(Last updated: 5 Jan 2012)

Trends and opportunities

The market

There has been a heightened sense of health consciousness among Hong Kong residents. Hong Kong consumers are more aware of the importance of dietary supplements. Vitamins and dietary supplements see 12 per cent value growth in 2010, to reach HK$3,239 million.

Aggressive marketing efforts promoting eye, bone and heart health supplements continue to drive the growth of vitamins and dietary supplements. Consumers are becoming more aware of products such as cordyceps, glucosamine and eye health supplements.

Combination dietary supplements are the leading type, accounting for 47 per cent of total value sales of dietary supplements in 2010. These supplements with a bone and heart health positioning appeal to middle-aged, well-educated consumers, who tend to have the willingness and purchasing power to buy products that can improve their health.

Consumers are also often under peer influence in brand selection. Most health supplement consumers are very quality conscious when purchasing these products.

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.

Although vitamins and dietary supplements have seen strong growth in recent years, the idea of taking supplements is still very foreign to many consumers, and a significant number are concerned about both the efficacy and safety of such products. Significant growth will not be sustained in the future unless companies are able to persuade consumers of the benefits of taking vitamins and dietary supplements.

Opportunities

There are three main types of dietary supplement products in the Hong Kong market, namely, 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.

Combination dietary supplements focusing on the heart and bones will continue to drive overall growth of vitamins and dietary supplements. Products positioned to reduce blood sugar level have potential for growth, with more people being concerned about the health of their heart. In addition, an increasing number of players will continue to promote supplements with a bone health positioning.

(Sources: Euromonitor 2011; Hong Kong Pharmaceuticals and Healthcare Report Q3 2011, Business Monitor International; and Hong Kong Department of Health)

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 on the Department of Health's website.

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 over-the-counter healthcare including health supplement products are predominantly through the pharmacy and drugstore channels. The major pharmacy chains in Hong Kong are Watsons, Mannings and CRCare. Dietary supplements are also distributed through other channels such as health food shops and direct sales. Direct sellers continue to be important distribution channels for vitamins and dietary supplements. USANA Hong Kong Ltd, Nu Skin Enterprises HK Inc, and Amway Hong Kong Ltd are three leading direct sellers in the category, with a combined value share of close to 40 per cent.

Relevant trade exhibitions
The relevant trade exhibitions include Cosmoprof Asia (14-16 November 2012) and the Natural Products Expo Asia (23-25 August 2012).

Links and industry contacts

Health and wellbeing products–related resources

Department of Health – www.info.gov.hk/dh
Federation of Medical Societies of Hong Kong – www.fmshk.com.hk
Hong Kong Medical Association – www.hkma.org/index.htm
Hong Kong Health Food Association – www.hkhfa.org
Watsons – www.aswatson.com
Mannings – www.dairyfarmgroup.com/global/home.htm

Government, business and trade resources for Hong Kong

Australian Consulate-General in Hong Kong – www.australia.org.hk
The Australian Chamber of Commerce in Hong Kong – www.austcham.com.hk

Contact details

The Australian Trade Commission – Austrade – is the Australian Government’s trade and investment development agency.

Through Austrade’s network of offices in over 50 countries, we assist Australian companies to succeed in international business, attract productive foreign direct investment into Australia and promote Australia's education sector internationally.

For more information on how Austrade can assist you, contact us on:

Australia ph: 13 28 78 | Email: info@austrade.gov.au

A list of Austrade offices (in alphabetical order of country) is also available.

Sources

• Business Monitor International Ltd, 'Hong Kong Pharmaceuticals & Healthcare Report Q4 2012'
• Euromonitor 2011
• Hong Kong Department of Health