Market prospect
The pharmaceutical market will exceed 2 trillion yuan
China has become the second largest global pharmaceutical consumer market after the United States. In 2014, the size of China's pharmaceutical market exceeded 1.1 trillion yuan, and by 2019 it had reached around 1.64 trillion yuan. It is expected to reach around 2.13 trillion yuan by 2023.
Financing for the healthcare industry has doubled in growth
From 37.1 billion yuan in 2015 to 162.7 billion yuan in 2020, the number and scale of financing have doubled in just five years. The continuous expansion of investment and financing scale symbolizes the market's optimistic expectations for the pharmaceutical industry, especially since 2018, there has been a significant increase in financing scale.
Huge potential market space
The proportion of total health expenses to China's GDP continues to increase, from 4.9% in 2010 to 6.6% in 2019. At the same time, the scale of China's health expenditure is also constantly expanding. However, there is still a significant gap between this proportion and developed countries such as the United States (17%), Germany (11.7%), and the United Kingdom (10.3%), and there is great potential for the Chinese pharmaceutical market.
Market driving force
Strong support from national policies
By improving medical insurance payment standards and drug bidding and procurement mechanisms, we support the development and use of high-quality generic drugs, and promote the substitution of generic drugs; Enhance the accessibility of medical services and collaborate to promote supply side reform of medical services.
Deepening of healthcare system reform
The reform of China's medical and health system has been carried out through comprehensive deepening of public hospital reform, improving the hierarchical diagnosis and treatment system, optimizing the layout of medical and health resources, effectively improving the coverage of medical and health services, and reducing treatment costs.
Aging drives demand growth
The main data of the 7th National Population Census shows that the population aged 60 and above is 264.02 million, accounting for 18.70%, indicating a clear trend of aging population in China. The large elderly population is another important consumer group for drug consumption.
Reform of drug registration system
China has established a relatively complete pharmaceutical innovation ecosystem, and some local enterprises have increased their investment in research and development from 10% to 20%. The contribution rate of Chinese innovation to the world is constantly increasing.
