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Weight loss craze creates gain for players

By ZHENG YIRAN | CHINA DAILY | Updated: 2022-04-04 07:25
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A tea beverage shop of More Cheers in Yichang, Hubei province. Young consumers are increasingly embracing a low-calorie lifestyle. WANG JIANFENG/FOR CHINA DAILY

Young consumers are increasingly embracing a low-calorie lifestyle and powering sales of meals that boast lower sugar and carbohydrates while remaining nutritious and delicious, experts said.

"Weight loss", "workout", "zero-sugar" and "low-calorie" have been buzzwords among youth for some time. Chicken breasts, protein bars and meal replacement shakes all help fulfill their ambitions to keep healthy, slim and energetic. Following this trend, swarms of capital and companies are rushing in to stake their claim.

Datapark, China's leading big data firm, said there were 11 investment and financing events in this segment in 2021. As for this year, the investment in meal alternatives is expected to reach 120 billion yuan ($18.9 billion), according to oIBP's statistics.

Competing companies are of four types, said Datapark. Traditional food heavyweights, emerging internet enterprises, crossover brands and foreign catering companies are supplying specialized products.

China's top oats vendor Wang Baobao, protein bar supplier ffit88, shake maker Wonderlab and versatile ones such as sports tech company Keep are all producing alternatives to fit in different scenarios.

VEpiaopiao, a popular Chinese brand of Western seasonings, also sells oats. The difference is, it values normal meals more than replacements, said Gao Fei, director of VEpiaopiao's Innovation Center.

Last year, CNLI, China Food and Drinks Fair, COFCO Nutrition Research and TMALL TASTY jointly issued the "2021 Report on China's Food Consumption Trends". It said that strategies for reducing weight were further divided as demand for healthy weight-loss products rises.

In office settings, alternative snacks or milkshakes help workers curb calorie intake. In the gym, protein bars or ready-to-eat chicken breasts provide bodybuilders energy before or after a workout. At home, instant noodles with less fat can serve as a convenient, tasty and healthy meal, said the report.

China's meal replacement market has a history shorter than that in Western countries, and its penetration rate is only 30 percent, according to ChinaIRN.com, a leading industry research company.

The group added that as China's economy grows and the public puts a higher premium on healthy diets, the market holds out hope for robust growth. Demand is expected to reach up to 18 billion yuan ($2.83 billion) in 2023 from the current 6 billion yuan.

Reasons for rising market demand include increasing obesity rates, higher personal disposable incomes and improved awareness of the importance of health maintenance. Drivers also include advanced manufacturing technology and rising product diversity, said iiMedia Research.

The potential customer base, 325 million overweight consumers in China, may continue to power the market, said the"2017-2022 Research Report on Internet + Weight Loss Industry Operation Mode and Market Prospects".

Technology plays an increasing role. According to Datapark, patents for meal replacement products stand at around 600.

And stylish packaging is becoming a new consideration, as posting fancy selfies on social media platforms is a growing fad among Gen Z, said "Analysis Report on the Domestic Snack Market in 2021"issued by the China National Commercial Information Center.

All these factors can create a positive blueprint for the industry. To turn it into reality, however, regulatory improvements are a "must", said iiMedia Research.

Over 60 percent of consumers think the industry needs to improve the standard of goods and strengthen reviews and regulations over market access. Consumer concerns over overhyped products and uniformity of quality must be settled, the research agency said.

"Some ads are misleading. Suppliers brag that once you consume their products, you will definitely lose weight. And I think that's wrong. It depends on your intake and exercise," said Clara, a young fitness enthusiast in Zhejiang province.

She added that the 70/30 rule is a golden rule for bodybuilders, which essentially means the task consists of 70 percent eating the right diet versus 30 percent exercise.

"You have to combine both factors."

Experts echoed that though meal alternatives have fewer calories, overeating can still lead to weight gain.

"If people want to lose weight, I recommend they eat substitutes under the guidance of dietitians or doctors," said Huang Tingwei, a nutritionist.

Consumer demand and consumption experience are the heart of everything. To gain prolonged growth, companies have to supply diverse products, give enough choices that meet consumer needs and enrich user experience, according to VEpiaopiao.

"Meal replacements should only be a choice, and that's it. People need abundant, various and balanced nutrition from normal foods. We believe that as long as we control the intake of fats, salts and sugars, we can lose weight and keep fit," VEpiaopiao added.

The company keeps matching meal replacements with innovative recipes, by which it hopes to let users have a stronger sense of control over their lives, rather than getting lost amid an urgency to lose weight.

Kaifusai Julaiti contributed to this story.

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