SDIC Securities: The era of silver economy and self-care ushered in new opportunities for development, and the future industry will further encourage scientific and technological innovation

The Zhitong Finance App learned that SDIC Securities released a research report saying that the health food industry has a broad market space, consumers' demand for health is becoming more and more specialized, and demand for the immune system, bone, beauty and anti-aging is strong. There has been a structural shift in the share of health food online and offline sales. The share of online is expected to reach 63.3% in 2025, accounting for far more traditional offline sales channels. Cross-border e-commerce does not require a “blue hat” and allows more foreign brands to enter the domestic market. In the future, the health food industry will further encourage scientific and technological innovation, be “value-driven” as the guide, and the concentration of leaders is expected to increase.

The main views of SDIC Securities are as follows:

Industry policies have brought dividends, and new consumer categories are gradually emerging

The health food industry has a broad market space. According to Euromonitor statistics, the global health food market is expected to exceed 140 billion US dollars in 25, an increase of 4.62% over the previous year; China's market size is expected to reach 240 billion yuan, an increase of 4.30% over the previous year. China's health food marketing uses a two-track registration and filing system. The upstream industrial chain is a raw material supplier, the midstream is a health food manufacturer, and the downstream is a dealer and retailer. Consumer demand for health is becoming increasingly specialized, and demand for the immune system, bone, beauty and anti-aging is strong.

Cross-border e-commerce favors imported brands, and the young population brings growth dividends

Since 2016, China began piloting a two-track registration and filing system. The market entry threshold was lowered, and the market size increased significantly in the next few years. China has a high degree of aging. By 2024, the population aged 65 and above will exceed 220 million, bottoming the demand for health food. At the same time, the young population's attention to issues such as beauty, anti-aging, anxiety and insomnia has also brought new growth to the industry. With the continuous development of traditional retail e-commerce platforms in China, there has been a structural shift in the share of online and offline sales of health food products. The share of online is expected to reach 63.3% in 2025, accounting for far more traditional offline sales channels. Cross-border e-commerce does not require a “blue hat” and allows more foreign brands to enter the domestic market.

Regulatory easing has led to a protracted trend, and consumer demand for efficacy has strengthened

In foreign regions such as the US and Australia, the more relaxed the listing supervision policy, the lower the market concentration. The entry threshold for China's health food industry is low, and there will be an influx of more long-tail brands in the future, which will also bring more opportunities for third party agents. Currently, the market concentration of China's health food industry is low. The CR3 of the industry has remained around 21%. Affected by the increasing efficacy of health food, the health food industry will encourage scientific and technological innovation in the future. It is “value-driven” oriented, and the head concentration is expected to increase.

Risk warning: policy risk, raw material price fluctuation risk, increased industry competition risk, exchange rate fluctuation risk, production safety risk