In 2023, China’s pharmaceutical market saw a steady growth marked by both rising drug sales and an influx of new drug applications. Notably, drug sales within public medical institutions reached a significant scale of 1.13 trillion yuan, reflecting a sustained positive trend.
Pharmaceutical Market Landscape of China’s Public Medical Institutions
Market size
2023 is the first year after the lift of pandemic control when the society including hospital diagnosis and treatment returned to normal. Therefore, the market share of China’s public medical institutions has significantly recovered, reaching 1,134.6 billion yuan, effectively returning to pre-pandemic levels. Since the impact of the pandemic is gradually weakening, the market size is projected to maintain a steady increase in the next few years.
Market Share by Drug Type
Chemical drugs still take the lead in the pharmaceutical market of China’s public medical institutions while its market share continuously dropping.
Biological drugs have seen their steadily rising market share driven by supportive policies like the 14th Five-Year Plan for Bio-economic Development and technological advancements. Meanwhile, the negative impact of regular Volume-based Procurement (VBP) on chemical drugs has indirectly facilitated the increase of biological drugs. It is expected that biological drugs will occupy more share with a fast and stable growth rate in the near future.
Traditional Chinese Medicine (TCM) sector has experienced a steady and moderate rise. This increasing trend is expected to continue, supported by favorable policies introduced in recent years, including the high-quality development of TCM health services, talent training, and culture promotion.
Market Share by Drug Therapeutic Area
Data from Yaozhi shows that sales of anti-neoplastic drugs have risen significantly and then stabilized in recent years, driven by the high incidence of tumors along with supportive policies and guidelines.
In recent years, drugs for the cardiovascular system, digestive tract, and metabolism have been continuing to shrink in market share since more and more drugs in this therapeutic area were included in VBP.
The market size of respiratory medicine swelled swiftly in 2023, resulting from a widespread of respiratory illnesses such as influenza and Mycoplasma pneumonia.
Market Share by Drug Therapeutic Area (2016-2023)
Data Source: Yaozhi Data
Market Share of Original Drugs and Generic Drugs
Data from Yaozhi revealed a gradual increase in the market for original drugs in recent years, although the growth rate has been modest.
Given the comparison of prescription volume and sales of original drugs between the U.S. and China, there is room for improvement in China's drug mix.
Top Drug Sales Ranking
There were not many changes in the top 20 best-selling drugs between 2023 and 2022. However, it is noteworthy that sales of insulin glargine greatly declined in 2023 as a result of the drug's inclusion in the sixth round of national VBP, causing it to quit the top 20 in 2023.
Top 20 Drugs by Sales
| Number | Drug | Sales in 2023 (billion yuan) |
| 1 | Human Albumin | 25.07 |
2 | Sodium Chloride Injection | 18.31 |
| 3 | Human Immunoglobulin (pH4）for Intravenous Injection | 9.18 |
| 4 | Bevacizumab Injection | 8.41 |
| 5 | Atorvastatin Calcium Tablets | 6.25 |
| 6 | Pegylated Recombinant Human Granulocyte Colony-stimulating Factor Injection | 5.81 |
| 7 | Trastuzumab Injection | 5.53 |
| 8 | Glucose Injection | 5.47 |
| 9 | Clopidogrel Bisulfate Tablets | 4.92 |
| 10 | Cefoperazone Sodium and Sulbactam Sodium for Injection (2:1) | 4.37 |
| 11 | Tacrolimus Capsules | 4.25 |
| 12 | Butylphthalide and Sodium Chloride Injection | 4.21 |
| 13 | Recombinant Human Growth Hormone Injection | 4.12 |
| 14 | Rituximab Injection | 4.08 |
| 15 | Budesonide Suspension for Inhalation | 3.94 |
| 16 | Doxorubicin Hydrochloride Liposome Injection | 3.91 |
| 17 | Dezocine Injection | 3.91 |
| 18 | Ceftizoxime Sodium for Injection | 3.89 |
| 19 | Osimertinib Mesylate Tablets | 3.86 |
| 20 | Recombinant Human Thrombopoietin Injection | 3.72 |
In terms of anti-neoplastic drug rankings, the top 10 best-sellers saw considerable shifts between 2016 and 2023, with Monoclonal Antibody (mAb) drugs representing a larger share. As more companies enter the anti-neoplastic market and target areas become increasingly similar, businesses must focus on differentiated innovation to stand out and capture greater market share.
Top 10 Anti-neoplastic Drugs by Sales in 2016 and 2023
Number | Drug | Sales in 2023 (billion yuan) | Drug | Sales in 2016 (billion yuan) |
| 1 | Bevacizumab Injection | 8.4 | Pemetrexed Disodium for Injection | 4.2 |
| 2 | Pegylated Recombinant Human Granulocyte Colony-stimulating Factor Injection | 5.8 | Docetaxel Injection | 3.7 |
| 3 | Trastuzumab Injection | 5.5 | Kangai Injection | 2.9 |
| 4 | Tacrolimus Capsules | 4.2 | Tegafur, Gimeracil and Oteracil Potassium Capsules | 2.8 |
| 5 | Rituximab Injection | 4.0 | Thymalfasin for Injection | 2.6 |
| 6 | Doxorubicin Hydrochloride Liposome Injection | 3.9 | Thymopentin for Injection | 2.5 |
| 7 | Osimertinib Mesylate Tablets | 3.9 | Kanglaite Injection | 2.4 |
| 8 | Sintilimab Injection | 3.5 | Gemcitabine Hydrochloride for Injection | 2.2 |
| 9 | Leuprorelin Acetate Microspheres for Injection | 3.1 | Capecitabine Tablets | 2.2 |
10 | Goserelin Acetate Sustained-Release Depot | 3.1 | Recombinant Human Granulocyte Colony-stimulating Factor Injection | 2.2 |
Pharmaceutical Market Landscape of China’s Retail Pharmacies
Market Size
The size of China’s Retail Pharmacies market in 2023 was relatively flat compared to 2022, with sales totaling around 423 billion yuan. Retail pharmacies have been dealing with several challenges in recent years, such as the effects of medical insurance policies and the rapid growth of e-commerce channels.
Market Share by Drug Type
Compared to the share by drug type in public medical institutions, there is a distinct performance in retail pharmacies. In the retail pharmacy market, Chemical drugs and TCM occupy a larger share, and TCM is of a much larger proportion. The market share of biological drugs in both has shown a growing trend.
Market Share of Prescription Drugs
The market share of prescriptions has not changed significantly in recent years. Nonetheless, given the effects of policies propelling the flow of prescriptions into retail pharmacies and VBP on companies intending to sell drugs to medical institutions, prescription drugs are expected to see a growth in their share.
