American-Style Health Concerns Spread to Asia

Obesity rates are soaring in the US, but Asians are catching up.

With affluence usually comes a sedentary lifestyle, and with it the usual health problems associated with obesity, including heart disease and diabetes. A third of the residents in Asia and the Western Pacific were overweight in 2005, numbers expected to rise to over 50% among men and 45% among women by 2015 according to the World Health Organization. Up to 23% of the population is overweight and WHO predicts by 2030 diabetes cases will double to 42MM. India is the world diabetes capital with 40MM, a total that will likely double by 2025. As a result, the health foods market will grow from its current $200MM to over $1bn by 2012. Obese people make up ¼ of the populace in some Indian cities.

As a result, oats, yoghurt and vitamins are all catching-on with a new generation of Asian consumers. While the Chinese diet, for example, is relatively healthy with plenty of vegetables, smoking is widespread, and fast food chains have expanded, bringing with them ice cream and chocolates not native to the local scene. Health foods currently make up 5% of food products sold in Asia, far below the rest of the world, but flaxseed, wheat germ and soy-based products are part of a $20bn market. Besides health foods, supplements (including vitamins and protein mixes) totaled $14bn in Asia in 2006 (not including Japan).

Asian health food products are often quite different than mainstream ones in the West, including root powders (ginseng), herbal teas and variations of chicken soup, a staple of Chinese herbal medicine. Cerebos Pacific, maker of bottled Essence of Chicken, had a 33% growth in profits over the last four years. Another growth area is healthy beverages. Coca-Cola has launched a new bottled spring water in Japan and grew the product line in Hong Kong with preserved almond, jujube and pear flavors. PepsiCo has brought its SoBe line to Asia, and is selling fortified teas, fruit drinks and energy drinks in India. Nestle has introduced its probiotic yogurts, and Tata Tea (India’s leading tea and coffee company, and purchasers of A&P’s Eight O’Clock Coffee brand), now has a line of cold drinks with tea, fruit and ginseng.

Ingredient makers are doing well there, too. American ginseng has long been prized by Chinese consumers, and the Almond Board of California has seen sales grow 24% in the past four years (to $485MM) by stressing the anti-oxidants and protein contained in its nuts.

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