Dietary Supplements Market in China: Traditional Medicines vs. Foreign Brands

In 2012, the Chinese dietary supplements market was said to present $10 billion. After USA, the nation because second largest consumer of such edibles. The region is flocked with small-sized firms and manufacturers with 1/3^rd of the market being occupied by 50 large producers only. According to market research reports the average turnover of the relevant industry is 1.67%, which indicated meager innovation and more of product copies available. An average of 6.6% sales is put on advertising, so communication and marketing takes a lead role in the industry.

Most of the retailers do not possess Weibo account or use digital strategy. Majority of consumers (62%)              are under the age of 40 for food supplements. The promotion of the products is generally spread via word of mouth, or when an edible is highly recommended by family members or friends. The vitamins and supplements are also expensive and considered as ‘healthy gift’. Buyers over 60 years of age are significant target of producers, as these people are more prone towards illnesses, and need medications. Traditional health tips and important is hugely used in promotions.

Perception in China about Dietary Supplements

It is difficult to utilize e-marketing tools to crack old aged group audience, which are reluctant to lifestyle updates. Some of them depend on natural Goji, Ginseng, and Reishi, which were also exported to USA.  Traditional natural medicine is a tough competition to the western dietary supplements. In China, these nutrition additions are recognized as something being not a curative drug, have to be orally consumed, and possess at least one of the 22 preventive systems as put down by the Ministry of Health.

 All these sources sold in the nation is prior approved and tested by the State Food and Drug Administration. The Chinese use television advertisements and internet for promoting their brands, and now digital campaigns are also catching pace. As per market research, the citizens are also favoring imported food supplements from Bergdorf-Goodman, Chanel, and Barney etc. The sale of dietary and vitamin supplements as nutritional and food additives in the region by 2015 can come up to 95.2 billion. The trend for such products has developed given more awareness of treatments to health issues.

Foreign Brands and Consumer Trends

Some of the foreign brands of the supplements in China are NBTY from New York, GNC from Pennsylvania, and Amway from America, which alone has 16% of share in the Chinese market for dietary additives. A Hong Kong brand, CNG is now doing rounds in Guangzhou, Shenzhen, and Shanghai. Even children’s share in buying food additives is increasing especially for probiotics. For e.g. Biostime an English brand has 85.4% market share in probiotics retail sales for children in China. Chinese

Women are also one of the focus groups as they depend on beauty supplements such as aloe vera, citrus pills, jojoba etc. Females comprise of almost 49% of the complete urban population, who spend about 46 billion RMB to buy beauty and nutritional additives for health and luxury reasons. Chinese laboratories eyeing the products are CSPC Weisheng Pharmaceutical Co, Zhejiang NHU Company Ltd., Zhejiang Medicine Co., Ltd., and Northeast Pharmaceutical Group Co.