Investment Rating - The report does not explicitly provide an investment rating for the nutrition and health industry Core Insights - The nutrition and health food industry is rapidly growing due to increased consumer health awareness and rising disposable incomes, with a market size projected to grow from 1,038.03 billion RMB in 2019 to 1,376.58 billion RMB in 2024, reflecting a CAGR of 5.81% [9] - The industry is characterized by high gross margins, driven by the combination of fast-moving consumer goods attributes and pharmaceutical barriers, allowing brands to maintain high pricing power [5][10] - The demand for high-quality products is expected to continue growing, leading to an expansion of market share for premium offerings [5] Market Background - Nutrition health foods are categorized into health foods and functional foods, with health foods requiring certification and a "blue hat" mark, while functional foods are managed as regular foods [6] - The industry has evolved from a disorganized state to a regulated one, driven by policy guidance, technological innovation, and demand upgrades [7] - The COVID-19 pandemic has heightened health awareness among younger consumers, leading to a surge in demand for functional foods and beverages [8] Market Status - The market size is expected to grow from 1,444.28 billion RMB in 2025 to 1,821.34 billion RMB in 2029, with a CAGR of 5.97% [9] - The aging population and the rising incidence of chronic diseases are driving consumers to seek preventive health management solutions [9][12] - The market is characterized by a high concentration of top brands, with gross margins for self-owned brands in the nutrition health sector exceeding 45% [10] Market Competition - The competition in the nutrition health food market is fragmented, with many companies focusing on specific niches, leading to a low market concentration [16] - Top companies like Xianle Health and Tongrentang dominate the market due to their significant number of approved health food products [16] - The rise of e-commerce has transformed sales channels, with platforms like Douyin and Kuaishou becoming crucial for consumer education and product sales [17][18] Development Trends - The industry is witnessing diversification in product forms, with innovations in flavors and convenience, such as ready-to-eat formats [31] - Consumer trends indicate a shift towards daily health maintenance, with increasing frequency of product use among consumers [32] - There is a notable difference in advantages and disadvantages for pharmaceutical companies and regular food companies entering the nutrition health market, with pharmaceutical firms benefiting from brand trust and funding, while food companies leverage their customer base and rapid product iteration capabilities [34]