Skepticism about the effectiveness of Western medicine in China has led to the rising popularity of Chinese patent medicine, which is considered to be less toxic and have fewer side effects. Increasingly, patients are choosing traditional Chinese medicine as their primary treatment. As a result, demand for traditional Chinese patent medicine has been growing rapidly.Over the five years through 2018, revenue for the Chinese Patent Drug Manufacturing industry has been growing at an annualized rate of 5.8% to an estimated $118.1 billion. Over the period, the central government has also assisted the development of this industry by issuing many favorable policies that encourage the innovation and standardization of Traditional Chinese medicine (TCM)...purchase to read more.

Industry Statistics & Market Size
Revenue
$118bn
Annual Growth 13-18
5.8%
Forecast Growth 18-23
Profit
Employment
650,123
Businesses
3,396

Industry Report - Industry Products Chapter

Products manufactured in this industry are classified based on their therapeutic effects according to Traditional Chinese Medicine theory. Drugs for cardiovascular and cerebrovascular diseases, health drugs, those for common diseases (such as the cold) and specialty drugs account for more than 95.0% of industry revenue.Drugs for cardiovascular and cerebrovascular diseasesDrugs for cardiovascular and cerebrovascular diseases will contribute 30.3% of total industry revenue in 2018. With the increasing number of older individuals in China as well as the rising incidence of cardiovascular and cerebrovascular diseases, medical expenditure on related drugs has been growing strongly...purchase to read more.

Additional Insights for the Chinese Patent Drug Manufacturing Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Chinese Patent Drug Manufacturing Industry are

  • Access to the latest available and most efficient technology and techniques
  • Superior financial management and debt management
  • Ability to compete on tender
  • IBISWorld analysts also discuss how external factors such as Real Personal Disposable Income and Downstream Demand - Pension, Health & Welfare, and Other Insurance Funds in the Chinese Patent Drug Manufacturing industry impact industry performance..

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    What's in this report

    What is the Chinese Patent Drug Manufacturing Industry?

    The Chinese Patent Drug Manufacturing industry in China processes Chinese herbs to produce traditional Chinese patent medicine in capsule, powder, and liquid forms. Chinese traditional medicine pills are not manufactured by this industry (see IBISWorld industry report 2730).

    Industry Products
  • Drugs for cardiovascular and cerebrovascular diseases
  • Health drugs
  • Drugs for common diseases
  • Specialty drugs
  • Industry Activities
  • Manufacturing Chinese patent medicine using traditional processing methods
  • Manufacturing Chinese patent medicine using modern processing methods
  • Manufacturing medicinal liquor
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real Personal Disposable Income
  • Downstream Demand - Pension, Health & Welfare, and Other Insurance Funds
  • Competition from other Industries
  • Economic Indicators - Research and Development Expenditure (Total)
  • Industry Systems and Technology - Manufacturing
  • Weather Conditions - Annual Average Rainfall

  • Current Performance
    ProfitabilityInternational tradeEnterprises and establishmentsEmployment and wages
  • Chart: Revenue Growth

  • Industry Outlook
    Enterprises and employeesInternational trade
  • Table: Chinese Patent Drug Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Chinese Patent Drug Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Pharmacies & Drugstores
  • Traditional Chinese Medicine Hospitals
  • Online Shopping

  • Key Selling Industries
  • Chinese Medicinal Herb Growing
  • Medical Supplies Manufacturing
  • Traditional Chinese Medicine Manufacturing

  • Products & Services
  • Drugs for cardiovascular and cerebrovascular diseases
  • Health drugs
  • Drugs for common diseases
  • Specialty drugs
  • Other
  • Chart: Chinese Patent Drug Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Consumer perception
  • Economic conditions
  • Aging population
  • Healthcare insurance coverage rates
  • Chronic disease prevalence
  • Health awareness
  • Favorable government policies

  • Major Markets
  • Pharmacies and drugstores
  • Hospitals
  • Other
  • Chart: Major Market Segmentation for the Chinese Patent Drug Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profitability
  • Purchases
  • Wages
  • Chart: Cost Structure Benchmarking – Sector vs Chinese Patent Drug Manufacturing

  • Basis of Competition
  • Price
  • Branding
  • Relationships with medical institutions and practitioners
  • Retail networks
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Chinese Patent Drug Manufacturing Industry

  • Industry Globalization
    Guangzhou Pharmaceutical Holdings Limited, Xiuzheng Pharmaceutical Group, Beijing Tong Ren Tang Co. Ltd, Tasly Pharmaceutical Group, Shanghai Pharmaceutical Co., Ltd.,
  • Table: Guangzhou Pharmaceutical Holdings Limited - financial performance
  • Table: Xiuzheng Pharmaceutical Group - financial performance
  • Table: Beijing Tong Ren Tang Co. Ltd - financial performance
  • Table: Tasly Pharmaceutical Group - financial performance
  • Table: Shanghai Pharmaceutical Co., Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Chinese Patent Drug Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Chinese Patent Drug Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Total Assets (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Good Manufacturing Practice (Gmp)
  • Compulsory certification for the control and management of manufacturing and quality control testing of foods, pharmaceutical products and medical devices.
  • Health Drugs
  • Chinese patent drugs for improving overall health, for example, for increasing immunity or preventing aging.
  • Specialty Drugs
  • Chinese patent drugs targeted at specific health issues or diseases.
  • What Our Customers Say

    Why buy this report?

    The Chinese Patent Drug Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
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    • Quickly build competitive intelligence
    This report on Chinese Patent Drug Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Chinese Patent Drug Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Chinese Patent Drug Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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