China's major health market is an important part of the healthcare industry, including products and services related to the maintenance, restoration and enhancement of health.The market size of China's major health industry reached RMB 8131 billion in 2019.
Panoramic view of the big health industry
Big health means the implementation of the whole process, comprehensive, and all-element care for life around people's clothing, food, housing, transportation, birth, old age, sickness, and death, and the pursuit of individual physiological and physical health, as well as mental and spiritual health in all aspects.
An important prerequisite for the development of the health industry is to change the traditional medical industry development model, that is, from a single treatment model to "prevention - treatment - nourishment" integrated prevention and treatment model.
To this end, in addition to the continued development of medical equipment-based, drug-based medical and pharmaceutical industries, should also accelerate the development of health food, cosmetics, functional daily necessities, such as health care products industry, personalized health testing and evaluation, consulting services, disease rehabilitation, such as the main health management services industry.
At present, China's big health industry five basic industrial groups: pharmaceutical industry, medical industry, health care, health management services, health care industry. The development of the five major industrial groups, at present China's large health industry is mainly based on the pharmaceutical industry and health care and pension, the two 2019 market size accounted for 50.04% and 33.04% respectively.
Aggravation of aging, the big health industry has a long way to go
For the whole big health industry, the industry's core driving force comes from the increase in health care spending as China's population ages, followed by policy drivers, and then the industry's growing R&D capabilities. The core logic behind it all is the increase in the economy, the deepening of the aging population leading to an increase in national health insurance spending, which in turn brings about the overall development of the industry.
And according to the current data, the United Nations stipulates that: the proportion of elderly people over 65 years of age to the total population of more than 7% or the proportion of elderly people over 60 years of age in the total population of more than 10% is the old age of the country or region. China has entered an aging society since 2000.
From the point of view of changes in the proportion of elderly people over 65 years of age in the total population, there is a rising trend year by year. Since China entered an aging society in 2000, the degree of population aging has continued to deepen. According to the data released by the National Bureau of Statistics, in 2020, there will be 180 million elderly people aged 65 and above, accounting for about 13% of the total population;
When the Fourteenth Five-Year Plan is completed in 2025, there will be more than 210 million elderly people aged 65 and above, accounting for about 15% of the total population; if we take the age of 60 and above as the demarcation of the elderly population, the proportion of elderly people aged 65 and above is increasing. If 60 years of age and above is used as a criterion to delineate the elderly population, by 2050 there will be close to 500 million elderly people in China.
The period from 2010 to 2040 will be a period of rapid growth in China's aging population, and it is expected that the total number of elderly people in China will be more than 300 million by 2027, and will reach 400 million by 2044. In the next nearly half a century, China's elderly population will always show a rapid growth trend.
According to the United Nations projections for the first half of the 21st century, China has been the country with the largest elderly population in the world, accounting for one-fifth of the world's total elderly population. Taking into account the late 1970s, the intensification of family planning efforts, it is expected that by 2040 China's population aging process has peaked after the aging process into a period of deceleration.
Population aging accelerated, long-term benefit to the pharmaceutical sector. From the prevalence of chronic diseases in the elderly, the prevalence of the elderly is as high as 64.5%, and most of the diseases have a long course of treatment, poor prognosis, the cost of large; from the proportion of drug consumption in the elderly to visit, the elderly drug consumption occupies more than 50% of the drug market consumption. Therefore, the acceleration of the aging process is bound to drive the demand for drugs.
Medical care will become the largest health field
Pharmaceutical industry pharmaceutical base involves raw materials, intermediates and APIs in three major aspects. Among them, the pharmaceutical raw materials involved in a wide range of product types, including basic chemical materials, animal and plant materials, pharmaceutical excipients and different types of packaging materials; APIs mainly include bulk APIs, specialty APIs and patent medicine APIs.
Pharmaceutical R & D and manufacturing is the most core link in the pharmaceutical industry chain. Among them, the main body of pharmaceutical R & D research institutions, colleges and universities and pharmaceutical R & D companies; from a narrow point of view, the pharmaceutical industry only includes the production of pharmaceutical products, so this paper will be the pharmaceutical manufacturing subdivided into biological drug manufacturing, chemical drug manufacturing, manufacturing of traditional Chinese medicines, veterinary drug manufacturing, genetic engineering drug manufacturing and vaccine manufacturing and other pharmaceutical manufacturing.
Pharmaceutical distribution is a bridge connecting pharmaceutical manufacturing enterprises and end-consumers (including hospital pharmacies and social retail pharmacies), in which the cold chain logistics technology of pharmaceutical logistics is a more important part of the circulation link.
The elderly industry chain is long and involves many industries, and its smooth development requires the cooperation of the government, enterprises, society, communities, families and other forces. In recent years, the government through a variety of preferential policies, such as the purchase of services, site support, etc. to increase support for the relevant technology enterprises and intelligent senior citizenship products and services;
At the same time, through outsourcing and other ways of service intermediary institutions, big data enterprises, Internet companies, as well as relevant social organizations, research institutions to carry out cooperation, give full play to the professional advantages of a variety of senior citizenship supply main body, to carry out collaborative innovation.
The upstream of the service chain of senior care includes intelligent equipment, senior care platform, nurse training, senior care finance, housekeeping service, cultural life, etc., among which the intelligent equipment and senior care platform are the parts that are most different from the traditional senior care.
Policy becomes an important driving force for the development of the big health industry
China's big health industry development faces a favorable policy environment. At the government level, the state attaches importance to people-oriented, put forward a practical new medical reform program and "Healthy China 2030" health development strategy. This policy can be regarded as a "strong health" as a basic state policy, raised to the height of national strategy, the future of government health care investment will continue to increase.
Premier Li Keqiang presided over a State Council executive meeting on August 28, 2013, to study and deploy the promotion of the development of health services. Subsequently, the State Council in September 2013 announced the Several Opinions on Promoting the Development of Health Service Industry, proposing that by 2020, China basically establish a health service industry system covering the entire life cycle, and that the total scale of big health reaches more than 8 trillion yuan;
May 2015, the General Office of the State Council issued a "Development Plan for Traditional Chinese Medicine Health Services (2015-2020) which provides a comprehensive deployment of the development of Chinese medicine health services in China for the current and future period;
In April 2018, the General Office of the State Council issued the Opinions on Promoting the Development of "Internet + Healthcare", which provides a favorable external environment for the implementation of smart healthcare;
In July 2019, the State Council issued the Opinions of the State Council on the Implementation of Healthy China Actions, which specifies 15 special actions in three areas***.
On March 11, 2021, the Fourth Session of the 13th National People's Congress voted to adopt the Outline of the Fourteenth Five-Year Plan for National Economic and Social Development and the Vision for 2035, which puts forward the following proposals: to put the protection of people's health in the strategic position of prioritizing development, to adhere to the guideline of the main focus of prevention, to implement the Healthy China Initiative in-depth, to improve the policy of national health promotion, and to firmly weave the national Public **** health protection network, to provide people with a full range of health services throughout the life cycle.
Market size is expected to break ten trillion
With the increase in national support and guidance policies for the health industry, as well as the accelerated layout of enterprises, in recent years, China's large health industry has been a relatively rapid development. Data show that the market scale of China's big health industry rose from 1930.8 billion yuan in 2010 to 673.27 billion yuan in 2018, an increase of 3.5 times.
In 2019, China's policies for the big health industry were frequently issued, not only clarifying the direction and path of the implementation of a healthy China, but also promulgating the Law of the People's Republic of China on Basic Medical Care and Health Promotion, which pre-empts the integration of the concept of health into all policies.
According to Frost Sullivan data, the scale of China's big health industry has exceeded 8 trillion yuan in 2019, reaching 8131 billion yuan. According to the "Healthy China 2030" planning outline released by the state in October 2016, it is expected that by 2020 the scale of China's big health output value is expected to account for more than 10% of the GDP, when breaking ten trillion yuan. 2030 to reach 16 trillion yuan, the industry has a huge space for development.
National big health brands occupy the head position in the market
In the field of big health products, focusing on the field of medical equipment, Fish Leap and the traditional Chinese medicine old Tongrentang occupy the TOP2 position.
Digital Technology Transforming the Big Health Industry
Advancements in and accessibility of digital technologies such as big data, cloud storage and artificial intelligence have fundamentally changed the way health products and services are delivered. The digital health market mainly includes online retail pharmacy, online medical consultation, online consumer healthcare and digital healthcare infrastructure.
Currently, China's healthcare industry is still in the early stages of digitization. in 2019, only 2.4% of medicines in China are distributed through out-of-hospital online retail pharmacies. Similarly, in 2019, in terms of outpatient visits in China, online consultations accounted for 6.0% of total consultations. In addition, in 2019, the size of China's digitalized health market is $218 billion, and the digitalized share of the health market accounts for 3.3% of China's total healthcare expenditures.
Online retail pharmacy and digital health infrastructure markets are the major forces in the digitalized major health market in 2019, with market sizes of $218 billion and $105 billion, accounting for 48.17% and 27.98%, respectively.
Multiple Factors Contribute to the Development of the Digital Health Market
Changes in the healthcare market provide opportunities for the development of the digital health market:
Expanding Prescription Drug Outflow. Prescription outflow is an important new trend in the healthcare industry. The scale of out-of-hospital sales is increasing year by year.In 2019, the scale of out-of-hospital offline sales and out-of-hospital online sales in China's pharmaceutical market reached 481 billion yuan and 39 billion yuan, respectively.
-- For more research and analysis of this industry, please refer to the Strategic Planning and Corporate Strategy Consulting Report on China's Large Health Industry
.