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Traditional Chinese Medicine Manufacturing in China Industry Data and Analysis
Chinese skepticism surrounding Western medicine's effectiveness has led to the rising popularity of traditional Chinese medicine, which is considered to be less toxic and to have fewer side effects. Patients are increasingly choosing traditional Chinese medicine as their primary medicinal treatment. Additionally, China's aging population and rising health consciousness are contributing to higher industry demand.Along with the Healthy China strategy, medical and healthcare system reforms have continued. The Traditional Chinese Medicine Manufacturing industry's revenue is expected to increase an annualized 8.0% over the five years through 2025. Industry revenue has recovered since the COVID-19 pandemic outbreak, and is expected to increase 5.0% in 2025, to $41.0 billion.Traditional Chinese medicine pills are the main product used in traditional Chinese medicine clinics and are also important components of Chinese patent drugs. The top four industry participants, TongRenTang, China TCM, Kangmei, and Taloph, account for a combined share of 10.0% of total industry revenue in 2025, indicating low market share concentration. The industry includes many small-scale enterprises. As the industry matures, some smaller companies will likely struggle to remain viable, and more competitive manufacturers will gain an increasing market share, pushing up concentration.The Chinese Government has strongly focused on the Traditional Chinese Medicine Manufacturing industry, and will continue to issue standards and specifications to increase its global competitiveness. Industry revenue is forecast to grow an annualized 5.0% over the five years through 2030, to total $52.2 billion.
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What's included in this industry analysis
IBISWorld's research coverage on the Traditional Chinese Medicine Manufacturing 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 Traditional Chinese Medicine Manufacturing industry in China operates under the industry code 2730. The Traditional Chinese Medicine Manufacturing industry in China produces herbal, animal-based and mineral-based Chinese medicine and extracts. Related terms covered in the Traditional Chinese Medicine Manufacturing industry in China include gmp (good manufacturing practice), otc (over the counter), good selling practice (gsp) and concentrated tcm granules.
What's included in this industry?
Products and services covered in Traditional Chinese Medicine Manufacturing industry in China include Herbal traditional Chinese medicine, Animal-based traditional Chinese medicine and Mineral-based traditional Chinese medicine .
What companies are included in this industry?
Companies covered in the Traditional Chinese Medicine Manufacturing industry in China include Beijing TongRenTang Co., Ltd., China Traditional Chinese Medicine Holdings Co., Ltd. and Kangmei Pharmaceutical 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 Traditional Chinese Medicine Manufacturing 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 product and service segmentation, analysis of major markets and international trade data for the for the Traditional Chinese Medicine Manufacturing 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 Traditional Chinese Medicine Manufacturing 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 Traditional Chinese Medicine Manufacturing 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 Traditional Chinese Medicine Manufacturing 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 Traditional Chinese Medicine Manufacturing 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 Traditional Chinese Medicine Manufacturing 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 Traditional Chinese Medicine Manufacturing industry in China.
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Frequently Asked Questions
What is the market size of the Traditional Chinese Medicine Manufacturing industry in China in 2026?
The market size of the Traditional Chinese Medicine Manufacturing industry in China is $41.0bn in 2026.
How many businesses are there in the Traditional Chinese Medicine Manufacturing industry in China in 2025?
There are 1,533 businesses in the Traditional Chinese Medicine Manufacturing industry in China, which has grown at a CAGR of 2.0 % between 2020 and 2025.
How may import tariffs affect the Traditional Chinese Medicine Manufacturing industry in China?
The Traditional Chinese Medicine Manufacturing 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 Traditional Chinese Medicine Manufacturing industry in China?
The Traditional Chinese Medicine Manufacturing industry in China is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Traditional Chinese Medicine Manufacturing industry in China grown or declined over the past 5 years?
The market size of the Traditional Chinese Medicine Manufacturing industry in China has been growing at a CAGR of 8.0 % between 2020 and 2025.
What is the forecast growth of the Traditional Chinese Medicine Manufacturing industry in China over the next 5 years?
Over the next five years, the Traditional Chinese Medicine Manufacturing industry in China is expected to grow.
What are the biggest companies in the Traditional Chinese Medicine Manufacturing industry in China?
The biggest companies operating in the Traditional Chinese Medicine Manufacturing industry in China are Beijing TongRenTang Co., Ltd., China Traditional Chinese Medicine Holdings Co., Ltd. and Kangmei Pharmaceutical Co., Ltd.
What does the Traditional Chinese Medicine Manufacturing industry in China include?
Herbal traditional Chinese medicine and Animal-based traditional Chinese medicine are part of the Traditional Chinese Medicine Manufacturing industry in China.
Which companies have the highest market share in the Traditional Chinese Medicine Manufacturing industry in China?
The company holding the most market share in the Traditional Chinese Medicine Manufacturing industry in China is Beijing TongRenTang Co., Ltd..
How competitive is the Traditional Chinese Medicine Manufacturing industry in China?
The level of competition is high and increasing in the Traditional Chinese Medicine Manufacturing industry in China.
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