Core Insights - The Chinese medicinal food market is projected to reach 265 billion yuan in 2024, with an 18% year-on-year growth, and is expected to exceed 370 billion yuan by 2025, with the entire industry chain valued at over 2 trillion yuan [1] Policy Benefits - Continuous expansion of the catalog: The National Health Commission is accelerating updates to the "Medicinal Food Catalog," adding four new substances in 2024, bringing the total to 106 by June 2025, providing greater space for product development [1] - Regulatory standardization: A "full-chain traceability" system for food safety will be launched in 2024, requiring companies to upload complete process data; the "negative list management" proposed during the Two Sessions will strengthen raw material safety and efficacy claims, raising industry entry barriers [1] Consumer Demand - Young demographics as the main force: 90% of post-90s individuals have health preservation awareness, with over half taking action; new concepts like "health coffee" and "water substitutes" are gaining popularity, with products like ginseng coffee and yellow essence latte appealing to younger consumers [2] - Diversification of consumption scenarios: The market is shifting from health supplements to daily consumption, exemplified by Hema's upgraded "Traditional Health Water" and ready-to-eat medicinal dishes like Rehmannia chicken soup and yam pork rib soup [2] Industry Innovation and Technology - Product form innovation: Food products now account for 60% of the market, with trends towards instant and snackable formats; for instance, "Yuzhu Lily Drink" retains over 90% of polysaccharides through low-temperature extraction, balancing efficacy and taste [3] - Technology empowering the supply chain: Leading companies are using AI climate models for cultivation, increasing ginsenoside content by 20%; yeast synthesis of ganoderic acid has reduced costs by 40% [3] - Accelerated cross-industry integration: Traditional brands like Tongrentang and Li Liangji are collaborating with Hema to launch health afternoon teas; coffee brands are incorporating ginseng and ganoderma to enhance functionality [3] Social Value and Industry Linkage - Supporting rural revitalization: The cultivation of medicinal food raw materials is driving large-scale development in various regions, such as Guizhou Yuankun Pharmaceutical establishing GAP bases for local medicinal materials, creating a "planting-processing-branding" industry chain [4] - Practicing the "big food concept": The expansion of the catalog promotes the foodification of medicinal materials, broadening food sources and enhancing added value [4]

Core Insights - The market for "food and medicine homologous" products in China has surpassed 370 billion yuan, with the entire industry chain valued at over 2 trillion yuan, reflecting a growing consumer interest in health and wellness [1] - The rise of this market is significantly supported by national policies, including the expansion of the "Food and Medicine Homologous Directory," which now includes 106 types of food and medicinal substances [1] - New marketing channels such as e-commerce live streaming and short video marketing are effectively bringing these products to younger consumers, with innovative products like "Huangjing Latte" and "Goji Energy Drink" emerging [1] Industry Challenges - Rapid market growth has led to issues such as false advertising, where some companies misrepresent ordinary foods as having disease treatment properties, and the addition of non-approved herbal ingredients, posing food safety risks [2] - There is a lack of uniform production standards and detailed regulations regarding the use of medicinal ingredients, leading to potential overuse and health risks for consumers [2] - The blurred lines between "food therapy" and "medical therapy" create confusion for consumers, who may mistakenly believe that natural ingredients are without side effects, increasing health risks [2] Future Directions - There is a need for clearer policy definitions distinguishing "food and medicine homologous" products from health and functional foods, along with the establishment of systematic standards for ingredients, safety dosages, and consumer guidance [2] - The rise of food and medicine homologous products represents a fusion of traditional Chinese culture with modern consumer demands, emphasizing the importance of returning to scientific, precise, and moderate practices to ensure safety and promote cultural heritage [3]