Guotou Securities: Silver Hair Economy and Self-care Era Welcomes New Development Opportunities, Future Industry Will Encourage Technological Innovation Even More

Guot Securities released a research report stating that the market space for health food industry is vast, and consumers' demand for health is becoming increasingly specialized, with strong demand for immune system, bones, beauty and anti-aging. The proportion of online and offline sales of health food has undergone a structural shift. By 2025, the online sales proportion is expected to reach 63.3%, far exceeding the traditional offline sales channels, and cross-border e-commerce does not require a "blue hat," allowing more foreign brands to enter the domestic market. In the future, the health food industry will encourage more technological innovation, driven by "value," with the concentration of leading companies expected to increase. The main points of Guot Securities are as follows: Industry policies bring dividends, new consumption attributes gradually emerge The market space for the health food industry is vast. According to Euromonitor, the global health food market size is expected to exceed 140 billion US dollars by 2025, a year-on-year increase of 4.62%; the market size in China is expected to reach 240 billion yuan, a year-on-year increase of 4.30%. China's health food listing adopts a dual-track system of registration and filing. The upstream of the industry chain is raw material suppliers, the middle is health food manufacturers, and the downstream is distributors and retailers. Consumers' demand for health is becoming increasingly specialized, with strong demand for immune system, bones, beauty and anti-aging. Cross-border e-commerce benefits imported brands, and the growing number of young people brings growth dividends Since 2016, China has been implementing a dual-track system of registration and filing, reducing the market access threshold, leading to a significant increase in market size in the following years. China has a high degree of aging, with over 220 million people aged 65 and above by 2024, laying the foundation for the demand for health food. At the same time, the attention of young people to issues such as beauty and anti-aging, anxiety and insomnia, also brings new growth to the industry. With the continuous development of domestic traditional retail e-commerce platforms, the proportion of online and offline sales of health food has undergone a structural shift. By 2025, the online sales proportion is expected to reach 63.3%, far exceeding traditional offline sales channels, and cross-border e-commerce does not require a "blue hat," allowing more foreign brands to enter the domestic market. Loose regulation leads to a trend towards long tail, strengthening consumer demand for efficacy In foreign regions such as the United States and Australia, the more lenient the listing regulation, the lower the market concentration. China's health food industry has a relatively low market access threshold, and more long-tail brands are expected to enter the market in the future, providing more opportunities for third-party OEMs. Currently, the market concentration of the health food industry in China is relatively low, with the industry's CR3 remaining at around 21%. Influenced by the strengthening trend of health food efficacy, the industry will further encourage technological innovation, driven by "value," with the concentration of leading companies expected to increase. Risk warning: policy risk, fluctuation in raw material prices, intensified industry competition risk, exchange rate fluctuation risk, safety production risk.