Nestlé and PepsiCo are capitalising on local beliefs in the effectiveness of traditional folk medicine in a bid to capitalise on growing health concerns among Asian consumers.

Five of Nestlé's most promising lines are already being tested in China.In total, Nestlé is to invest $500 million (€370m; £314m) globally over the coming decade on health foods.

One of the company's ongoing clinical trials involves a mulberry yogurt for diabetics that supposedly aids the digestion of glucose. Other traditional healing ingredients being considered include wolfberry plants, chrysanthemum leaves and tremella, a fungus commonly thought to help improve the skin, strengthen bones and control weight. Once it has completed the two-year trial period, Nestlé will be free to market its health food to pharmacies and hospitals.

Patrice Bula, chairman of Nestlé China, said: "We believe that Chinese are looking at food for their well-being, and we have an opportunity to play a bigger role in that."

As part of a $2.5 billion (€1.9bn; £1.6bn) expansion into Asia over the next three years, PepsiCo is also looking to traditional medicine to help create a new range of products. Products already launched by the firm include wolfberry and tremella-flavoured Quaker Herbal Oatmeal, and a range of herbal teas.

Data sourced from Financial Times