Review of Hot Spots of Special Food Industry in China in 2023

In 2023, China’s special food industry showed a good development trend, new functions of health food were released, and the policy "combination boxing" dividend continued; The number of special medical foods approved has reached a new high, and favorable policies such as tariff reduction have met the needs of special people; Measures for the registration and management of infant formula milk powder were issued to encourage R&D and innovation in the industry; New regulations have been issued for standard management, and the standard governance system has been improved day by day … Recently, Xinhuanet and China Nutrition and Health Food Association launched "Review of Hot Spots of Special Food Industry in China in 2023", which reflects the development of this year’s industry from many angles.

Hot spot 1. The new functions of health food are released, and the policy "combination boxing" bonus continues.

On August 28th, the General Administration of Market Supervision issued the Detailed Rules for the Implementation of Technical Evaluation of New Functions and Products of Health Food (for Trial Implementation), which will be implemented as of the date of promulgation. The detailed rules are an important measure to reform the previous management mode of functional claim evaluation of health food in China, lead industrial innovation with institutional innovation, bring new opportunities for new product development of enterprises, and accelerate the pace of overall innovation of the industry. On August 31, the General Administration of Market Supervision, the State Health and Wellness Commission and the State Administration of Traditional Chinese Medicine issued the announcement of the Catalogue of Non-nutrient Supplements for Health Care Functions (2023 Edition) and its supporting documents. The announcement will further standardize the management of health function claims, implement the main responsibility of enterprise health function claims and R&D evaluation, and realize the scientific and dynamic management of health function catalogue.

On June 14th, the General Administration of Market Supervision, the State Health and Wellness Commission and the State Administration of Traditional Chinese Medicine issued Nutrition Supplement for Health Food Raw Materials Catalogue (2023 Edition), Nutrition Supplement for Health Food Functional Catalogue (2023 Edition), Soy Protein Isolate for Health Food Raw Materials Catalogue and Whey Protein for Health Food Raw Materials Catalogue, which will take effect on October 1st, 2023. The further expansion of raw material catalogue and functional catalogue provides more choices for enterprises to carry out product filing. The matching interpretation document of soybean protein isolate and whey protein in the raw material catalogue makes it clear that soybean protein isolate and whey protein can be used as raw materials alone, or they can be used in combination, or they can be used in combination with nutrients listed in the raw material catalogue of nutritional supplements for health food. The expansion of the health food filing catalogue and the first permission for compounding mean that the filing products will be more abundant.

On December 22nd, the General Administration of Market Supervision issued "Guidelines for Labeling Standards of Health Food". The contents of health food labeling framework, graphic proportion, printing color requirements, etc. were clarified to guide health food producers and operators to further standardize the labeling of health food labels, correctly guide consumption, and create a fair and orderly market order.

Hot spot 2. The number of approved special medical foods has reached a new high, and favorable policies such as tariff reduction have met the needs of special people.

As of December 31st, a total of 70 special medical foods were approved in China, including 2 imported products and 68 domestic products, and the number of approved foods reached a record high. Since the implementation of the registration management of special medical foods on July 1, 2016, the state has approved 164 products, including 48 infant formulas, 53 total nutrition formulas, 62 non-total nutrition formulas and 1 specific total nutrition formula.

On December 3, the General Administration of Market Supervision revised and promulgated the Measures for the Administration of Registration of Formulated Foods for Special Medical Use, which will take effect on January 1, 2024. In addition to continuing to emphasize the safety supervision of special medical foods, the measures also explicitly encourage R&D and innovation to meet clinical needs, and give priority to the review of special medical foods such as rare disease categories, clinically urgently needed and unapproved new categories. This method will further improve the research and development efficiency of enterprises and promote the listing of new products such as rare diseases and clinical urgent needs.

During the year, Shandong Province and Guizhou Province successively promulgated the management measures for medical institutions to operate and use special medical food. According to statistics, since Tianjin issued the application guidelines for medical institutions to use special medical food prescriptions in May 2016, 13 provincial and 6 municipal administrative departments have successively issued management measures for the operation and use of special medical food, including Tianjin, Hebei, Jilin, Heilongjiang, Shanghai, Jiangsu, Anhui, Shandong, Henan, Hubei, Hainan, Sichuan, Guizhou and other provinces and cities, as well as Nanjing, Jinan, Xuzhou and Taizhou.

On December 20th, the State Council Customs Tariff Commission issued the Announcement on Tariff Adjustment Scheme in 2024, which will be implemented on January 1st, 2024. Among them, the import tariff of special medical food was adjusted to zero, the import tariff of infant formula milk powder was reduced to 5%, the import tariff of fish oil soft capsules was reduced to 6%, and the import tariff of other infant foods was reduced to 2%. This will help to increase the supply of imported products and meet the needs of special people in China for such products.

Hot spot three, the measures for the registration and management of infant formula milk powder were released to encourage industry research and development innovation.

On July 10th, the General Administration of Market Supervision revised and issued the Measures for the Administration of Formula Registration of Infant Formula Milk Powder Products, which will take effect on October 1st, 2023. The new version of the registration management measures implements the "four strictest" requirements, further tightens the requirements for product formula registration in combination with industry development and registration management practice, ensures product quality and safety, encourages enterprises to develop and innovate, and continuously improves the quality of infant formula milk powder. The measures stipulate the application and registration procedures, labels and instructions, supervision and management, legal responsibilities and other aspects for enterprises planning to produce, sell and import infant formula milk powder in China.

Infant formula milk powder is a special food related to the happiness of hundreds of millions of families and the future of the country and the nation. According to statistics, by the end of 2023, about 134 new national standard formula products were sold and circulated in China. The introduction of the measures will help enterprises to intensify R&D and innovation, improve the quality of infant formula milk powder, further improve the formula registration management of infant formula milk powder, ensure the safety of infant "rations" and help the high-quality development of the industry.

Hot spot 4: 74 kinds of "three new foods" such as breast milk oligosaccharides were approved, and 9 kinds of substances such as codonopsis pilosula were included in the list of food and drug substances, providing more raw material choices for enterprise production.

In 2023, the National Health and Wellness Commission approved 74 kinds of "three new foods". The most concerned is the Announcement on 15 "Three New Foods" such as Peach Gum, which officially approved 2′- fucosyl lactose and lactose -N- neotetraose in breast milk oligosaccharides as food nutrition fortifiers, which can be applied to infant formula food, prepared milk powder (for children) and infant formula food for special medical purposes.

On November 17th, the National Health and Wellness Commission and the General Administration of Market Supervision jointly issued the "Announcement on 9 new substances that are both traditional Chinese medicines and food", which included 9 substances such as Codonopsis pilosula, Cistanche deserticola (desert), Dendrobium candidum, American ginseng, Astragalus membranaceus, Ganoderma lucidum, Cornus officinalis, Gastrodia elata and Eucommia ulmoides leaves in the list of substances that are both traditional Chinese medicines and food. The inclusion of nine substances in the catalogue is the first addition since the implementation of the "Regulations on the Catalogue of Substances that are Traditionally Food and Chinese Herbal Medicine" in 2021, which is of great significance for enriching food sources and promoting the development of health industry.

On November 26th, the National Health and Wellness Commission and the General Administration of Market Supervision jointly issued the Announcement on the Management of Amino Acids in foods for special dietary uses. It is clear that more than 20 kinds of amino acids in national food safety standards such as infant formula food, infant formula food for special medical use and sports nutrition food are managed as food nutrition fortifiers. The announcement will further standardize the use and management of amino acids in foods for special dietary uses, promote the high-quality development of related food industries in China, and especially promote the research and development of special medical foods for rare diseases with amino acids as protein sources, so as to better meet the needs of patients.

Hot spot 5. New regulations on standard management are introduced, and the standard governance system is improving day by day.

On August 18th, the National Standardization Administration Committee issued the Interim Provisions on the Standards of Recommended National Standards Adoption Groups, which will come into force as of the date of promulgation. This regulation has established a channel for advanced applicable group standards to be transformed into national standards, which will effectively promote the popularization and application of innovation achievements of group standards, increase the supply of recommended national standards, and improve the quality level of national standards.

On August 31st, the General Administration of Market Supervision promulgated the Measures for Promoting Enterprise Standardization, which will take effect on January 1st, 2024. This method will create a better environment for enterprise standardization and stimulate the endogenous motivation of enterprise standardization.

On November 28th, the General Administration of Market Supervision revised and promulgated the Measures for the Administration of Industry Standards, which will take effect on June 1st, 2024. This method focuses on the transformation of government functions, promotes standardization reform and innovation, strengthens the coordination of standards, provides normative support for breaking industry monopoly and market restrictions, and leads and supports the process of building a unified national market with standardization work.

On November 29th, the National Health and Wellness Commission promulgated the Measures for the Administration of Food Safety Standards, which will take effect on December 1st, 2023. This method is a revision of the 2010 version of the document, which clarifies for the first time that food safety standards include national food safety standards and local food safety standards, and also clarifies job responsibilities, management of national standards, and filing of local standards.

Hot spot six, promoting development with scientific research and innovation as the engine, the special food industry has achieved fruitful results.

In 2023, China special food industry promoted industrial innovation with scientific and technological innovation, and achieved fruitful results. A bibliometric analysis article published in Precision Nutrition in September, 2023, through the research and analysis of 24,582 newly published nutrition-related papers in the world in the last year, the results show that China ranks second in both the number of papers and the cited frequency, and among the 10 most influential scholars, Professor Shi Hanping from Beijing Millennium Hospital affiliated to Capital Medical University ranks second.

Tomson Bianjian successfully submitted an application for a new function of health food "helping to maintain normal platelet aggregation function". The application was aimed at the clinical verification of the impact of blood flow health in China population and related mechanism research, and the research results were published in Journal of Functional Foods and Frontiers in Nutrition. Yili Group accurately determined the amino acid composition of breast milk in China for the first time, and the result was published in The Journal of Nutrition, which will contribute to the further research and innovation of infant formula milk powder in China. Mead Johnson China released the research result that the infant formula rich in milk fat globules and lactoferrin before the age of 12 months improved the neurodevelopmental outcome at the age of 5.5 years. The study adopted a double-blind randomized controlled clinical method, and the result was published in The Journal of Pediatrics.

Danone launched the AI golden poop decoder in China. The research lasted for three years. Through the decoder applet, professional advice on intestinal self-protection can be given only by taking photos and AI neural network identification. The breast milk oligosaccharides developed by Mengniu Dairy, DSM-Fenmeiyi and International Flavors and Fragrances Company have passed the approval of the National Health and Wellness Commission, among which all three companies have obtained the approval of 2′- fucosyl lactose, and DSM-Fenmeiyi has also obtained the approval of lactose -N- neotetrasaccharide.

Hot spot 7. Special food enterprises actively act to promote the high-quality development of the industry.

In terms of improving the toughness of the industrial chain supply chain, Feihe built the first automatic production line of lactoferrin in the industry and obtained the production license, realizing the extraction, protection and localization of lactoferrin. The demonstration line of industrial production of probiotics, a national key research and development plan jointly undertaken by Aoyou Dairy and Jiangnan University, was officially put into production, which has important demonstration significance for the layout of the whole industrial chain of probiotics in China.

In the practice of social responsibility, Amway Company released the annual sustainable development report, released the carbon neutrality roadmap, and promised to achieve carbon neutrality in 2038. Eight protein powder products were announced to achieve carbon neutrality in the whole line, and obtained the certification of zero-carbon protein powder products in China, contributing to sustainable development. Chen Yusong, the founder and honorary chairman of Zhenao Shuangdi, and Gu Runjin, the chairman of Perfect (China), were awarded the honorary title of "Healthy China 2022 Industry Person of the Year" by the Organizing Committee of Healthy China, which is an affirmation of the contribution of Chinese health food entrepreneurs.

The eighth and second special food industry events were held in Jinan and Wenzhou respectively.

China Nutrition and Health Food Association held the 7th and 8th China Special Food Congress from March 22nd to 25th and November 15th to 17th respectively. The two conferences held 42 events, including 19 academicians, 12 ministerial leaders, more than 100 heads of relevant departments such as the Ministry of Industry and Information Technology, the National Health and Wellness Commission and the General Administration of Market Supervision, more than 300 industry experts and more than 200 industry business leaders. More than 4,600 representatives attended the two conferences respectively.

China Special Food Conference is an important platform for industry policy interpretation, information exchange, industry interaction, international cooperation, trend research and results release, and an important annual activity of special food industry. At the two conferences, relevant government departments publicized policies and regulations in the fields of health food, special medical food and infant formula milk powder. Academicians and experts conducted in-depth discussions on the latest research results, technological breakthroughs and innovation trends, and business leaders fully exchanged views on industrial development. The conference released seven achievements, such as Expert Suggestions on Individualized Nutrition Development and Dictionary of Special Foods in China, initiated three studies, such as Quality Management Standards for Clinical Trials of Food Nutrition (Group Standard) and Scientific Feeding Guidance for Infants in China, signed six cooperation framework agreements, and held four government-enterprise cooperation docking activities, which effectively promoted the development of special food industry in Jinan and Wenzhou. The successful holding of the China Special Food Conference has established confidence in development, stimulated the vitality of innovation and creation, and promoted the healthy, standardized and sustainable development of the special food industry.

Hot spot 9. The new national standard of infant formula milk powder was implemented, and the market transition was stable. The work "For Children", the evaluation and registration work of infant formula milk powder, was commended by the Working Committee of the State Central Organ.

The new national standard for infant formula milk powder was officially implemented in February this year. According to the regulations, only products registered by the new national standard formula can be imported or produced and sold in China. The implementation of the new national standard will force the market competition to turn to quality competition and promote the industry to develop to high quality.

The evaluation and registration of infant formula milk powder in China was carried out in strict accordance with national standards, which ensured the supply of infant rations. In the alternation of old and new standards, a set of standardized procedures for evaluation and registration of infant formula milk powder in line with China’s national conditions was explored, which met the market demand while strictly controlling the quality.

Focusing on the registration, acceptance, review and verification of infant formula milk powder, the work "For Children" filmed by the Food Review Center of the General Administration of Market Supervision was selected as the activity of "Starting from Me–the Tour of Spiritual Civilization Construction of Central and State Organs" and won the "Hundred Excellent Works" award. In 2023, it coincides with the 30th anniversary of the establishment of the Food Review Center. In the past 30 years, the Center has been committed to promoting the high-quality development of food review, continuously improving the ability and level of food safety technical support and food safety supervision, and helping the healthy development of the special food industry.