Core Viewpoint - The article discusses the evolution of Japan's functional food market over the past 50 years, highlighting the transformation from chaotic growth to a regulated and innovative industry, and drawing parallels to the emerging functional food market in China [3][5][69]. Group 1: Historical Development - The functional food market in Japan has undergone significant changes since the Heisei era, reflecting a shift in consumer health concepts and the establishment of a rigorous regulatory framework [3][5]. - The market experienced explosive growth in the 1970s and 1980s, with sales skyrocketing from 1.8 billion yen in 1965 to 400 billion yen in 1983, but this was accompanied by severe market chaos and misleading advertising [8][9]. - In response to market confusion, the Japanese Ministry of Health began regulating health foods in 1971, prohibiting claims of efficacy and establishing a foundation for future market development [9][10]. Group 2: Scientific Foundations and Market Innovation - The 1980s saw the emergence of scientific research into food functions, leading to the formal definition of functional foods by the Ministry of Health in 1987, which categorized food functions into nutritional, sensory, and physiological regulation [14][17]. - The introduction of innovative products like sports drinks and balanced nutrition foods marked the beginning of a new market era, with significant sales successes such as the 2.4 million bottles sold in the first year of FIBE MINI [18][22]. Group 3: Regulatory Framework and Market Expansion - The 1990s brought a price revolution, making health foods accessible to the general public, with companies like FANCL and Otsuka Pharmaceutical leading the charge by offering products at lower prices [27][30]. - The establishment of the "FOSHU" (Foods for Specified Health Uses) system in 1991 allowed products to be marketed with health claims, significantly boosting consumer confidence and market growth [33][35]. Group 4: Challenges and Recovery - The 2000s were marked by a dual crisis of media-driven hype and product safety scandals, notably the EKONA incident in 2009, which severely damaged consumer trust in the FOSHU system [41][47]. - Despite these challenges, the market began to recover with innovative products like METS COLA and Iyemon Tea, which successfully restored consumer confidence and demonstrated the resilience of the functional food sector [49][51]. Group 5: Current Trends and Future Directions - The introduction of the functional labeling food system in 2015 has catalyzed market growth, allowing companies to make health claims with less stringent requirements, leading to a surge in product submissions [57][59]. - Consumer trends are shifting towards more personalized health solutions, with a focus on gut health, emotional management, and overall wellness, indicating a move away from single-ingredient products [61][65]. - The Japanese functional food market is now characterized by a diverse range of products and a complex regulatory environment, presenting both opportunities and challenges for future growth [67][69]. Group 6: Lessons for China - The article emphasizes that Japan's experience in developing a mature functional food market offers valuable insights for China's rapidly growing sector, particularly in building brand trust and navigating regulatory landscapes [69][71]. - Key strategies for success in China include creating value exposure through effective communication, fostering category innovation, and enhancing user stickiness to ensure long-term consumer engagement [71][73].

Industry Overview - The global functional food market is entering a structural growth phase, with a projected market size of 1.09 trillion yuan in 2024 and expected to exceed 1.46 trillion yuan by 2030 [1] - Key growth drivers include vitamins, probiotics, and protein powders, with the Chinese market expected to reach approximately 231.1 billion yuan in 2024, reflecting a year-on-year growth of over 5% [1] Demographic Trends - The dual trends of an aging population and younger consumer preferences are driving market growth, with the elderly population boosting categories related to bone and cardiovascular health, while Generation Z favors convenient and fun supplement options [1] Company Analysis: Swisse - Swisse, under the Health and Happiness Group, demonstrates strong structural adaptability by investing in three strategic paths: efficacy, premiumization, and snackification [1] - The brand focuses on specific functional areas such as anti-aging, gut health, and bone health, while also launching convenient products like gummies and effervescent powders [1] - Financial results indicate that Swisse's ANC business revenue grew by 5.9% year-on-year to 3.44 billion yuan in the first half of 2025 [1] Investment Perspective - Swisse's strategic positioning reflects a proactive response to industry trends rather than a short-term performance spike [1] - The ability to maintain a balanced product structure in the face of rational competition in the functional food sector will determine its contribution to the overall valuation of the Health and Happiness Group in the medium to long term [1]

Core Insights - The global functional food market is projected to reach approximately 1.09 trillion yuan in 2024 and may exceed 1.46 trillion yuan by 2030, with China maintaining a high growth trajectory in this sector [1] - The competitive landscape is shifting from "marketing leadership" to "efficacy leadership," emphasizing the importance of scientific validation and product effectiveness [1] Company Analysis - Swisse, a core brand of the Health and Happiness Group's Adult Nutrition Care (ANC) business, is enhancing its product offerings with a focus on "scientific efficacy + multi-scenario reach" [1] - The Swisse PLUS series targets the 35-50 age demographic with anti-aging ingredients like NAD+ and ergothioneine, while the Swisse Me line features convenient products such as gummies and instant powders aimed at younger consumers [1] - In the first half of 2025, Swisse's ANC business revenue grew by 5.9% to 3.44 billion yuan, accounting for nearly half of the group's total revenue, with an overall gross margin of 62.5%, reflecting a year-on-year increase of 1.6 percentage points [1] Industry Trends - The current strategies of functional food brands signal three major trends: efficacy-driven branding creates barriers but demands higher R&D investment and scientific validation; premiumization meets consumer quality demands and enhances product loyalty, requiring brands to accurately gauge health consumption trends; and snackification innovations can broaden consumer reach but involve high market education costs and longer return cycles [1] - Efficacy-driven competition, premium segmentation, and scenario innovation are expected to be key indicators of industry differentiation in the next two to three years [2]

Group 1 - The company, Minsheng Health (301507), focuses on the health sector, integrating research, production, and sales of over-the-counter drugs, health foods, and functional foods [1]

Core Insights - The government of Taizhou is focusing on enhancing its industrial capabilities to become a central hub for high-quality development in Jiangsu province, with a specific emphasis on the "8+13+X" industrial chain model [3][4] Group 1: Industrial Performance - In the first three quarters of the year, Taizhou's "8+13+X" industrial chain group, consisting of 2,598 enterprises, achieved an output value of 558.8 billion yuan, reflecting a year-on-year growth of 4.6% [3][4] - The biopharmaceutical industry cluster, which is the only national pilot for new vaccines and specific diagnostic reagents, reported an output value of 41.53 billion yuan, marking an 11.8% increase year-on-year [4] - The health food industry cluster, which includes deep processing of agricultural products and functional foods, achieved an output value of 66.3 billion yuan, ranking second in the province [4] - The marine engineering and high-tech shipbuilding industry cluster reached an output value of 69.8 billion yuan, with a significant year-on-year growth of 21.5% [4] - The new generation information technology and intelligent equipment industry cluster completed an output value of 102.93 billion yuan in the same period [4] Group 2: Innovation and Support - Taizhou is integrating technological innovation with industrial innovation, having introduced the "Double 18 Measures" to strengthen its industrial and technological capabilities [4] - The city has established an efficient mechanism for the transformation of scientific achievements and optimized the allocation of resources for internal and external collaboration [4] Group 3: Business Environment - The city is enhancing its business environment by promoting the "To Taizhou, Taizhou to You" brand, which includes upgrading the "One Enterprise, One Service" platform that consolidates 6,435 various enterprise support policies [5] - A new "Policy Calculator" feature has been introduced, along with a system for applying for special funds for manufacturing, streamlining the application process [5]

Core Insights - The Japanese functional food market has evolved significantly over the past 30 years, reflecting a profound change in consumer health concepts and a robust regulatory framework [1][2][3] Group 1: Historical Development - The functional food market in Japan experienced explosive growth from 1965 to 1983, with sales increasing from 1.8 billion yen to 400 billion yen, highlighting a chaotic market environment [4][5] - In response to market chaos, the Japanese Ministry of Health initiated regulatory measures in 1971, prohibiting health foods from claiming any efficacy, thus shifting marketing strategies towards specific ingredients and their functionalities [5][7] - The 1980s saw the emergence of scientific research into food functions, leading to the establishment of the concept of functional foods, which was officially recognized in 1987 [8][10] Group 2: Market Transformation - The 1990s marked a price revolution in the functional food market, making products more accessible to the general public, with companies like FANCL and Otsuka Pharmaceutical leading the charge [16][17][19] - The introduction of the "FOSHU" (Foods for Specified Health Uses) system in 1991 provided a regulatory framework that allowed products to be marketed with specific health claims, although initial growth was slow due to high costs [22][25] - The late 1990s saw a surge in media-driven health trends, with products like Kao's health cooking oil achieving significant market success, demonstrating the commercial value of the FOSHU system [27][28] Group 3: Challenges and Recovery - The 2000s brought challenges, including a media-driven credibility crisis and product safety scandals, notably the "EKONA shock" involving Kao's health cooking oil, which led to a decline in consumer trust [30][36][38] - Despite these setbacks, the market began to recover with innovative products like Kirin's "Mets Cola" and Suntory's "Iyemon Tea," which successfully restored consumer confidence in functional foods [39][42][44] Group 4: Recent Trends and Future Directions - The introduction of the functional labeling food system in 2015 significantly lowered barriers for companies to enter the market, leading to a surge in product approvals and a market size of approximately 600 billion yen by 2023 [46][47] - Consumer trends have diversified, with a growing focus on holistic health solutions, including gut health, emotional management, and overall nutritional efficiency [50][51] - The market faces challenges such as the need for compliance in marketing practices and the importance of consumer education to build trust in functional food products [60][61]

Core Viewpoint - Zhejiang Lanmei Technology Co., Ltd. has acquired the "VitaCyan" technology developed by Shenyang Agricultural University, marking a significant milestone in the industrialization of functional food technology through university-enterprise collaboration [1][4]. Group 1: Technology Acquisition and Application - The acquisition involves a multi-million yuan investment and aims to enhance the application of blueberry anthocyanins in areas such as eye health, anti-inflammation, anti-aging, and physical recovery [1]. - The "VitaCyan" technology utilizes casein as a natural carrier to stabilize anthocyanin molecules, significantly improving their efficiency during processing and absorption in the human body [8][10]. - Experimental data indicates that the "VitaCyan" technology enhances the heat resistance of blueberry anthocyanins by over 30% and achieves a tenfold increase in bioavailability in the gut [10]. Group 2: Industry Impact and Future Directions - Lanmei Technology aims to integrate "VitaCyan" with its "Lanmei No. 1" blueberry variety to expand applications in functional foods, solid beverages, and dietary supplements, transitioning from "ingredient addition" to "functional realization" [12]. - The introduction of "VitaCyan" is expected to drive the industry towards a transformation from "concept marketing" to "effect-oriented" approaches, enhancing the entire value chain from cultivation to clinical application [12]. - The company plans to develop a series of functional foods focusing on eye health, antioxidant properties, and glucose-lipid metabolism, while collaborating with universities to establish joint laboratories for further research [13].

Core Insights - Shenzhen Haichuang Biotechnology Co., Ltd., the parent company of the immune anti-aging brand Haipuno, completed a multi-million RMB Series A financing round on October 17, 2023, led by Sanze Venture Capital, with Guangyuan Capital serving as the exclusive financial advisor [1][2] - The funds from this financing round will primarily be used for new product development, brand building, and team expansion [1] - Haichuang Biotechnology has a strong background in technological innovation, having been recognized as a "seed unicorn enterprise" at the China (Shenzhen) Unicorn Enterprise Conference in July 2025 [1] Financing History - The company has undergone multiple financing rounds, including: - Series A on October 17, 2023, amounting to several tens of millions RMB [2] - Pre-A+ round on February 21, 2023, also amounting to several tens of millions RMB [2] - Pre-A round on April 10, 2022, with nearly ten million RMB raised [2] - The increasing capital interest reflects a preference for "research-driven, efficacy-oriented" brands in the competitive cosmetics industry [2] Company Background - Founded in 2020 by Professor Liu Zhigang and Dr. Wang Zhiyao, Haichuang Biotechnology leverages over 30 years of immunology research from Shenzhen University [4] - The company focuses on developing functional skincare products, probiotics, and bioactive raw materials, aiming for a comprehensive layout across "cosmetics, food, medicine, and devices" [4] - The R&D team has published over 300 academic papers related to immunology, with more than 60% holding doctoral degrees [4] Product Performance - The Haipuno skincare series achieved total sales of 50 million RMB from 2023 to March 2024, with a stable repurchase rate of over 60% [5] - The company’s proprietary ingredient HEPRO-6A® has won multiple innovation awards and is central to its product offerings [4][7] Market Strategy - The recent financing indicates strong market recognition and effective sales conversion driven by robust scientific research [6] - The company is set to upgrade its proprietary ingredient to HEPRO-6A PRO in 2024, enhancing its efficacy [7] - Haichuang Biotechnology is also developing functional probiotic products and medical devices for specific skin conditions, indicating a broadening of its product portfolio [9] Industry Trends - The financing reflects a broader trend in the cosmetics industry towards technology-driven and comprehensive product offerings, as consumer demand for efficacy increases [7] - The company's strategy of integrating research, product development, and market engagement serves as a model for other technology-oriented enterprises in the sector [7]

Core Insights - The functional food industry is experiencing new opportunities for growth during the "14th Five-Year Plan" period, driven by the "Healthy China" strategy and increasing public health awareness [1] - Minsheng Health is actively expanding its probiotic business while consolidating its core strengths in the vitamin and mineral supplement sector, employing a "four new" strategy to create diverse growth drivers [1][4] Industry Overview - The domestic probiotic research and application is expected to mature, with breakthroughs in core technologies such as strain activity and environmental adaptability, supporting high-quality upgrades in the functional food industry [1][2] - The market for probiotics is rapidly expanding, with a significant increase in consumer interest, particularly among younger demographics, as evidenced by a 485% rise in interest from 2019 to 2024 and a 7597.37% increase in search index on platforms like Douyin [3] Company Developments - Minsheng Health has accelerated its layout in the probiotic sector, signing strategic cooperation agreements and acquiring 100% of Minsheng Zhongke (Shandong), marking the initial formation of a full industry chain in probiotics [1][2] - The company reported a revenue of 462 million yuan in the first half of 2025, a year-on-year increase of 16.37%, and a net profit of 82.41 million yuan, reflecting strong operational efficiency [4] - Minsheng Health has developed a diverse product matrix, including new products in the medical beauty and smoking cessation sectors, enhancing its market adaptability and risk resilience [4][5]

Core Viewpoint - The article discusses the significant advancements in the field of functional oils, particularly focusing on the clinical research conducted by Peking University and Zhidai Technology, which highlights the health benefits of glycerol diester oil in improving lipid metabolism and reducing cardiovascular disease risks [2][5][14]. Group 1: Research Background - Cardiovascular disease prevention requires lifestyle interventions, with dietary fat intake being a critical factor. Over 95% of traditional cooking oils are triglycerides, which are linked to increased triglyceride levels and related health risks [4]. - The prevalence of cardiovascular diseases in China has surpassed 330 million, necessitating effective management strategies to address public health and healthcare costs [4]. Group 2: Clinical Research Findings - A randomized controlled trial involving 120 healthy participants was conducted over 8 weeks to assess the effects of glycerol diester oil on various metabolic indicators [7][10]. - The study showed significant improvements in six key lipid metabolism indicators, including blood lipids, visceral fat, uric acid, body fat, and waist circumference, without altering participants' usual dietary habits [11][12]. Group 3: Implications and Innovations - Zhidai Technology, as a pioneer in the glycerol diester field, fills a research gap in the clinical application of high-purity glycerol diester oils, providing reliable data to support functional oils' use [14]. - The research offers an innovative non-pharmaceutical intervention for high-risk populations, allowing for lipid metabolism rebalancing through oil substitution without dietary changes, thus contributing to chronic disease prevention strategies [14].