China Food For Special Medical Purpose Market Size, Share & Trends Analysis Report By Route Of Administration (Oral, Enteral), By Product (Pills, Powder, Liquid), By Application, By Modules, By Sales Channel, And Segment Forecasts, 2025 - 2030

Market Size & Trends

The China food for special medical purpose market size was estimated at USD 2.27 billion in 2024 and is expected to grow at a CAGR of 6.58% from 2025 to 2030. The growth is attributed to the aging population, increasing prevalence of chronic diseases, rising malnutrition rates, and supportive regulatory frameworks. These factors contribute to the expanding demand for specialized nutritional products tailored to meet the unique needs of various patient groups. For instance, in July 2022, Nestlé introduced China's first food for special medical purpose (FSMP) specifically designed for patients with tumor-related conditions, following a five-year approval process by Chinese regulatory authorities.

The rising prevalence of chronic diseases such as hypertension, diabetes, and cancer is another significant driver. These conditions often lead to complications such as malnutrition and weight loss, increasing the need for specialized nutritional interventions. FSMPs formulated to support individuals with chronic illnesses help manage symptoms, improve quality of life, and reduce healthcare costs associated with malnutrition and related complications.

The Chinese government maintained the regulatory framework for Foods for Special Medical Purposes (FSMPs), with growing advocacy for future reimbursement coverage. The regulatory oversight for FSMPs is managed by the National Medical Products Administration (NMPA), formerly the China Food and Drug Administration (CFDA), facilitating product approvals and supporting market growth. As of September 2024, China had 206 registered FSMPs; of these, 174 are domestically produced, while 32 are imported, with domestically produced products significantly outnumbering imported ones. Among the approved products, 153 are powdered, and the remaining 53 are liquid.

List of a few approved domestic FSMP

A total of 66 FSMP products were approved for registration in 2024, originating from 17 different provinces and regions across China. Jiangsu, Shandong, and Heilongjiang emerged as the top three contributors, with 21, 10, and 6 approvals, respectively. These figures represent 32%, 15%, and 9% of the total registrations for the year.

Below is the list of company received approval for FSMP products as of 2024:

The COVID-19 pandemic impacted China’s FSMP market by accelerating the demand for clinical nutrition products amid increased health awareness and medical needs. During the pandemic, the focus on patient care for vulnerable populations, such as those with chronic illnesses or compromised immunity, increased the reliance on specialized nutritional support to aid recovery and improve health outcomes. Several sectors faced economic downturns and cautious consumer spending, and healthcare and nutrition-related industries, including FSMP, saw growing attention due to their critical role in disease management and prevention. In addition, the pandemic expedited digital transformation and modernization in China’s healthcare system, facilitating better distribution, remote consultations, and awareness of FSMP products. The challenges, such as disrupted supply chains and regulatory adjustments, influenced market dynamics. Overall, COVID-19 catalyzed increased clinical nutrition adoption in China, setting the stage for sustained growth in the FSMP market as part of the country’s broader healthcare recovery and modernization efforts.

Market Concentration & Characteristics

The China FSMP market showed a high degree of innovation, driven by the need to meet diverse clinical nutrition requirements and comply with evolving regulatory standards. For instance, in October 2024, 14 new FSMP products were approved in the third quarter, including novel complete nutrition formulas and electrolyte products, illustrating ongoing product variety and functionality innovation. The push for ready-to-drink and infant-specific FSMPs highlights innovation responding to market demands and clinical evidence. 

The market shows a medium level of M&A activity, as domestic players seek to strengthen their portfolios and local manufacturing capabilities. M&A deals are less frequent than innovation-driven product launches, partnerships, and joint ventures, which are common to navigate the complex regulatory landscape and accelerate market entry.

The regulatory impact on the China FSMP market is high and critical in shaping market dynamics. In December 2023, China’s State Administration for Market Regulation (SAMR) implemented a major regulatory change through the newly introduced Measures for the Administration of the Registration of Formula Foods for Special Medical Purposes (referred to as the ‘revised measures’), replacing the 2016 version of the Administrative Measures for FSMP registration. These regulatory updates require companies to invest heavily in R&D, compliance testing, and packaging redesigns, significantly influencing product development cycles and market access strategies. 

Product substitution in the China FSMP market is at a low level, primarily due to the specialized nature of FSMP products and the lack of direct alternatives. FSMPs are formulated to address unique medical and dietary needs under clinical supervision, making them hard to replace with regular foods or supplements. The limited availability of FSMP products for rare diseases and amino acid metabolic disorders led some patients to rely on imported products, resulting in partial substitution. In September 2023, the CFSA’s recent draft on Amino Acid Management, which outlines using 22 amino acids in FSMPs, is expected to reduce the scarcity of specialized products, encouraging domestic production and reducing dependence on imports, minimizing substitution risks.

Route of Administration Insights

The oral segment dominated the market with the largest revenue share of 65.93% in 2024 and is anticipated to grow at the fastest CAGR over the forecast period, due to its convenience, affordability, and ease of administration. Oral nutrition products, such as protein shakes and meal replacements, are increasingly used by individuals with malnutrition, chronic illnesses, or post-surgery recovery needs. The rise in the elderly population, along with growing awareness of chronic conditions like diabetes and cancer, drives demand for oral FSMPs. In addition, the preference for at-home care solutions and products that require minimal preparation has driven growth in this segment, making it the preferred choice for many consumers in China. 

The enteral route of administration is expected to witness significant growth over the forecast years. The demand for enteral feeding formulas is rising due to the increasing prevalence of chronic diseases such as cancer and cardiovascular diseases, which result in various metabolic issues, leading to difficulty in consuming food during the treatment of these diseases. In critically ill patients, providing nutrition is essential to prevent exacerbation of undernutrition and wasting of lean body mass, as patients are in a catabolic state due to the inflammatory response of the system.

Product Insights

The powder segment held the largest revenue share in 2024. Medical foods are most widely available in powder form, which can be administered through the oral route or enteral route by mixing with milk or water, as advised by the physician. Medical foods in the powdered formula are suitable for patients of all age groups, especially in the oral route. Owing to a high preference for powdered formulations due to ease of consumption, manufacturers are developing product categories in line with consumer preferences. For instance, in January 2022, Danone launched Souvenaid, a powder version of a medical nutrition drink to support memory function in the early stages of Alzheimer's disease.

The liquid segment is expected to grow at the fastest CAGR over the forecast period. Liquid formulations are adopted by patients who are clinically diagnosed with dysphagia or when oral physiology is limited. In addition, these formulations are highly adopted by pediatric and geriatric populations when the intake of solid formulations is limited or impossible. The increasing commercial viability of these products and rising adoption due to ease of administration are driving segment growth. Moreover, doctors recommend the intake of liquid-formulated food to patients suffering from functional gastrointestinal disorders, and a rise in the number of such patients is fueling segment growth. Furthermore, liquid-formulated food helps maintain sufficient hydration and electrolyte balance, favoring segment growth.

Application Insights

Cancer application dominated the market with the largest revenue share in 2024. According to the National Centre for Biotechnology Information (NCBI) estimates for 2024, China is projected to record approximately 3.25 million new cancer cases in men and 2.51 million in women. Cancer weakens immunity and leads to malnutrition in 40% to 80% of cases. Thus, medical food administration is an effective option for restoring the nutritional balance in malnourished patients. Hence, the demand for medical foods in cancer treatments will increase over the forecast period.

The cachexia segment is anticipated to grow over the forecast period, driven by the rising incidence of cancer and other chronic diseases. Cachexia, characterized by severe weight loss and muscle wasting, affects a significant portion of cancer patients, leading to increased mortality and reduced quality of life. The growing recognition of cachexia's impact on patient outcomes is driving the demand for specialized nutritional interventions in China.

Modules Insights

Protein module held the largest revenue share in 2024, driven by the increasing prevalence of malnutrition, sarcopenia, and chronic diseases among the aging population. As dietary protein intake declines with age, specialized protein-based FSMPs are essential for maintaining muscle mass, immune function, and overall health. According to a researcher from the Chinese Center for Disease Control and Prevention (CDC), companies should consider incorporating additional protein fortification when creating new Foods for Special Medical Purposes (FSMP) for the elderly, given the decline in their protein intake. These innovations cater to hospitalized and home care patients, addressing specific nutritional needs and enhancing patient outcomes. 

Hypoallergenic module is the fastest-growing segment, driven by the rising prevalence of food allergies, particularly among infants. According to the meta-analysis in 2022, cow's milk allergy prevalence in Chinese children was estimated at 1.5% (95% CI: 1.0%-2.3%). The overall prevalence of food allergy in Chinese children was 6.2% (95% CI: 5.1%-7.5%). In response, companies developed extensively hydrolyzed formulas (eHFs) to reduce allergenicity. For instance, Althéra and Alfaré, by Nestlé Health Science, are lactose-containing and lactose-free eHFs tailored to meet the nutritional needs of Chinese infants with CMPA. These innovations highlight the sector's commitment to addressing specific dietary needs, driving market growth and competition.

Sales Channel Insights

Direct-to-consumer (DTC) sales channels held the largest market share in 2024 and are expected to grow at the fastest CAGR during the forecast period. DTC sales emerged as a significant channel within the medical foods market, providing opportunities for manufacturers to engage directly with consumers and tailor their offerings to meet specific health needs. DTC sales in the medical foods sector allow companies to bypass traditional retail channels and establish a direct relationship with end users. This model grew due to its ability to provide personalized customer experiences and foster brand loyalty. By leveraging online platforms, companies offer detailed product information, educational resources, and tailored recommendations based on individual health conditions.

Institutional sales are expected to grow significantly over the forecast period. The segment's growth is driven by increasing recommendations from doctors to use medical foods. Institutions that purchase medical foods include hospitals, long-term care centers, hospices, clinics, and disability facilities. Since the consumption of medical foods is recommended under medical supervision, the revenue generated through institutional sales is the highest. In addition, training programs for healthcare professionals on the benefits of medical foods enhance their adoption within institutions. As awareness grows among clinicians about the efficacy of these products in improving patient outcomes, institutional sales are expected to witness significant growth.

Key China Food for Special Medical Purpose Companies Insights

Key players operating in the China food for special medical purpose (FSMP) market are undertaking various initiatives to strengthen their presence and increase the reach of their products and services. Strategies such as expansion activities and partnerships are key in propelling the market growth.

Recent Developments

• In November 2023, Danone launched its first medical nutrition product, Fortimel, for adults in China, categorized under foods for special medical purposes. This launch is a crucial component of Danone's strategy in China, aimed at utilizing its scientific expertise across all life stages and promoting the growth of the adult medical nutrition segment.

“Pioneering patient-centric medical nutrition solutions is at the heart of our strategy for specialized nutrition. This innovation marks a key milestone in our strategic ambition to accelerate in adult medical nutrition. It combines our 125-year legacy and scientific expertise in medical nutrition with our understanding of the Chinese healthcare ecosystem to bring new solutions that support the health and recovery of Chinese patients.”

- Jean-Marc Magnaudet, President, Specialized Nutrition at Danone. 

• In July 2022, Nestle introduced its first FSMP product intended for patients suffering from tumour-related conditions in China. The product is named Oral Impact Su Yi Su, containing top-formulated ingredients.

China Food For Special Medical Purpose (FSMP) Market Report Scope

China Food For Special Medical Purpose Market Report Segmentation

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the China food for special medical purpose (FSMP) market report based on route of administration, product, application, modules, and sales channel.

• Route of Administration Outlook (Revenue, USD Million, 2018 - 2030)

  • Oral

  • Enteral

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Pills

  • Powder

  • Liquid

  • Others (semisolid, semiliquid)

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Chronic Kidney Disease

  • Minimal Hepatic Encephalopathy

  • Chemotherapy Induced Diarrhea

  • Pathogen Related Infections

  • Diabetic Neuropathy

  • ADHD

  • Depression

  • Alzheimer's Disease

  • Nutritional Deficiency

  • Orphan Diseases

    • Tyrosinemia

    • Eosinophilic Esophagitis

    • Food Protein Module-induced enterocolitis syndrome (Food Protein Module-induced enterocolitis syndrome (FPIES))

    • Phenylketonuria (PKU)

    • Maple syrup urine disease (Maple syrup urine disease (MSUD))

    • Homocystinuria

    • Others (Urea Cycle Disorder (UCD), Glycogen Storage Disease (GSD), etc.)

  • Wound Healing

  • Chronic Diarrhea

  • Constipation Relief

  • Protein Booster

  • Dysphagia

  • Pain Management

  • Parkinson's Disease

  • Epilepsy

  • Other Cancer related treatments

  • Severe Protein Allergy

  • Cancer

  • Cachexia

  • Other (debilitating conditions, COPD, etc.)

• Modules Outlook (Revenue, USD Million, 2018 - 2030)

  • Amino Acid Module

  • Protein Module

  • Vitamin & Mineral Modules

  • Fatty Acid based Modules

  • Carbohydrate Modules

  • Fiber Modules

  • Ketogenic Modules

  • Peptide based Modules

  • Hypoallergic Modules

  • Others (Electrolyte Module, etc.)

• Sales Channel Outlook (Revenue, USD Million, 2018 - 2030)

  • DTC Sales Channel

    • Online Sales

    • Retail Sales

  • Institutional Sales

    • Hospitals

    • Others (Long-term Care Facilities, etc.)