supplement market continues to expand, with an expected value of 328.3 billion yuan by 2023. Despite rapid growth, compared to developed countries like the United States and Japan, per capita consumption remains relatively low across all age groups. In 2022, China's annual per capita healthcare supplement expenditure was only $38 USD, indicating substantial potential for market growth.

B. Channel Distribution:

Online E-commerce Accounts for Nearly Half of Sales, with Taobao and Tmall Leading

Online E-commerce platforms, renowned for their convenience, variety, and competitive pricing, increasingly dominate healthcare supplement sales, constituting nearly half of the market share. Among these platforms, Taobao and Tmall claim 60% of online sales, while Douyin experiences rapid growth, particularly in segments like oral beauty, sports nutrition, and digestive health. Cross-border channels, such as Tmall Global, represent over 40% of Taobao and Tmall sales, offering favorable conditions for overseas brands to enter.

C. Competitive Landscape:

Developed Countries Lead, with Rising Domestic Brands

Currently, the Chinese healthcare supplement market is primarily led by brands from developed nations, including the United States, Australia, Japan, and New Zealand, which command approximately 70% of total sales. Notably, Australian brand SWISSE ranks at the forefront. Domestic brands hold around 30% of the market share, with brands like By-health and NUTREND carving out a niche through effective operations and innovative marketing strategies. With growing domestic demand and an influx of new brands, the healthcare supplement market demonstrates long-term vitality.

A. Consumer Profile:

Over 70% Female, with a Growing Proportion of Younger Demographics

The majority of healthcare supplement consumers are women, comprising over 70% of the market. They seek products for nutrition, oral beauty, and weight management. Regarding age distribution, 80% are under 40 years old, with a rising number of 21 to 30-year-olds prioritizing health preservation products. Geographically, consumers are predominantly concentrated in first-tier and new first-tier cities, accounting for over 70% of the market. Their busy lifestyles prompt them to focus on healthcare supplements addressing issues such as sleep and hair loss.

?

B. Market Segmentation:

Oral Beauty Dominates, Followed by Musculoskeletal Support

Among market segments, the oral beauty product market takes the lead with sales surpassing 13 billion yuan in 2023. Following closely is the musculoskeletal health market, with sales reaching approximately 8.3 billion yuan. Despite slower initial sales, the neurological and liver health markets show impressive growth rates of 99.6% and 76.4% respectively, indicative of the surging demand for health preservation products among younger consumers.

C. Trending Products:

Snack-like Supplements Rise in Popularity, While Personalised Offerings Promise Lucrative Potential

In China, the healthcare supplement market is shifting towards snack-like formats and tailored services. Products are evolving to be more convenient, portable, and flavorful. Traditional tablets and capsules are giving way to innovative options like soft candies and pressed candies. Moreover, personalized healthcare products with specialized nutrition and targeted demographics are quickly gaining traction, presenting lucrative opportunities for premium pricing compared to standard products.

"Imported collagen peptide oral liquid for nourishment, ginseng bergamot whitening pills for beauty, vitamin B6 melatonin tablets for sleep, lutein ester soft candies for eye care..." Chinese consumers' focus on health is steadily growing, with the daily intake of three to four types of healthcare supplements becoming routine. Imported healthcare supplements have shifted from luxury to essential components of family diets, integrating seamlessly into meals as a trendy lifestyle choice.

Amidst this robust demand, cross-border healthcare supplements are experiencing a surge in profitability. However, Southeast Asian brands encounter various challenges in this enticing market. Fortunately, SCI Group, as an end-to-end service provider, offers comprehensive solutions to address these challenges.

?

Challenge One: Product Differentiation and Positioning

The Chinese healthcare supplement market offers a wide range of products, catering to diverse consumer needs and preferences. Southeast Asian healthcare supplement brands must establish a unique market position and competitive advantage to stand out.

SCI Solution: Leveraging our deep understanding of the Chinese market, SCI Group provides precise market analysis and positioning guidance to Southeast Asian brands. Through thorough market research and consumer data analysis, we help brands develop differentiated products tailored to Chinese consumers' needs.

?

Challenge Two: Market Access and Compliance

Entering the Chinese market involves navigating complex regulations and compliance requirements. The stringent regulations governing healthcare supplements necessitate careful approval and registration processes for imported products. Additionally, variations in regulations across regions add further complexity.

?SCI Solution: With our extensive experience in market access, SCI Group offers comprehensive compliance services to Southeast Asian brands. We assist with product registration, certification, and ensure smooth market entry while adhering to regulatory standards.

?

?

Challenge Three: Brand Awareness and Promotion

New entrants in the Chinese market often face the challenge of limited brand awareness. Establishing a strong brand image and enhancing recognition are essential for success.

?SCI Solution: With robust marketing capabilities, SCI Group develops personalized strategies for Southeast Asian brands. Through online and offline channels, including social media, advertising, and collaborative events, we elevate brand visibility and recognition.

?

Challenge Four: Channel Expansion

Both Online E-commerce and Offline Channels are crucial for healthcare supplement sales in China. Establishing stable sales channels is vital for market growth.

SCI Solution: With our extensive network and resources, SCI Group assists Southeast Asian brands in channel expansion. We help brands select suitable E-commerce platforms, physical stores, and other channels, facilitating rapid market expansion and improved sales efficiency.

As the demand for cross-border healthcare products continues to soar in the Chinese market, we are genuinely excited about the opportunity for Southeast Asian brands to enter this thriving space. At SCI Group, we are steadfast in our commitment to assisting brands like yours in navigating new markets, developing groundbreaking products, and setting industry benchmarks. We warmly invite you to reach out to us for further discussions on how we can collaborate on overseas expansion. Your success is our priority, and we look forward to partnering with you on this journey.

?

For corporate partners interested in expanding globally, please reach out to us at [email protected] or scan the code below: