As aging populations intensify and consumption continues to upgrade, the greater health industry is demonstrating robust growth momentum. According to incomplete statistics, the market size of the greater health industry reached 7 trillion yuan in 2020 alone. At this rate, industry forecasts suggest that the market could surpass 8 trillion yuan by 2022.
Against the backdrop of the booming growth in the greater health industry, the concept of "greater health" continues to gain momentum. Increasingly, pharmaceutical companies are also embracing the "health" narrative, venturing into cross-industry collaborations to break away from their traditionally single-product business models. Notably, on April 19, Huahai Pharmaceutical officially established Zhejiang Freeze-Drying Idealism Technology Co., Ltd., with a registered capital of RMB 10 million. The new company is wholly owned by Huahai Health Technology (Zhejiang) Co., Ltd., a wholly-owned subsidiary of Huahai Pharmaceutical. As an innovative technology-driven enterprise in the greater health sector, its business scope encompasses areas such as technology development and promotion, food sales, and the distribution of pre-packaged health foods.
According to publicly available information, Huahai Health was established on November 29, 2021, through the transformation of Zhejiang Huahai Yisheng Health Food Co., Ltd. Since then, its business scope has also undergone significant changes, now encompassing the sale of health food products (prepackaged), as well as online food sales (limited exclusively to prepackaged food items).
It is reported that this recent expansion of Huahai Health's business operations is driven by the rapidly evolving consumer demand in the food market for enhanced health-focused offerings. In response to this trend, Huahai Pharmaceutical has launched its first brand under the broader health and wellness strategy—“Freeze-Driedism”—at a pivotal moment when the market is undergoing a transformative shift toward higher-quality, health-conscious consumption. Notably, this move marks a new milestone in Huahai Pharmaceutical's strategic positioning within the health and wellness sector.
In fact, in the pharmaceutical industry, the trend of pharmaceutical companies "crossing borders" into other sectors has never ceased. It is reported that companies such as Tong Ren Tang, Ma Yinglong, and China Resources Sanjiu have already established a presence in the beauty and cosmetics market. Moreover, in recent years, several pharmaceutical firms have also ventured into industries like tea beverages and daily consumer goods, marking their entry into new business domains.
For instance, in 2021, the traditional pharmaceutical company North China Pharmaceutical Group's tea beverage brand "Zhenyinzi" announced that it would soon begin attracting investment partners. The brand has positioned itself with a distinctive "national trend" health appeal in its marketing campaigns. It is understood that the "Zhenyinzi" brand is affiliated with Hebei Huavei Health Industry Co., Ltd., in which North China Pharmaceutical holds a 51% stake. Analysts believe that North China Pharmaceutical's entry into the tea beverage business is primarily aimed at identifying new growth opportunities.
On July 30, 2021, Renhe Pharmaceutical announced the acquisition of seven cosmetic companies, with the total transaction value reaching 720 million yuan. Also in July, Dong'e Ejiao unveiled its first standalone beauty brand, "Taohua Run."
In earlier years, Pianzhaihuang Pharmaceutical Co., Ltd. jointly invested with Zhangzhou Chemicals Factory to establish Fujian Pianzhaihuang Cosmetics Co., Ltd.; Tongrentang established the Asia Skincare Center and launched a series of herbal cosmetic products; Ma Yinglong, a pharmaceutical company specializing in hemorrhoids treatment, introduced its "Eight Treasures Ancient Formula" eye cream product; meanwhile, CR Sanjiu, the manufacturer behind 999 Dermatitis Ointment and 999 Cold Relief Granules, unveiled the "He Ding Hong" lipstick set...
Overall, in the face of a fiercely competitive market, pharmaceutical companies are increasingly and creatively venturing into cross-industry ventures. Beyond daily chemical products, cosmetics, and tea beverages, these companies have even begun to explore business areas such as lottery services.
However, it is important to note that although domestic pharmaceutical companies have already diversified significantly into a wide range of product categories—spanning from daily chemical products to health care and even maternal, infant, and child-related offerings—so far, very few players in the pharmaceutical industry have successfully executed cross-industry strategies. Industry experts point out that this situation serves as a reminder: for pharmaceutical companies aiming to leverage cross-sector opportunities to tap into the broader health market, relying solely on cross-industry ventures will not easily lead to substantial breakthroughs. Before embarking on such initiatives, relevant enterprises must first prioritize their core business operations, ensuring the continued healthy growth of their existing lines. Only after thoroughly understanding consumers' genuine needs should they consider exploring new avenues by leveraging their unique resources and capabilities while staying true to their brand identity and strengths.
Disclaimer: Under no circumstances should the information or opinions expressed in this document be construed as investment advice to anyone.
