2024 to 2030 Development Status and Trend of Pharmaceutical Industry in China

According to statistics, from 2018 to 2023, the pharmaceutical market in China increased significantly, from about 765 billion yuan to over 1 trillion yuan, with an average annual growth rate of about 7%. This growth trend is due to the steady growth of global and China economy, the aging of population, the acceleration of new drug research and development, policy support and technological innovation.

In the next six years (2024-2030), it is expected that the pharmaceutical market in China will continue to expand, and the industry predicts that the scale will reach about 185 trillion yuan, with a compound annual growth rate of about 6.9%. This forecast is based on an optimistic assessment of the global and China economic prospects, as well as China's continuous innovation and internationalization strategy in the pharmaceutical industry.

In the next decade, China pharmaceutical industry will focus on three major areas:

--R&D and application of innovative drugs: National policies continue to focus on encouraging R&D of innovative drugs, accelerating the listing of new drugs to meet the growing medical needs, and accelerating the approval and listing process of innovative drugs.?

--Medical technology upgrade: The application of cutting-edge technologies such as precision medical care and digital medical solutions has been paid attention to, and policy support and technological innovation have promoted the rapid development of these fields.

--Promotion of internationalization strategy: China pharmaceutical enterprises actively participate in international market competition, strengthen global cooperation and brand building, and enhance their international competitiveness through international cooperation and overseas registration.

The pharmaceutical industry in China has made remarkable progress in recent years. It is predicted that by 2030, the market size will reach about 5.1 trillion yuan, which is twice the expected market size in 2024. The main driving forces of this growth include the aging population, the deepening of medical insurance policy reform, the acceleration of new drug research and development, and the increasing dependence of global supply chain on China.

In the past few years, the popularity of Internet medical and telemedicine services has increased significantly, especially during the epidemic prevention and control period, and the demand for online diagnosis and treatment platforms has soared. It is estimated that this field will account for more than half of the entire pharmaceutical market in 2030. At the same time, the application of artificial intelligence, big data and blockchain technology in drug research and development, precision medicine and health management will be further accelerated.

With the development of genomics and bioinformatics, China will be able to realize more accurate disease diagnosis and personalized drug treatment scheme, which not only improves the cure rate, but also brings new growth points to the pharmaceutical market. In addition, the trend of modernization of proprietary Chinese medicines and traditional Chinese medicines is becoming more and more obvious, seeking recognition and cooperation on a global scale.

From the perspective of market scale, the eastern coastal areas usually occupy a significant advantage in the scale of the pharmaceutical market because of their developed economic base and high medical demand. These areas have high population density, relatively perfect medical and health systems, and more urgent demand for advanced drugs and services, thus attracting investment and R&D activities of many domestic and foreign pharmaceutical enterprises. For example, in 2024, the market share of the eastern coastal areas may reach more than 50% in the national pharmaceutical market scale, which has obvious leading advantages compared with the western, central and northeastern regions.

The influence of regional policy environment on its pharmaceutical market size can not be ignored. The China Municipal Government has been committed to promoting the development of the medical and health system for a long time, and has implemented differentiated policies for different regions to promote the balanced distribution of medical resources. For example, the "Healthy China 2030" Planning Outline emphasizes strengthening the capacity of primary medical and health services and improving the level of public health services, which will help narrow the gap between regions. It is estimated that by 2030, with the support of the government, the pharmaceutical market in the western and northeastern regions is expected to achieve significant growth.

The change of population structure has an equally significant impact on the regional market. With the advent of an aging society, medical needs, especially the treatment and management needs of chronic diseases, are different in different regions. The degree of aging in the eastern coastal areas is high, so the demand for drugs for senile diseases may be more prominent; However, due to factors such as population distribution and economic level in the western and northeastern regions, the demand for new drug research and development and introduction may be more significant.

It is predicted that by 2030, the total scale of the pharmaceutical market in China will be unbalanced in regional development, and the eastern coastal areas will still occupy a dominant position. However, thanks to the strong support and promotion of national policies, the market scale of the western and northeastern regions is expected to expand significantly, and its market share is expected to reach about 45%. This change means that in the next six years, the economic gap between regions in China will be further narrowed, forming a more balanced development pattern of pharmaceutical industry.