Contents

• Market Condition

• Company Dynamics

• Financial Results
  

• Regulatory Compliance

Market condition

1. Coriander-flavored product innovations have once again seized attention, with Huiyuan and Pizza Hut introducing coriander juice and coriander pizza, respectively. Before this, brands like Baixiang and McDonald's have also launched coriander-flavored products. Due to the controversial nature of coriander flavors, products featuring this flavor often spark debates, ultimately achieving a public communication impact. It is important to note that such products primarily serve the purpose of enhancing brand exposure and facilitating consumer communication, typically having a short product lifecycle.

2. The Chinese sugar-free tea beverage market exhibits a duopoly with Oriental Leaf and Suntory commanding a substantial 70% market share in 2023. The remaining market share is distributed among brands like Chi Forest, Master Kong, Naixue, Uni-President, etc. Notably, the top 10 players altogether hold an impressive market share of 98%.

3. Over the past year since the implementation of new GB standards for infant formula, a total of 1,127 recipes have been approved for registration, including 926 domestic recipes and 201 overseas recipes. Another 441 recipes failed to meet the registration requirements. It is noteworthy that heightened requirements imposed by the new GB standards have led to the elimination of enterprises with weak research and development capabilities. Approximately 20 enterprises have either not submitted or withdrawn their registration applications.

Company Dynamics

1. C100, the Vitamin C beverage under Nongfu Spring, has introduced a new flavor—blood orange, a decade since the launch of the calamansi flavor in 2014. Featuring a notable Vitamin C content exceeding 100mg per bottle, the resurgence in C100's popularity can be attributed to the growing consumer preference for products high in vitamin C, fueled by enhanced health awareness.

2. Holiland has unveiled its pet baking brand—Holiland Pet, focusing on pet birthday cakes. The brand emphasizes the use of pure ingredients and human-grade raw materials with zero preservatives or enhancers. China’s pet market is witnessing steady expansion. According to Deloitte, China's pet food market size was 51 billion yuan in 2021 and is expected to reach 114 billion yuan in 2026, with a five-year CAGR of 17%. Furthermore, with a growing trend of younger pet owners, the adoption of scientific pet-raising ideas is driving a continual upgrade in pet consumption.

3. Nongfu Spring has unveiled its first plant-based dairy beverage—Coconut Soy, blending the rich flavors of coconut and soy milk. The initial market rollout primarily targets the southwest and east of China, with a focus on regions like Jiangsu, Hunan, Sichuan, and Guizhou. The product will be strategically distributed to hotpot restaurants, small eateries, and other catering channels.

4. Nestlé's Yiyang Wanning formula milk has made its worldwide debut in the Chinese market. This innovative product is grounded in Nestlé's latest advancements in sleep research, leveraging a nutritional combination of "tryptophan + mulberry leaf extract + magnesium + zinc + high protein," derived from natural sources. It is specifically designed to enhance the speed of falling asleep and improve sleep quality.

5. CLASSY KISS has introduced a new yogurt flavor enriched with traditional Chinese ingredients, including hawthorn, Chicken Gizzard-membrane, Chinese yam, malt, red dates, and poria cocos. The fusion of yogurt with these traditional ingredients not only introduces novel flavors but also contributes to nutritional and health advantages. This strategic move signifies a focus on distinctive and innovative product positioning.

6. According to Luckin Coffee’s financial results for the year 2023, the net revenue increased by 87.3% YoY to CNY 24.9 billion. New store openings in the year 2023 were 8,034, including 30 in Singapore, leading to a total of 16,248 stores by the end of 2023 (10,628 self-operated stores and 5,620 partnership stores).

Financial Results

Regulatory Compliance

1. On February 8, 2024, the China State Administration for Market Regulation (SAMR) announced to solicit public comments on the draft of Technical Requirements for Health Food Filing Using Health Food Ingredients Including Ginseng, American Ginseng, and Lingzhi. The draft specifies the filing requirements for health food products added with the three ingredients, mainly covering five aspects including auxiliary materials, product dosage forms, product processing, product technical requirements, and other requirements. More information on ChemLinked

2. On February 26, 2024, the General Administration of Customs of China (GACC) issued a notice announcing the cancellation of registration for JERRY & SONS PHARMACEUTICAL INC, a U.S. beverage manufacturer. As revealed by the notice, the company was found to have provided false materials during the registration process. GACC also stated that there have been no customs declaration records for products from this company. More information on ChemLinked

 Disclaimer: All images used in the article are from the Internet.