Future Prospects for Sports Nutrition in China by 2028

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Another innovation on this site: a direct translation of an interesting article in the Chinese food industry press. This time: an interview with Bai Houzeng, Director of the Sports and Nutritional Food Branch of the Chinese Society of Food Science and Technology

Introduction

After more than 20 years of accumulation and development, China’s sports and nutritional food industry has sunk from the “pyramid” professional competitive market to the mass fitness market, and the products have also developed from the original protein powder to today’s diversified products such as protein bars, creatine powder, electrolyte drinks and energy glue. According to the In-depth Market Analysis and Development Trend Forecast Report of China’s Sports Nutritional Food Industry from 2024 to 2030, it is expected that by 2027, the number of people who regular visit sport schools in China will rise to 460 million, and the demand for sports nutrition food will be further increased. How to continue to innovate in the fierce competition, cultivate new productivity, and constantly meet the increasingly diversified consumer demand has become a new issue facing the development of the sports nutrition food industry. At the beginning of the New Year, the reporter interviewed Bai Houzeng, director of the Sports Nutrition Food Branch of the Chinese Society of Food Science and Technology. From the comment of this practitioner who has worked hard in the field of sports nutrition food for more than 20 years, the development vein of the sports nutrition food industry can be clearly seen. In the development of the industry, scientific and technological innovation has always accompanied him and escorted the industry.

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Q: What stages of development have China’s sports and nutritional food industry gone through?

Bai Houzeng: China’s sports nutrition food industry has gone through the initial stage, growth stage and rapid development stage, and is currently in the stage of rapid development.

The initial stage of the sports nutrition food industry began in the late 1980s. With the vigourous development of the Olympic economy and national fitness, the sports nutrition food industry began to enter China. In the early development of China’s sports and nutritional food industry, it was mainly concentrated in the professional athletes group, with a single product type and a relatively small market scale. In 2001, Kangbite, China’s first professional sports nutrition food enterprise integrating research and development, production and sales, was established, taking the lead in introducing the scientific concept of sports nutrition into the field of competitive sports.

At the beginning of the 21st century, with the increase in public health awareness and the growth of the sports population, sports nutrition began to expand to a wider range of fitness enthusiasts and the mass market. Through the joint efforts of the science and technology community and the industry community, the construction of sports nutrition food standards was launched in 2004. In 2015, the National Standard for Food Safety General Rules for Sports Nutritional Food was released. In 2017, Compit became the first enterprise in China to obtain a license for the production of sports nutrition food and produce its own brand products. In 2019, sports nutritional food was included in the China Sports Industry Catalogue. Since then, China’s sports nutritional food industry has entered the stage of standardised development. The types and quantities of sports nutritional food have grown rapidly, and the market scale has been expanding.

In recent years, thanks to the support of national policies and the promotion of the “Healthy China” strategy, China’s sports and nutritional food market has entered a stage of rapid development. Domestic and foreign brands have entered the market one after another. The demand for subdivisions is increasingly vigourous, and the market scale continues to expand.

Q: Can you talk about the current situation and problems of the development of China’s sports nutrition food industry?

Bai Hou Zeng: After more than 20 years of accumulation and precipitation, China’s sports nutrition food industry has formed a relatively complete industrial chain, with a rich variety of products in the market and huge market potential.

At present, China’s sports and nutritional food market is growing rapidly, and the development of categories is showing a global trend. The top three categories in China’s sports nutrition food market are protein powder, sports drinks and energy bars. This is different from foreign markets. For example, the top three categories in the U.S. sports nutrition food market are sports drinks, protein powders, energy bars and gels (gel).

According to relevant data, from 2017 to 2023, the market size of energy bars and protein bars in China increased from RMB 1.31 billion to RMB 2.45 billion, and it is expected to reach RMB 4.513 billion in 2028. Relevant data predicts that from 2022 to 2028, among the world’s 18 major sports and nutritional food markets, China’s market scale is predicted to rank sixth in the world, with an average compound annual growth rate of up to 40%, which is far higher than the average growth rate of the global sports and nutritional food industry.

Q: In recent years, the development of China’s sports nutrition food industry has pressed the “fast forward button”. What do you think are the main factors that promote industrial development?

Bai Hou Zeng: The rapid development of China’s sports and nutritional food industry is mainly due to the support of policies, the increasing demand for mass consumption and the continuous improvement of standards.

In terms of policy support, in recent years, “Several Opinions on Promoting the Development of the Health Service Industry”, “Healthy China 2030” Planning Outline” and “Guiding Opinions on Promoting the Healthy Development of the Food Industry” have been issued successively. In July 2021, the State Council issued the National Fitness Plan (2021-2025), which promoted the high-quality development of the sports nutrition food industry at the national level. In 2022, the “Opinions on Building a Higher-level National Fitness Public Service System” issued by the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council pointed out that by 2025, a higher-level national fitness public service system will be basically established, and the per capita stadium area will reach 2.6 square metres, and you will often participate in sports The proportion of people exercising reached 38.5%. By 2035, a universal fitness public service system suitable for modern socialist countries will be fully established, and the proportion of people who regularly participate in physical exercise will reach more than 45%. Sports, fitness and sports and leisure will become a common way of life, and people’s physical literacy and health level will be at the forefront of the world.

At the same time, the increasing demand of the masses is also an important factor in the rapid development of the sports and nutritional food industry. With the help of policies, attention from all walks of life to the sports industry continues to increase, and the enthusiasm of the people to participate in sports continues to rise. Data shows that the proportion of people who regularly participate in physical exercise in China has reached 37.2%. By the end of 2023, China’s per capita stadium area had reached 2.89 square metres, which had exceeded the standard of 2.6 square metres per capita planned by the 14th Five-Year Plan. As more and more people participate in various sports and fitness activities, the demand for effective sports nutritional food solutions is also increasing.

In addition, the continuous improvement of standards has also promoted the development of the sports and nutritional food industry. The General Provisions of the National Standard for Food Safety and Sports Nutritional Food clearly states that China defines sports nutritional food as the physiological and metabolic status, exercise ability and the requirements of the sports population (referring to the people who participate in physical exercise 3 or more times a week, the duration of 30 minutes or more each time, and the intensity of each exercise reaches medium or above) Food specially processed for the special needs of certain nutrients. In addition, the “Quality Management Standard for Food Production Enterprises Part 1: Sports Nutritional Food” was implemented in 2022. This is the first local standard for quality management standards classified by food category names issued by Beijing, and it is also the first quality management standard formulated for sports and nutritional food production enterprises in China. It plays an important guiding role in standardising the production behaviour of sports nutritional food production enterprises in Beijing, improving the quality management ability and integrity awareness of enterprises, improving the quality and safety level of sports nutritional food, and promoting the high-quality development of the industry.

Q: What do you think is the core of the development of China’s sports nutrition food industry?

Bai Houzeng: In the development of China’s sports and nutritional food industry, the core of scientific and technological innovation has always been indispensable. It can be said that scientific and technological innovation is the “life gate” of the sports and nutritional food industry.

The consumer group of sports nutritional food extends from professional athletes to the mass fitness group, but the products are not simple “copying”, and innovation is more difficult. Because the needs of the mass fitness group are different from those of professional athletes, when enterprises carry out product research and development and innovation, they should start from the market demand and comprehensively consider the taste, nutritional distribution ratio, cost and application scenarios. Especially for different sports scenarios, the products are very different. For example, although marathon runners and cross-country runners are all running, the products designed and developed are quite different. What is particularly impressive is the process of successful research and development of energy glue by domestic enterprises. From contact concept, research and development innovation to product implementation, it has been polished for 1 year. The penetration rate of energy glue in marathons is as high as 86%.

With the help of policies, the escort of standards, the support of science and technology, the drive of innovation, and adhering to the original intention of “making people’s lives better”, China’s sports and nutritional food industry is making great strides into an era of great development.

Source: 2025-02-10 China Food News

Peter Peverelli has been actively involved in and with China since 1975 and frequently travels to the most remote regions of that vast nation. He is a co-author of a significant book that delves into the cultural factors driving China’s economic success. Peter has been involved in the Chinese food and beverage industries since 1985.

How Local Brands Challenge Coca Cola’s Dominance in China

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Undoubtedly, Coca Cola is the top-selling soft drink globally. Introduced in 1886, it has become a household name in over 200 countries. However, its immense popularity has also made it the most imitated drink worldwide. We’re all familiar with the rivalry between Coca Cola and Pepsi.

Introduction to China

Coca Cola arrived in China at a time when Chinese were eager to experience the delightful products of Western fast food imagination they had read about but yet to taste. KFC’s hot wings were an instant hit, but the introduction of Coca Cola in China didn’t go as smoothly. Initially, Chinese consumers found the taste reminiscent of medicine. Indeed, the typical cola flavour bears a resemblance to some traditional Chinese medicinal (TCM) potions. Interestingly, both colas were perceived as medicines from the late 19th century onwards. In fact, some Chinese food authorities were hesitant to make the beverage accessible to consumers of all ages, concerned about potential harm to children. However, these initial obstacles soon vanished, and Coca Cola gained immense popularity in China, just like anywhere else.

Imitations

It was only a matter of time before the Chinese imitation industry began churning out one local cola after another. Most of these attempts failed and were short-lived, while a few managed to gain traction and survive for some time. The leading imitation is Future Cola by Wahaha Group, a prominent beverage manufacturer headquartered in Hangzhou, Zhejiang. Wahaha began producing its own cola in 1998. Feichang Kele (literally ‘Extraordinary Cola,’ translated into English as Future Cola) closely replicated the colors and other features of Coca Cola. Leveraging Wahaha’s extensive distribution network, Future Cola dominates rural China and its second- and third-tier cities. In 2003, its sales amounted to a staggering 620 million liters.

Wahaha’s advertisements adopt a nationalistic tone. For instance, their copy promotes Future Cola as “Chinese people’s own cola,” encouraging consumers to choose it over Coke or Pepsi. This aligns perfectly with the nationalist trend (guochao) of the 2020s. Future Cola’s focus on rural areas contributed to its high penetration at lower costs. Additionally, it leveraged celebrity advertising to enhance its brand image. Its penetration pricing made it an affordable alternative to its rivals, especially in more price-sensitive rural regions.

A major brand is Tianfu Cola, produced in Chongqing, has gained a new herbal flavour thanks to the cooperation of a domestic time-honoured brand. Tianfu Cola has a history of over 40 years and is a taste memory for several generations of Chinese people. Because of the herbal ingredients in the drink, some consumers even used to consider the cola as a ‘remedy’ for colds back in the day. Its secret lay in a special formula, which drew on traditional Chinese medicine and added several herbs, such as white peony root and Chinese angelica. Upon its launch in 1981, Tianfu Cola quickly won the favour of consumers, with annual sales reaching over 200,000 metric tons, accounting for about 75% of China’s cola consumption.

In 2021, Tianfu Cola upgraded its packaging design, brand positioning and marketing strategies, and added more healthy herbal plants to create a unique Chinese cola.

In the remainder of this post, I aim to analyse various local cola brands across different categories.

Fruit: To address the medicinal taste issue, several manufacturers introduced fruity flavours to their colas. Examples include orange cola, blackcurrant cola, and purple plum cola.

Orange Cola
Blackcurrant Cola
Purple Plum Cola

Medicine: Other producers capitalised on the medicinal aspect and incorporated TCM herbs into their colas, positioning them as health beverages. For instance, Lingzhi Cola (lingzhi – reishi – the ganoderma fungus), gingko cola, and maifanshi cola (maifanshi is a stone rich in minerals) are among these products.

Lingzhi Cola
Gingko Cola
Maifanshi Cola

Nobility: Adding a touch of nobility to your drink can elevate its perceived high-end appeal. Brands like Empress Cola, High Fortune Cola, High Heaven Cola, and of course, the top-tier Future Cola exemplify this concept.

Empress Cola
High Heaven Cola
High Fortune Cola

Famous location: Some cola brands associate themselves with specific locations, adding a sense of place and identity to their products. Qingdao, a prominent port city in Shandong, is renowned for its Tsingtao Beer and Laoshan Mineral Water, which is also used to produce Tsingtao Beer. The region once produced its own Qingdao Cola and Laoshan Cola, but Qingdao Cola was not produced by the brewery but rather used that name to entice consumers.

Qingdao Cola
Laoshan Cola

A hint of Heineken

Kexi Cola

My favourite imitation cola has never achieved significant success, but the makers certainly put in their best effort. The brand name was Kexi Kele, which literally translates to ‘Happy Cola.’ However, this name subtly hints at Xili Beer, the Chinese name for Heineken Beer. A mere glance at the label reveals the striking resemblance. Kexi Kele was produced by a small brewery in Harbin, the capital of Heilongjiang. In today’s China, that combination of brand name and label would likely face challenges, but I can appreciate the initiative.

Vinegar Cola – a healthy choice (?)

This is a special type of Chinese Cola. It is produced in Shanxi province, where I found during a trip through that province in November 2024. Shanxi is famous for its vinegar, so it is no surprise to find this version of Cola there. Moreover, vinegar beverages like apple vinegar have been in vogue in China since around 2022 as health beverages.

This post does not encompass all Chinese imitation colas. I have compiled a list of 21 different labels, and I don’t exclude the possibility of adding more in the future. So, please keep an eye on this post for any future updates.

Peter Peverelli has been actively involved in and with China since 1975 and frequently travels to the most remote regions of that vast nation. He is a co-author of a significant book that delves into the cultural factors driving China’s economic success. Peter has been involved in the Chinese food and beverage industries since 1985.

Short post: Chinese co-branding

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Today I am introducing a new type of post: a short report on a very specific issue that I believe to be of lasting interest.

I am starting with a recent example of co-branding Chinese style.

It is a cooperation between condiment maker Hubang’s chili sauce and Langxianwei’s potato swirls, resulting in a new co-branded product: chili flavoured potato swirls.

An interesting cultural aspect of this case is that the co-branding is also implemented in the logo, as is shown in the left side of the picture.

Peter Peverelli is active in and with China since 1975 and regularly travels to the remotest corners of that vast nation. He is a co-author of a major book introducing the cultural drivers behind China’s economic success. Peter has been involved with the Chinese food and beverage industries since 1985.

2024 Catering Industry Innovation Report

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In recent years, China’s catering industry has been growing continuously. In 2023, the recovery speed of catering far exceeded that of other commodity retail sectors, and the momentum will continue in 2024. According to the data of the National Bureau of Statistics, the national catering revenue was about RMB 3.5 trillion yuan, an increase of 6.6% year-on-year.

The scale of catering brands is increasing day by day, and the pace of chain-isation is accelerating. The proportion of brands with more than 100 stores is increasing year by year. Moreover, the scale of the takeaway market is about RMB 1.2 trillion, which has become an important growth engine of the catering market.

Background of innovation

  • Consumption upgrade: quality demand has improved, consumers pay attention to catering quality, experience needs are also diversified, and special theme restaurants are becoming more and more popular.
  • Intensification of competition: The competition in the industry is fierce, and cross-industry competition is also under pressure, which promotes the continuous innovation of catering enterprises.
  • Technological progress: The Internet and the application of intelligent devices bring new opportunities to the catering industry.
  • Cultural integration: Different cultural exchanges provide materials for catering innovation.
  • Popularisation of healthy eating: Consumers’ requirements for catering health are increasing.

Direction of Innovation and achievements

Diners enjoy healthy and colourful food at Fengxiyuan
  • Product innovation: integrating multiculturalism, combining scientific and technological elements, paying attention to healthy nutrition, and exploring special ingredients. There are excellent innovative restaurants such as Coucou Hot Pot, Taishan Food Festival, Fengxiyuan Restaurant, Western fast food brands, etc.
  • Service innovation: personalised services and intelligent services. The children’s meal service of Xibei Noodle Village, the convenience and innovation of hometown chicken, the diversified service of Naixue‘s tea, and the intelligent service of Haidilao and Hefu Noodles are all excellent.
  • Marketing innovation: social media marketing, experience marketing, cross-border cooperation. Tastin’s social marketing, the experience activities of hometown chicken and Xibei noodle village, and cross-border cooperation such as Laowang and Link are all very eye-catching.
  • Business model innovation: popularisation of dining + drinking mode, omni-channel model, new retail + catering model, special store model, introduction of catering in home stores, etc.

Future development trends and prospects

  • Business model and category development: the degree of chain-isation and branding has been improved, and the category has been subdivided and characterised by operation.
  • Consumption experience and service: omni-channel operation has become the norm, and scenario-oriented and immersive experience are favoured.
  • Product innovation and supply chain: healthy dish innovation, intelligent and digital supply chain management.
  • Market competition and industry pattern: the potential of market failure is huge, and the brand’s overseas exit is accelerating.

Conclusion: China’s catering industry is booming and continues to innovate. Catering brands actively seek change and constantly open up new paths. In the future, catering enterprises should keep pace with the times, continue to innovate, and meet the diversified needs of consumers. Super brand strategic consulting will also contribute to the prosperity and development of China’s catering industry.

Peter Peverelli is active in and with China since 1975 and regularly travels to the remotest corners of that vast nation. He is a co-author of a major book introducing the cultural drivers behind China’s economic success. Peter has been involved with the Chinese food and beverage industries since 1985.

Understanding China’s Anti-Ageing Industry

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I. Overview

Anti-ageing helps people delay the ageing process of the body and promote overall health, so that people can stay mentally and physically healthy, within the life limit determined by genetic factors, and improve the quality of life. The following table shows the percentage of the part of the Chinese population that is 65 years or older.

Skin ageing refers to the deterioration of the cell structure and function of skin tissue under the continuous action of the internal (accounting for 20%) and external (accounting for 80%) environment, usually manifested as dry skin, pigmented spots, reduced skin elasticity, sagging, rough and wrinkled skin. There are many schools of research on the causes of skin ageing, including genetic ageing, excessive free radicals, photoaging, non-enzymatic glycosylation, etc. Endogenous ageing refers to the ageing of the human body due to irresistible physiological factors such as genetics and endocrine. Exogenous ageing is environmental ageing, that is, ageing caused by light radiation, environmental pollution, bad living habits, etc.

II. Anti-ageing policy

In recent years, China has issued a series of policy documents to promote the development of the anti-ageing industry. In August 2022, the General Office of the Guangzhou Municipal People’s Government issued the ’14th Five-Year Plan’ for the Development of the Marine Economy of Guangzhou, which proposed to focus on the development of marine biologically active substance screening, marine biological genetic engineering and other technologies to support marine biological vaccines and substances such as antibacterial, antiviral and antioxidant derived from marine organisms. The research and development of biologically innovative drugs, as well as the development, production and industrialisation of high-value-added marine biological functional foods such as lowering blood sugar and blood lipids, improving immunity and anti-ageing, have led to the establishment of a number of new enterprises in the fields of marine drugs and functional biological products. In January 2024, the General Office of the State Council issued the Opinions on Developing the silver-haired Economy to improve the welfare of the elderly, which proposed to develop the anti-ageing industry, promote the deep integration of biotechnology and delayed senile diseases, and develop products and services for early screening of geriatric diseases.

III. Anti-ageing value chain

The upstream of the anti-ageing industry chain is mainly plant extracts, traditional Chinese medicine and other anti-ageing raw material industries, and the downstream is mainly in the fields of skin care, beauty and health care.

At present, scientists have found that a variety of plant extracts can be combined with NMN to improve their anti-ageing effect. This development started relatively late, but its growth is rapid. According to statistics, the domestic plant extract market has increased from RMB 5.66 billion in 2015 to RMB 23.78 billion in 2023; an annual growth rate of 20.94%.

IV. Development status of the anti-ageing industry

With the ageing of China’s society, ‘anti-ageing’ has now become a topic of high public attention. People’s lifestyle and habits are changing. They all want to be young forever and minimise the traces of ageing, which has promoted the rapid growth of sales of anti-ageing products. Data shows that the market scale of China’s anti-ageing industry in 2023 was about RMB 152.18 billion, in which skin care products were good for RMB 94.82 billion; nicotinamide mononucleotide (NMN) health care products RMB 12.48 billion; and other anti-ageing health care products and health foods RMB 44.88 billion.

The research and development strategies of domestic anti-ageing brands are shifting to products made from traditional Chinese medicine, and use advanced medical technology to promote the rapid development of traditional Chinese medicine skin care products. The attention of international high-end brands still dominates the field of anti-ageing skin care products in China, but consumers gradually recognise domestic anti-ageing brands, which promotes domestic brands to perform better and better in the mass market and have greater development potential.

Data show that 53.2% of consumers begin to pay attention to anti-ageing at the age of 26-35, and 23.2% of consumers at the age of 18-25. With the in-depth development of the anti-ageing industry and the popularisation and application of anti-ageing knowledge, the people who pay attention to anti-ageing are getting younger and younger, and the market increases proportionally.

Still according to the research, 68.2% of consumers combine anti-ageing with fitness, 62.4% of consumers use skin care products to prevent ageing, and nearly 50% of consumers pay attention to diet and take supplements for anti-ageing. With the continuing upgrading of anti-ageing skin care products and health care products, more consumers will recognise the effectiveness of anti-ageing ingredients and anti-ageing through the use of skin care products and health foods.

V. Key enterprises in the anti-ageing industry

The market competition in China’s anti-ageing industry is fierce, and the leading enterprises consolidate and expand their market share through product innovation, technology research and development and marketing. At the same time, with the increasing diversification of consumers’ demand for anti-ageing products, enterprises are actively looking for differentiated competitive advantages. At present, the main enterprises in China’s anti-ageing industry include Vecanbio (Zhongyuan Xiehe), Kingdomway (Jindawei), Marubi (Wanmei), BBCA Pharmaceutical (Fengyuan Yaoye), (Challenge & Young) Qianyuan, Zhongsheng Pharma, Yiling Pharmaceutical, Changchun High-tech, By-health (Tangcheng Beijian), etc.

Lycopene Vitamin E from By-health

VI. Trends in the anti-ageing industry

  • Diversification and personalisation of consumer needs. Consumers’ demand for anti-ageing products is no longer limited to a single effect, but pays more attention to the diversification and personalisation of products. They not only hope that the product can effectively prevent ageing, but also hope that the product can meet their specific needs, such as improving skin quality and enhancing immunity. In addition, with the improvement of consumers’ health awareness, their requirements for the safety and effectiveness of anti-ageing products are also getting higher and higher. Therefore, brands need to pay more attention to ensure that products are both safe and effective.
  • Technological innovation and application; With the continuous development of biotechnology, genetic technology, nanotechnology and other high-tech technologies, anti-ageing products will pay more attention to the application and innovation of science and technology. These new technologies will help improve the effect and user experience of the product and meet consumers’ needs for efficiency, safety and convenience. At the same time, anti-ageing products will be more intelligent and personalised in the future. Through intelligent devices and technical means, brands can more accurately understand the skin quality and needs of consumers, so as to provide more personalised skin care solutions and product recommendations.
  • Market segmentation and channel expansion; With the continuous development of the anti-ageing market, the trend of market segmentation will be more obvious. Brands need to segment the market according to different age groups, skin type, dietary needs demand and other factors, and launch more targeted products to meet the needs of different consumers. At the same time, the sales channels of anti-ageing products will be more diversified in the future. In addition to traditional offline channels, online channels will occupy an increasingly important position. Brands need to pay attention to the expansion and operation of online channels to improve brand awareness and product sales.

If this post appeals to you, you may also like to read:

Medicine Food Same Source

Public nutrition in China

Bird’s nest – if you can’t eat them, drink them

Cosmetics food same source

 China’s silver hairs are challenging the single dogs

The Chinese health food market in 2023

Chinese research of anti-fatigue functional food

Chinese health water – the hottest drink to cool you down this summer

Peter Peverelli is active in and with China since 1975 and regularly travels to the remotest corners of that vast nation. He is a co-author of a major book introducing the cultural drivers behind China’s economic success. Peter has been involved with the Chinese food and beverage industries since 1985.

The Rise of Herbal Health Waters in China

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sugar-free tea beverage undoubtedly were the major trend in the Chinese beverage industry in 2023. Tea drinks in general are healthier and more refreshing than all those funny bubble teas that Chinese consumers started drinking in the years before.

With the growing concern for health, moving on to sugar-free tea beverages was a logical step. Data show that the year-on-year growth rate of sugar-free tea in 2023 was as high as 110%, the market size exceeded RMB 10 billion. That year saw the introduction of 64 new sugar-free tea products.

It seems that the next step for 2024 is adding more nutritious ingredients, in particular herbal extracts from TCM plants. This also fits in with the ongoing ‘national trend’ (guochao), which explains why the new drinks category is referred to as ‘Chinese health water’ (zhongshi yangshengshui). A market survey dating 2024 predicts that the compound annual growth rate will exceed 88% over the next five years. By 2028, sales are expected to exceed RMB 10 billion.

It is too early to say that these health waters will canabalise the entire market for sugar-free tea drinks, but they will certainly take a considerable part of it.

Let’s look at a few of health waters that are already on the market.

Genki Forrest – red bean and barley
Haowangshui – dried orange peel
Keyang – green bean

Nestlé

Foreign players have also noted the TCM trend. Nestlé China has launched two new beverages: white mulberry oolong and hawthorn tangerine peel in 2024.

Peter Peverelli is active in and with China since 1975 and regularly travels to the remotest corners of that vast nation. He is a co-author of a major book introducing the cultural drivers behind China’s economic success. Peter has been involved with the Chinese food and beverage industries since 1985.

Innovative Cheese Snacks Designed for Children

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Cheese consumption has been increasing at an incredible speed in China during the past few years, considering that not so long ago, almost all Chinese were abhorred about the smell of cheese. Cheese supply volume in China has surged from 140,000 tons to 270,000 tons during the period 2017-2022. This figure is expected to maintain double-digit growth, far above the world average for the coming years.

Although the average cheese consumption in China is far below many Western countries as well as Japan and Korea, it has significantly increased from 80g/person/year in 2017 to 130g/person/year in 2021. At the 2022 China Cheese Development Summit Forum, the Dairy Association of China released an action plan, proposing that the national cheese production would reach 500,000 tons by 2025. Much of the cheese sold in China is processed, but non-processed is increasing.

A uniquely Chinese development is that Chinese cheese producers are focusing their own R&D on developing one-bite cheese snacks, for all ages, but in particular for children. This is partly a result of the pressure of the Chinese authorities to increase dairy consumption among children. Such products include cheese sticks, cheese slices, cheese strips, etc. Cheese sticks form the most popular type, which was first launched by Milkana, but was popularized by Milkground. Presently, driven by the increasingly intensive market competition, dairy enterprises have rolled out a wide range of cheese sticks with distinctive features. Apart from various funny shapes, including ‘cheese lollies’, they are also experimenting with flavours. A good example are Milkana’s strawberry flavoured cheese sticks.

This ad by Milkground presents their range of cheese sticks in various flavors: coconut, grape and natural. It promises a calcium content 7 times that of liquid milk. It has added Vitamin D. The animals indicate how fast your child will grow, if you let them snack on Milkground cheese sticks.

The current trend towards more nutritious snacks is also influencing the design of cheese sticks. Dr Cheese has launched a cheese stick sandwiched between two layers of dried seaweed.

Cheespirit has launched a series of innovative products in 2023: ‘Vegetable & Fruit Growing Up Cheese Sticks’. The company claims to have selected 8 kinds of ‘super vegetables and fruits’ to create high-calcium and high-VC cheese sticks, containing 3% dietary fibre. The calcium is 100% milk calcium, with a 1.8:1 calcium-phosphorus ratio. The product contains 40% whey protein, as well as algal oil DHA and various trace elements derived from vegetables and fruits, providing nutrients such as protein, dietary fibre, vitamins and other basic nutrients needed by children. It contains no preservatives. It uses two innovative two-colour-flavours: Lele orange (tomato, carrot and apple compound flavour) that contains β-carotene; and absolute purple (purple sweet potato, purple cabbage blueberry complex flavour) containing anthocyanins to help the children’s growth.

If this post is of interest to you, you may also want to read:

Cheese in China – a gargantuan challenge

Peter Peverelli is active in and with China since 1975 and regularly travels to the remotest corners of that vast nation. He is a co-author of a major book introducing the cultural drivers behind China’s economic success. Peter has been involved with the Chinese food and beverage industries since 1985.

Understanding China’s Maternal and Infant Water Market

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China’s new generation of parents has become extremely finicky about the quality of any product used for or by their newborns. Many posts in this blog already reflect the growing concern for healthy food among young Chinese consumers. This concern only multiplies, when they are starting a family. One innovative product that has come from this development is special purified water for infants. As a drinking water designed for infants and pregnant women, maternal and infant water has many advantages. First of all, it undergoes strict purification and filtration treatment to ensure that the water quality is pollution-free, and can provide a safe and reliable drinking water source for infants and pregnant women. Secondly, maternal and infant water is enriched with a variety of minerals and trace elements, which are essential for the growth and development of infants and young children and the health of pregnant women. According to recent data, China’s maternal and infant water production has increased to 228 mio bottles in 2023; Demand grew to 224.75 mio bottles.

Overview of the maternal and infant water industry

Maternal and infant water is a pure natural mineral drinking water specially for pregnant women and infants to drink, with rich mineral ions, strong antioxidant capacity, good nutrient absorption, low soluble total solids and other characteristics. Maternal and infant water is the ‘natural mineral water’ that meets or exceeds the national standard of the Chinese Nutrition Association. Maternal and infant water must be high-quality raw water derived from nature, without any pollution in the water intake area, and retain the natural mineral elements in the water under the premise of safety and cleanliness; Filling must be carried out close to the water source with special hygienic protection.

According to the National Bureau of Statistics, the number of births in China reached 9.02 mio in 2023, a decrease of 540,000 from 9.56 mio in 2022. On the whole, the number of births in China is showing a downward trend, but considering the large size of China’s population, the number of births still remains at a relatively high level. Moreover, with the implementation of a series of policies and regulations and supporting measures to actively support childbirth, the decline in the number of births in China is expected to decrease in the future. This is expected to usher in development opportunities for the maternal and infant market.

The value chain

The upstream of the value chain is mainly mineral water resources and packaging materials, among which mineral water resources directly determine the output and quality of the products; The midstream refers to the production and manufacturing of maternal and infant water, represented by brands such as Nongfu Spring, which have won the trust of consumers with strict quality control and unique market positioning; The downstream link refers to the consumption of maternal and infant water, and its sales channels mainly include shopping malls, supermarkets, convenience stores, e-commerce, etc., and the development level of these channels directly affects the market demand for maternal and infant aquatic products.

The development of the industry

The data shows that from 2015 to 2023, the scale of China’s maternal and infant water market has continued to grow, and the scale of China’s maternal and infant water market reached RMB 1.043 billion in 2023. However, it is worth noting that in 2023, the size of China’s packaged drinking water market has exceeded 200 billion, so maternal and infant water accounts for less than five thousandths. It is expected that with the continuous development of the maternal and infant water market in the future, more and more brands and manufacturers will begin to increase the publicity and promotion of maternal and infant water, improve consumers’ awareness and acceptance of maternal and infant water, and thus stimulate the growth of industry demand. In addition, the expansion of sales channels has further promoted the development of the maternal and infant market. In addition to traditional supermarkets and baby stores, more and more e-commerce platforms and social media have also started to sell and promote baby water.

There are four main producers of infant water, with Nongfu Spring, already market leader in the Chinese mineral water market, ranking first place. Contact me for an in-depth market study.

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Peter Peverelli is active in and with China since 1975 and regularly travels to the remotest corners of that vast nation. He is a co-author of a major book introducing the cultural drivers behind China’s economic success. Peter has been involved with the Chinese food and beverage industries since 1985.

Why Young Chinese Consumers Prefer Online Bakeries

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In Shanghai, bread has become an indispensable part of young people’s lives, whether it’s gathering with friends, exploring every corner of the city on a City Walk, or at various social events, bread has become a must-have food companion.

With the popularity of the Internet and changes in lifestyle, young people in Shanghai are revolutionizing the way they buy bread. From queuing up in physical stores to buying bread online, this shift not only reflects the change in consumption patterns, but also drives the innovation and development of the entire baking industry.
Bread has always been loved by the public as a quick and delicious breakfast and snack, and more and more young people are no longer satisfied with buying bread in traditional offline bakeries, but choose to buy bread online.

Metropolis

In the fast-paced metropolis of Shanghai, traditional bakeries seem to be losing favour with younger consumers. According to Winshang Big Data, although Shanghai has more than 1,300 bakery shops, ranking first in the country, young people are more inclined to buy bread online.

Left-overs

Driven by the wave of digitalization, online shopping has become an important part of modern life. For busy young people in Shanghai, buying bread online is not only convenient and fast, but also enjoys more discounts and choices. Recently, a method of food sales called ‘leftover blind boxes’ has quietly emerged, which is highly sought after by young people because it is labelled as money-saving, fun, and environmentally friendly. In addition, bakery accounts on social media platforms have become a new front to attract customers. Through the release of activities such as ‘Discount Blind Box’ and ‘Free Tasting’, it has successfully attracted the attention and participation of a large number of young users. This seems to be the next step after the appearance of good boxes in previous years.

Buying bread is crazier than buying clothes

In Shanghai, the fashion capital, young people are just as crazy about food. Compared to traditional bakeries, online bakeries are more diverse in styles and flavours. Shanghai’s bakeries have a variety of cake styles, so many that they may be more than you can imagine: from classic baguettes to creative matcha breads, from healthy breads with low sugar and fat to rich sandwiches. From classic French desserts to innovative varieties infused with Chinese flavours, Shanghai’s bakeries cater to every taste. There is a wide range of styles to make people dazzled.

Blind boxes

In recent years, the blind box economy has risen rapidly in China, and major businesses have launched blind box products to attract consumers.  Blind boxes, as an emerging marketing method, have found its place in the food industry. The bread blind box packages launched by major merchants not only increase the fun of shopping, but also provide consumers with more opportunities to try unknown flavours. And under this trend, the bread industry is not to be outdone by launching the bread blind box. These mystery boxes often contain a variety of random styles of bread, making every opening full of surprises. Consumers don’t know exactly what styles and flavours of bread they will get when they buy it, and this sense of mystery and anticipation makes young people want to stop. For young consumers who are looking for novelty and curiosity, this way of buying has an irresistible appeal.

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Peter Peverelli is active in and with China since 1975 and regularly travels to the remotest corners of that vast nation. He is a co-author of a major book introducing the cultural drivers behind China’s economic success. Peter has been involved with the Chinese food and beverage industries since 1985.

Understanding China’s Tomato Paste Production Chain

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Introduction

The industrial chain of tomato paste production mainly includes tomato planting, harvesting, processing, packaging and sales. Its upstream industries include tomato planting, pesticides, fertilizers, agricultural machinery, etc.; The midstream link is the production and processing of tomato paste, including cleaning, crushing, deseeding, concentration, seasoning and other steps, which require advanced processing equipment and technical support; The tomato paste produced by midstream production enterprises is packaged and sold through downstream sales channels, and is widely used in ready-to-eat fast food, pizza, snack food, canned food, beverages/juices, soups and other fields. As a commonly used condiment, tomato paste is widely used in Western cuisine. In Chinese cooking, it is mainly used to prepare sweet and sour flavours, such as squirrel mandarin fish, sweet and sour pork, etc.

Nutrition

Tomato paste contains lycopene, B vitamins, dietary fibre, minerals, protein and natural pectin, etc. Compared with fresh tomatoes, the nutrients in tomato sauce are more easily absorbed by the body.

Industry

In recent years, the scale of China’s tomato paste market has continued to expand, and the market capacity has been growing. However, at present, China’s tomato paste market is mainly occupied by leading enterprises, which have become industry leaders by virtue of their brand advantages, production scale and sales channels. However, some small and medium-sized enterprises compete with large enterprises through cooperation with farmers, production cost advantages, and flexible marketing strategies. In addition, some cross-industry enterprises have also entered the ketchup market, and these enterprises usually have strong financial strength and advanced production technology, which has a certain impact on the market competition pattern.

Ketchup

Ketchup is tomato paste with various added ingredients. In fact, ketchup is derived from the pronunciation of the Chinese term qiezhi (tomato juice) in southern dialects, spoken by Chinese in Southeast Asian countries. Ketchup is mainly divided into basic ketchup, Italian ketchup, jam-based ketchup, chili ketchup, sweet ketchup, sugar-free/low-sugar ketchup, organic or natural ketchup. The most common type of base ketchup is made from fresh or processed tomatoes, onions, garlic, herbs, spices, etc. It is often a versatile sauce that can be used to make a variety of dishes.

Industrial chain

The industrial chain of tomato paste production mainly includes tomato planting, harvesting, processing, packaging, sales and other links, and its upstream industries mainly include tomato planting, pesticides, fertilizers, agricultural machinery, etc., and tomato planting enterprises mainly provide raw materials for the midstream, so its output and quality will directly affect the quality and cost of tomato paste. The midstream link is the production and processing of tomato paste, including cleaning, crushing, deseeding, concentration, seasoning and other steps, which require advanced processing equipment and technical support. Leading enterprises are: COFCO Sugar Holdings Co., Ltd., Xinjiang Guannong Co., Ltd., Zhongji Health Industry Co., Ltd., Xinjiang Tianye Co., Ltd.

Tomato growing

In recent years, China’s tomato planting area has stabilized between 1.2 and 1.3 mln hectares, ranking the fourth largest vegetable variety in the country and has become an important part of the agricultural industry. The planting area is an important factor affecting the yield of tomatoes, so its stability will ensure the yield of tomatoes to a certain extent. The data shows that in China’s tomato production continued to rise during the past few years reaching more than 70 mln mt.

Xinjiang is blessed with unique natural conditions, including long sunlight hours, large temperature difference between day and night, dry climate and little rainfall. Xinjiang tomatoes have a high content of red pigment, high soluble solids, a high yield, as well as less pests and diseases. These characteristics greatly reduce the occurrence of fruit cracking and mouldy rot, and improve the overall quality of tomatoes. Therefore, Xinjiang is the main area of tomato cultivation in China. From the perspective of development history, Xinjiang first began to plant tomatoes on a large scale after the founding of the People’s Republic of China. After the first tomato paste production line was built in Xinjiang in 1984, the tomato industry began to embark on a fast track. From a national perspective, Xinjiang’s tomato production accounts for more than 80% of the country’s total.

Unstable

A good development of tomato production and marketing requires the a stable foundation for different parties in the value chain such as breeders, seedling dealers, growers, vegetable wholesalers, and consumers in the whole industry chain. In tomato production, wholesalers dominate market prices, so producers are at a disadvantage, unable to obtain stable and considerable income The low and unstable income have accelerated the transfer and loss of growers to other industries. The data show that from January 2022 to May 2024, the wholesale price of tomatoes in China has shown a downward trend. However, from the perspective of the production of tomato sauce in the midstream, the decline in the wholesale price of tomatoes will directly reduce the production costs of tomato sauce manufacturers, which is conducive to the rapid development of tomato sauce production enterprises.

Paste production

In recent years, the scale of China’s tomato sauce market has been growing. At present, China’s tomato sauce market is dominated by a few leading enterprises, which have become industry leaders by virtue of their brand advantages, production scale and sales channels. However, some small and medium-sized enterprises compete with large enterprises through cooperation with farmers, production cost advantages, and flexible marketing strategies. In addition, some cross-industry enterprises have also entered the tomato paste market, and these enterprises usually have strong financial strength and advanced production technology, which is beginning to impact the market competition pattern.

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Tomatoes in the Chinese kitchen and even more for export

Peter Peverelli is active in and with China since 1975 and regularly travels to the remotest corners of that vast nation. He is a co-author of a major book introducing the cultural drivers behind China’s economic success. Peter has been involved with the Chinese food and beverage industries since 1985.