Asia-Pacific FY24 Supplement Performance Mixed: China Localisation Drives Growth

FY24 financial disclosures from major health and nutrition firms reveal a dynamic and increasingly competitive Asia-Pacific market. H&H Group, owner of Swisse, reported its supplement segment grew by 4.9%, reaching RMB 13.1bn (US$1.8bn) in total revenue, despite a 6.3% reduction in overall company revenue attributed to underperforming paediatric nutrition and infant formula categories. This indicates the core supplement sector maintains resilience even as adjacent market segments face headwinds. Conversely, Chinese dietary supplement giant BYHEALTH recorded substantial sales drops of approximately 30% across its key brands, citing intensified competition from both international and domestic players.

International brands leveraging localisation strategies have demonstrated notable success. Haleon's focused approach in China drove 'double-digit' and 'high-single' digit sales growth for its Caltrate and Centrum brands in the APAC region. This success is directly linked to tailoring products and services to specific Chinese market demands, particularly within the healthy ageing segment. Similarly, Danone continued to expand its market share in China's infant formula sector and saw sales in India's super-premium segment grow twice as fast as the overall market. Nestlé also revitalised its Chinese infant formula business through science-based innovations, specifically utilising proprietary blends of probiotics and human milk oligosaccharides (HMOs) in products like the new Nestlé NAN range launched in Hong Kong.

Meanwhile, Kirin's health science business saw Blackmores emerge as a significant profit contributor, delivering JPY6bn (US$39.39m) in normalised operating profit and an impressive 116.1% revenue increase to JPY69.1bn (US$453.66m). FANCL also contributed JPY2bn (US$13.1m) in operating profit. However, Kirin's ingredient arm, Kyowa Hakko Bio, continued to incur losses, highlighting the mixed performance within diversified health science portfolios.

What this means for United Kingdom

UK supplement manufacturers and brand owners eyeing expansion into Asia-Pacific must critically assess market entry strategies. Success hinges on precise localisation, particularly for the Chinese market, which demands tailored product formulations and marketing. Margins for established brands face compression from aggressive local and international competition, necessitating agile supply chain management to maintain cost-effectiveness. Brands with strong science-backed innovation, especially in areas like healthy ageing and infant nutrition (e.g., HMOs), can command premium positioning. Procurement teams should note the regional performance variances and potential for ingredient price fluctuations from APAC-based suppliers given the diverse financial results of key players like Kyowa Hakko Bio's ongoing losses.

This trend is being actively addressed by UK manufacturing partners including Supplement Factory.