Pharmaceutical Manufacturing in China - Market Research Report (2014-2029)
Beijing, China
Last Updated: May 2024
2720Revenue
$191.7bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
725k
Businesses
1,632
Wages
$XX.Xbn
Pharmaceutical Manufacturing in China industry analysis
Revenue for the Pharmaceutical Manufacturing industry is expected to grow at an annualized 1.6% over the five years through 2023, to total $191.7 billion, up 3.2% from 2022. The COVID-19 outbreak contributed to growth in domestic demand for medicine and medical supplies, benefiting the development of the Pharmaceutical Manufacturing industry. The industry's profitability has decreased from 13.7% of industry revenue in 2018 to 13.4% in 2023. An estimated 1,632 industry enterprises operate in 2023, employing about 724,877 people, with a total wage cost of $12.6 billion.Hospitals are currently the main distribution channel for the medicine produced by the industry. However, upcoming healthcare reforms are anticipated to enable drugstores to become the major distribution channel in the near future. In the past, many consumers could not afford to purchase medicine or see a doctor.The Government in China will continue to implement policies to restrict and decrease medicine prices, and accelerate urban and rural residents' work insurance relating to a serious illness, improve rural residents' insurance demand, and allow more consumers to purchase medicine when required. As a result, industry revenue is forecast to increase at an annualized 2.5% over the five years through 2028, total $217.1 billion.Though domestic demand for basic and high-quality pharmaceutical products is anticipated to grow substantially, imports will increase slowly due to domestic substitution. Many patents for pharmaceutical and medicine products will expire over the next five years. Instead of importing these pharmaceuticals, domestic companies will be able to manufacture them at a lower cost and sell them at a lower price in the domestic market.
Trends and Insights
- Multiple factors drive growing market demand for pharmaceutical preparation products. Increasing number of employees receiving basic medical insurance and acceleration of population aging contribute to increasing demand for pharmaceutical preparation products.
- The industry has multiple categories of products. The industry products mainly include anti-infective drugs, cardiovascular system drugs, anti-tumor and cancer drugs, digestive system drugs and nervous system drugs, etc.
- The industry activities are mainly concentrated in Jiangsu, Shandong, Guangdong and Beijing. Each of these provinces has a strong economy, strong R&D investment and a convenient geographic location.
- The industry concentration level is low. The sales revenue of the top four enterprises are expected to account for 5.7% of total industry revenue in 2023.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 1.6 % over the past five years, to reach an estimated $191.7bn in 2024.
Trends and Insights
Multiple factors drive growing market demand for pharmaceutical preparation products
- As of 2022, the number of employees receiving basic medical insurance increased to 362.4 million. The continuous improvement of medical insurance level and the increase in medical and health expenditure will promote growing medical consumption, thereby driving the market demand for pharmaceutical preparation products.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The industry enterprises are expected to accelerate research and development capabilities of innovative drugs
- In January 2022, the 14th Five-Year Plan for the Development of the Pharmaceutical Industry was issued, proposing that the pharmaceutical industry will continue to increase innovation investment and accelerate innovation driven transformation, and the proportion of newly added sales of innovative products in the industry's revenue growth will further increase by 2025.
Biggest companies in the Pharmaceutical Manufacturing in China
| Company | Market Share (%)
2023 | Revenue ($short_0)
2023 |
|---|
There are no companies that hold a large enough market share in the Pharmaceutical Manufacturing in China industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Anti-infective drugs, Anti-tumor and cancer drugs and Nervous system drugs. Anti-infective drugs is the largest segment of the Pharmaceutical Manufacturing in China.
Trends and Insights
Anti-infective drug segment has increased in recent years
- Anti-infective drugs refer to various antibiotics, sulfonamides, and other chemically synthesized drugs that have the ability to kill or inhibit various pathogenic microorganisms and can be administered orally, intramuscularly or intravenously for systemic use.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Biological and Biochemical Product Manufacturing in China
- Pharmacies & Drugstores in China
- Medical Research in China
- General Hospitals in China
- Health Clinics in China
International industries
- There are no industries to display.
Table of Contents
About this industry
Industry definition
The industry primarily manufactures chemical medicinal and pharmaceutical products in various formats, including ampoules, tablets, capsules, vials, ointments, powders, solutions, suspensions and radioactive medicine. These products are then sold through pharmacies or used in hospitals. Biological and veterinary medicine products are not included in the industry.
What's included in this industry?
Anti-infective drugsAnti-tumor and cancer drugsNervous system drugsCardiovascular system drugsDigestive system drugsOther drugsCompanies
Purchase this report to view all major companies in this industry.
Related Terms
OVER-THE-COUNTER (OTC)ANTINEOPLASTIC DRUGSGOOD MANUFACTURING PRACTICE (GMP)Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Multiple factors drive growing market demand for pharmaceutical preparation products. Increasing number of employees receiving basic medical insurance and acceleration of pop...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The industry has multiple categories of products. The industry products mainly include anti-infective drugs, cardiovascular system drugs, anti-tumor and cancer drugs, digesti...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The industry activities are mainly concentrated in Jiangsu, Shandong, Guangdong and Beijing. Each of these provinces has a strong economy, strong R&D investment and a conveni...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The industry concentration level is low. The sales revenue of the top four enterprises are expected to account for 5.7% of total industry revenue in 2023.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Major companies usually emphasize research and development. Major companies usually have been increasing technology research and development investment and developing new pro...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Government in China guides the industry development. The Government in China encourages the industry enterprises to increase research and development investment to promot...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
The national centralized procurement of drugs promotes decreasing industry profitability. In 2023, the industry profitability is expected to decrease to 13.4%, down from 13.7...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in China include:
- National Bureau of Statistics China
- General Administration of Customs
- People’s Bank of China
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Pharmaceutical Manufacturing industry in China in 2024?
The market size of the Pharmaceutical Manufacturing industry in China is $191.7bn in 2024.
How many businesses are there in the Pharmaceutical Manufacturing in China industry in 2024?
There are 1,632 businesses in the Pharmaceutical Manufacturing industry in China, which has grown at a CAGR of 0.8 % between 2019 and 2024.
Has the Pharmaceutical Manufacturing industry in China grown or declined over the past 5 years?
The market size of the Pharmaceutical Manufacturing industry in China has been growing at a CAGR of 1.6 % between 2019 and 2024.
What is the forecast growth of the Pharmaceutical Manufacturing industry in China over the next 5 years?
Over the next five years, the Pharmaceutical Manufacturing industry in China is expected to grow.
What does the Pharmaceutical Manufacturing in China include?
Anti-infective drugs and Anti-tumor and cancer drugs are part of the Pharmaceutical Manufacturing industry.
How competitive is the Pharmaceutical Manufacturing industry in China?
The level of competition is high and increasing in the Pharmaceutical Manufacturing industry in China.
