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Health and wellbeing to Hong Kong
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(Last updated: 13 May 2008)
Trends and opportunities
The market
Since the SARS outbreak in 2003, there has been a heightened sense of personal hygiene and health consciousness among Hong Kong residents and at the same time, Hong Kong consumers are more aware of the importance of dietary supplements.
Dietary supplements have continued to be the largest contributor to overall over-the-counter healthcare sales in Hong Kong in 2007. The anticipated economic recovery, together with higher health consciousness among Hong Kong consumers, spurred healthy growth in sales of vitamins and dietary supplements.
As consumers in Hong Kong generally do not have a deep understanding of consumption of dietary supplements, purchases are heavily influenced by advertising and promotional activities. This is especially true for the sales of other dietary supplements where there are relatively more new products than vitamins.
Consumers are also often under peer influence in brand selection. Most health supplement consumers are very quality conscious when purchasing these products. They are typically more concerned about quality and side effects of using the product than price.
Advertisements remain a strong pulling factor for sales of dietary supplements.
In Hong Kong, the growing dietary supplement industry continues to attract new players in an already fragmented environment. There is a great variety of dietary supplement products imported from different countries such as the USA, Canada, Australia and Japan.
Opportunities
There are three main types of dietary supplement products in the Hong Kong market: nutraceuticals, herbal-based products and vitamins. Among these, vitamins are the most popular as they have been in the market for a long time. Nutraceuticals are gaining popularity in recent years, and have vast market potential. Herbal-based health supplements are a late addition to the market but this sector is growing fast.
Health supplement products commonly sold in Hong Kong include vitamin and mineral supplements, shark liver oil capsules, shark cartilage capsules, deep sea fish oil capsules, Chinese medicinal fungi, herbal pills, royal jelly extracts, pollen tablets, aloe extracts, etc.
Dietary supplements in Hong Kong are much more varied with products such as evening primrose oil, glucosamine and co-enzyme Q10 becoming increasingly available.
Traditionally, dietary supplements containing glucosamine are the only products known to maintain the health of joints and cartilage. Since 2000, manufacturers of glucosamine focused on heightening public awareness of joint pain and the increased public consciousness led to steady sales of glucosamine in Hong Kong.
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Tariffs, regulations and customs
In Hong Kong, not all health supplement products need to be registered; only pharmaceutical products are required to be registered with Department of Health in accordance with the Pharmacy and Poisons Ordinance.
In deciding whether or not a product is a 'pharmaceutical product', the Department of Health takes into account the composition of the product and nature of the claims made in the labels, leaflets, brochures, wrappers, advertisements and other promotional materials of the product.
In general, products carrying 'medicinal' claims fall within the meaning of pharmaceutical products and are required to be registered.
Information about the registration process can be found in the Department of Health website.
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Marketing your products and services
Market entry
The most common means of entry is through an agent or distributor. Besides brand image and marketing promotion, price competitiveness is the most important selling factor. Competition is fierce as the market is highly fragmented.
Distribution channels
In Hong Kong, sales of OTC healthcare including health supplement products are predominantly through the pharmacy and drugstore channels. In 2003, pharmacy and drugstores channels together accounted for more than 80 per cent of sales of OTC healthcare products. The major pharmacy chains in Hong Kong are Watsons, Mannings and CRCare.
Dietary supplements were also distributed through other channels such as health food shops and direct sales.
Relevant trade exhibition
The Natural Health in Cosmoprof Asia (12-14 November 2008) has emerged as one of the largest and most important trade exhibitions for natural health and related products in Asia. The three-day fair is devoted to natural, organic and functional food and beverages, dietary supplements, nutraceuticals and ingredients, natural health remedies, and any other products and services conducive to healthy living.
The Natural Health Fair is an ideal opportunity for companies that are considering entry into other Asian markets in addition to Hong Kong, as it provides exhibitors with the chance to meet key buyers from many countries in one location at one time. Austrade has endorsed The Natural Health Fair as our key annual health-related promotional activity in Asia and organises the Australian Pavilion each year. For more information, please contact sally.lam@austrade.gov.au.
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Contact details
The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.
Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.
Austrade:
- Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
- Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
- Administers the Export Market Development Grants scheme.
- Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
- Provides advice to the Australian Government on its trade and investment development activities.
- Delivers consular, passport and other government services in designated overseas locations.
A list of Austrade offices (in alphabetical order of country) is available.
More information
For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au |
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Sources
Euromonitor 2007
Espicom Business Intelligence (7 Oct 2007)
Hong Kong Pharmaceuticals & Healthcare Report Q3 2007 by Business Monitor International Ltd
Hong Kong Department of Health - www.dh.gov.hk |
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