According to the Zhitong Finance APP, CITIC Construction Investment has released a research report stating that the domestic health product market is undergoing structural changes, with significant differentiation in channels, categories, and consumer groups. New consumption characteristics are driving a reevaluation of industry value. Online channels continue to expand due to high penetration rates and flexibility, with short videos, cross-border e-commerce, and private domain platforms becoming growth engines, while traditional pharmacies are shrinking due to policy and customer flow impacts. The trend of younger and more decentralized consumer groups is evident, with women, Generation Z, and pet owners becoming the core incremental population. Health product companies are seizing opportunities through cross-border layouts, product innovation, and precise channel adaptation. Brands and OEMs with new consumption genes and cross-border layouts will fully benefit from the new consumption of health products.
<h2>The main points of CITIC Construction Investment are as follows:</h2>
New in Health Products: New Channels
Short videos, cross-border, and private domain channels are experiencing high prosperity, with online penetration rates continuously increasing, putting pressure on traditional channels. Online channels have become the core battlefield for health product sales, with live streaming and cross-border e-commerce performing particularly well. Short video platforms (Douyin, Kuaishou) reach users through content seeding and interaction, while private domain platforms (such as Guoke Youxuan) achieve high conversion rates targeting middle-aged and elderly groups. Cross-border channels benefit from the demand for non-blue hat products, with Tmall International's share of cross-border health products reaching 40%-50%. The pharmacy channel is affected by medical insurance restrictions and customer flow shifts, leading to a significant loss of young consumers.
New in Health Products: New Categories
The characteristics of self-care are prominent, with beauty and skincare categories experiencing high prosperity. Driven by the beauty economy, categories related to beauty and skincare, body management, fitness, and hair care are leading the way, accounting for over 49% of the market share among the top 20 products on Douyin. At the same time, the liver protection and throat soothing sectors are growing rapidly, while the markets for cardiovascular health and bone health remain stable. The trend of snackification in nutritional health foods is significant, with young consumers preferring ready-to-eat gummies and instant powders. Acceptance of non-blue hat products is increasing, and the sales proportion of functional foods continues to grow. The anti-aging sector is expanding rapidly, with ergothioneine becoming a breakout point due to its strong antioxidant capabilities, benefiting cross-border brands.
New in Health Products: New Groups
The trend of younger and more decentralized consumer groups is evident, with women, Generation Z, and pet owners becoming the core incremental population. Among them, consumers aged 31-40 account for the highest proportion, while those aged 24-30 are growing the fastest. The proportion of consumers in lower-tier markets is increasing, with lower-tier cities becoming high-potential users.
How to Capture New Opportunities in the Health Product Market
Brands and OEMs with new consumption genes and cross-border layouts will fully benefit from the new consumption of health products. Brands like Jieneng Group and BYHEALTH are embracing new consumption by entering anti-aging sectors, while OEMs like Lianhua Shares and SIRIO are actively welcoming new consumption clients, fully benefiting from high-prosperity channels and new categories. Therefore, we are optimistic about the revaluation opportunities in this sector, particularly focusing on SIRIO, a leading health product CDMO that quickly embraces domestic new consumption clients and has significant domestic recovery potential.
Risk Analysis
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<li>Food safety issues; 2. Raw material fluctuation risks; 3. Economic performance below expectations; 4. Changes in global trade policies</li>
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CITIC Construction Investment released a research report indicating that the domestic health supplement market is undergoing structural transformation, with online channels becoming a new growth engine. Short videos, cross-border e-commerce, and private domain platforms are driving the industry's value reassessment. The consumer demographic is becoming younger, with women, Generation Z, and pet owners becoming the core incremental groups. Health supplement companies are seizing opportunities through cross-border expansion and product innovation, and brands and OEMs with new consumption genes will benefit

- CITIC Securities reports that the domestic health supplement market is undergoing structural changes, with significant differentiation in channels, categories, and consumer groups.  
- Online channels are expanding due to high penetration and flexibility, with short videos, cross-border e-commerce, and private domain platforms driving growth, while traditional pharmacies are declining.  
- The consumer base is becoming younger and more diverse, with brands that adapt to new consumption trends and cross-border strategies poised to benefit significantly.

Zhitong

CITIC Construction Investment: New consumption drives industry value reassessment, online channels become the new growth engine