Increasing Awareness of Healthcare and Growing Income Levels Drive Chinese Nutraceuticals Market

24/05/06 Increasing interest surrounding the benefits of nutraceuticals are driving their use in China. Government policies aimed at liberalising previous restrictions on health food sales is helping to boost demand for nutraceuticals. Frost & Sullivan (http://www.food.frost.com) research found that the Nutraceuticals Market in China was worth $12.5 billion in 2005.

"Nutraceuticals products have been seen as being able to alleviate some of the problems caused by an unbalanced diet," states Frost & Sullivan Programme Manager Kathy Brownlie.

As consumers become more health conscious, the government too has renewed focus on improving public health. Specific examples include: the finalisation of the health food registration regulations in 2005, the establishing of clear measures for the examination and administration of health food advertisements, and ongoing efforts at obtaining regulatory approval for direct sales of health foods.

Despite this, low consumer awareness remains a major challenge for nutraceutical manufacturers. In general, the public remains sceptical about the health benefits claimed by nutraceuticals. Negative media coverage has also affected the image of the industry.

"To boost awareness and confidence levels, manufacturers have invested in advertising campaigns, the costs of which have been soaring in recent years," says Ms. Brownlie.

As some sectors of the nutraceuticals market in China continue to demonstrate high growth rates and competition intensifies, focused strategies will be critical for success. Innovative marketing strategies and product branding are being used by companies to strengthen their position in the market.

"Enhanced promotions at end-user level together with better understanding of consumer preferences and efforts to educate consumers on varied product benefits will help to support business growth," advises Ms. Brownlie.