The 8th Food & Beverage Innovation Forum 2021 (FBIF2021), themed as “Explore New Growth,” was held at Hangzhou International Expo Center from June 30 to July 2. The 3-day forum discussed industry trends and innovation cases from different perspectives of macro-consumption environment, products, marketing, packaging, investment and financing. 170+ global speakers from industry trendsetters, including Nestlé, PepsiCo, and Mengniu, shared their insights in 110+ speeches and panel discussions.
ChemLinked interviewed Dr Lynn Zhao, Head of R&D, ANC & PNC China, H&H Group during the forum’s sidelines. H&H Group acquired Australia’s leading health & wellness brand Swisse in 2015. During the past six years, Swisse has maintained its front-runner position in China’s online health food market. In 618 shopping festival, which wrapped up last month, Swisse clinched the best-selling health food brand on Tmall1. Besides online cross-border e-commerce, it also proactively proceeds with the general trade business and stays bullish on the Chinese market for the long run.
The interview with Dr Lynn Zhao, Head of R&D, ANC & PNC China, H&H Group
Some key takeaways of the interview are selected as below:
On the emerging young generation of consumers
Currently, the young generation of consumers, represented by the post-90s and post-00s, have become growth drivers of the Chinese health food consumption market. Data2 shows that during Tmall’s 618 online shopping festival this year, the post-2000 active users on Tmall medical platform increased by 114% year on year. The health consumption expenditure doubled year on year.
Given the younger generation’s pursuit for beauty and a healthier lifestyle, Swisse has upgraded its nutrition and health products to cater to consumer demands. For example, it launched a 30ml Golden Collagen Blood Orange Liquid as an upgraded version of its signature product 500ml Blood Orange Liquid with an advanced formula. With a vivid Chinese nickname 小Q瓶 (Little Q Bottle), the new product is tailored for the modern young consumers who are eager for beauty, health, and convenience.
Swisse’s professional oral beauty collagen series
Swisse also launched oral hyaluronic acid tablet, multivitamin for both women and men, and liver detox botanical liquid for modern young people suffering from sub-health and accelerating ageing due to working overtime, drinking excessively and burning midnight oil. The 30ml liver detox botanical liquid also gets an impressive Chinese nickname 应酬瓶 (Diner-Out Bottle) to target young people who are usually engaged in drinking and socializing. The liquid combines oriental herbs like turmeric and raisin tree seed with western herb artichoke and milk thistle oil, which appeals to Chinese people who have a traditional idea of the homology between medicine and food.
On the booming hyaluronic acid ingredient
In 2008, sodium hyaluronate (i.e., hyaluronic acid) was first permitted as the raw material for health food in China. On Jan. 7, 2021, China’s National Health Commission officially approved the request for sodium hyaluronate (i.e., hyaluronic acid) as a new food raw material, allowing it to be added to ordinary food. The scope of use includes milk and dairy products, beverages, alcohol, cocoa products, chocolate and chocolate products, candies, and frozen drinks.
The policy has attracted many enterprises to roll out hyaluronic acid food and beverage products in quick succession. Many brands have showcased their hyaluronic acid gummies during this year’s FBIF, making the ingredient one of the highlights of this annual food and beverage feast.
According to Lynn, Swisse has a forward-looking vision of hyaluronic acid’s application because it has introduced hyaluronic acid tablet into China through CBEC channel before 2021, the year marking the popularization of the ingredient.
Swisse’s hyaluronic acid tablet
Swisse positions itself as a professional health food brand and will give top priority to the efficacy of the product. For example, it would think about how much hyaluronic acid, as an ingredient it adds, could moisturize the skin and meet the needs of consumers. As for the product form and the taste, it's nice to have but will not prioritize it.
But for ordinary food containing hyaluronic acid, it is more snack-based and focuses more on the taste and fun it brings to consumers, with reduced concerns about efficacy. For example, the hyaluronic acid gummy is a good form suitable for sharing. However, its addition amount of functional ingredients is restricted due to the product form, and it cannot meet the high expectations on improving the skin condition.
Therefore, brands should first clarify their brand and product positioning before jump on the bandwagon. Similarly, consumers should also be clear about what they want, supplements with outstanding functional performance or just funny and delicious snacks.
On the future trends of health food in China
A prominent trend shaping China’s health food market is the increasingly blurring boundary between health food and ordinary food with functional ingredients. The collision and fusion of health food and ordinary food are based on the iteration of the consumer group. The rising of the young generation of consumers is steering the health food industry towards a new direction, based on their intention to keep health and beauty anytime and anywhere. The snack-based form undoubtedly conforms to the new demand better. Therefore, the snacking of health food and the functionalization of ordinary food are picking up steam.
Swisse also captured this trend and launched a new sub-brand, Swisse Me, which provides products more apt to the young generation, and the sub-brand was introduced to China market in 2021. The product portfolios include collagen peptides gummies and probiotics gummies. These products are relatively weak in efficacy but more fun, which meet young consumers’ social needs. For example, the collagen peptides gummies’ collagen content is about 100-200mg each, far below that of the collagen liquid and the hyaluronic acid tablet that are prescribed within a clinically effective dose. However, the gummy represents a new development direction of healthy food products.
Swisse’s collagen peptides gummies
