On September 12th, the "2025 China (Jinan) Functional Food Development Conference and Industry Chain Expo" grandly kicked off at the Shandong Quehua International Convention and Exhibition Center. The conference, with the core theme of "Healthy China, Nourishing the World", attracted more than 300 domestic and foreign enterprises and more than 120 scientific research institutions to participate, showcasing technological breakthroughs and innovative achievements in the field of functional food. 47 cooperation projects were signed on site, with a total amount of over 8 billion yuan.
The scale of China's functional food market has exceeded 600 billion yuan, with an annual growth rate of over 15%, but problems such as product homogenization and weak functional verification still need to be solved, "said Wang Dongyang, a researcher at the Institute of Food and Nutrition Development of the Ministry of Agriculture and Rural Affairs, in his keynote speech. The "2025 China Functional Food Industry White Paper" released at the conference shows that by 2024, the per capita consumption of functional food in China will only be one-third of that of developed countries. Among them, the demand for "intestinal health", "anti fatigue", and "beauty and skincare" products is growing the fastest, with an annual growth rate of over 20%.
This conference has specially established a "Industry University Research Integration Zone", where research institutions such as Jiangnan University and the Chinese Academy of Agricultural Sciences have reached 18 technical cooperation agreements with enterprises such as Wahaha and Tonson Health, covering key areas such as probiotic screening and natural active ingredient extraction.
Innovative Product Cluster: From Oral Diaphragm to Cooling Fruit Stick, Reconstructing Consumer Scenarios
At the expo, a variety of functional foods that break traditional forms have attracted attention. The red ginseng oral dissolution film brought by Zhengguanzhuang is made of traditional red ginseng concentrated solution into a thin film like cicada wings, which can dissolve in just 30 seconds upon entry, solving the pain points of bitter taste and inconvenient consumption of traditional red ginseng. This product is designed for the workplace population, without the need for water delivery, and can replenish vitality anytime, anywhere. "The brand leader introduced that the product's sales exceeded 5 million pieces in the first three months of launch, with a repurchase rate of 42%.
The yogurt flavored EPA beverage exhibited by Nissui Company in Japan has transformed the originally greasy fish oil ingredients into a sweet and sour drink, containing 200 milligrams of EPA per 100 milliliters and specially added oligosaccharides to improve taste. The on-site experience has received over 90% positive feedback. The cold dispelling fruit stick launched by domestic enterprises is more creative, using ginger and red dates as the core ingredients, combined with apple puree to blend flavors, and adopting independent packaging design, becoming a must-have "warming snack" for female consumers in winter. Currently, it has reached distribution cooperation with multiple convenience stores.
Functional foods are transitioning from 'supplements' to' daily snacks', and innovation in form is the key to breaking through. "Yang Yuexin, Vice Chairman of the Chinese Nutrition Society, said that consumers' demand for" natural ingredients, "" convenient to consume, "and" good taste "accounts for 78%, 65%, and 62% respectively, forcing companies to restructure their product logic.
Technological transformation accelerates: probiotics and plant extracts become research and development hotspots
The explosion of functional foods cannot be separated from the support of underlying technology. At the "Functional Ingredient Innovation Forum" held concurrently with the conference, Jiangnan University's "Targeted Cultivation Technology for Highly Active Probiotics" sparked heated discussions. This technology improves the survival rate of probiotics from the traditional 30% to over 90% by optimizing the fermentation process, and can tolerate stomach acid and bile, directly reaching the intestine to exert its effects. At present, the technology has been authorized to a dairy company for the production of a new generation of probiotic yogurt, and the product is expected to be launched next month.
The "Efficient Extraction Technology of Lycium barbarum Polysaccharides" developed by the Chinese Academy of Agricultural Sciences has also achieved a breakthrough in industrialization. The team adopted the "ultrasound assisted enzymatic hydrolysis" process to increase the extraction rate of Lycium barbarum polysaccharides from the traditional 25% to 48%, reducing production costs by 35%. The goji berry functional beverage produced based on this technology has entered more than 2000 supermarkets nationwide, with sales exceeding 30 million yuan in the first month of its launch.
In addition to upgrading traditional ingredients, the application of cutting-edge ingredients is also accelerating. The "Glutathione Sandwich Candy" launched by a certain biotechnology company uses glutathione extracted from natural yeast as the core ingredient, combined with vitamin C to promote absorption, and focuses on the concept of "oral beauty". Third party testing shows that continuous use for 4 weeks can reduce skin melanin content by 12%. The product sold out immediately on e-commerce platforms.
Capital increase: The hundred billion dollar track welcomes an investment boom
The rapid development of industries has attracted capital intensive layouts. According to data disclosed during the conference, in the first half of 2025, there were 36 financing events in the domestic functional food sector, with financing amounts exceeding 4.5 billion yuan, an increase of 64% and 80% year-on-year, respectively. Among them, startups focused on probiotics and natural plant extracts are the most favored.
The founder of a probiotic company that has just completed a billion yuan Series A financing stated, "Capital is not only focused on the product, but also on the technical barriers and clinical data behind it. We have completed 8 human clinical trials to prove the effectiveness of the product in improving sleep and regulating blood sugar, which is the key to obtaining financing
With the upgrading of consumption and the improvement of health awareness, functional foods will enter a golden age of 'technology driven, scenario segmented'. Wang Dongyang predicts that in the next three years, the market size of functional foods in China will exceed one trillion yuan, and enterprises with core technologies and precise matching of consumer needs will dominate. Domestic functional foods are expected to occupy more market share in the global market.