From the supply point of view, the production of the health care industry in 2009-2019 has increased year by year, but the growth rate has fluctuated and declined since 2012, and the production of the health care industry in 2020 will be about 664,600 tons. From the demand point of view, in 2020, due to the strict regulation of the industry and the impact of the new crown epidemic, the forward-looking estimate of the growth rate is about 3.2%, and the market size of the health care products industry is 409.2 billion yuan.

Import and export point of view, from 2017 to 2020, the health care industry's exports are greater than imports, the trade status is a surplus. However, it can be seen that the trend of trade surplus is shrinking year by year.

Analysis of supply and demand situation of health care products industry Epidemic and population aging bring development opportunities to health care products industry

From the number of production enterprises, according to the business scope from the enterprise checking cat contains "health care products production \ manufacturing, research and development" and the business status is "surviving and in business". "survival and in business" of the manufacturing enterprises to organize and analyze the data, it can be seen that as of February 19, 2021, the scope of business contains "health care products production \ manufacturing, research and development" of the enterprise **** there are 8,933.

From the point of view of the growth rate of enterprises, the largest year-on-year growth rate in recent years was realized in 2016, and the growth rate of production enterprises has been declining year by year since 2016, in which the year-on-year growth of the number of production enterprises in 2020 dropped to 23.39%. 240 new production enterprises were established from January to February 2021.

From the point of view of the production of health care products, according to the data of China Nutrition and Health Care Association, the production of the health care industry in 2009-2019 increased year by year, but the growth rate has fluctuated and decreased since 2012, of which, the production of the health care industry in 2019 was 627,000 tons, a year-on-year increase of 6.72%. Based on the policy environment of strict regulation of the health care industry in 2020, it is conservatively estimated that the output of the health care industry in 2020 will be about 664,600 tons.

From the perspective of market size, according to Euromonito data, the market size of China's health care products industry showed a year-on-year growth trend from 2005 to 2019, and the market size of China's health care products industry reached 396.5 billion yuan in 2019, with a growth rate declining to 3.1%, mainly due to the impact of the industry's stringent regulation in 2019, as well as the impact of the Quanjian incident on consumers' 's willingness to consume health care products.

In 2020, due to the industry's strict regulation and the impact of the new crown epidemic, the forward-looking growth rate is expected to be about 3.2%, and the market size of the health care products industry is conservatively estimated to be 409.2 billion yuan in 2020.

According to IQVIA's data, China's health care products penetration rate is higher in the age group of 45 years old and above, are more than 20%, 24 years old and below the age group of health care products penetration rate of 19%. Overall, compared with the United States, the penetration rate of health care products in China is generally low and the gap is large.

From the point of view of the size of the consumer population, the aging of the population will constitute an opportunity for the health food industry. According to the results of the main data of the Seventh National Census in May 2021, the population aged 60 years and above was 264.02 million, accounting for 18.70%; while in the Sixth Population Census in 2010, the proportion of China's population aged 60 years and above was only 12%, an increase of 6.7% in 10 years. The per capita healthcare expenditure is positively correlated with the proportion of the elderly population.

In addition, since the rapid spread of the New Crown Pneumonia epidemic around the world in March 2020, the rise of health concepts, people are deeply aware of the importance of the human body's immunity, and the demand for health care products continues to rise.

On the other hand, with the enhancement of health awareness and the rise of fitness sports, sports nutrition has gradually developed into a mass lifestyle from a niche field, and the consumption habits are undergoing a gradual transition development trend from competitive sports, mass sports, and mass health, with men pursuing weight loss and muscle building, and women pursuing weight loss and shaping. According to the 2020 China Fitness Industry Data Report released on March 21, 2021, in terms of fitness population and fitness trainers, the number of fitness members in China's entire fitness industry is about 70.29 million (excluding Hong Kong, Macao and Taiwan), and the penetration rate of China's fitness population is about 5.02% under the total population base of 1.4 billion.

From the point of view of the theoretical market capacity growth space, benefiting from the increase in the consumer population and per capita consumption, superimposed on the benefits of the Healthy China Plan, the health food industry has a high growth ceiling, the market size will gradually approach the mature market. With reference to the United States, Australia, Japan and other market levels, China's health food penetration rate is still 2-2.5 times the expansion of space, per capita consumption level of 5-7 times, the market size or still have 10 times the growth space. Specific analysis is as follows:

(1) health care industry traffic: with the improvement of health awareness, health care awareness of the popularization of superimposed on the increase in penetration, health care industry traffic will have a substantial increase, including fitness crowd, female beauty and aging, young consumers expansion, the demand for the size of the people will be a qualitative leap.

(2) health care industry with high-frequency consumption characteristics, when it becomes a daily consumption of rigid demand, consumer health care adhesion and conversion rate will be further improved.

China is in the process of per capita GDP to 8000-12000 U.S. dollars, health care products in China is gradually from high-end consumer goods, gifts to dietary supplements must be selected, and it is expected that the entire industry will enter the scale of accelerated growth of the "golden period". In the next ten years, the penetration rate of health care products in China will evolve step by step along the direction of "first- and second-tier cities to third- and fourth-tier cities", "elderly people to young and middle-aged people", and "tonic function health care to dietary nutritional supplements". "The direction of evolution step by step, China's health care industry will enter a "golden period" of rapid development.

Analysis of the import and export situation of the health care industry Trade surplus trend gradually narrowed

According to the data, China's health care industry-related product import scale increased year by year from 2017 to 2020, of which, the import amount reached 17.543 billion U.S. dollars in 2020, an increase of 30.67% year-on-year.

According to the data, the export scale of products related to China's healthcare products industry increased year by year from 2017 to 2020, among which, the export amount reached US$19.493 billion in 2020, up 44.16% year-on-year.

According to the data of China's General Administration of Customs, from the difference between import and export in 2017-2020, the export of health care products industry is larger than import, and the trade status is in surplus. However, it can be seen that the trend of trade surplus is gradually narrowing, the amount of trade surplus in 2017 is 5.057 billion U.S. dollars, the import and export in 2019 is almost flat, and the amount of trade surplus in 2020 is 1.950 billion U.S. dollars.

Therefore, the forward-looking forecast, the future period of time, the domestic demand for health care products continue to grow, but the health care manufacturing industry regulation is still in a more stringent state, slower growth in production will lead to health care industry to further expand imports, the trend of trade surpluses will be further narrowed, the amount of imports in the amount of exports is equal to or even greater than the amount of exports of the phenomenon.

-- For more information, please refer to China Health Products Industry Market Outlook and Investment Planning Analysis Report