The Ministry of Commerce (MofCOM) has released its annual statistical review of China’s pharmaceutical distribution industry for 2022, indicating steady growth within the national medical distribution market. Total sales across seven major categories of medical and pharmaceutical products reached RMB 2,751.6 billion (USD 387.5 billion), reflecting a 6.0% year-on-year increase, although this marks a 2.5 percentage point slowdown compared to the previous year.
The pharmaceutical retail market saw revenues climb to RMB 599 billion (USD 84.4 billion), up 10.7% year-on-year, representing a 3.3 percentage point acceleration from the prior year. Conversely, the pharmaceutical wholesale market generated revenues of RMB 2,152.6 billion (USD 303 billion), with a more modest growth of 5.4% year-on-year.
Pharmaceutical distribution companies reported main business revenues of RMB 2,093.5 billion (USD 294.8 billion), up 6.7% year-on-year, although this growth rate has slowed by 2.6 percentage points. This sector accounted for approximately 86.0% of total sales in the seven categories. Total reported profits reached RMB 47.4 billion (USD 6.7 billion), an increase of 5.3% year-on-year.
In terms of product categories, western medicine dominated sales, comprising 69.2% of the total, followed by Chinese patent drugs at 14.9% and traditional medicinal crops at 2.3%. Medical equipment accounted for 8.4%, while chemical reagents and glass instruments made up a minor share.
Sales channels revealed that production enterprises accounted for only RMB 16.4 billion, or 0.6% of total sales. Wholesalers generated RMB 761.6 billion, representing 27.6%, while terminal sales reached RMB 1,969.1 billion, accounting for 71.6% of total sales, a slight decrease from the previous year.
Terminal sales to medical institutions reached RMB 1,353.9 billion, or 68.8% of terminal sales, down 2.1 percentage points year-on-year. Retail terminals and residential sales contributed RMB 615.2 billion, up 2.1 percentage points. The online pharmaceutical market is also gaining traction, with e-commerce sales reaching RMB 235.8 billion, or 8.6% of total sales.
Leading pharmaceutical wholesalers continue to grow, albeit at a slower pace, with the top 100 firms reporting a 6.7% increase in revenues. Sinopharm emerged as a standout, achieving RMB 552.9 billion in main business revenues, marking a significant milestone as the first distributor to surpass RMB 500 billion in sales.
The evolving landscape of retail pharmacies, bolstered by enhanced connections to the National Reimbursement Drug List (NRDL) and digital platforms, is enabling these entities to shift from product-centric models to consumer service-oriented approaches, expanding their offerings to include health examinations and chronic disease management.- Flcube.com
