Healthy aging picks up currency in graying China

The concept of healthy aging is gaining momentum in the country, driving growth in the nutrition and health food sector for middle-aged and elderly.

According to a blue book "China's Nutrition and Health Food Industry" released by China Insights Consultancy, the scale of China's nutrition and health food industry is projected to exceed 800 billion yuan ($126.98 billion) by 2027.

Nutritional and healthy foods can be divided into health foods and functional foods, according to the report.

The report also highlights the shifting attitude among the elderly consumer group toward health products.

The emerging elderly demographic, represented by the "post-1960s" generation, demonstrates distinct preferences compared to their predecessors, said the report.

The report reveals that over half of the population has shifted their focus to nutritional supplements following the COVID-19 pandemic, with the most significant increase observed among individuals aged 36 to 40. This age group, typically the family's main support, is particularly concerned about the overall health of their loved ones.

The report suggests that functional foods are becoming more popular in the Chinese nutrition and health food market, with a relatively large proportion of sales and continuous improvement, making them a vital growth driver for the future of the market.

Nestle SA, a global food and beverage company, is eyeing the healthy aging business in China, recognizing the middle-aged and elderly as the fastest growing groups of consumers.

Mark Schneider, CEO of Nestle SA, said during his recent visit to China that globally, while birthrates are still declining, the middle-aged and elderly groups are expanding very fast. "These people are very interested in their health. They know more about health because of digital. And they have become increasingly aware that appropriate foods and beverages can advance their health very much," he said.

Schneider said these groups of consumers, who tend to have savings accumulated over a lifetime, have good purchasing power. Additionally, middle-aged consumers, often in their peak income years, also possess substantial purchasing power.

"So, you have a need and you have purchasing power coming together, which creates a business opportunity," he said.

The company has introduced N3 milk specifically tailored for this target audience, recognizing the importance of slowing down or preventing the loss of muscle mass and maintaining bone health among the elderly.

In Asia, milk consumption is hindered by lactose intolerance, which becomes more prevalent as people age. Nestle said the N3 milk addresses this issue by utilizing proprietary technology to convert lactose into prebiotic fibers, providing consumers with all the benefits of milk without the digestive discomfort.

The product was first launched in China last November, signifying a shift in the company's approach to innovation. Rather than introducing new products in other markets before China, the company now sees China as a leader in innovation, with valuable insights gained for international markets.

On healthy aging, the CEO said the company is committed to making significant contributions in areas such as dairy, vitamins, minerals and supplements. The company has also introduced products aimed at supporting weight loss and controlling blood sugar levels to promote healthy aging.

Another example is Nestle's Yiyang Low Sugar Milk Powder, which utilizes patented technology and offers a new approach for the aging demographic in China, aiming to effectively manage blood sugar levels while allowing dietary flexibility as well as enhancing sleep quality, according to the company.

Additionally, the report found a significant rise in attention among the 20 to 25 age group, indicating a growing awareness of health among young adults.

With the continuous expansion of market scale, new trends such as snack products have emerged in nutritious and healthy foods, catering to the younger demographic, emphasizing daily well-being and showcasing diversified demand, according to the report.

The nutrition and health food industry is pivoting toward snacks through innovations, focusing on taste enhancement and improving eating habits, said the report.

This trend has increased the convenience of nutritious and healthy foods, allowing consumers to easily access essential nutrients amid their busy lifestyles.

Meanwhile, according to the CIC, online sales of nutritious and healthy foods have experienced explosive growth, emerging as a vital market for both traditional and emerging brands to compete in.

The compound annual growth rates of leading companies, such as Alibaba Health and JD Health, have exceeded 50 percent from 2017 to 2022, said the report. Additionally, livestreaming e-commerce has significantly boosted sales of nutritious and healthy foods, said the report.