China's Pharmaceutical Retail Market Value Hits RMB 245.8 Billion in 2024H1

From January to June 2024, the pharmacy retailing market value has reached RMB 245.8 billion (about USD 34.76 billion), up by 0.4% year on year. In terms of distribution channels, retail pharmacies (including O2O) accounted for 86.9% of the total value, with a negative growth rate of 0.7% while e-commerce B2C accounted for 13.1%, with a growth rate of 8.6%. The share of e-commerce has increased by 1.0% year-on-year in the first half year of 2024, which proves it has been gaining traction.

Data Source: Sinohealth

Notes: 

• The e-commerce B2C includes two platforms—Tmall and JD.com; 

• YTD (Year to date) refers to the period beginning on the first day of the current calendar year or fiscal year up to the current date. 

As the growth rate of e-commerce B2Cexceeded that of retail pharmacies for the first six months of 2024 except for February, e-commerce B2C has emerged as a driving force for the Chinese pharmaceutical retailing market with increased demands for various types of pharmaceutical products. From Jan. to Jun. 2024, e-commerce B2C has experienced a growth rate of 8.6%, rising to RMB 32.1 billion. Multiple categories have achieved pleasant growth, with diabetes medications increasing outstandingly.

 Data Source: Sinohealth

Notes: 

• The e-commerce B2C includes two platforms—Tmall and JD.com;

• O2O Stores: an Increasingly Important Role.

In the first half of 2024, 70% of 2O stores in 70 cities were valued at RMB 4.8 billion (around USD 679 million) in total, with a growth rate of 15.6%. The value accounted for 4.2% of that of drug stores, going up by 0.6% year on year. O2O turns out to matter more in the market.

Data Source: Sinohealth

Notes: 

• O2O includes two platforms—Ele.me and Meituan;

• The e-commerce B2C includes two platforms—Tmall and JD.com.

Drug Popularity Varies Across Channels

There is a prominent division of  drug types in each channel, manifesting the distinct characteristics of drugs. 

Common drugs for home use such as gastrointestinal drug, vitamin and mineral supplements, and dermatologic drugs are among the top ten in all three sales channels

Since the presence of pharmacists makes retail pharmacy a more reliable and professional seller, more complicated drugs, including brain tumors, cardiovascular and cerebrovascular, and hypertension drugs, rank high in store sales.

For B2C which is more favourable to stockpiling and privacy protection, medications for skin and urinary system diseases ranked top two.

O2O is competitive in in-time delivery, which can benefit people with urgent needs. Consequently, O2O has seen a marked growth rate of drugs acting on colds, coughs, and oral, throat, respiratory diseases.

Data Source: Sinohealth

Notes:

• The data of retail pharmacies covers the whole China;

• B2C includes two platforms—Tmall and JD.com;

• O2O includes two platforms—Ele.me and Meituan and its data covers 70% of O2O stores in 70 cities.