From past a decade, the weight loss and diet products market in China has seen a deep penetration from investors given a growing consumer base. The nation’s GDP is pacing at 11% per year and industrial output is equally striding at 10.3% per annum. The prospects for the next decade look brighter and will encompass several investment funds, acquisitions, mergers, foreign investment, securities investment and strong financial system in this sector. The China weight loss product market for 2011 to 2016 will face a spurt of 9% CAGR in sales.
Facts and Figures of Chinese Diet Products Progress
South China is predicted to mass US$444.6 million for trimming pounds with essential products by 2016, while the forecast for East China is US$407.2 million. Between 2013 and 2016, South China’s sales for these items will touch US$31 million per annum and for East China will be close to US$25 million per year. Demand will usher from cities like Shanghai, Hong Kong and Beijing etc. For meal replacement segment, the Southern part of the nation will speed the annual sales at US$7 million for 2013 to 2016 and for the same period, the southwest part of the country will spring to US $0.75 million.
Driving agents are awareness of health, increased obesity, greater disposable income, better health services etc. According to US-China Today, obese people residing in the Chinese region has mounted to 100 million in the year of 2011, given vast population, weight loss products demand is going to scale high. The escalation is seen in herbal products and acupuncture treatments offered, a traditional way of combating obesity, which is skyrocketing in western world and European regions as well. A lookout for belly fat reducing products is also taking over the weight loss and diet products markets in China.
Key Competition in China’s Weight Loss Products Market
The market for slimming tea is set to increase at 8% CAGR for 2011-2016 with growth based from tea-drinking consumers and tradition for healthy lifestyle. The challenge to these products is posed by professional weight management services along with skin care applications. These products being expensive are counted in luxury items, which are being preferred by elite class. Women are also being pressurized to stay slim with the trend shift towards beauty aspect judged in slimness.
While both international and domestic firm are active players, the key competitors are Infinitus (China) Co. Ltd, Herbalife Ltd., Outsell Health Product Development Co. Ltd., and Amway (China) Co. Ltd etc. among others. Obesity is mostly grave in urban parts of China due to globalization of fast food culture. The food intake volume has also greater than before and lack of exercise adds to the problem. Preference for luxury, fatty meals, busier lifestyle, and less of physical labor has raised possibility of excessive weight in the citizens.
Weight Management Market Segment of China
The China weight loss product market is segmented over natural tea aiding in shedding additional kilos, equipments for the same, slimming edibles and meal replacement plans that supplement up to 57% of the relevant market share. Marketing strategies for product innovation is stepping up for protein powder, supplements for vitamins, sports, muscle building, diet and enhanced metabolism. It is believed that Feiyan tea, pu-erh tea, Oolong tea, Chinese herbs etc. will stress on reduction of excess pounds.
In 2011, the Chinese Ministry of Education conveyed that 15% of children are overweight, while 8% of kids who are 10 to 12 years old are obese. The Government is taking efforts to reduce the issue with laws that dictates children to engage in sports for at least an hour in school, everyday and access to playgrounds. Camps are initiated to educate both men and women about weight management, for 15 years now.
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