OTC Pharmaceuticals & Pharmacy Retailing in China 2010: A Market Analysis

Access Asia
July 9, 2010
125 Pages - SKU: ACS2735071
License type:
Countries covered: China

This new report covers the retail market for western drugs, traditional Chinese medicines, vitamins, minerals & supplements, and other pharmaceutical products sold through the retail channel in China, and the drugstore market.

KEY REPORT FEATURES

This new report includes:
  • Total and sectoral retail sales of OTC pharmaceuticals to 2009.
  • Pharmacy retail industry network and sales data to 2009.
  • Ranking of leading drugs producers by sector to 2009.
  • Prices on selected pharmaceuticals products 2010.
  • Forecast sectoral and total sales of OTC pharmaceuticals to 2014.
  • Imports and exports of OTC pharmaceuticals to 2009.
  • Size of the pharmacy market by store numbers to 2009.
  • Ranking of the Top-25 pharmacies in China to 2009.
  • Market forecasts to 2014.
  • Current issues including latest six financial quarters’ key retailer developments.
  • Key background consumer market data to 2009.
  • Profiles of 15 of the leading pharmacy retailers and drugs manufacturers in China, with financial and network data to 2009.
  • Key demographic data, including detailed age group and by habitation and province.



Additional Information

Executive Summary

China has a large and fast-growing OTC pharmaceuticals industry. The total OTC pharmaceuticals retail market increased to RMB72.02bn in 2009, and the market is expected to surpass RMB100bn by 2013. Retail sales value of OTC drugs expanded by 102% between 2003 and 2009.

Increasing public awareness about health care and the importance of self-medication as well as the rapid rise in urban living standards and growing disposable income levels are combining to allow for the increased purchase of OTC pharmaceuticals and consequently propelling growth in the market.

China’s USD 124bn healthcare reform, announced in April 2009, will boost demand for pharmaceutical products ranging from generic drugs to medical equipment. The long-term implication of the healthcare reform on the OTC pharmaceuticals retail market and the pharmacy retailing market is still too early to tell.

However, anecdotal evidence has suggested a 40-60% decline in store traffic in some of the drugstores located in places that have implemented the healthcare reform. As part of the healthcare reform, essential drugs are to be sold at government hospitals at wholesale prices.

Drugstores will benefit immensely from the healthcare reform only when there is a clear separation of drug dispensing and prescribing. In the meantime, drugstores are looking at ways to improve their thinning margins. Some have turned to the internet and some to private label. Most of them are now selling other non-pharmaceutical products such as personal care, family care and convenience products.

The weakness of retail prices, caused by intense competition, continues to put pressure on retailer’s margins, forcing them to consolidate further.

Consolidation is being hampered by the low barrier of entry into this sector. As it is easy for new entrants to come into the market, the country is seeing an oversupply of drugstores. In Guangzhou alone, there is one drugstore for every 1,500 people. As the market share of the top 10 drugstore chains remains low, no chains will be dominating the pharmacy market for the foreseeable future.

In 2009, the drugs retail market stood at RMB136bn, up 119% over 2003. The drugs retail market is expected to grow by 56% in constant value terms between 2010 and 2015.

More China Drug Stores Reports

Health and Beauty Specialist Retailers in China by Euromonitor International
Health and beauty specialist retailers continued to see double-digit current value growth in 2011 compared with 2010, thanks to strong demand for health and beauty ...

Pharmacies and Drug Retailers in China by IBISWorld
Pharmacies and Drug Retailers in China Establishments in the industry retail drugs, both western medicine and traditional Chinese medicine, fill prescriptions, retail products for birth control ...

Drug Stores and Health and Beauty Stores in China: Market Snapshot to 2015 by iCD Research
ICD Research's Drug Stores and Health and Beauty Stores in China: Market Snapshot to 2015 is the easiest way to find the headline figures for ...

Personal Care Retailing in China: Market Snapshot to 2015 by iCD Research
ICD Research's Personal Care Retailing in China: Market Snapshot to 2015 is the easiest way to find the headline figures for the category. The report ...

Drug Stores and Health and Beauty Stores (including Pharmacies) in China by Datamonitor
Introduction Datamonitor's retail databooks are based on key market value data for eight major product sectors, 16 core retail distribution channels and 62 countries. This profile ...

See all reports like this >>

More China Reports

D&B Country RiskLine Report: China by Dun & Bradstreet Inc.
This D&B Country RiskLine Report will help you analyze the risks, opportunities and likely payment delays when doing business in this country. It includes ...

Country Report China February 2011 by Economist Intelligence Unit
Country Reports analyse political and economic trends in featured countries. They show you exactly how national, regional and global events will affect your business in ...

Country Report China January 2011 by Economist Intelligence Unit
Country Reports analyse political and economic trends in featured countries. They show you exactly how national, regional and global events will affect your business in ...

D&B Country Report: China by Dun & Bradstreet Inc.
D&B Country Report. Comprehensive information for evaluating risks and opportunities when trading or investing in this country. Providing critical information and analysis on ...

Juice – China – a snapshot (2010) by Mintel - Snapshots
Juice in China by Mintel Global Market Navigator provides you with annual year-end market size data, most recently updated in 2010. The report covers packaged ...

See all reports like this >>