China Chamber of Commerce for Import & Export of Medicines & Health Products (CCCMHPIE) released new data on the import and exports of health foods.
According to the data, the US was the top importer of China’s health foods last year, taking over the top spot from Hong Kong.
The US, Hong Kong, and Malaysia were the top three importers of health foods from China last year.
Concerns over global tariffs adjustments have contributed to an increase in the US’s imports of China health foods last year, said the report.
“In year 2024, the US, Hong Kong China, and Malaysia were the three largest export markets [of China’s health foods].
“Of which, the US has once again become the largest export market, with its growth closely related to companies building up their stockpile in anticipation of global tariffs adjustments,” said the report.
Notable increase in China’s exports to Australia
Australia was highlighted as an “noteworthy” export destination for China’s health foods industry.
Australia was China’s fifth-largest health foods importer last year, with import value up 77.3 per cent year-on-year to US$163m.
“From a global market perspective, Australia is a noteworthy export market, with exports in 2024 increasing by 77.3 per cent year-on-year to US$163 million,” said the report.
In fact, out of the top 10 export markets, only the US and Australia reported an increase in export value.
Aside from the US, Hong Kong, and Malaysia, the top 10 importer list consisted of Thailand, Australia, Indonesia, South Korea, the Philippines, Japan, and the Netherlands.
Export value to Hong Kong, SEA down double-digit
China’s health foods export to Hong Kong and South East Asia (SEA) recorded a double-digit decline in terms of export value.
Hong Kong, with its unique geographical advantages, is said to be an “important bridge” of China’s health foods exports to the international markets.
However, the value of China’s health foods exports to Hong Kong was down 15.1 per cent to US$618m last year.
Export value to SEA also went down by 11.2 per cent to US$954m.
Amongst the SEA countries, Malaysia, Thailand, and Indonesia were the top three importers of China’s health foods.
In total, the value of China’s health foods imports and exports were US$12.03bn.
Of which, China’s health foods exports were valued at US$4.28bn, up 6.3 per cent on a year-on-year basis, and imports grew 15.1 per cent to US$7.75bn.
CCCMHPIE: Industry transformation urgently needed
With a growing disparity in China’s health foods import and export value, the CCCMHPIE said there was an urgent need for industry transformation among China’s health foods sector.
China’s growing imports of overseas health foods reflected an upgrade in consumer spending ability, as well as their urgent demand for high-quality, holistic health products.
At the same time, global demand for China’s health foods was comparatively low, and the growth rate of China’s health foods exports has also slowed down over the years.
The CCCMHPIE said that the phenomenon has to do with the level of technical expertise, brand value, and innovation among China health foods firms.
It has therefore called for an urgent industry transformation to meet consumers’ demand for “safe, effective, scientifically-backed and convenient” options.
For instance, companies should focus on innovation around high-value-added raw materials as well as seeking breakthroughs in crucial sectors such as precision nutrition.
Second, it said that the industry should strengthen its global supply chain, especially in view of geopolitical uncertainties.
Special attention could be given to speed up growth in markets like the Middle East and SEA, while cross-border e-commerce (CBEC) could be leveraged upon to build up the presence of China’s products in global markets.
Third, it also stressed the need for deeper collaboration between policymakers, industry, academia, researchers, and application.
“In the global industrial chain, China’s nutrition and health industry urgently needs to upgrade from “scale expansion” to “value creation”, and upgrade from being the ‘world’s factory’ to the “global health solution provider,” said CCCMHPIE in the report.