ONGOING FOCUS ON HEALTH AND WELLNESS Health and wellness (HW) continues to thrive thanks to the rising number of health-conscious Chinese consumers. Improving living standards and rising income is driving consumption and encouraging consumers to eat well.
BETTER FOR YOU AND NATURALLY HEALTHY PERFORM WELL Better for you (BFY) saw a favourable performance in 2019 mainly driven by reduced sugar products. As consumers become more aware of the dangers of excessive sugar consumption, such as obesity and tooth decay, they are turning to reduced sugar options.
YILI AND RED BULL REMAIN DOMINANT IN HW Yili remained the largest player in health and wellness in 2019 thanks to its strong position in dairy and baby food. The company owns Satine, the leading brand in organic milk, while it is also expanding into the promising area of organic milk formula.
INTERNET RETAILING AND CONVENIENCE STORES THE MOST DYNAMIC DISTRIBUTION CHANNELS Modern grocery retailers remained the leading distribution channel in 2019, with convenience stores being one of the most dynamic channels. The network of convenience stores in China is widespread in first and second tier cities where consumers have high health awareness and are willing to spend on HW products.
CONSUMERS, MANUFACTURERS AND THE GOVERNMENT WORKING TOWARDS A COMMON GOAL The government is expected to remain focused on encouraging consumers in China to pursue a healthy diet, with it looking to achieve the goals set as part of its Healthy China 2030 action plan. In order to achieve this it is likely to continue providing health education to consumers and instructions to manufacturers.