​Global Health Industry: New Opportunities for Natural Ingredients Industry
date:2016-03-22
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Keyword:
1 Trillion for Health Industry
 
China Natural Ingredient Conference 2015 was held in Guian New Area on Oct. 29 and 30. Each year, this conference gathers premium corporate representatives of the industry together and elevates the viewpoints of senior representatives of enterprises both at home and abroad onto a global health-oriented level. The global health industry totals USD800 bln in 2015, with over 7% of global growth rate, and it’s estimated to reach USD1 trillion by 2017. China, Brazil and the US are the top three markets, while China and Brazil also have the fastest growth in health industry. In 2011 alone, China contributed USD10 bln of sales volume to the global health industry, accounting for 25% of the global growth. As predicted by industrial experts, China and Brazil will contribute USD103 bln to the global market by 2017.
 
This market worth over USD100 bln(for the two rising markets in China and Brazil) or USD1 trillion(for the global market) presents unprecedented opportunities for enterprises involved in natural, functional raw materials and health products. They all have a good dream of health here, expecting to make fortune from health market in this era when everyone concentrates and invests on health. Speaking of the actual operation of the enterprise, how would the enterprise seize the consumers’ health demands? Zhang Chengwen, chairman of Chongqing Joywin Natural Products Co., Ltd., introduces to the representatives present at the conference that there’re four key factors to impact the development of health products: health, convenience, fashion, package and price. To deal with the health, products shall concentrate on their effect. Convenience then means the way to use health products both at home and abroad is changing. For best sellers in current health market such as stevia extracts, probiotics and prebiotics, they all feature huge market volume. As to the major product of Joywin, the Natural Prebiotics Inulin, Mr. Zhang briefly introduces the two health areas based on inulin application:
 
 
2.0 Time for Dairy Products
 
Currently, there’re not too many natural ingredients applied in dairy products, mainly with berries and inulin applied. For dairy products, taste remains the top factor to be considered, followed by their effects. Thus, in the 1.0 Time of Dairy Products, yogurt serves as the carrier to reduce fat and glucose, added with calcium ions, phytosterols and Omega-3 to highlight their effects. Then in the 2.0 Time of Dairy Products, as natural ingredient is better concerned, better taste and texture are pursued in the product design by the enterprise. Basically, probiotics and prebiotics are chosen as common addictive to dairy products.
 
2.0 Time for Weight Control
In 1.0 Time for Weight Control, various natural ingredients demonstrate their strengths, such as extracts from Hoodia, potatoes, garciniacambogiaand green coffee bean. Whether to contain the appetite, enhance the sense of fullness, or burn the fat, they all play a role in somewhat a medical way. While obesity is essentially resulted from excessive intake of fat and inadequate intake of fiber, weight control just unveils a new era of intestinal health. Inulin is regarded as grain of the intestinal probiotics. It’s an inevitable trend for end product producers to combine the probiotics and inulin to present a synbiotics concept for the consumers. By intake of inulin, probiotics will be colonized in the intestinal tract. The Chinese and even the global market for intestinal health will be promising in the future.
 
Seek for Broader Future through Changes
One of the benefits the China Natural Ingredient Conference bring is to invite some industrial leaders, who have been thinking about breakthroughs in the fields of natural ingredients and natural functional raw materials, to share their findings with all representatives present. Through such brainstorms, we expect to achieve a win-win situation or provide directions and thoughts for enterprise owners who are seeking for breakthroughs.
Zhang Chengwen, chairman of Chongqing Joywin Natural Products Co., Ltd. said on the conference that China’s natural ingredients industry shall not be limited to the herbal supplements field in the future, because supplement is so small a field as compared with wider fields of foods and beverages. Though supplements and health care products can indeed support consumers’ health, they’re still extra expense and budget of the consumer. The best way for China’s natural ingredients producers to break through the industrial status quo of high repetition, fierce competition and inadequate profitability is to find the way to put natural, functional raw materials into consumers’ daily foods and beverages as part of consumers’ daily purchase list. The medicinal and edible categories and strains of new food components as issued by CFDA can be used as one of the major references for new categories extended by the enterprise.
Besides, supervision measures are implemented both at the international and national arenas of the food supplements and natural ingredients. Internationally, the General Inspector of New York forces retailer channels such as GNC, Target and Walgreen to remove natural supplements from their shelves and proposes to inspect the natural raw materials by DNA barcode inspecting technology. Domestically, in the mid of 2015, when CFDA reports counterfeiting in the industry of gingko leave extracts, flying inspection results of enterprises across the globe are densely issued. All such events have imposed great impact on this industry. While the international scandal shatters consumers’ confidence and passion about herbal supplements, the domestic event finally reveals the years’ counterfeiting in gingko leave extract industry in China. There are enterprises that stick to presenting authentic products, and also enterprises that for some reason add similar or even unrelated components in their products in this industry. This contributes to messing up the natural ingredients industry in China. Against this backdrop, enterprises capable of reform can seek for repositioning of the products to head towards further destination.
 
Strengthened supervision can effectively urge the industry to development in a regularized way. This turmoil can just be used for China’s natural ingredients industry to achieve self-improvement. We believe you’re working out the way, as expected by the industry and us, to connect with the health market worth USD100 bln or even USD1 trillion through great enterprise involved in production of natural, functional raw materials as given birth by this great era.
 
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