Enter Health Food Industry – the Applicability of the Second Curve Concept
The health food industry is constantly evolving; therefore, staying up to date on the trends is imperative for a thriving enterprise. In recent years, many enterprises enter the health food market with different types of business models. For instance, in addition to the financial sector, Cathay Life Insurance Company invested in the TOT BIOPHARM International Company known for producing anti-cancer drugs in 2019. Hey-Song Corporation entered the health food market by launching the Lactobacillus Plantarum capsule in 2020. Formosa Plastics Group and Taiwan Tobacco & Liquor Corporation spent a lot of money on building their own health food division – Formosa Biomedical Technology Corporation and Taiwan TTL Bio-Tech Company. Other than the local enterprises in Taiwan, Nestle acquired Garden of Life owned by Atrium Innovations. Why did the aforementioned enterprises decide to expand to other market areas?
The importance of preparing for the worst often rings true for business continuity. Enterprises will go through four stages during development which is inception, growth, maturity, and decline. Maturity is where they become the most stable; however, they tend to face difficulties in growth and realize that they cannot come up with the appropriate strategies to overcome the new challenges rapidly emerging in the industry. Thus, the decline phase follows right after. Dr. Charles Handy, the philosopher specializing in organizational behavior and management advocates The Second Curve, advising the enterprises to know that everything has an expiry date and it is important to start investing in other opportunities when entering the maturity phase.
In real-life business situations, many mature companies will choose other industries with growth potential through diversification strategy for further expansion and development. Why did the aforementioned large-scale enterprises choose the health food industry?
Due to increasing consumer health awareness lately, the size of the health food market keeps on growing. The research from Global newswire indicates that the global health food market size is projected to have exponential growth and reach USD 117.92 billion by 2027 because of the fast-paced lifestyle, the increase in national income in developing countries, and the rise in health awareness and perception of preventive health care. According to Grand view research, the global health food market will grow at an 8.2% compound annual growth rate from 2020 to 2027. The data mentioned above reflect the huge potential of biotechnology for the health food industry in the future.
Reference resources：
Review：‘The Second Curve’ by Charles Handy
https://www.ft.com/content/2d431aba-c0c8-11e4-9949-00144feab7de
Dietary Supplements Market Size, Share & Trends Analysis Report Forecasts, 2021 – 2028
https://www.grandviewresearch.com/industry-analysis/dietary-supplements-market
Dietary Supplements Market Worth USD 117.92 Billion by 2027| Fortune Business Insights™
https://www.fortunebusinessinsights.com/dietary-supplements-market-102082
Wel-Bloom’s Multifunctional V-I-P Service Promotes Corporate Brand Extension
Although the substantial growth of the health food industry in the future is expected, many factors such as high market entry threshold, high cost investment, the requirement of professional personnel and high specification factory, and the difficulties of conducting market research are making it hard for the enterprises not familiar with the health food industry.
With the experience in ODM/OEM for more than 20 years, more than 30,000 formulae, NSF and SGS-certified high specification factory, and the implementation of strict quality control, we are determined to help all our clients launch new products successfully by resolving the aforementioned issues, increasing market sensitivity, and most importantly, providing the V.I.P service to save time and cost.
(1) V – Verified Distribution
We have designed more than 30,000 formulae in the past and utilized the most popular and efficacious formulae to create the high quality products recognized by Monde Selection. The award-winning supplements are available to help the enterprises reduce the amount of time spent on searching for products.
(2) I – Integrated Formulation
We selected the formulae with the efficacy being verified to create a series of semi-customized products, which helps save time and overcome the MOQ barrier. Many types of aluminum foil with no logo are available, which our clients would only need to provide their paper box design to have their own branded products. This type of customization service significantly shortens the time spent on product development and manufacturing process, resolving the challenges for the enterprises that are new to health food industry.
(3) P – Product Customization
In addition to verified distribution and integrated formulation, we also help the enterprises define target market, create exclusive formulae, and design exterior packaging. We are dedicated to brand extension by meeting the customer demand, promoting product differentiation, and investing in high quality resources.
There is no doubt that all enterprises wish to launch the products with high customer satisfaction and carrying out pretests is critical for making great products. We recommend our clients that gift giving could be the first step of conducting pretests. Our V-I-P service helps create your own branded products as the gifts could be used for holiday seasons and client visits. We not only combine Eastern and Western gifting culture with local ingredients to establish the 21st century gift-giving models, but also value customers’ opinions in order to launch the products with high customer satisfaction. We assist the enterprises in determining the direction of product development and product positioning in order for them to be well prepared.
For more New health food business idea ,you can visit the article: The Art Of Corporate Gift Giving Promotes The Second Curve! Our V-I-P Service Enhances Easier Entry Into Health Food Market! Part.2
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Wel-Bloom Bio-Tech, experts in dietary supplement foods research and development in Taiwan