Throughout its long history, the Chinese have explored the concept of functional food, which connects food with health. The Chinese regard a wide range of foods to be beneficial to their health, from everyday necessities like eggs and honey to exotic luxuries like sea cucumbers and edible bird’s nests. The Chinese functional foods market, also known as the health foods market, has grown rapidly, with an estimated value of 200 billion yuan in 2021.
Functional foods market in China
Modern fortified and functional foods have been in China for nearly half a century. Nevertheless, the market was not regulated until the beginning of the 21st century. In 2005, Chinese authorities first defined functional food (or health food) as a product with specific health functions or that supplies vitamins and /or minerals. In 2020, around 715
health food products were officially registered in China.
The most common health claims among approved health food products in China are enhancing one’s immune system and releasing fatigue.
In 2019,
most of China’s functional foods were sold through direct selling, by which the salesperson purchases products from a parent company and sells them to customers afterward. Among five
functional food market leaders in China, three of them (Amway, Infinitus, and Perfect) adopted a direct selling model. However, the snowball retail system is under strict regulation in China to prevent fraud. On the other hand,
By-health, China’s leading functional food and dietary supplements manufacturer, generated most of its revenue from e-commerce platforms.
Demand for functional food
In recent years, functional food products on the Chinese market have come in a variety of shapes and forms, ranging from tablets to candies or RTD beverages. Though functional food products continue to be more popular among older generations, functional snacks and drinks have begun to attract a growing number of younger consumers due to their health claims. Many younger
Chinese people have encountered health issues such as trouble sleeping, skin problems, and digestive disorders as a result of work stress and a lack of physical activity. In 2021, over a third of young Chinese between 18 and 25 years old
planned to increase their health spending. Therefore, consuming functional food has become a popular strategy for young Chinese workers to improve their health and immunity. Among all functional foods, products made with natural ingredients, such as fruit and vegetable extracts or TCM, were preferred by many young Chinese consumers.
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