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Market Research Report

China Pharmaceutical Distribution Industry Report, 2019-2025

Published by ResearchInChina Product code 299563
Published Content info 135 Pages
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China Pharmaceutical Distribution Industry Report, 2019-2025
Published: June 4, 2019 Content info: 135 Pages
Description

China's pharmaceutical distribution industry has sustained steady growth over the years. In 2018, the market was worth RMB2,194.5 billion, a 9.6% rise from RMB2,001.6 billion (up by 8.4% YoY) in 2017, of which drug retailing market size ranged at RMB437.7 billion in 2018, compared with RMB400.3 billion (up by 9% YoY) in 2017.

By product, western medicine is prevailing in Chinese pharmaceutical distribution market, sweeping 73.2% of total sales in 2018; by region, the east and the central south of China take larger shares, a combined 62.1% in 2018.

In China, a competitive pattern has taken shape that national drug distributors led by Sinopharm, China Resources Pharmaceutical Group, Shanghai Pharmaceuticals and Jointown Pharmaceutical Group, and regional distribution companies such as Nanjing Pharmaceutical, Guangzhou Pharmaceuticals, Chongqing Pharmaceutical, Huadong Medicine, Sichuan Kelun Pharmaceutical, Zhejiang Int'l Group, Realcan Pharmaceutical, Guangzhou Liuzhou Pharmaceutical and Luyan Phapma, compete with each other.

By the end of 2018, there had been 13,146 drug wholesalers competing fiercely in China, showing a low market concentration. In 2018, the top 100 by operating revenue commanded 70.7% of China's pharmaceuticals market, and the first four leaders occupied 37.6%.

By the end of 2018, there had been 5,985 drugstore chains in possession of 463,200 retail stores in China, of which 242,560 were chain stores, taking up 52.4% of the total, up by 2 percentage points on an annualized basis; 88.3% of stores were directly run by retailers themselves; 72% were designated medical insurance stores.

In China, leading drug retail chains include Yunnan Hongxiang Yixintang Pharmaceutical Co., Ltd., Dashenlin Pharmaceutical Group Co., Ltd., LBX Pharmacy, Yifeng Pharmacy, Sinopharm, China Nepstar Chain Drugstore, Gansu Zhongyou Health Medicine Co., Ltd., Suzhou Quanyi Health Drugstore Chain Co., Ltd., Chongqing Tong Jun Ge Co., Ltd. and Yunnan Jianzhijia Health Drugstore Chain Co., Ltd., among which Chongqing Tong Jun Ge Co., Ltd. has 10,575 drugstores, the most among all retail chains, and Yunnan Hongxiang Yixintang Pharmaceutical Co., Ltd. boasts the largest number of direct-sale stores, numbering 5,758, all of which are directly operated by the company.

The immense potential of pharmaceutical distribution industry has attracted the inrush of capital in recent years, and mergers and acquisitions occurred frequently. Boosted by capital, drug circulation companies are gearing from traditional endogenous growth by adding more products, new stores and developing customers to extensive development by M&A and restructuring. The industry is becoming increasingly concentrated.

China Pharmaceutical Distribution Industry Report, 2019-2025 highlights the following:

China pharmaceutical distribution industry (development environment, status quo, market size, market structure, competitive pattern and development trends);

China drug retailing market (market size, gross margin and net margin, quantity, share of medical insurance designated stores, per customer transaction, and comparison of operating results between major drug retailers);

20 Chinese pharmaceutical distribution companies (operation, revenue structure, gross margin, development strategy, etc.).

Table of Contents

Table of Contents

1. Overview of Pharmaceutical Distribution Industry

  • 1.1 Definition
  • 1.2 Industry Chain
  • 1.3 Strength and Weakness of Pharmaceutical Chain Enterprises
    • 1.3.1 Strength of Pharmaceutical Chain Enterprises
    • 1.3.2 Weakness of Pharmaceutical Chain Enterprises

2. Pharmaceutical Distribution Industry in China

  • 2.1 Development Environment
    • 2.1.1 Policy
    • 2.1.2 Economy
    • 2.1.3 Medical Institution
    • 2.1.4 Health Expenditure
    • 2.1.5 Aging
    • 2.1.6 Per Capita Disposable Income
  • 2.2 Status Quo
  • 2.3 Market Size
  • 2.4 Market Structure
  • 2.5 Competitive Landscape
  • 2.6 Development Trends
    • 2.6.1 Pharmaceutical E-commerce Becomes an Important Model
    • 2.6.2 Operating Efficiency and Service Functions Gets Improved Constantly
    • 2.6.3 Capital Market Plays a Bigger Role in Integration of Enterprises
    • 2.6.4 Pharmaceutical Supply-chain Management Services Are Upgraded Rapidly
    • 2.6.5 Cross-border Integration of Pharmaceuticals and E-commerce Continues
    • 2.6.6 Favorable Policies Make the Market More Concentrated
    • 2.6.7 Growing Trend towards Regionalization
    • 2.6.8 Wholesale-retail Integration Spurs Industry Consolidation
    • 2.6.9 Outflow of Prescriptions is a Boon for the Industry
    • 2.6.10 Single Drugstores are Being Edged out by Drugstore Chains Which are Gaining Ground

3 Chinese Drug Retail Market

  • 3.1 Market Size
  • 3.2 Gross Margin and Net Margin
  • 3.3 Quantity
    • 3.3.1 Top100 Pharmacy Chains
    • 3.3.2 Online Pharmacy
    • 3.3.3 Independent Pharmacy
    • 3.3.4 Shares of New Stores and Those Shut down
  • 3.4 Share of Medical Insurance Designated Stores
  • 3.5 Per Customer Transaction
  • 3.6 Comparison of Operating Results between Major Drug Retailers

4. Major Enterprises

  • 4.1 China National Accord Medicines Corporation Ltd.
    • 4.1.1 Profile
    • 4.1.2 Operation
    • 4.1.3 Revenue Structure
    • 4.1.4 Major Customers
    • 4.1.5 Pharmaceutical Distribution Business
    • 4.1.6 Development Strategy
  • 4.2 Nanjing Pharmaceutical Co., Ltd.
    • 4.2.1 Profile
    • 4.2.2 Operation
    • 4.2.3 Revenue Structure
    • 4.2.4 Gross Margin
    • 4.2.5 Development Strategy
  • 4.3 Shanghai No.1 Pharmacy Co., Ltd.
    • 4.3.1 Profile
    • 4.3.2 Operation
    • 4.3.3 Revenue Structure
    • 4.3.4 Gross Margin
    • 4.3.5 Development Strategy
  • 4.4 China National Medicines Corporation Ltd.
    • 4.4.1 Profile
    • 4.4.2 Operation
    • 4.4.3 Revenue Structure
    • 4.4.4 Gross Margin
    • 4.4.5 Development Strategy
  • 4.5 Huadong Medicine Co., Ltd.
    • 4.5.1 Profile
    • 4.5.2 Operation
    • 4.5.3 Revenue Structure
    • 4.5.4 Gross Margin
    • 4.5.5 Major Customers
    • 4.5.6 Development Strategy
  • 4.6 Cachet Pharmaceutical Co., Ltd.
    • 4.6.1 Profile
    • 4.6.2 Operation
    • 4.6.3 Revenue Structure
    • 4.6.4 Gross Margin
    • 4.6.5 Major Customers
    • 4.6.6 Development Strategy
  • 4.7 Jointown Pharmaceutical Group Co., Ltd.
    • 4.7.1 Profile
    • 4.7.2 Operation
    • 4.7.3 Revenue Structure
    • 4.7.4 Gross Margin
    • 4.7.5 Major Customers
    • 4.7.6 Development Strategy
  • 4.8 Realcan Pharmaceutical Co., Ltd.
    • 4.8.1 Profile
    • 4.8.2 Operation
    • 4.8.3 Revenue Structure
    • 4.8.4 Gross Margin
    • 4.8.5 Development Strategy
  • 4.9 Shanghai Pharmaceuticals Holding Co., Ltd.
    • 4.9.1 Profile
    • 4.9.2 Operation
    • 4.9.3 Revenue Structure
    • 4.9.4 Gross Margin
    • 4.9.5 Development Strategy
  • 4.10 Zhejiang Int'l Group Co., Ltd.
    • 4.10.1 Profile
    • 4.10.2 Operation
    • 4.10.3 Revenue Structure
    • 4.10.4 Gross Margin
    • 4.10.5 Development Strategy
  • 4.11 Zhejiang Zhenyuan Share Co., Ltd.
    • 4.11.1 Profile
    • 4.11.2 Operation
    • 4.11.3 Revenue Structure
    • 4.11.4 Gross Margin
    • 4.11.5 Development Strategy
  • 4.12 China Meheco Co., Ltd.
    • 4.12.1 Profile
    • 4.12.2 Operation
    • 4.12.3 Revenue Structure
    • 4.12.4 Gross Margin
    • 4.12.5 Development Strategy
  • 4.13 Charmacy Pharmaceutical Co., Ltd.
    • 4.13.1 Profile
    • 4.13.2 Operation
    • 4.13.3 Revenue Structure
    • 4.13.4 Gross Margin
    • 4.13.5 Development Strategy
  • 4.14 Luyan Pharma Co., Ltd.
    • 4.14.1 Profile
    • 4.14.2 Operation
    • 4.14.3 Revenue Structure
    • 4.14.4 Gross Margin
    • 4.14.5 Development Strategy
  • 4.15 China Resources Pharmaceutical Group Limited
    • 4.15.1 Profile
    • 4.15.2 Operation
    • 4.15.3 Revenue Structure
    • 4.15.4 Gross Margin
    • 4.15.5 Development Strategy
  • 4.16 DaShenLin Pharmaceutical Group Co., Ltd.
    • 4.16.1 Profile
    • 4.16.2 Operation
    • 4.16.3 Revenue Structure
    • 4.16.4 Gross Margin
    • 4.16.5 Development Strategy
  • 4.17 Yunnan Jianzhijia Health Chain Co., Ltd.
    • 4.17.1 Profile
    • 4.17.2 Operation
    • 4.17.3 Revenue Structure
    • 4.17.4 Gross Margin
    • 4.17.5 Development Strategy
  • 4.18 Yifeng Pharmacy Chain Co., Ltd.
    • 4.18.1 Profile
    • 4.18.2 Operation
    • 4.18.3 Revenue Structure
    • 4.18.4 Gross Margin
    • 4.18.5 Development Strategy
  • 4.19 Yunnan Hongxiang Yixintang Pharmaceutical Co., Ltd.
    • 4.19.1 Profile
    • 4.19.2 Operation
    • 4.19.3 Revenue Structure
    • 4.19.4 Gross Margin
    • 4.19.5 Development Strategy
  • 4.20 LBX Pharmacy Chain co., Ltd
    • 4.20.1 Profile
    • 4.20.2 Operation
    • 4.20.3 Revenue Structure
    • 4.20.4 Gross Margin
    • 4.20.5 Development Strategy

Selected Charts

China Pharmaceutical Distribution Channel

Difference between Pure Marketing and Allocation in China's Pharmaceutical Distribution

China's Laws and Regulations on Pharmaceutical Distribution Industry, 2001-2018

China's GDP, 2012-2018

Number of Medical and Healthcare Institutions in China, 2015-2018

Number of Hospitals in China, 2009-2018

Number of Hospitals in China by Economic Type, 2009-2018

Health Expenditure in China, 2010-2018

Health Expenditure in China, 2016-2025E

Population Aged over 65 in China, 2015-2025E

Residents' Per-capita Disposable Income and YoY Growth in China, 2011-2018

Business Models of China Pharmaceutical Distribution Industry by Market

Comparison of Specialty, Economic Effect and Convenience between Three Drug End Markets in China

Total Number of Licensed Pharmacists in China, 2013-2018

Pharmaceutical Distribution Market Size and YoY Growth in China, 2006-2018

Pharmaceutical Distribution Market Size and YoY Growth in China, 2016-2025E

Pharmaceutical Distribution Sales Structure in China by Type, 2017

Pharmaceutical Distribution Sales Structure in China by Region, 2017

Pharmaceutical Distribution Revenue in China by Region, 2017

TOP20 Pharmaceutical Distribution Enterprises in China by Operating Revenue, 2017

China's Policies on Online Medical Care, 2018

Capital Layout in China's Drug Retailing in Recent Years

Regional Distribution of Drugstores Invested by Primary/Secondary Capital in China

Medicine Regulation Policies Make Drug Retail Stores Market More Concentrated in China, 2015-2019

Representative Pharmaceutical Distribution Enterprises in China by Regional Market

China's Policies about Outflow of Prescriptions, 2015-2018

Development History of Drugstore Chain Industry in China

Drug Retail Market Size and YoY Growth in China, 2012-2018

Drug Retail Market Size and YoY Growth in China, 2016-2025E

Average Gross Margin of Demonstration Companies on China's Drugstore Value List, 2010-2018

Average Net Margin of Demonstration Companies on China's Drugstore Value List, 2010-2018

Number of Drug Retail Chains in China, 2012-2018

Drug Retail Chains in China by Number of Stores, 2012-2018

Number of Independent Retail Drugstores in China, 2012-2018

Share of Drugstore Chains in China, 2009-2018

Share of Drugstore Chains by Administration Area in China, 2018

TOP100 Pharmacy Chains in China by Total Revenue, 2017

TOP100 Pharmacy Chains in China by Number of Pharmacies, 2018

TOP20 Online Pharmacies in China by Revenue, 2016

TOP100 Independent Pharmacies in China by Revenue, 2018

Share of New Drugstores in China, 2014-2018

Companies with New Drugstores Accounting for over 30% of Their Total Number of Stores in China, 2018

Average Investment of Single Drugstores in China, 2014-2018

Share of Drugstores Shut down in China, 2014-2018

Companies with Drugstores Shut down Accounting for over 5% of Their Total Number of Stores in China, 2018

Share of Medical Insurance Designated Drugstores in China, 2014-2018

Companies with More Than 600 Medical Insurance Designated Drugstores in China, 2018

Companies with Medical Insurance Designated Drugstores Accounting for over 95% of Their Total Number of Stores in China, 2018

Per Customer Transaction of Drugstores in China, 2013-2018

Companies with Per Customer Transaction of Their Drugstores Exceeding RMB135, 2018

Comparison of Revenue between Main Drug Retailers in China, 2013-2018

Comparison of Net Income between Main Drug Retailers in China, 2013-2018

Comparison of Gross Margin between Main Drug Retailers in China, 2013-2018

Revenue and Net Income of China National Accord Medicines, 2013-2018

Revenue Breakdown of China National Accord Medicines by Business, 2015-2018

Revenue Breakdown of China National Accord Medicines by Region, 2015-2018

China National Accord Medicines' Revenue from Top 5 Clients, 2014-2018

Revenue and Net Income of Nanjing Pharmaceutical, 2013-2018

Revenue Breakdown of Nanjing Pharmaceutical by Business, 2015-2018

Revenue Breakdown of Nanjing Pharmaceutical by Region, 2014-2018

Revenue Structure of Nanjing Pharmaceutical by Region, 2014-2018

Gross Margin of Nanjing Pharmaceutical by Business, 2014-2018

Revenue and Net Income of Shanghai No.1 Pharmacy, 2013-2018

Revenue Breakdown of Shanghai No.1 Pharmacy by Business, 2014-2018

Revenue Structure of Shanghai No.1 Pharmacy by Business, 2014-2018

Gross Margin of Shanghai No.1 Pharmacy, 2014-2018

Gross Margin of Shanghai No.1 Pharmacy by Business, 2014-2018

Revenue and Net Income of China National Medicines, 2013-2018

Revenue Breakdown of China National Medicines by Business, 2014-2018

Revenue Structure of China National Medicines by Business, 2014-2018

Revenue Breakdown of China National Medicines by Region, 2014-2018

Revenue Structure of China National Medicines by Region, 2014-2018

Gross Margin of China National Medicines, 2014-2018

Gross Margin of China National Medicines by Business, 2014-2018

Revenue and Net Income of Huadong Medicine, 2013-2018

Revenue Breakdown of Huadong Medicine by Sector, 2014-2018

Revenue Structure of Huadong Medicine by Sector, 2014-2018

Gross Margin of Huadong Medicine by Sector, 2014-2018

Huadong Medicine's Revenue from Top5 Clients and % of Total Revenue, 2014-2018

Revenue and Net Income of Cachet Pharmaceutical, 2013-2018

Revenue Breakdown of Cachet Pharmaceutical by Business, 2014-2018

Revenue Structure of Cachet Pharmaceutical by Business, 2014-2018

Revenue Breakdown of Cachet Pharmaceutical by Region, 2014-2018

Revenue Structure of Cachet Pharmaceutical by Region, 2014-2018

Gross Margin of Cachet Pharmaceutical's Pharmaceutical Wholesale Business, 2014-2018

Cachet Pharmaceutical's Revenue from Top5 Clients and % of Total Revenue, 2014-2018

Cachet Pharmaceutical's Investment Projects with Raised Funds, 2016

Revenue and Net Income of Jointown Pharmaceutical Group, 2013-2018

Revenue Breakdown of Jointown Pharmaceutical Group by Business, 2014-2018

Revenue Structure of Jointown Pharmaceutical Group by Business, 2014-2018

Gross Margin of Jointown Pharmaceutical Group by Business, 2014-2018

Jointown Pharmaceutical Group's Revenue from Top5 Clients and % of Total Revenue, 2014-2018

Revenue and Net Income of Realcan Pharmaceutical, 2013-2018

Revenue Breakdown of Realcan Pharmaceutical by Business, 2014-2018

Revenue Structure of Realcan Pharmaceutical by Business, 2014-2018

Gross Margin of Realcan Pharmaceutical by Business, 2014-2018

Revenue and Net Income of Shanghai Pharmaceuticals Holding, 2013-2018

Revenue Breakdown of Shanghai Pharmaceuticals Holding by Business, 2014-2018

Revenue Structure of Shanghai Pharmaceuticals Holding by Business, 2014-2018

Revenue Breakdown of Shanghai Pharmaceuticals Holding by Region, 2014-2018

Revenue Structure of Shanghai Pharmaceuticals Holding by Region, 2014-2018

Gross Margin of Shanghai Pharmaceuticals Holding by Business, 2014-2018

Revenue and Net Income of Zhejiang Int'l Group, 2013-2018

Revenue Breakdown of Zhejiang Int'l Group by Business, 2014-2018

Gross Margin of Zhejiang Int'l Group's Pharmaceutical Sales Business, 2014-2018

Revenue and Net Income of Zhejiang Zhenyuan, 2013-2018

Revenue Breakdown of Zhejiang Zhenyuan by Business, 2014-2018

Revenue Structure of Zhejiang Zhenyuan by Business, 2014-2018

Gross Margin of Zhejiang Zhenyuan by Business, 2014-2018

Revenue and Net Income of China Meheco, 2013-2018

Revenue Breakdown of China Meheco by Business, 2014-2018

Revenue Structure of China Meheco by Business, 2014-2018

Gross Margin of China Meheco by Business, 2014-2018

Revenue and Net Income of Charmacy Pharmaceutical, 2013-2018

Revenue Breakdown of Charmacy Pharmaceutical by Product/Client, 2013-2018

Revenue Structure of Charmacy Pharmaceutical by Product/Client, 2013-2018

Gross Margin of Charmacy Pharmaceutical, 2013-2018

Charmacy Pharmaceutical's Distribution Network in Guangdong as of June 2017

Luyan Pharma's Investment Projects with Raised Funds by Initial Public Offerings

Revenue and Net Income of Luyan Pharma, 2013-2018

Revenue Breakdown of Luyan Pharma by Business, 2014-2018

Revenue Structure of Luyan Pharma by Business, 2014-2018

Gross Margin of Luyan Pharma's Pharmaceutical Wholesale Business, 2014-2018

Revenue and Net Income of China Resources Pharmaceutical Group, 2013-2018

Revenue Breakdown of China Resources Pharmaceutical Group by Business, 2013-2018

Revenue Structure of China Resources Pharmaceutical Group by Business, 2013-2018

Gross Margin of China Resources Pharmaceutical Group, 2013-2018

Distribution Network Layout of China Resources Pharmaceutical Group

Revenue and Net Income of DaShenLin Pharmaceutical, 2013-2018

Revenue Breakdown of DaShenLin Pharmaceutical by Business, 2013-2018

Revenue Structure of DaShenLin Pharmaceutical by Business, 2013-2018

Gross Margin of DaShenLin Pharmaceutical, 2013-2018

Revenue and Net Income of Yunnan Jianzhijia, 2013-2018

Revenue Breakdown of Yunnan Jianzhijia by Business, 2013-2018

Revenue Structure of Yunnan Jianzhijia by Business, 2013-2018

Gross Margin of Yunnan Jianzhijia, 2013-2018

Revenue and Net Income of Yifeng Pharmacy, 2013-2018

Revenue Breakdown of Yifeng Pharmacy by Business, 2013-2018

Revenue Structure of Yifeng Pharmacy by Business, 2013-2018

Gross Margin of Yifeng Pharmacy, 2013-2018

Yifeng Pharmacy's M&A Cases for Extensive Growth, 2011-2018

Revenue and Net Income of Yixintang Pharmaceutical, 2013-2018

Revenue Breakdown of Yixintang Pharmaceutical by Business, 2013-2018

Revenue Structure of Yixintang Pharmaceutical by Business, 2013-2018

Gross Margin of Yixintang Pharmaceutical, 2013-2018

Yixintang Pharmaceutical's M&A Cases for Extensive Growth, 2014-2018

Revenue and Net Income of LBX Pharmacy, 2013-2018

Revenue Breakdown of LBX Pharmacy by Business, 2013-2018

Revenue Structure of LBX Pharmacy by Business, 2013-2018

Gross Margin of LBX Pharmacy, 2013-2018

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