Traditional Chinese herbal tea producer Guangzhou Wanglaoji Pharmaceutical Co Ltd announced plans to work with the United States-based science and technology major DuPont to launch probiotic products－which have bacteria and yeast that are good for health, especially the digestive system, to tap growing market demand.
A probiotic drink mix has been launched, which uses ingredients from DuPont, according to Zheng Rongbo, deputy general manager of Wanglaoji. The two companies will cooperate in areas of research, supply chains and market promotions and sales.
"Launching the probiotic drink mix will help diversify our products, as the market for probiotic products is growing very fast in China," Zheng said. The probiotic products will mainly target children under 12 years old, the company said.
DuPont's research shows that live probiotics provide health benefits when consumed, improving digestion and strengthening the immune system.
Zheng said China's demand for probiotic products would expand rapidly in the years to come, with the market size set to grow to nearly 85 billion yuan ($12.34 billion) in 2020.
"It will mean more growth for Wanglaoji, as we make efforts to tap the greater health industry."
Zheng said the probiotic drink mix will be available before the second half of the year on e-commerce platforms and in supermarkets especially designed for mothers and babies.
The booming demand for probiotic products has drawn a growing number of startups in the Pearl River Delta in southern China to invest in the industry.
Chen Hangzhou, general manager of Shenzhen Yibaifen Biological Technology Co Ltd, said the company's self-developed probiotic products are mainly sold online.
"Young people, especially housewives, are keen on shopping online. We launched a sales model to help them make money on social internet networks, which is less costly and more effective in reaching potential customers," Chen said.
The Shenzhen-based company, founded in 2016, is engaged in research and development and the sale of probiotic drink mixes on mobile devices.
"More people have developed a taste for using probiotic products to improve the digestive system and we will launch more product varieties to meet the growing demand," Chen said.
He said the company had developed an online sales team of more than 3,000 retailers, with sales reaching nearly 100 million yuan in 2016.