TOP20 brands in the health care products market fell three times in a row and fell below 7 billion!

Recently, Mi Nei.
com released the latest forecast data for the terminal health care products market of physical pharmacies in Chinese cities in 2021.
After the overall sales in 2020 fell below 20 billion yuan, this year is expected to drop by 1.
7%
.
The position of the TOP10 brands is relatively stable.
The competition for the 11th-20th places is relatively fierce.
New products of the leader Tomson Beijian frequently appear, and 9 brands have grabbed the TOP20 list
.
In addition, Jiangsu company Ailand has entered the TOP5 applicant queue for the first time.
This company has a lot of connections with Jiangshan Pharmaceutical, one of the five Vitamin C giants in the past
.
The epidemic has driven consumers to change their buying habits.
Online sales have grown rapidly in recent years.
How will health care products companies break the situation? The total of TOP20 brands has fallen below 7 billion, and the two major categories have risen steadily.
As the public’s demand for health continues to increase, the concept of “preventive treatment” has been extended to the younger generation.
The consumption scale of China's health care product industry has been expanding year by year, but it is worth mentioning Yes, with the Internet speeding up shopping, more and more consumers have changed the way they buy health products.
While the online scale has soared, the traditional physical pharmacy market has been declining year by year
.
Figure 1: Sales growth rate and proportion of the health care products market in physical pharmacies in the past three years.
Source: Minet.
com.
China's urban physical pharmacies terminal layout.
The latest data from Minet.
com shows that the scale of the health care product market for physical pharmacies in cities in China has remained at the same level in the past three years.
Decline.
In 2021, the epidemic has entered the normalization stage of prevention and control, and the decline has narrowed, but it has not yet recovered to the peak level in 2018; and the proportion of physical pharmacies in Chinese cities has also fallen all the way to 5.
77%, accounting for 2015-2018 The ratio is more than 7%, and it can be said that the scenery is hard to come by
.
There are many brands in the health care product market in China, and a hundred schools of thought have always existed.
In the past three years, the total market share of TOP20 brands in physical pharmacies in Chinese cities is less than 40%.
The market concentration is not high, but the competition between brands is quite fierce.
, The ranking changes every year
.
Table 1: 2021E China City Entity Pharmacy Terminal Health Products Top 10 Brand Source: Menet.
com.
China City Entity Pharmacy Terminal Pattern.
It is estimated that the threshold of TOP20 brands will drop to 128 million in 2021, and the total sales will be only 6.
77 billion yuan.

.
TOP20 brands have only 8 positive growth.
The biggest increase is By-Health’s life.
spaceR probiotic powder which is expected to increase by 116.
83%.
The biggest decrease is Yangshengtang brand natural vitamin C chewable tablets, which is expected to drop by 24.
33%
.
The leading health care product company Tomson By-Health has 9 products on the list, including two over 1 billion products.
The sales of glycochondroitin calcium tablets and protein powder are slightly declining.
The newcomers to the list in 2020 Tangerine lutein ester β-carotene soft capsules are expected to grow by more than 5% this year, and life.
spaceR probiotic powder, which has risen 116.
83% this year, is the company's new product
.
Xianle Health and Yangshengtang Pharmaceutical still each have two products on the list.
Xianle Health’s Glucosamine Chondroitin plus calcium tablets and B vitamin tablets rose slightly, and Yangshengtang Pharmaceutical’s natural vitamin E soft capsules and natural vitamins.
C chewable tablets all declined
.
It is worth noting that Jiangsu Ailand’s Glucosamine Chondroitin Vitamin D Calcium Tablets and Weihai Lily Biotechnology’s protein powders are new products on the list this year, with an expected increase of 64.
47% and 3.
37% respectively
.
Figure 2: Annual sales of Glucosamine / Glucosamine Chondroitin Calcium / Chondroitin Calcium (Unit: 100 million yuan) Source: Mi Nei.
com China's urban physical pharmacies terminal layout in the past three years, Glucosamine / Glucosamine Chondroitin Calcium / Chondroitin The overall sales scale of calcium products is steadily increasing, which is closely related to the aging of the population.
The main health care function of this type of products is to increase bone density, and the elderly are less enthusiastic about online shopping than young people, and most of them choose to buy in pharmacies Therefore, the sales of such products in physical pharmacies in Chinese cities have maintained a positive growth trend
.
At present, among the top four brands with over 100 million yuan, apart from ByHealth, Xianle Health and Guangdong Qianlin Health both have positive growth, while Jiangsu Ailand has become a newcomer
.
Figure 3: Annual sales of probiotics/bifidobacteria/lactobacillus (unit: 100 million yuan) Source: Mi Nei.
com.
The terminal pattern of physical pharmacies in cities in China.
With the acceleration of life and changes in eating habits, intestinal problems have gradually become modern One of the important health problems for urban residents.
In recent years, probiotics that have the function of regulating intestinal flora have been sought after.
The sales scale of probiotics/bifidobacteria/lactobacillus products in the end-health product market of physical pharmacies in Chinese cities has grown steadily.
If this situation is followed, it is expected to exceed 1 billion yuan in 2022
.
There are currently 3 brands of over 100 million products in this category.
Biostime brand probiotic granules (child type) are suitable for children with low immunity (0-7 years old), and the trend of decline in the past two years has been significant; By-Health’s life.
spaceR Probiotic powder is suitable for adults, and it has seen a skyrocketing trend immediately after it is listed.
Sales in 2020 will only be at the level of 60 million yuan, and it is expected to exceed 150 million yuan in 2021
.
It can be seen that the main consumer groups of health products are no longer limited to the elderly and children, and the young and middle-aged groups are becoming a new consumer force in the market
.
The explosive power of leading new products is amazing, and Jiangsu enterprises enter the TOP5 for the first time.
Table 2: 2021E Chinese city entity pharmacy health care products TOP5 Applicant source: Mynet.
com.
cn.
Among the regular customers of the TOP5 applicants of physical pharmacies for terminal health products, Weihai Baihe Bio will rise one position in 2021, while Jiangsu Ailand will enter the top five
.
Domestic health care products giant Tomson By-Health has repeatedly achieved good results since its listing.
According to data from the three quarters this year, the company's offline channel revenue accounted for 69.
24% of domestic revenue.
It is still the company's main sales channel, involving pharmacies, supermarkets, and parent companies.
infants and shops
.
BY-HEALTH mentioned in its annual report that the cost of offline channels is much lower than that of online channels, and the pharmacy channel has a traffic advantage
.
In recent years, By-Health’s new products have been squeezed into the TOP20 brand list of physical pharmacies every year.
The new products on the list in 2020 are By-Health R vitamin C tablets (sweet orange flavor) and bilberry lutein ester β-carotene soft Capsules, 2021 will be life.
spaceR probiotic powder
.
The pharmacy channel has stable passenger flow.
Driven by the company's strong brand strength, the explosive power of new products is quite amazing
.
It is reported that BY-HEALTH’s new large single product "Shubaining" (Natto Red Yeast Capsules) is positioned in the field of cardiovascular and cerebrovascular health, focusing on the middle-aged and elderly people, and has begun distribution channels in April this year
.
According to data from Menet.
com, in 2021, the overall scale of the specific health functional food (single) auxiliary hypolipidemic category in the terminal health care product market of physical pharmacies in Chinese cities is expected to exceed 800 million yuan.
Will this new product become a new BY-HEALTH product of more than 100 million yuan in 2022 ? We will wait and see
.
In addition, there is a Jiangsu company that deserves special attention this year
.
Statistics show that Jiangsu Ailand Nutrition Company has a deep relationship with Jiangshan Pharmaceutical, one of the five largest vitamin C giants in China
.
In 2006, the global vitamin C industry fell into a downturn, and Jiangshan Pharmaceuticals suffered consecutive losses.
The company was successfully acquired by the Dutch Royal DSM Group in 2015
.
Jiangsu Ailand Nutrition Co.
, Ltd.
was born out of Jiangshan Pharmaceuticals.
In the past ten years, it has conducted more than 10 overseas mergers and acquisitions.
It has successfully incorporated international brands such as IVC, ADAM, Perrigo in the United States, Bloem in the Netherlands and Brunel in the United Kingdom.
The company has 10 world-class nutrition production bases and 3 international R&D centers in China, the United States, and Europe, with more than 4,500 employees at home and abroad
.
Figure 4: Ailand's sales in the terminal health care product market of physical pharmacies in Chinese cities (unit: 100 million yuan) Source: Mynet.
com China's urban entity pharmacy terminal layout in the last three years, Ailand has been in the terminal health care product market of urban physical pharmacies in China The sales scale of the company is increasing year by year, and it is expected to exceed 500 million yuan in 2022
.
From a small category point of view, VC has always been the company's competitive field, but in recent years, the sales of products that increase bone density have achieved rapid growth.

.
The market is under increasing pressure, leading strategic adjustments.
From the perspective of the general environment, in recent years, with the gradual introduction and implementation of national policies, industry regulations, and standard construction, the supervision of the health care product industry has become increasingly strict, and the pressure and challenges faced by enterprises have also increased.
Increase
.
At the same time, the shrinkage of medical insurance personal accounts and payment restrictions have further reduced the frequency of consumers buying health products in pharmacies.
In some areas, restrictions on non-pharmaceutical products have appeared.
The market size of pharmacies' terminal health products has shown a downward trend year by year
.
But for health products companies, retail pharmacies have advantages such as low operating costs and very stable passenger flow, which are still worthy of continued intensive cultivation
.
The epidemic has further stimulated the upsurge of online shopping, and the growth rate of online sales of health care products is very impressive.
According to the annual report data of By-Health, the company's online channel operating income from 2019 to 2020 increased by 17% and 62.
77% year-on-year, compared with the first three quarters of 2021.
This represented a year-on-year increase of 57.
79%
.
While online sales are growing at an alarming rate, operating costs cannot be ignored
.
In the third quarter report of this year, BY-HEALTH mentioned that online operating costs are higher than offline channels.
The company's online platform fees as a percentage of revenue have increased from 1.
5% in 2020 to January-September 2021.
5.
2%
.
Since online and offline have their own advantages and disadvantages, it is better to break the boundaries and achieve integrated operation, focusing on the structure of consumer groups and changes in consumption scenarios
.
In July of this year, BY-HEALTH officially launched the offline sales reform and online and offline integrated management related reforms
.
In offline pharmacy channels, brand value is very important due to the stable passenger flow.
Middle-aged and elderly customers have relatively high loyalty to the brand, which can also achieve better field extension
.
Meinenet data shows that by virtue of its strong brand strength, By-Health’s new products can achieve skyrocketing sales after they are distributed in pharmacies
.
The company also told investors that in the drugstore channel, more is to do brand building and empower retail terminals to do sales conversion.
At present, the effect is significant.

.
In addition to carrying out reforms in pharmacies, supermarkets, maternal and child stores and other channels, BY-HEALTH has also established a "thousand-person nutrition group" mobile marketing service team to drive innovative mobile marketing and services with "incremental benefits" as the core
.
In the past two years, BY-HEALTH has continued to expand its competitive advantages in online channels
.
In 2020, the company acquired Maiyou to continuously improve its e-commerce operation capabilities; in response to the general trend of younger online consumers, it continues to expand the group of young consumers by creating rejuvenation of products and marketing
.
On the whole, the online and offline integration reform is a problem of the company's internal resource allocation.
In fact, the online and offline resource allocation, product planning, content production, user operation, etc.
are opened up, and strategies are made according to the different consumer groups of each channel.
Adjustment
.
Mi Nei.
com has published an analysis of consumer behavior in pharmacies at the 2021 Mi Si Conference.
The data shows that the current pharmacy buyers are over the age of 30, with relatively high-age buyers; while cardio-cerebral vascular drugs, antithrombotic drugs, and There are also relatively many buyers of drugs for chronic diseases such as lipid-lowering drugs
.
Therefore, it is better to increase the launch of these types of health products in the pharmacy channel, and at the same time, you can also use young brands to drive online promotional activities to further promote product sales
.
Relatively speaking, when pharmacies promote health care products for middle-aged and elderly people, such as assisting in lowering blood lipids, enhancing immunity, and increasing bone density, they can also distribute online specializing in product trial packages suitable for young people to bridge the boundaries between online and offline.
An extension between good brands
.
At present, the development potential of China's health product market is still in the stage of explosion, and product efficacy and control over channels will become important competitiveness among enterprises
.
Although offline channels have been sluggish in recent years, it is not difficult to maintain stable development as long as product selection and channel control are done well
.
Data source: Meinenet database, company announcements, etc.
Note: Meinenet China's urban entity pharmacy terminal competition pattern database covers 293 prefectures and cities across the country (excluding county and rural entity pharmacies), and continuously monitors the entire category Enlarged city physical pharmacy database
.
The above sales are calculated based on the average retail price of the product at the terminal
.