Highlighting the latest trends in the Chinese health and wellness market to help both domestic
and overseas industry players understand these trends and enhance brand awareness
and sales conversion rates. By Fifi Kao
In recent years, Chinese interest in health has been steadily growing, and the concept of a “healthy lifestyle” has been a stable driver of the Chinese consumer market since the pandemic. Survey data shows that 73% of Chinese consumers are willing to regularly spend money on products that benefit their mental and physical health.
Is China a health-conscious nation? The answer is a resounding yes. This encompasses the growing health awareness among citizens, emphasis on pollution and food safety, and the demand for holistic health.
For instance, data observed by SpaChina reveals the immense and rapid growth of China’s health food market alone. In 2022, the health food market was valued at over 298.9 billion RMB and is projected to continue growing at no less than 10% annually over the next five years. This growth underscores the nation’s health consciousness and certain consumer preferences.
China’s fitness market is also experiencing significant growth. By 2023, its market value reached US$55 billion. This development is fueled by the rapid expansion of fitness clubs and gyms nationwide, alongside heightened individual fitness and health awareness during the pandemic.
Given the substantial local demand, both international and domestic brands in the health and wellness category naturally seek to capture more market share in China. Apart from meeting stringent Chinese certifications and ensuring high quality, they also require keen market insights and effective marketing strategies to win over brand and quality-sensitive Chinese consumers. This is not an easy task for international companies, as it requires acceptance of strict product and service regulations and adaptation to rapidly changing trends, necessitating continuous strategy adjustments. Often, only management and marketing personnel with local experience can predict and respond effectively.
How does China view health and wellness?
In modern China, the perception of health and wellness incorporates a blend of traditional Chinese medicine (TCM) and modern medical practices. While TCM, with its emphasis on balance, energy flow, and the connection between human beings and nature, remains prominent and widely practiced, there is also a growing awareness and support for modern medical approaches within the Chinese population and market.
The influence of the global health and wellness economy has encouraged Chinese people to actively engage in public health initiatives focusing on physical exercise, nutrition, and pollution reduction. This shift is driven by the desire to prevent the prevalence of chronic diseases affecting 70% of the Chinese population. This positive trend is largely attributed to initiatives like “Healthy China 2030” launched by the World Health Organization in 2016, and subsequent local health policies implemented in China.
Furthermore, a significant part of the development in China’s health and wellness industry is reliant on the integration of modern medical technologies. With the rapid advancement of telecommunications, fitness apps are widely used, and AI diagnostic tools are becoming increasingly accessible globally.
China boasts the world’s second-largest health and wellness market, valued at US$683 billion, and leads the Asia-Pacific region in this sector. According to research from the Asian Development Bank, even prior to the pandemic, China’s expenditure on health and fitness technologies had reached US$10.8 billion.
How big is the Chinese health and wellness market?
China is the second-largest health and wellness market in the world, with a value of $683 billion. With the increased penetration of mobile phone and internet usage, it’s no surprise that the majority of the revenue generated from this vibrant sector comes from online shopping channels.
In the Asia-Pacific region, a significant amount of wellness spending mainly comes from the Chinese market. Based on ADB research, the expenditure for health and fitness technology reached $10.8 billion even before the pandemic happened.
With the exception of medical services, there’s no doubt that Chinese consumers will continue to consider fitness and health benefits in their future purchases. It’s a fact that local and international brands can leverage with the right marketing strategy.
Young consumers seek health-related products
Young consumers are increasingly becoming the driving force of the Chinese economy, and this is more evident in the health and wellness market than ever before. This age group is more willing to invest money in both physical and mental health.
Compared to older generations of Chinese consumers, the younger generation rejects slow-paced wellness practices. While they still value traditional Chinese medicine, millennials and Generation Z tend to prefer quick and convenient health choices that can easily fit into their busy, fast-paced schedules. They gravitate towards products like nutritional supplements and health foods that are portable, easy to consume, and presented in stylish and fun packaging.
There is a noticeable increase in demand for mental health care. As the country continues to develop, the younger generation, many of whom are only children, face intense competition in the job market and high expectations from their parents. The lack of work-life balance leads to longer working hours, poor sleep quality due to prolonged use of electronic devices, and irregular eating habits from ordering takeout, all of which not only impact physical health but also affect their psychological stability.
However, Chinese people universally recognize the importance of sleep, with over 95% placing high importance on their sleep quality and understanding the significant impact sleep has on overall health. Yet only 12% understand that lack of sleep and rest can also hinder mental and emotional health, leading to cognitive and emotional disturbances if adequate rest is lacking.
Fortunately, despite the challenges posed by the pandemic over the past three years, it has significantly changed the perceptions of most Chinese people regarding the importance of mental health. Today, the local Chinese market is no longer resistant to using various health methods to improve mental well-being; rather, they are quite proactive and willing to explore.
This can be seen in their enthusiasm for consuming health foods and beverages. Chinese consumers are now very interested in purchasing products that encourage an active and healthy lifestyle, both physically and mentally.
Demand for mental health care is on the rise
Young consumers are gradually becoming the driving force of the Chinese economy, and this is more evident in China’s health and wellness market than ever before. This age group is more willing to invest money in both physical and mental health.
Compared to older generations of Chinese consumers, the younger generation does not embrace slow-paced wellness practices. While they still believe in traditional Chinese medicine, millennials and Generation Z tend to prefer quick and convenient health choices that can easily fit into their busy, fast-paced schedules. They gravitate towards products like nutritional supplements and health foods that are portable, easy to consume, and presented in stylish and interesting packaging.
There is a noticeable increase in demand for mental health care. As the country continues to develop, the majority of China’s young generation, many of whom are teenagers or in their twenties, face intense competition in the job market and high expectations from their parents. The lack of work-life balance leads to longer working hours, poor sleep quality due to prolonged use of smartphones and electronic devices, and irregular eating habits from ordering takeout, which not only affects their physical health but also impacts their psychological stability.
However, Chinese people universally recognize the importance of sleep, with over 95% placing high importance on their sleep quality and understanding the significant impact sleep has on overall health. Yet, only 12% understand that lack of sleep and rest can also hinder mental and emotional health, leading to cognitive and emotional disturbances if adequate rest is lacking.
Fortunately, despite the challenges posed by the pandemic over the past three years, it has significantly changed the perceptions of most Chinese people regarding the importance of mental health. Today, the local Chinese market is no longer resistant to using various health methods to improve their mental well-being; rather, they are quite proactive and willing to explore.
This can be seen in their enthusiasm for consuming health foods and beverages. Chinese consumers are now very interested in purchasing products that encourage an active and healthy lifestyle, both physically and mentally.
Chinese consumers have embraced home fitness
With over 72% of China’s population accessing the internet via smartphones, the rise of home fitness apps has become an inevitable trend. Data from 2022 shows that these apps were downloaded approximately 1.11 billion times.
This segment of products generated $800 million in revenue in the entire year of 2023 in the Chinese market and is expected to reach around $1.5 billion by 2028. Although not the largest health market in China, the data still shows significant numbers, with approximately 109 million free app users and 65 million paid subscribers, which is quite remarkable.
The large number of paid users signifies that there are enough consumers willing to purchase products and services related to home fitness, such as fitness equipment, yoga mats, workout clothing, and expanding into more health product categories.
Female consumers dominate the health and wellness market
Female consumers are one of the primary driving forces behind China’s health and wellness industry. This consumer group is typically from first-tier cities and has high-paying jobs or stable and affluent sources of income. According to the “Women’s Health Consumption Report” released by Alibaba Health, health-related spending by Chinese women achieved a 20% annual growth in 2021.
Throughout a woman’s lifecycle, there are constantly changing health and medical needs, from childhood, adolescence, adulthood, menopause, to later stages of life. Women pay more attention to their different bodily changes and health needs at each stage compared to men, making female consumers more likely to spend on health-related products. This significant difference in purchasing interest is also attributed to Chinese women’s strong desire for beauty. Compared to Western counterparts, they are more eager to maintain a youthful and healthy appearance, especially among the 40-60 age group.
Rising popularity of functional foods and supplements
Many Chinese people believe that choosing functional foods and taking appropriate nutritional supplements, combined with healthy eating habits, is an excellent solution to maintain health and prevent chronic diseases. In fact, the desire of these consumer groups for a healthy, balanced diet has driven the value of China’s functional food market to 298.9 billion RMB.
According to Statista’s 2022 data, the significant demand for functional foods in China is attributed to the growing health consciousness locally and the increasing disposable income of the middle class.
Traditional health foods such as Chinese wolfberries and honey are the two most popular functional health foods in China’s wellness market. However, Western-influenced foods such as cereals and probiotics have also sparked great interest among Chinese consumers due to their health benefits.
Strong desire to purchase organic foods
As mentioned earlier, health foods have always held an important position in traditional Chinese wellness thinking. Therefore, it is not difficult to understand the strong market performance when we see data indicating that organic food sales reached 539.76 billion RMB in the past year.
China’s demand for organic foods and beverages is extensive, including grains, legumes, fruits, tea, livestock, processed products, and seafood. A report from Rakuten Insight shows that 40% of Chinese respondents are willing to purchase organic foods that are 25% more expensive than conventionally grown products. Additionally, around 27% are even willing to consider products that are 75% more expensive. Many organic products are imported from overseas, and the active consumption behavior of the Chinese market towards organic foods presents ample business opportunities for international companies offering similar product ranges.
The growing interest in health and wellness tourism
One of the emerging trends among Chinese tourists is health tourism. With travel restrictions lifting in most global destinations, Chinese tourists are now more interested in international travel for the purpose of maintaining both physical and mental health.
The purpose of these trips for Chinese tourists is often to access advanced medical treatments and technologies that are not available or less common in China. Some Chinese consumers perceive higher-quality medical services in certain foreign countries. Access to foreign medical services is also often seen as a status symbol. Many Chinese tourists seek relaxation, detoxification, and stress relief experiences, opting for various spa and wellness resorts while indulging in their favorite fashion and product brands. After experiencing these services, the 20-40 age group is most likely to share their health and wellness tourism experiences on Chinese social media, openly discussing the special treatments that have contributed to their beauty and health.
Research also shows that Chinese guests aged 40 and above prefer short-term experiences offered by hotels during health tourism, including spa treatments and healthy dining, aiming to keep the entire journey within 4-7 days rather than the 7-14 days spent by some Generation Z tourists, who prefer more outdoor activities and sports during their travels.