The healthcare department of China is growing at a rapid rate. As there are many doors of opportunities opened in this sector. Many multinational companies are eager to invest and start their business in order to take the advantage. However, no one can assure you of a long term success. The 2011 data shows that the spending for the healthcare was $357 billion which is expected to $1 trillion by the end of the year 2020.
$357 billion MarketChina is the favourite spot of all sorts of medical products starting from pharmaceuticals to medical products. It is not only the favourite destination but also the fastest and the largest emerging markets on the globe. As far as the experts are concerned, the market is sending good signals for the business up hoisting. However, the investors and the entrepreneurs are finding it bit difficult to compete. The experts expect a clear victory for the deserving. They also believe that those companies which will enter late will suffer.
It is expected that three themes are going to shape the china’s healthcare market
- Continuous changes in the economic and the demographic trends of china
- The changing pattern in the health care reform
- The policies injected in the government’s economic plan.
Factors affecting the China’s healthcare market-The healthcare companies have seen the boom of the century in the Chinese market in recent years. It has been the brightest spot compared with the lacklustre conditions they compete for in the other major countries.Every moment is precious. Every years count for the business persons and the companies.
The strong development in the healthcare sectors is applauded by the favourable conditions. This are-
- The constant changing demographic trends
- The rapid growth of urbanisation
- An increase in disease or the pathogens
- The rapid expansion of the economic scenario of the market
- The rapid growth in the health economy expansion
- The growth in the income or the purchasing power parity
The government’s contribution is worth appraisable.The farsightedness of the government can be seen from the fact that the government has prioritized the health care sectors. Government’s step can be seen from the fact that in the early 2009 it has given the healthcare sector as a social priority and the financial five years plan it has it has made it a strategic plan. The expenditure on healthcare was doubled to $357 billion in 2011 from $156 billion in 2006 that is almost close to 5% of the country’s GDP. Almost every health sector of China has benefited from it right from pharmaceuticals to medical devices. Even the Chinese traditional medicine has also benefited from it.
Health Care Expenditures in China Double Every 5years in This ReportAs already cited, the Chinese healthcare sector has almost doubled since 2006, almost benefitting the corresponding sectors.
More than 95% expenditures compare to 2006 in 2011A look at the trends show that the per capita health care expenditures in 2006 stood at $119 million. On the other hand, it stood at a whopping $261 million in 2011. The significant increase has been seen in the population with the health insurance. In 2006 it was almost 43% but in the span of 5 years, that is by the end of 2011 it stood at more than 95%.
Pharmaceutical sector: $27 billion in 2006Category wise, the contribution of the pharmaceutical sector cannot be neglected. The market of the pharmaceutical sector stood at $27 billion in 2006. It ranked 9th on the global scale. Whereas, by the end of 2011, the pharmaceutical sector had the contribution of $71 billion and stepped up in the ranking table by marginable 6 spots on the global index. In the pharmaceutical sector the total revenue of the top 10 pharmaceutical multinationals in the year was $4 billion. The same figure rose to $10 billion in 2011. The figures, facts and data, themselves suggest that the healthcare sector in china is a blooming sector.
The market size of the medical products stood at $8 billion in 2006Another contributing sector is the medical products. China is one of the leading producers of medical products. The market size of the medical products stood at $8 billion in 2006. This sector took a considerable jump and lead by the year 2011 to reach the $20 billion mark. Though the revenue amount has changed considerably but the ranking has improved a slight. In 2006 where it stood at 6th, by the end of 2011 it stood at 3rd.
The market size of the traditional Chinese market stood at $6 billion in 2006The contribution of the other factors can also never be neglected. The market size of the traditional Chinese market stood at $6 billion in 2006. While by the end of 2011, the revenue collected on the front stood at $13 billion. The contribution of the revenues in the market size is also commendable. Though there is only a slight variation in the trend over the 5 years. The contribution stood in between $1 bn to $2 bn.
The data have been collected from the China health book statistics for the two years that is 2006 and 2011 and the different Research and development department of the pharmaceutical association.
The growing trend and the business market strategy have given China the ray of hope.The momentum has shifted considerably. This momentum shift has given China the light for the multinational health care companies. The leading pharmaceutical companies contribute the major part of the revenues. The rapid evolution and the paradigm shift in the market trends have made many people to think that it will not take the year 2020 to by the Chinese healthcare markets to reach the top spots. Instead, it might reach that spot even earlier. With the growth one can say that the Chinese market is the best at present for the healthcare system to be set up.