Enterprises entering the health food track still need to plan ahead

Our reporter Zhu Meiqiao

With the increasingly prominent sub-health problems of modern people and the enhancement of health awareness, the public's potential demand for health and wellness products is constantly being released, and the health food industry is taking the lead

Consumer health care needs tend to be segmented and diversified

The strong demand side of China's health care industry is mainly due to the following reasons: First, China's per capita health care expenditure has been rising year by year, and the growth rate of expenditure is higher than that of other categories, which shows that residents attach importance to health care and increase their willingness to consume

China's health food started in the 1980s.

According to the different raw materials used in health food, China implements dual-track management of product registration and filing

The "Report" pointed out that the current pain points and difficulties faced by the health food industry mainly include: First, the functional claims of health food are limited and the functions of existing products are seriously homogenized, and consumers' more subdivided health care needs may be difficult to meet

The "Report" suggests that China's health food production enterprises can complete the product matrix by acquiring foreign high-quality enterprises to meet the segmented needs of consumers

High prices and serious homogenization have become pain points in the industry

The "Report" shows that consumers' needs for products range from the most basic needs for survival, to enjoyment needs, to nutritional health care

The innovation of functional food is mainly reflected in product form, specification, packaging, formula and taste

The "Report" pointed out that functional foods face high prices and serious homogenization problems, which may affect product repurchase and corporate profitability

The "Report" suggests that functional food manufacturers should optimize product formulations and compound multiple functional raw materials to make up for the lack of a single raw material dosage; prove product functionality through functional tests, endorse product quality, and improve consumer trust.

Winning the market focuses on polishing product power and brand power

The "Report" pointed out that health food has high requirements for enterprises' regulatory qualifications, research and development capabilities and financial strength, and has a high entry threshold; functional food has a low entry threshold and more flexible development

The health food industry has high regulatory barriers.

With the gradual introduction and continuous refinement of relevant national industry regulations, the state's supervision of the health food industry has become increasingly strict, and the degree of industry standardization and access thresholds have been further improved

　　The "Report" pointed out that for functional food enterprises, in the market competition of increasingly homogeneous products, the enterprise conveys the brand spirit proposition to consumers through brand tone and connotation while satisfying consumers' functional demands for products.

　　For mature companies, under the background of fierce competition in the original category, lower industry profit margins and slow market growth, expanding the functional food track can meet consumers' demands for healthy and functional food on the one hand, and on the other hand Compared with ordinary food, functional products have a high premium and higher gross profit margin, which is conducive to improving the company's overall profitability

　　The "Report" further analyzes that the functional food industry has low entry barriers and products are easy to be imitated.

　　"China Food News" (May 11, 2022 06 edition)

　　(Editor in charge: Zhu Meiqiao)