Summary of Key Points
Japan's beer giant Kirin has shifted its focus to acquiring health and wellness companies (such as Ojiaobao, Fangke, and Jianmeisheng) due to the shrinking domestic beer market (young people avoiding alcohol consumption and an aging population). The health and wellness business has become a pillar of the company's rapid growth. Meanwhile, global consumer goods giants (such as Procter & Gamble, Danone, and Unilever) are also actively acquiring these companies, marking the third wave of mergers and acquisitions in the industry. The Chinese health and wellness market is characterized by strong capabilities in raw materials but weak brand recognition. With stricter regulations, future acquisitions will focus on combining "technology, raw materials, and supply chains."
I. Beer Giant Kirin's Transition to Health and Wellness: Not a Lack of Focus, but a Necessity
Kirin traditionally relied on beer for its profits, but Japanese young people are now adopting a trend of "intentionally not drinking alcohol" (Sober Curious), and the aging population and declining population mean that the Japanese beer market is expected to shrink by 90% by 2050 compared to its peak in 1994. From 2024 to 2025, Kirin's beer business growth rate dropped from 2.3% to 0.4%, with even negative growth in the beverage segment.
To survive, Kirin has invested heavily in health and wellness, spending over 27 billion yuan in acquiring Ojiaobao, Fangke, and Jianmeisheng in just under three years. This move paid off: the health and wellness business saw a 69.6% growth rate in 2024 and continued to grow by 43.4% in 2025, generating its first profit and accounting for 10.3% of total revenue. The company aims to make this business one of its three main pillars by 2035, alongside beer and pharmaceuticals.
II. Global Consumer Goods Giants Racing to Acquire Health and Wellness Companies: Seeking New Growth Opportunities
In the past two years, global consumer goods giants have been actively acquiring health and wellness companies:
- In August 2026, Procter & Gamble spent $3.8 billion on Envision (a clinical nutrition company), Kirin spent C$1.89 billion on Jianmeisheng, and the Raman Group acquired an enzyme preparation company.
- Danone bought the British meal replacement brand Huel and the Australian MADE Group; Unilever acquired the gummy supplement brand Grüns (valued at $1.2 billion despite being only 32 months old).
Why? Their existing businesses are experiencing weak growth, so they need new sources of revenue. The brands they acquire must meet two key criteria: scientific credibility (e.g., Envision's partnership with Mayo Clinic or being designated as a brand for North American sports teams) and user data (e.g., Grüns' subscription-based model). The valuation of these brands has also changed, with sales volume becoming a more important factor than profit margins. For example, Procter & Gamble paid six times the annual sales amount for Envision, which is five and a half times higher than three years ago.
III. Three Phases of the Health and Wellness M&A Wave: From Acquiring Brands to Acquiring Technology
The global health and wellness M&A market has gone through three phases:
1. First Phase (2006-2011): Food and pharmaceutical giants entered the special medical food sector
Companies like Nestle acquired Novartis Medical Nutrition, and Danone acquired Nutricia, focusing on medical nutrition products for hospitals.
2. Second Phase (2015-2018): Chinese capital invested in foreign brands
Companies such as Synbiotics acquired Swisse, Tongchen Health acquired Life-Space, and Xiwang Food acquired Kerr, using the credibility of these foreign brands to boost their domestic markets. At that time, cross-border e-commerce policies were more relaxed, allowing foreign health products to be sold without additional restrictions.
3. Third Phase (Current): Global consumer goods giants are acquiring brands with technology and data
The buyers have shifted from Chinese manufacturers to giants like Procter & Gamble and Unilever. The focus of acquisitions has moved from brand credibility to scientific backing and user data, as well as integration with the buyers' own strengths (e.g., Kirin using fermentation technology).
IV. The Chinese Health and Wellness Market: Strong in Raw Materials, Weak in Brands; Regulation is Tightening
The Chinese health and wellness market has a dual nature:
- Upstream raw materials are thriving: In the first half of 2026, synthetic biology companies raised nearly 4 billion yuan (e.g., Weiyuan Synthesis raised 1.5 billion yuan) to develop high-tech raw materials such as strains and fermentation processes.
- Downstream brands are focused on marketing: Brand owners prioritize marketing over research and development; for example, Xizi Health spends dozens of times more on marketing than on R&D, while Tongchen Health's R&D investment is only 1.43%. They outsource R&D to upstream companies and rely on marketing and conceptual packaging to sell their products, sometimes making claims that suggest their products can cure diseases.
Regulations are becoming stricter:
- In 2026, it was required that health claims for bone and joint health products must be supported by animal and human trials.
- Cross-border e-commerce barriers have increased (full ingredient declaration, negative lists).
- The Two Sessions recommended that foreign and domestic brands be regulated under the same standards. Consumers will gradually realize that health products are food supplements, not miracle cures.
V. Future Trends in Chinese M&A: Technology, Raw Materials, and Supply Chains
China will not follow the U.S. model of M&A but will adopt a new approach focusing on "new technologies (synthetic biology), new raw materials (such as ergothioneine and NMN), and new supply chains":
- Yuanda Pharmaceutical acquired a synthetic biology company to obtain amino acid technology.
- Aipu Co., Ltd. bought a Dutch fish oil supplier to enter the health and wellness industry's upstream supply chain.
- Dong'e Ejiao acquired companies that provide deer antler and cistanche raw materials to ensure a stable supply chain.
- Ruoyuchen acquired an American skincare brand and obtained exclusive rights to Norwegian anti-aging ingredients, combining both brands and raw materials.
In the future, local giants are likely to acquire companies with patented technologies, popular products, and international customers (such as Newbond and Weiyuan Synthesis).
Conclusion
Kirin's transition to health and wellness is not accidental; global consumer trends have shifted towards a greater emphasis on health. The Chinese health and wellness market is moving from being driven by marketing to being driven by technology. Tighter regulations and industry upgrades will make the sector more standardized. For consumers, this will result in more reliable and scientifically backed health products, rather than those promoted through excessive advertising.