This year's consumer market is secretive, and the continued downturn in the real estate and stock markets has made many frustrated citizens rethink their family asset allocation, so as to pay more attention to the quality of life and healthy consumption.
In the "2023 China Consumer Market Trends" released by Kantar Worldpanel, it was emphasized that the big health track will be an important engine for China's economic recovery. People's attention to health is rising, and it is no longer limited to "shouting slogans" but "taking action". The continuous active and daily fragmented form of health care provides new business increments for nutrition and health enterprises. The specific situation can be seen from H&H Group, which just released its operating data for the first three quarters of 2023 two days ago.
First of all, from the latest data released by H&H, we can see that in the first 9 months of 2023, H&H Group's total revenue increased by 11.9% to 10.28 billion yuan, and under the whole family nutrition and health strategy, the adult, infant, and pet sectors performed not weakly, and the nutritional supplements in the three major businesses (Biostime infant probiotics and nutrition, Swisse VHMS products, and Solid Gold and Zesty Paws happy paw pet supplements) achieved rapid growth. Its revenue accounted for 61.4% of the group's total revenue, with revenue increasing by 31.4% year-on-year.
Swisse braved the storm and broke into the blue ocean
Following the rise of China's beauty economy, Swisse's products have been deeply cultivated from oral beauty to adult nutrition, and Swisse has further expanded its product range to Swisse PLUS+, Swisse Me and Little Swisse to meet the needs of different consumer groups for high-quality nutritional products. According to the report, thanks to the strong consumer demand for scientific research and evidence-based beauty, multivitamins and liver protection and detoxification products, as well as the launch of innovative categories and new products,
With the launch of innovative categories, continued consumer education and brand marketing support, Swisse's general trade channel sales remained significant, accounting for 23.8% of ANC's total revenue in Chinese mainland, up 74.1% year-on-year.
The data also shows that Swisse continues to hold the top spot in the Chinese mainland online vitamin, herbal and mineral supplement (VHMS) market. In addition, Swisse has firmly grasped the consumer demand for high-quality nutrition and high-end nutrition products this year, and after the launch of Swisse PLUS+ in the third quarter of 2022, its revenue accounted for a high single-digit percentage of ANC's total revenue in the Chinese mainland market during the reporting period.
The national announcement of the "Dosage Form and Technical Requirements for Health Food Filing Products" was released, and gel candy was included in the dosage form of health food filing products to further promote the application of new dosage forms of gummies. At present, the Swisse Me gummies series has covered a variety of products such as probiotic gummies, lutein fat gummies, collagen gummies, etc., and the sales contribution is growing while receiving enthusiastic response from the market!
Biostime has found another way to stabilize the overall situation
Nutritional supplementation runs through the whole life stage of modern people, and the family, as a microcosm of the whole journey of life, reflects the awareness and needs of contemporary people's health care and nutrition. From personal health management to family protection, consumers buy targeted health nutrition products not only for themselves, but also for their loved ones and children.
In particular, the mature development of scientific feeding, emphasis on "treatment" and "prevention" and other concepts, parents in the new era deeply recognize the importance of disease prevention, from mother to baby, from pregnancy preparation to baby-rearing, in various special periods, new parents tend to build their own "protective wall" through the "fourth meal", targeted nutritional supplements, care for the healthy growth of the baby, which has given birth to another family nutrition sector of consumer demand.
According to the latest data from H&H Group's infant nutrition and care products business (BNC), thanks to the significant increase in consumer demand for infant nutritional supplements, Biostime focused on the infant nutrition market segment this year, laid out new innovative products, such as lactoferrin + probiotics, DHA algal oil + ARA gel candy, calcium tablets and other nutritional products, accelerated the improvement of the total nutrition matrix, and promoted the continuous consolidation of the leading position of infant nutritional supplement brands in Chinese mainland.
Today, when infant milk powder has entered the stock competition, H&H Group's infant nutrition and care products business (BNC) has opened up another growth chain through its own practice, allowing BNC to continue to maintain its market competitiveness in the Chinese market.
PNC is firmly on its toll, and the future is promising
Finally, in the whole family nutrition and health matrix, pet food nutrition consumption, as another strong growth engine in recent years, has brought sales revenue to H&H Group year by year, and the future is promising.
PNC's sales in China grew strongly by 28.0% on a like-for-like basis, with Solid Gold continuing to rank second in China's online premium dry cat food category. PNC has further strengthened its communication with consumers in online and offline markets, and as of September 30, 2023, it has covered more than 8,800 offline pet stores and pet hospitals across the country. The pet nutrition and health market has great potential for development, and more pet nutrition brands need to dig deeper.
H&H Group also revealed the future development direction of PNC, which will focus on innovative measures in fish oil and other categories to gradually expand PNC business in Chinese mainland, while promoting the market share growth of high-end cat food categories and consolidating Solid Gold's leading position. In the North American market, the company will make full use of Zesty Paws' product advantages in the pet nutrition supplement category and focus on expanding its leading position. Additional products will be launched in the ultra-premium category, with a focus on e-commerce and select retail channels, to further boost Solid Gold's growth.
There are no limits to healthy living, and consumers at different stages of life need targeted nutritional intake. With the continuous penetration of the concept of "fourth meal" of whole-family nutrition, consumers are paying more and more attention to dietary balance and daily health and nutritional supplementation, and "adding one meal" a day is becoming an integral part of their healthy life, and they are not only focusing on themselves, but also the concept of "fourth meal" is spreading through the way driven by "prophets".
In this context, the nutrition and health enterprises represented by H&H have achieved resonance with consumer sentiment by continuously cultivating the health track, and have established a moat with scientific research system innovation and highly differentiated products. While H&H is committed to future growth and globalization, it also continues to prioritize its ESG plans. In recognition of H&H's commitment to sustainable practices and responsible business operations, the Hong Kong Quality Assurance Agency (HKQAA) upgraded H&H Group's sustainability rating from "A" to "A+".
Camillo Pane, CEO of H&H Group, said: "The Group will go all out to pursue a natural growth strategy in the base market and new markets, promote the growth of adult nutrition and care products (ANC), infant nutrition and care products (BNC) and pet nutrition and care products (PNC), continue to realize the group's vision, and continue to move towards the goal of becoming a global leader in the high-end nutrition and health industry." ”