The Australian supplement industry surpassed its American counterpart to become the largest exporter of supplements and health food products to China.
22.3 percent of all supplements and health foods imported into China originate from Australia. This compares to 20.4 percent for the United States.
This information comes from the China Chamber of Commerce for Import and Export of Medicines and Health Products which found that Australian imports accounted for $660 million and a 60.8 percent yearly growth rate. In total, supplements and health foods imported into China is a $3 billion business.
The news is a reminder that the supplements industry is a booming business and Australia’s proximity to China makes it a fertile ground for supplement companies looking to export to China, one of the world’s biggest economies.
Herbal supplements are also a growing industry in Australia and New Zealand. According to a report called “Herbal Supplements Market: Australia & New Zealand Industry Analysis and Forecast, 2017-2025”, the market will reach $760 million by 2025.
Herbal remedies are becoming popular to combat small aches and pains and to deal with some chronic pains. Supplements and health foods are being consumed more and more as the population becomes more health conscious. Supplements are also often used by people who are looking to work out more and build muscle.
The potential in Australia for these industries is great both because of its proximity to big Asian markets and due to the demand in the native Australian population for healthier alternative options.
Florian Felsing from supplementnation.com.au said about the Australian market, “we are seeing real growth in Australia, and it is an area where I expect to see only an increase in companies offering supplements. The Australian people are very health conscious, and it’s a great location for a business looking to do business on an international stage.”
If Australian industries want to keep up the booming business than they will rely on the government keeping up stable trade relations with China and other economies in the region. There may be an opportunity for Australian businesses to increase their relations with China as the United States and Canada continue their protracted trade disagreements with China.
The recent Huawei controversy opens the door for Australia and other trade partners to increase trade with China. Of course, these countries will have to be wary of the reaction from the United States, but it could be a potential new chapter in trade relations with China.
Rumors have been spread that China is looking to increase regulation on Australian imports in order to boost revenues, but there hasn’t been any movement on this front so far. And, Australian politicians will be keen to keep the economy growing as elections approach.
The supplement industry is likely a wise investment for people looking to diversify their portfolio, and the Australian economy is growing in this respect. However, any potential investments will have to keep an eye on Chinese relations as this market accounts for a large portion of the supplement industry’s business.