Core Viewpoint - The health supplement industry in China is entering a new phase of scientific consumption, marking an upward turning point with significant changes in consumer demographics, channel distribution, product iteration, and niche markets [1][10]. Industry Overview - The total market size of China's nutrition and health food market is projected to reach 522.3 billion yuan in 2024, with nutritional functional foods accounting for 289.1 billion yuan and health foods for 233.1 billion yuan. The compound annual growth rates (CAGR) from 2019 to 2024 for these segments are 6.6% and 5.0%, respectively, with expected increases to 8.5% and 5.1% from 2024 to 2029 [1][11]. - In 2024, the per capita expenditure on nutrition and health foods in mainland China is estimated to be 355 yuan, indicating significant room for growth compared to developed countries [1][11]. Consumer Trends - The younger demographic, particularly women aged 25-35, is becoming a significant consumer force, driven by increased health awareness post-pandemic. This group views health supplements as part of their daily diet, influenced by social media and a growing understanding of scientific consumption [1][10][11]. Channel Dynamics - The online sales of health supplements in China surged from 107.4 billion yuan in 2022 to 142.1 billion yuan in 2023, with platforms like Douyin (TikTok) emerging as major sales channels. Douyin's sales growth reached 37% in 2024 and 38% in the first half of 2025, surpassing Tmall to become the leading online platform [2][32][31]. - The cross-border e-commerce channel is gaining traction due to its relaxed regulatory requirements, allowing for a wider variety of products to enter the market without lengthy registration processes [22][23]. Product and Market Segmentation - The industry is experiencing accelerated product iteration, with shorter product life cycles demanding higher R&D and operational capabilities from companies. Key high-growth segments include anti-aging, sports health, cardiovascular health, liver protection, and probiotics [3][10][37]. - Specific product trends include the use of ingredients like ergothioneine, PQQ, and NAD+ in anti-aging products, glucosamine and calcium in sports health, and various types of fish oil in cardiovascular health [3][10]. Regulatory Environment - The regulatory framework for health supplements is positioned between functional foods and special foods, with stricter requirements for offline products compared to more lenient online sales [13][19]. - The approval process for offline health supplements is rigorous, requiring registration or filing, while online products can bypass some of these hurdles, leading to a more diverse product offering [19][22].

Investment Rating - The report rates the health supplement industry as "Outperform" [1] Core Insights - The health supplement industry is entering a new upward cycle, driven by rising health awareness among younger consumers and the emergence of new consumption trends [6][9] - The market for nutritional health products in China is projected to reach 522.3 billion yuan by 2024, with a compound annual growth rate of 5.7% from 2019 to 2024 [10][11] - Online sales channels are becoming increasingly important, with a significant rise in sales through platforms like Douyin, which has become the leading online sales platform for health supplements [32][35] Summary by Sections Industry Characteristics - The industry is characterized by a clear trend towards younger consumers, the emergence of new niche markets, and accelerated product iteration [7][9] - The overall scale of the traditional health supplement market is over 300 billion yuan, growing at approximately 5% annually, while new consumption segments such as anti-aging and cardiovascular health are emerging [9] Market Dynamics - The online sales of health supplements in China grew from 107.4 billion yuan in 2022 to 142.1 billion yuan in 2023, indicating a strong shift towards e-commerce [29][30] - Douyin's sales growth in health supplements reached 38% in the first half of 2025, surpassing other platforms like Tmall and JD [32] Key Segments - The report identifies several high-growth segments within the health supplement industry: - Anti-aging: Focused on products like ergothioneine and NAD+ [49][52] - Sports nutrition: Emphasizing glucosamine and calcium products [55] - Cardiovascular health: Highlighting deep-sea fish oil and phospholipid products [58] - Liver health: Addressing needs arising from unhealthy lifestyles [61] - Probiotics: Targeting gut health and overall wellness [66] Investment Recommendations - The report suggests focusing on brands with strong product operation capabilities and high brand recognition, such as Ruoyuchen and H&H International Holdings [5][69] - For production, it recommends selecting leading companies with substantial scale and customer resources, such as Xianle Health [5][69] - In the raw material sector, it highlights industry leaders like Jindawei [5][69]

Core Insights - The Chinese health supplement industry is experiencing robust growth driven by economic improvement, increased health awareness, and an aging population, with the market expected to reach 260.2 billion yuan by 2024, ranking second globally and growing at a rate of 6% thereafter [1][5][21]. Market Demand - The primary consumer groups for health supplements are the elderly and those in sub-health conditions, with over 230 million elderly individuals and more than 568 million sub-healthy individuals in China [1][22]. - The domestic health supplement industry has a gross profit margin of approximately 30-40%, with leading brands like Tongrentang achieving margins of 60-70% [1][5]. Competitive Landscape - There are over 8.2 million companies in the health supplement sector, with 1.837 million new companies registered in 2024, and over 32,882 products registered or filed, of which 99.05% are domestic [1][10]. - The market is characterized by low concentration, with leading brands such as Tongrentang, Amway, and others dominating the top positions, while e-commerce has become the primary sales channel, accounting for 42% market share on platforms like Taobao/Tmall [1][10][11]. Consumer Behavior - Middle-aged individuals are the main consumers, with a noticeable trend of younger and more diverse online users. Consumers are becoming more rational, focusing on product functions and ingredients, with a preference for innovative forms and mid-to-high-end products priced between 500-1000 yuan [2][5][10]. - The purchasing motivation is often driven by recommendations from others, and there is a growing preference for products that taste good [2][5]. Policy Environment - The government is continuously regulating the market, with multiple policies expected to be introduced by 2025 to optimize approvals and standardize labeling, providing guidance for industry development [2][5][18].

Group 1 - The core viewpoint of the article highlights the collaboration between Jinzhai Food and Kenya in the seafood industry, showcasing the export of wild deep-sea anchovies to China as a significant achievement in Sino-African trade cooperation [1] - Jinzhai Food has established a seafood processing base in Kenya since 2018, which allows for the procurement and processing of local fish, thereby creating a direct supply chain relationship [1] - The first batch of wild deep-sea anchovies from Kenya arrived in Changsha in June 2023, marking a milestone in the export of Kenyan seafood to China [1] Group 2 - The nutritional benefits of the wild anchovies include high-quality protein, DHA, and unsaturated fatty acids, making them suitable for health-conscious consumers [5] - The economic value of anchovies extends to their potential processing into products like deep-sea fish oil, contributing to the diversification of the local fishing economy [5] - Other African countries also possess rich marine resources, with Morocco, Senegal, and South Africa being key areas for sardines, while Seychelles and Tanzania are known for tuna [5] Group 3 - The construction of international logistics channels is accelerating the entry of African marine resources into the domestic market, increasing the variety and scale of seafood available [6] - Leading food processing and restaurant chain companies in China are actively engaging with African fishing suppliers to enhance local processing capabilities, which will shorten the time from ocean to table [6] - This initiative not only adds value to primary products but also provides employment and income for local communities, enhancing Sino-African cooperation in deep-sea resource development [6]