The Healthy China Initiative 2019-2030 is a strategic long-term priority for the Chinese government, positioning health at the forefront of government policy and integrating it across all sectors. This initiative involves educating Chinese consumers and driving a significant shift in behaviour, with an emphasis on healthy lifestyles, physical fitness and improved dietary habits. For food and beverage (F&B) brands, this presents an opportunity to innovate, be that through reformulating existing products with better-for-you ingredients, developing targeted offerings that address specific health needs, or enhancing transparency to highlight product benefits and build consumer trust.
Government policy fuels growth in health-focused F&B sector
Driven by the government’s policy, the F&B industry is evolving towards nutrition and health. The focus is on balance and simplicity, promoting products with fewer additives, low or zero sugar and fat, and nutrient-rich ingredients. Preferred cooking methods emphasise raw and cold preparation, boiling, steaming and stewing, using minimal seasoning and natural ingredients.
The Chinese sugar-free and low-sugar food market is projected to reach over CNY900 billion by 2027, with a forecast average growth rate of around 7.5% between 2023 and 2027. The low-salt and high-protein categories, although currently smaller, are projected to grow at an even faster rate. The high-protein food market could see annual average growth of up to 10% by 2027. Aligning with these policy-driven trends can position F&B brands as leaders in the growing wellness sector of the market.
Innovation: Key to meeting evolving consumer demands
According to Euromonitor’s Health and Nutrition Survey, 47% and 38% of Chinese consumers seek to reduce sugar and fat intake, respectively. At the same time, 41% state that food texture is important to them, while 31% enjoy trying new tastes and new food combinations. F&B, retail and consumer foodservice brands are capitalising on the healthy eating trend to reinforce their market presence. Competition is intensifying as new brands enter the market, and established ones expand their portfolios with healthier options. In 2023 alone, there were over 4,000 healthy food-related companies in China, a 15% year-on-year increase, according to Qichacha.
As the healthy eating trend evolves, opportunities will continue to arise. To establish themselves as leaders, F&B companies should invest in innovation that addresses consumer demand for healthier but flavourful indulgences, emphasise functional nutrition and specific health benefits, and ensure ingredient transparency and clear nutritional labelling to earn consumer trust.
Introducing new health benefits while maintaining flavour
Innovative products, such as low-GI desserts and high-protein snacks, are successfully positioning themselves between indulgence and healthier choices, catering to the growing demand for guilt-free snacking. Major industry players are investing in technological advancements and product enhancements to meet evolving consumer expectations. Companies are refining production processes, reformulating ingredients, and expanding into new categories. These efforts align with health-conscious trends, while ensuring that flavour is not compromised.
New launches targeting specific health benefits
Chinese consumers are showing growing interest in F&B products that target specific health concerns. With one in four citing issues like sleep quality, joint and muscle health, and digestion, there is rising demand for foods that deliver functional benefits. Brands that use functional ingredients and make clear, targeted health claims are more likely to connect with consumers and differentiate themselves in the market. For instance, Genki Forest – a Chinese beverage brand – offers bottled water infused with functional ingredients such as coix seed, recognised for its anti-ageing benefits, and wolfberry, valued for supporting immune health.
Increase transparency to enhance product credibility
Chinese consumers are becoming increasingly concerned about nutritional transparency, regularly checking product labels for calorie and nutrient content. According to Euromonitor’s Health and Nutrition Survey, 40% of Chinese consumers look for all natural ingredients on F&D labels. Brands like KEEP cater to this by simplifying nutritional comparisons using familiar food references, such as eggs and bananas. Similarly, Chagee, a premium tea beverage brand, prominently displays calorie and nutrient information on its beverages, reinforcing consumer trust.
Brands have a great opportunity to capitalise on China’s health and wellness boom. As this market continues to gain momentum, consumers demand products that combine indulgence with nutrition, offer functional health benefits, and feature clean, transparent labelling. By aligning innovation strategies with these health trends, leveraging advanced food technologies, and enhancing ingredient transparency companies can forge stronger connections with consumers and further differentiate themselves in China’s competitive F&B market.
To learn more about the opportunities in China’s F&B market, visit our Solutions page or request a no-obligation consultation.
Check out our report, Product Innovation in Food and Beverage for a deeper dive into the key global trends shaping F&B innovation.