Analyzing Tmall 618 in 2023 - Trends in China's Overseas Health Products Market

In June 2023, China's market for overseas dietary and nutritional health products experienced a robust resurgence, with total sales exceeding 1.8 billion yuan, reaching a peak not seen since December of the previous year. Year-on-year growth was at 14.69%, and month-on-month growth stood at 15.12%. This article delves into the 2023 Tmall 618 sales data to analyze the characteristics of health products preferred by Chinese consumers and the trends in China's market for overseas health products.

Overseas Health Products Preferred by Chinese Consumers

Data from the 2023 Tmall 618 sales and revenue figures indicate that health products from Australia and the United States have performed exceptionally well in the Chinese market. Among them, the United States is the only country exporting health products to China with an export value exceeding 1 billion USD. The reasons for this lie in the unique characteristics of products from these two countries.

Australian products typically emphasize natural and gentle ingredients, while American products are known for their high quality and scientifically formulated features. Furthermore, both countries have well-developed health product industries with a wide range of product categories, covering almost all mainstream health product types. They have a deeper understanding of consumer demands for major categories such as gentleness and easy absorption. On the other hand, Japanese health products mainly focus on unique categories such as enzymes, dietary fiber, and natto, primarily targeting slimming and digestive aid functions, aligning well with the market preferences of Chinese women.

The Best-Selling Types of Health Products in Terms of Product Forms are Tablets and Capsules. There are several reasons contributing to this trend. Firstly, many fundamental health products typically come in these two forms. Additionally, with the accelerating pace of modern life and work, tablets and capsules are convenient to consume and easy to carry on the go. Even though some consumers believe that powder, granules, and liquid forms are more favorable for "better digestion and absorption," they face a colder reception in the market due to being cumbersome or less portable.

On the other hand, as the consumer demographic gradually becomes younger, health products are showing a "snackification" trend. Especially, young women tend to choose health products in snack-like forms, being more willing to pay for fun, novelty, and playful health products.

Overseas Health Products Still in a Favorable Development Trend in the Chinese Market

The impact of the pandemic has led to an increasing focus on health and well-being among the Chinese population. However, according to relevant data, the per capita consumption of health products in China is currently only about $36 per year, which is lower than the global average and significantly lags behind developed countries like the United States, with a gap of 6-7 times. This highlights the enormous growth potential of the Chinese health product market, providing a vast space for the development of imported health products.

The consumer base in the Chinese health product market includes not only young people with early health awareness but also the middle-aged and elderly population, whose consumption has seen rapid growth in recent years.

According to statistics, from 2020 to 2022, the consumption of online health and nutritional products for the middle-aged and elderly in China nearly doubled. In terms of consumption channels, consumers particularly favor cross-border e-commerce platforms that offer transparent and convenient transactions. Nearly 50% of urban consumers in China purchase foreign branded health products through cross-border e-commerce platforms, driving the thriving development of related cross-border trade platforms. Taking Tmall Global as an example, its SKU count in the health and medical category has reached nearly 40,000, covering a wide range of product choices, including nutritional supplements, sleep regulation, anti-aging, and beauty, among others.

The flourishing development of the health product market has also garnered continuous attention and guidance from relevant Chinese policies. Recently, the issuance of the "Implementation Rules for the New Functions and Product Technical Evaluation of Health Food (Trial)," the "Catalog of Health Functions Allowed for Claims in Health Food – Non-Nutrient Supplements (2023 Edition)," and related supporting documents has had a profound impact on the standardization and sustainable development of the Chinese health product market. Simultaneously, it has created a higher-quality industry environment for overseas health products in the Chinese market. With the dual impetus of the market and policies, overseas health products are expected to achieve sustained explosive growth.

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