Tradeshows play a pivotal role in developing an industry and giving it a platform to reach its clients and consumers. The U.S. has by far the most developed tradeshows for dietary supplements and natural products. For example, shows like Natural Products Expo East and West and Natural Market Place, as well as ingredient expos like Supplyside East and West have contributed to the overall growth and development of the U.S. dietary supplement industry and have helped the U.S. remain the largest market for dietary supplements in the world.

But expanding to new markets is essential for the continued growth of any company and no market has gained more attention than the People’s Republic of China. The dietary supplement industry in China is growing at an average rate of 8% per year, and it currently ranks fourth behind the U.S., EU and Japan in sales of dietary supplements, which total approximately at $6.4 billion. Chinese consumers with expendable income total close to 300 million and they are extremely interested in purchasing U.S. products. Furthermore, increased wages and the appreciation of China’s currency have given consumers the ability to purchase a variety of U.S. goods, including dietary supplements.

However, China’s regulatory system with regard to dietary supplements is not, shall we say, very welcoming. Fear not, the Natural Products Association (NPA) has an office in Beijing that works very closely with the U.S. and Chinese governments to assist companies in navigating market entry hurdles. Among NPA’s China initiatives are regulatory advocacy, supply chain quality assurance programs, web communications and tradeshow development. The latter aspect is crucial to the spreading of information, products and education to the China market.
Currently, there are well over 100 shows in China with the words “Health,” “Organic” or “Herbal” in the title. To date, however, there is not a single tradeshow exclusively catering to dietary supplements. In order to have a successful show, organizers are forced to allow all facets of the health industry to exhibit. For example, common products seen at shows include traditional Chinese medicine, pharmaceuticals and OTCs, medical devices, medical supplies, organic tea, rice, oil and alcohols, water filtration systems, adult toys, ingredient companies, travel companies, massage companies and dietary supplements. Dietary supplements are listed last because they make up a small percentage of the products at these shows. The supplement companies that do exhibit are mostly domestic or are from neighboring Asian countries.

At this point, the market for health expos is still in its infancy, but many organizations realize the potential of China’s natural product market and are hosting events in hopes of further expanding the industry. This is the reason there are hundreds of shows with health-related themes. All these organizers are eager to be one of the shows that make it through the developmental stages. However, most of these events will probably fall by the wayside to make room for the more developed shows.

Even though shows are still developing, China’s dietary supplement market is rapidly growing, so it is imperative for U.S. companies that are interested in the market to make plans to visit. Scheduling a visit based around an expo is a great idea. A tradeshow visit will certainly provide a broad overview of the market environment and also allow visiting companies to meet with potential partners. What follows is a list of shows that could serve as a focal point for a visit.

Expo Asia. New Hope Natural Media runs the annual “Expo Asia” show, which is held in Hong Kong and has been running since 2002. Although Hong Kong is politically part of China, it must be said that the regulations and entry steps for dietary supplements are not the same as Mainland China. Hong Kong has its own distinct set of regulations and market intricacies. For those who have attended a New Hope Expo in the U.S., the look and feel is very similar, just on a smaller scale.

Here you will find more foreign companies participating, including a decent contingency of North American companies compared with the foreign participation in mainland shows. Expo Asia’s general manager, Yvonne Chang, discussed some of the present consumer issues in China. “Food safety and global health issues have remained the common concern of consumers in Mainland China, Hong Kong and Taiwan,” she said. “As a result, dietary supplements and organic products continue to gain interest and acceptance among the region’s consumers.”

During the past six years, Ms. Chang said there has been a tremendous increase in visitors. “The number of buyers grew from 4000 from 20 countries in 2002 to 10,084 from 48 countries in 2008,” she said.

The 2009 show is scheduled for August 27-29, at the Hong Kong Exhibition and Convention Centre. For U.S. companies, this show boasts an added benefit: Expo Asia has been endorsed by the U.S. Department of Commerce (U.S. DOC) since its inception. This recognition was given to New Hope and Expo Asia for its experience in supporting companies’ business efforts in the region. U.S. DOC commercial officers from the Hong Kong Consulate are always available to facilitate export endeavors as well as manage the largest country pavilion. For the 2009 show, it is expected the U.S. pavilion will house up to 50 U.S. companies.

Healthplex 2010. Although there are hundreds of expos in Mainland China related to the health industry, there are only two worth noting for future development. The first is organized by China Chamber of Commerce for Import and Export of Medicines and Health Products (CCCMHPIE). The show is called Healthplex and it began in 2006. The show was cancelled in 2009 due to the global downturn, but it is on the books for 2010.

Deputy director of the Chamber’s Exhibition Department, Ms. Kou Meng Jun, is confident in the show’s future. She explained, “CCCMHPIE is directly under China’s Ministry of Commerce, has the background of health products, acknowledgement of the industry, international trade and understands market conditions.” Director Kou also mentioned that Healthplex is structured to support foreign companies’ efforts to find partners and customers while attending the show through matchmaking activities. A date and venue has not yet been set for Healthplex 2010.

International Healthcare Products Exhibition. The other expo that continues to improve is the International Healthcare Products Exhibition, which is organized by the China Health Care Association (CHCA) and its partner Reed SinoPharm. This year marks the expo’s 9th year and the Natural Products Association is working to bring a group of U.S. dietary supplement companies to the show, which is scheduled for September 9-11 in Beijing, China. Last year the event was held in Guangzhou, China, and it attracted more than 300 exhibitors and close to 8000 visitors.

Make Some Travel Plans

All of the shows described have the right management behind them and increasing expertise to become the future “must attend” for those companies interested in the China market. They all offer a wide range of educational seminars featuring industry experts and regional government officials. Further, the organizers encourage and actively seek foreign exhibitors and visitors to attend, so many session topics are designed with foreign exporters in mind.

The Natural Products Association has supported all three shows during the past few years and will continue to do so because it believes its members should have a platform in China to promote their products and influence the market.