The Ministry of Commerce (MofCOM) released its annual statistical review of the pharma distribution industry for 2021, highlighting steady growth and recovery to pre-pandemic levels. The report indicates that the national pharmaceutical distribution market has rebounded, with total sales of the seven major categories of pharmaceutical commodities (including devices and drugs) reaching RMB 2.6 trillion (USD 375 billion), up 8.5% year-on-year (YOY), a 6.5 percentage point acceleration.
Pharma Retail and Wholesale Markets
The pharmaceutical retail market generated RMB 544.9 billion (USD 78.6 billion) in sales, up 7.4% YOY, while the wholesale pharmaceutical market was worth RMB 2.06 trillion (USD 297 billion), up 8.65% YOY.
Industry Consolidation
By the end of 2021, there were 609,700 companies holding “Drug Business Licenses” nationwide, including 13,400 wholesale enterprises, 6,596 retail chain companies, 337,400 individual stores, and 252,300 retail pharmacies. The industry consolidation targeted by the government continued, with the business income of the leading 28 listed distribution companies reaching RMB 1.59 trillion (USD 229.6 billion), up 12.4% YOY and accounting for 80.5% of all reporting companies.
Market Share by Product Category
In terms of product category, western medicines dominated the market, accounting for 71.1% of total pharmaceutical product sales, followed by Chinese patent medicines with 14.4%, and Chinese herbal medicines with 2.2%. These three categories accounted for a combined 87.7% of the market. Medical equipment accounted for 7.8%, chemical reagents for 0.7%, glass instruments for less than 0.1%, and other categories for 3.8%.
Leading Companies
Sinopharm was the leading wholesale enterprise with revenues of RMB 539 billion (USD 77.8 billion), becoming the first large-scale digital and comprehensive pharmaceutical distribution enterprise to break through RMB 500 billion (USD 72.1 billion) in revenues. Shanghai Pharma, CR Pharma, and Jointown followed Sinopharm, all with revenues in excess of RMB 100 billion (USD 14.4 billion).-Fineline Info & Tech
