Full-Scale Local Production and Sales in China
Pioneering the Nutrition Bar Market
Both Bars and Beverages Achieve Sensational Success
Continuous Expansion of the Dr. You Brand Lineup
[Asia Economy, reporter Lee Seonae] Orion has made a bold move into the "protein health functional food" market. The company aims to achieve record-breaking performance by leveraging the growth of its protein health functional food brand, Dr. You. In particular, Orion plans to significantly scale up Dr. You in the Chinese market, which represents its largest business segment.
Full-Scale Production and Sales of Dr. You in China
According to Orion Group on November 18, Orion officially launched the Dr. You brand in the Chinese market this past July and began full-scale local production and sales of the "Dr. You Protein Bar" (Chinese name: Dr. You Protein Nut Bar ‘蛋白?果棒’) and the "Dr. You Energy Bar" (Chinese name: Dr. You Energy Nut Bar ‘能量?果棒’) through its Chinese subsidiary.
The reason Orion is focusing so heavily on growing Dr. You in the Chinese market, compared to other overseas markets, is because of the significant market growth potential and the high level of business activity there. Based on third-quarter results, Orion’s consolidated sales amounted to 597.4 billion KRW, with China accounting for 306.2 billion KRW. This means that China represents 51.2% of the company’s total business sales, surpassing half of the overall figure. The robust growth of the Chinese subsidiary is supporting Orion’s overall performance, and the main driver behind the record-breaking third-quarter results was the Chinese subsidiary’s year-on-year sales and operating profit increases of 14.4% and 1.6%, respectively.
Health consciousness is high in China, and due to the impact of COVID-19 this year, consumer demand for nutritious and healthy products has increased even further. An Orion representative stated, “Given the current market situation, we were confident in the potential for the Dr. You brand to succeed and decided to launch these products. The Dr. You Energy Bar and Protein Bar are among the most anticipated releases from Orion China in the second half of the year, and Orion’s Chinese business is pioneering a new segment in nutrition bars, beyond the existing categories of pies, snacks, biscuits, and candies (gum, jelly).”
Orion plans to target the Chinese nutrition bar market by combining its accumulated technological expertise, product quality, and taste with the local marketing and sales know-how of its Chinese subsidiary. Recently, Orion showcased the Dr. You Protein Bar (Dr. You Protein Nut Bar) and Dr. You Energy Bar (Dr. You Energy Nut Bar) at the 3rd China International Import Expo (CIIE) held at the National Exhibition and Convention Center in Shanghai. This was part of an effort to broaden sales channels and reach more consumers, with a "delicious festival" themed booth that allowed visitors to experience the products firsthand, receiving a positive response. An Orion spokesperson emphasized, “Currently, our Chinese subsidiary is expanding shelf space and product displays by extending into third- and fourth-tier TT channels. We expect the Dr. You brand to further expand its consumer touchpoints as well.”
Expanding into the Protein Beverage Market
In April last year, Orion launched the "Dr. You Protein Bar," which features enhanced protein content, in the domestic market. The product became a sensation, surpassing cumulative sales of 20 million units in just a year and a half. A single 50g Dr. You Protein Bar provides a strong sense of satiety and offers a convenient 12g of protein-equivalent to the amount found in two eggs. In the food industry, a new product is generally considered a hit if it generates monthly sales of over 1 billion KRW. Orion’s protein bar has been praised for its successful market entry, aligning well with the "dumbbell economy" trend.
Building on the popularity of the Dr. You Protein Bar, Orion expanded its product lineup in September last year by launching the "Dr. You Protein Bar Mini." This product targets consumers who want to control their protein intake while engaging in home training or fitness, or who prefer to conveniently stock up on products, and it has received a positive response.
To further strengthen its product competitiveness, Orion expanded from bar products to beverage (drink) products. The "Dr. You Drink Protein," introduced as the first RTD (Ready To Drink) product in June last year, achieved cumulative sales of 2.9 billion KRW and 2.6 million bottles within just four months of its launch, demonstrating strong popularity. The product uses high-quality "milk protein" and provides 12g of protein-equivalent to two eggs and containing 18 types of amino acids-making it a convenient and nutritious option.
Building on this success, Orion launched "Dr. You Drink Vitamin" last month, a product that meets 100% of the daily nutritional value for seven types of vitamins in a single bottle. Dr. You Drink Vitamin contains 100% of the daily value for seven vitamins-B1, B2, B3 (niacin), B5 (pantothenic acid), B6, C, and E-in each bottle. Following its protein and vitamin offerings, Orion plans to continue expanding the Dr. You brand lineup by introducing drink products enhanced with essential nutrients for Koreans.
An Orion spokesperson commented, “Protein-enhanced foods, which were previously popular mainly among heavy exercise users, are now becoming mainstream as interest in health and immunity grows due to factors such as COVID-19. The key to Dr. You’s success lies in its excellent taste and nutrition, as well as its outstanding accessibility through convenience stores, large supermarkets, and e-commerce channels.” The spokesperson added, “With consumers increasingly seeking health, nutrition, and convenience, we expect continued growth for protein products. Orion will actively leverage the health-focused Dr. You brand to expand its lineup from Korea to China.”
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