Over the past three years, with the impact of the COVID-19 pandemic, there has been a continuous increase in people’s focus on health issues. Against this backdrop, there has been rapid growth in global demand for nutrition and health-related products, leading to the flourishing of the overall health and wellness industry. The Southeast Asian region has consistently maintained a high level of GDP growth, and its health supplement market holds tremendous potential.
The rise of health supplements
As e-commerce gains momentum, the online health supplement market in Southeast Asia is becoming increasingly active. According to reports, in June 2023, six countries including Thailand, Vietnam, Singapore, the Philippines, Indonesia, and Malaysia achieved health supplement sales exceeding $1 billion on platforms like Shopee and Lazada. The sales volume surpassed 13 million units. Indonesia and Thailand claimed the highest market shares, with $36.42 million and $20.47 million, respectively, making up nearly 57% of the market share.
Probiotics in Thailand
Thailand, known as the “Asian Health Center,” is a country that has been early in developing health and medical tourism. As of 2022, the health supplement market in Thailand had exceeded $2.2 billion. Thailand not only produces local health supplements and herbal products but is also a popular market for international health supplement brands. The pursuit of health and beauty, especially among female consumers, has been a driving force behind the growth of the health supplement industry in the country.
Kalodata‘s findings show that a probiotic drink from South Korea, named “Woma’ Balance Pro+Prebiotics,” has been selling remarkably well in the TikTok Thailand market. This health supplement contains probiotics and prebiotics, which aid in promoting gut health and the immune system, improving digestion, and helping with weight management. The product is priced at approximately $15.47 per unit, and most users opt for a combination pack of 2 units. Within three months of being introduced to the market, the product generated a total sales volume of 76,900 units and a Gross Merchandise Value (GMV) of $1.49 million.
In the past 30 days alone, this product has achieved a sales volume of 23,100 units, with an estimated revenue of $357,000. It continues to experience growth and has been promoted by 344 key influencers, resulting in 1,211 promotional videos and 6,002 live streaming sessions.
The primary influencers promoting this product are women, with a focus on beauty and personal care, outdoor fitness, and health-related content. Some influencers frequently share daily favorites.
According to Kalodata‘s statistics, in terms of short video promotions, over the past 30 days, there have been a total of 4.3 million views, with an estimated conversion rate of 5.1‰ and an estimated GPM (Gross Merchandise Per Mille) as high as $98.90. Most of these promotional content pieces feature influencer endorsements, where they describe the changes they experienced in their bodies after using the probiotic product, discuss its benefits, and provide usage recommendations. For example, a 45-second influencer endorsement video created by @freshme_th received nearly 67,000 likes, with an estimated sales volume of 1,600 units and an estimated revenue of $24,500. Apart from the textual script, an influencer’s reputation plays a critical role in driving sales.
In terms of live streaming, there have been 344 influencers promoting this single product in the past 30 days, with a total of 6,002 live streaming sessions, resulting in over 8,400 units sold and an estimated revenue of $130,000.
Health product trends
Apart from probiotic drinks, the TikTok Shop in Thailand features various other popular health supplements, spanning different categories, including conventional vitamin supplements, antioxidant supplements, fiber supplements, as well as skin whitening capsules, fat-burning products, and traditional herbal supplements, among others.
According to data analysis, it is anticipated that the medical and healthcare market revenue in Thailand will reach $459.6 million in 2023, with a user penetration rate of 12.2%. The market size for 2023 is expected to reach $19.07 billion, with a significant portion of the revenue coming from China. Furthermore, the market is projected to continue growing, with an estimated user count of 11.4 million and a market penetration rate of 15.8% by 2027. The expected compound annual growth rate (CAGR) for revenue from 2023 to 2027 is 6.98%. It is estimated that the market size will reach $601.9 million by 2027, with an average revenue per user (ARPU) estimated to reach $52.70. However, while the market offers significant opportunities, businesses and brands need to contend with high entry barriers and intense competition. For Chinese nutritional and health supplement brands seeking to enter the Thai market, various testing reports such as FDA approval and the establishment and maintenance of brand reputation are essential considerations.
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