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Pharmacies & Drugstores in China Industry Data and Analysis
Revenue for the Pharmacies and Drugstores industry is expected to grow an annualized 9.4% over the five years through 2024. In 2024, industry revenue is expected to grow 8.5% to $116.3 billion. Many factors have supported the industry's development, including substantial growth in the domestic demand for drugs retailed by drugstores, relatively higher drug prices in hospitals and consumers' increased ability to self-medicate. Additionally, China's accession to the World Trade Organization in December 2001 and the subsequent foreign investment input have boosted industry growth. Government support for chain drug retailing development has also positively affected the industry.Drugstores are at the very end of the distribution chain of drugs, and distributors at the top of the chain tend to obtain most of the profit. Therefore, the industry tends to have low profitability. In 2024, profit is expected to account for only 4.0% of industry revenue. Low profit is also due to increasing competition among retailers.The industry currently does not hold a dominant position in drug and pharmaceutical distribution in China. Over 70% of China's medicines and drugs are distributed or retailed through hospitals, which derive more income from selling drugs than from providing medical services. Upcoming healthcare reforms are expected to include changes to hospital's income sources towards a focus on medical care provision rather than drug retailing. As a result, the industry's share of the drug retailing market will likely expand, supporting future revenue growth. Industry revenue is forecast to grow an annualized 5.4% over the five years through 2029, to total $151.1 billion.
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What's included in this industry analysis
IBISWorld's research coverage on the Pharmacies & Drugstores industry in China includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released May 2025.
About this industry
What's this industry report about?
The Pharmacies & Drugstores industry in China operates under the industry code 6551. The Pharmacies and Drugstores industry in China retails both western medicine and traditional Chinese medicine, products for birth control and sexual healthcare, and other personal and pharmaceutical products. Related terms covered in the Pharmacies & Drugstores industry in China include good supply practice (gsp), fair-price drugstores and drug supermarkets.
What's included in this industry?
Products and services covered in Pharmacies & Drugstores industry in China include Prescription drugs, Over-the-counter drugs and Sexual healthcare products.
What companies are included in this industry?
Companies covered in the Pharmacies & Drugstores industry in China include Sinopharm Holding Guoda Pharmacy Co., Ltd., DaShenLin Pharmaceutical Group Co., Ltd. and Yifeng Pharmacy Chain Co., Ltd.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Pharmacies & Drugstores industry in China.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Pharmacies & Drugstores industry in China.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Pharmacies & Drugstores industry in China.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Pharmacies & Drugstores industry in China. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Pharmacies & Drugstores industry in China. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Pharmacies & Drugstores industry in China. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Pharmacies & Drugstores industry in China. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Pharmacies & Drugstores industry in China.
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Frequently Asked Questions
What is the market size of the Pharmacies & Drugstores industry in China in 2026?
The market size of the Pharmacies & Drugstores industry in China is $116.3bn in 2026.
How many businesses are there in the Pharmacies & Drugstores industry in China in 2025?
There are 292k businesses in the Pharmacies & Drugstores industry in China, which has grown at a CAGR of 3.7 % between 2020 and 2025.
How may import tariffs affect the Pharmacies & Drugstores industry in China?
The Pharmacies & Drugstores industry in China is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Pharmacies & Drugstores industry in China?
The Pharmacies & Drugstores industry in China is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Pharmacies & Drugstores industry in China grown or declined over the past 5 years?
The market size of the Pharmacies & Drugstores industry in China has been growing at a CAGR of 9.4 % between 2020 and 2025.
What is the forecast growth of the Pharmacies & Drugstores industry in China over the next 5 years?
Over the next five years, the Pharmacies & Drugstores industry in China is expected to grow.
What are the biggest companies in the Pharmacies & Drugstores industry in China?
The biggest companies operating in the Pharmacies & Drugstores industry in China are Sinopharm Holding Guoda Pharmacy Co., Ltd., DaShenLin Pharmaceutical Group Co., Ltd. and Yifeng Pharmacy Chain Co., Ltd.
What does the Pharmacies & Drugstores industry in China include?
Prescription drugs and Over-the-counter drugs are part of the Pharmacies & Drugstores industry in China.
Which companies have the highest market share in the Pharmacies & Drugstores industry in China?
The company holding the most market share in the Pharmacies & Drugstores industry in China is Sinopharm Holding Guoda Pharmacy Co., Ltd..
How competitive is the Pharmacies & Drugstores industry in China?
The level of competition is high and increasing in the Pharmacies & Drugstores industry in China.
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