Our Market

The pharmaceutical industry is one of the fastest growing industrial segments in China. New technologies are continually being developed and introduced. New political and regulatory decisions are being made regarding pharmaceutical manufacturing. China shows every indication of becoming one of the world's largest pharmaceutical markets by the middle of the twenty-first century. As a result, the Chinese market presents an enormous opportunity for both domestic and foreign drug manufacturers alike.

The Chinese OTC market is among the fastest growing global OTC markets and was estimated to be approximately US$2.3 billion in 2000 with a population of 1.4 billion. It is also the world's second largest producer of pharmaceutical chemicals. OTC sales in China represent 10-15 percent of the total synthetic drug market (including imported, JV and domestic products). However, in selected urban centers, the OTC market represents approximately 30 percent. Some forecast that the world's average annual growth for OTC in the first decades of the 21st century will maintain 20 percent or above, with the fastest growth rates to be seen in East and Southeast Asia. Based on the high growth rates over the past decade, averaging at 20 percent a year, it is anticipated that Chinese OTC market will reach approximately US$5 billion in 2004, and US$ 7 billion in 2007. The drivers for this include the consumer’s increased confidence in self-medicating, the expansion of retail distribution through chain pharmacies and independent pharmacies, and legislation that supports off-budget sales of OTC products, while at the same time, reducing the retail prices for medications sold by prescription, tax reform increasing the tax deductible expenditure for advertising, improved distribution and supply chain management