204.8 billion health care market: Nestle strong | 'kill'

Pharmaceutical News Network December 14 News Nestle recently reached 2.3 billion US dollars into the field of health care products news has become one of the industry's focus, but it also fits the global consumer trends.Reported that the global health products market is expected to be in 2017 Reaching 204.8 billion U.S. dollars, the market for health care products in the Asia Pacific region is expected to grow by 7.4%. At present, the market for health products in China is about 200 billion yuan and there is still room for further exploration. How can domestic companies share the benefits? Good choice.

Nestlé recently announced that it has agreed to acquire Atrium Innovations, a leading US natural dietary supplement company, for $ 2.3 billion in cash, which is expected to close in the first quarter of next year. After the transaction, Atrium's business in Quebec, Canada The office will operate as a separate division of Nestlé Health Sciences Inc. The existing management team at Atrium will continue to be led by current President and CEO Peter Luther.

According to public information, Atrium's 2017 sales are expected to reach 700 million US dollars, under which a total of 13 brands of dietary supplements and seven global manufacturing base, of which 80% of sales revenue from the United States. The company's biggest brand is' Garden of Life 'Is the # 1 brand in the US natural dietary supplement industry and is currently marketed in more than 14,000 U.S. food stores and online stores as well as in some international markets including China. Atrium's accession will allow Nestlé to expand its product portfolio , Including the inclusion of high value-added products such as probiotics, plant protein-based nutrition, dietary alternatives and multivitamin products.

In connection with the acquisition, Greg Behar, CEO of Nestlé Health Sciences, said: "We value the past successes and growth of Atrium Innovations and welcome 1400 employees to the Nestlé family. Their brands are Nestlé consumers A healthy complement of health products that provide nutritional solutions to healthy aging, healthy development, intestinal health and fight obesity Atrium Innovations' products help Nestle expand into high value-added product lines such as probiotics, plant protein nutrition , Meal replacement foods and a broad line of multivitamins to help consumers reach their goal of healthy and happy nutrition.

The $ 2.3 billion Nestle Nestle into the field of health care products, in fact, has long been a sign of its new CEO this year Ulf Mark Schneider has served as Fresenius CEO since 2003. The company is to provide a dialysis, hospital Health care companies that offer products and services related to their patients' family health care have long been predicted by media that Ulf Mark Schneider's appointment could mean that Nestlé will drive more and health Scientific, and skin-health-related business as the outside world saw him as a 'takeover fan' and Ulf Mark Schneider pushed the company to implement more than 12 acquisitions at the time of the Fresenius Group, After the official took office, it is also necessary to promote Nestle towards higher margin, higher growth Health products Investment in the field.

Nestle ambitious strong into health care Product areas also meet the mainstream consumer trends in recent years, to meet the basic needs of full and warm, will naturally turn to a higher level of health care needs.Reported that from 2013 to 2018, the entire health care raw materials market is expected Will grow by 7.2%; the global health care market is expected to reach 204.8 billion U.S. dollars by 2017, representing a CAGR of 6.3% and a healthy growth of 7.4% in the Asia Pacific region, of which the United States has the world's most active health care The markets of commodities, the United Kingdom, Germany, France and Italy are the major markets in Europe. The Asia-Pacific region is expected to become the region with the largest market share after the North American health care products market. Among them, China and India are highly developed.

In recent years, with the improvement of living standard of our country people, the consciousness of health care is also increasing day by day. According to insiders, the sales of health products in China will increase from 260 billion yuan to 400 billion yuan between 2016 and 2021. And, with the global network The direct and cross-border e-commerce has become an important source of growth in China's health care products market.According to Ali health data show that Ali health flagship store cross-border imports of imported health care products encountered berserk in 2017 just started within 11 minutes of double eleven , Including Australian Jiabao gold pregnant women nutrients, swisse calcium, Braun ear thermometers, Avene spray, Bedmar blue water and other 41 products sold out.

The vast expanse of the market has attracted many overseas health care companies to see China as the largest nugget territory as of June this year, the world's top five health care products company announced in the first quarter earnings are mentioned in the Chinese market, especially the United States Brand USANA (Greater Sasana), Greater China sales account for about a quarter of its global total revenue of 50%; the United States brand NuSkin (as new), Greater China sales accounted for about 30% of its global revenue in the first quarter; Australian brands Blackmores, American brands Herbalife and Australian brands Swisse, Greater China sales accounted for about 20% of its global revenue in the first quarter.

In foreign health care giants have Nuggets domestic market at the same time, the domestic enterprise However, due to the particularity of the market of domestic health care products, they have all turned their attention to the ways of introducing foreign brands such as acquisitions and cooperation.At present, domestic enterprises adopt three methods to introduce foreign health care products brands: one is mergers and acquisitions, the acquisition of Swisse Representative; Second, the establishment of a joint venture company to Tomson times Jian and NBTY joint venture to jointly develop the Chinese market as the representative; Third, the shareholding of distributors to share the brand growth to Comivta in China, the reality of the company Shenzhen Comvita natural food company Controlling shareholder Zhu Guangping family shares Comvita 10.07% of shares represented, however, due to the introduction of "cross-border e-commerce retail import list" and the implementation of cross-border e-commerce tax reform, there are qualification to obtain, the two sides communicate, profit distribution and other factors , Domestic enterprises are more inclined to take the overseas brand acquisition this way to compete for health care products market share.

2015-2016 Chinese enterprises cross-border mergers and acquisitions health care products brand schedule