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    Home > Active Ingredient News > Drugs Articles > In 2021, the total sales of seven major categories of pharmaceutical commodities in China will exceed 2.6 trillion yuan, and the scale of China's drug circulation market has grown steadily

    In 2021, the total sales of seven major categories of pharmaceutical commodities in China will exceed 2.6 trillion yuan, and the scale of China's drug circulation market has grown steadily

    • Last Update: 2022-10-25
    • Source: Internet
    • Author: User
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    A few days ago, the Ministry of Commerce released the "2021 Statistical Analysis Report on the Operation of the Drug Circulation Industry" (hereinafter referred to as the "Report"), which conducts statistical analysis of the overall scale, industry benefits, sales categories and regions of China's pharmaceutical circulation industry, and predicts the future development trend
    of the industry.

    According to the "Report", the total sales of seven categories of pharmaceutical commodities in the country will be 2,606.
    4 billion yuan in 2021, and the scale of the drug circulation market has grown
    steadily.
    In addition, the digital transformation of the pharmaceutical circulation industry has accelerated, the number of pharmaceutical e-commerce orders has increased significantly, and China's drug supply guarantee capacity has been greatly improved
    .

    Total sales of pharmaceutical products continued to grow

    Total sales of pharmaceutical products continued to grow

    According to the "Report", in 2021, the total sales of pharmaceutical commodities in China continued to grow, and after deducting incomparable factors, the total sales of seven major categories of pharmaceutical commodities in the country increased by 8.
    5%
    compared with 2020.
    The growth rate of total sales of pharmaceutical products accelerated by 6.
    1% compared with 2020, basically unchanged from 2019, and the growth rate returned to the level
    before the outbreak of the new crown pneumonia epidemic.
    The sales of the pharmaceutical wholesale market are 2,061.
    5 billion yuan, the sales of the pharmaceutical retail market are 544.
    9 billion yuan, and the proportion of pharmaceutical wholesale and retail in the pharmaceutical circulation market is 79.
    09% and 20.
    91%, respectively, accounting for the same as in 2020
    .

    The concentration of the pharmaceutical circulation industry has been further enhanced
    .
    From the perspective of market share, in 2021, the top 50 enterprises in the main business income of pharmaceutical wholesale enterprises accounted for 70.
    9% of the total scale of the national pharmaceutical market in the same period, an increase of 0.
    9%
    over 2020.
    The main business income of four leading enterprises in the industry, including Sinopharm Group, Shanghai Pharmaceutical, China Resources Pharmaceutical and Jointown, accounted for 44.
    2% of the total scale of the national pharmaceutical market in the same period, an increase of 1.
    6%
    over 2020.
    Among them, Sinopharm Group's main business income was 539 billion yuan, becoming the first pharmaceutical circulation enterprise
    with a main revenue of more than 500 billion yuan.
    In 2021, the top 50 enterprises in pharmaceutical retail sales accounted for 31.
    7% of the total pharmaceutical retail market in the same period, an increase of 0.
    3%
    over 2020.
    Among them, five retail chain enterprises, including NUS Pharmacy, Da Shenlin, Laomin, Yifeng Pharmacy and Yixintang, all have annual sales of more than 10 billion yuan
    .

    The number of pharmaceutical circulation license holders and the retail chain rate have further increased
    .
    According to data from the State Food and Drug Administration, by the end of 2021, there were 609,700 pharmaceutical business license holders nationwide
    .
    Among them, there are 13,400 wholesale enterprises, 6,596 retail chain headquarters, 337,400 subordinate stores, and 252,300 retail independent pharmacies
    .
    In 2021, the retail chain rate was 57.
    2%, an increase of 0.
    7% over 2020; This represents a significant increase of 22.
    9 percentage points
    compared to 34.
    3% in 2011.

    The pharmaceutical circulation industry does not increase profits, showing a trend
    of small profits.
    According to the "Report", in 2021, the main business income of enterprises directly reported by drug circulation in the country will be 1,982.
    3 billion yuan, an increase of 9.
    3% compared with 2020 after deducting incomparable factors, and the growth rate will accelerate by 6.
    5%; Total profit was RMB45.
    3 billion, an increase of 4.
    4% over 2020 after deducting incomparable factors, and the growth rate continued to decrease by 1% on the basis of a 2.
    7% decline in 2020.
    The average profit margin was 1.
    7%, down 0.
    1% from 2020 and 0.
    5%
    from 2011.

    Lu Ying, vice president of the China Pharmaceutical Commerce Association, believes that China's pharmaceutical circulation industry is affected by factors such as medical reform policies, intensified market competition and rising operating costs, and the overall profit margin of the industry has further declined
    .
    This trend of small profit is consistent with
    the development of the pharmaceutical circulation industry in developed countries in the world.
    Lu Ying suggested that China's pharmaceutical circulation enterprises should conscientiously implement the development goals and tasks proposed in the "Guiding Opinions on Promoting the High-quality Development of the Pharmaceutical Circulation Industry in the 14th Five-Year Plan Period" issued by the Ministry of Commerce, learn from international experience, continuously optimize the industry structure and variety structure, accelerate the transformation of business service models, focus on improving the energy level of drug circulation, continue to improve the level of industry intensification, promote the concentration of factor resources to backbone enterprises, and strengthen digital, intelligent, professional, diversified, characteristic and platform development.
    In the two-way adjustment of policies and markets, high-quality development of
    the industry is realized.

    Pharmaceutical e-commerce is maturing

    Pharmaceutical e-commerce is maturing

    The "Report" pointed out that with the deep integration of "Internet + medicine", the formation of consumers' online drug purchase habits, coupled with the pilot of real-time medical insurance settlement for online drug purchases, and the gradual liberalization of the policy of online prescription drug sales, the scale of pharmaceutical e-commerce transactions continues to grow, especially the O2O (online-to-offline) market sales ushering in opportunities
    .
    Many pharmaceutical retail chain enterprises rely on self-operated and third-party platforms to expand their online business by relying on the traffic advantages of Internet platforms, while large pharmaceutical wholesale enterprises rely on digital tools to empower online business
    .
    In addition, in order to meet the diversified drug purchase needs of consumers, pharmaceutical Internet companies continue to innovate online service models, further extend pharmaceutical affairs services, and gradually form differentiated development
    in user experience, scene services, and supply chain integration.

    According to the "Report", according to incomplete statistics, the total sales of pharmaceutical e-commerce direct reporting enterprises in 2021 increased by 38.
    4 billion yuan compared with the same period in 2020, reaching 216.
    2 billion yuan (including the transaction volume of third-party transaction service platforms).

    Among them, the sales of B2C (business-to-customer) business, which is closely related to ordinary consumers, were 9.
    2 billion yuan, an increase of 2.
    5 billion yuan year-on-year.
    B2B (business-to-business) business sales were RMB122.
    1 billion, up RMB21.
    8 billion
    year-on-year.

    The scale of pharmaceutical e-commerce users continued to expand, and the number of orders increased significantly
    .
    In 2021, the number of active users of pharmaceutical e-commerce third-party transaction service platforms, B2B websites and B2C websites was 520,000, 990,000 and 65.
    81 million respectively, an increase of 10,000, 400,000 and 16.
    28 million
    respectively compared with the first half of 2020.
    In 2021, the total number of pharmaceutical e-commerce orders was 212.
    76 million, a significant increase of 101.
    1 million over 2020, an increase of more than 90%.

    The expense rate of pharmaceutical e-commerce increased slightly, and the unit price of B2C business customers decreased significantly
    .
    The B2B e-commerce business expense ratio was 7.
    5%, and the B2C e-commerce business expense ratio was 17.
    1%, both higher than the industry average, and increased by 0.
    2% and 0.
    8%
    respectively compared with 2020.
    It is worth noting that the average customer unit price of pharmaceutical e-commerce B2C business has decreased significantly, from 229 yuan in 2020 to 164 yuan in 2021, and the average number of customers has also dropped from about 11 to 5
    .

    The Report predicts that with the continuous development of online consultation and drug purchase business, the opening of online medical insurance payment channels, and the gradual liberalization of hospital prescription outflow, physical pharmacies will continue to deepen their online layout and expand their service radius through online shopping malls, third-party pharmaceutical e-commerce platforms and O2O service platforms.
    Internet companies will continue to deepen cooperation with physical pharmacies or deploy offline physical pharmacies to provide patients with a better service experience
    .

    The value of pharmaceutical logistics is prominent

    The value of pharmaceutical logistics is prominent

    Affected by the normalization of centralized drug procurement, Internet diagnosis and treatment, and the development of pharmaceutical e-commerce business, the demand for pharmaceutical logistics services has increased rapidly and presented characteristics such as diversification, fragmentation of orders, and terminal distribution, and the status of pharmaceutical logistics has been further highlighted
    in all aspects of the pharmaceutical supply chain.

    Qin Yuming, secretary general of the Pharmaceutical Logistics Branch of the China Federation of Logistics and Purchasing, said that compared with other commodity logistics, pharmaceutical logistics has special characteristics and should meet the requirements of the "Good Management Practice for Drug Operation" and the use
    of facilities and equipment, information systems, and the ability of practitioners.

    At present, China's pharmaceutical circulation shows the characteristics of continuous optimization of the policy environment, continuous expansion of market scale, and continuous strengthening of
    hardware facilities and equipment construction.
    According to the "Report" data, in 2021, there will be a total of 412 pharmaceutical logistics direct reporting enterprises in the country, with a delivery value of 1,839.
    3 billion yuan, a significant
    increase over 2017.
    It has a total of 1,253 logistics centers with a warehouse area of about 12.
    61 million square meters; It has 16,454 professional transport vehicles, of which 17.
    8% are refrigerated trucks and 1.
    1%
    are special vehicles for special drugs.

    Pharmaceutical circulation enterprises and third-party drug-related enterprises strengthen the construction of a multi-level pharmaceutical logistics distribution system, improve the last-mile drug circulation network, and carry out many practices in information integration, logistics technology and equipment automation and intelligent improvement to improve the efficiency
    of pharmaceutical logistics 。 In 2021, pharmaceutical logistics enterprises developed rapidly in automation and informatization, with 84.
    3% of enterprises having warehouse management systems, 79.
    4% having electronic label picking systems, and 64.
    6% having radio frequency identification equipment, an increase of 32.
    6%, 44.
    5% and 35.
    5%
    respectively compared with 2020.

    Qin Yuming believes that with the wide application of 5G networks, big data and other technologies, the digital transformation and upgrading of the pharmaceutical logistics industry will promote the industry to gradually form a smart pharmaceutical logistics system
    with low cost, controllable risk and safe quality.

    The "Report" also pointed out that in the face of the personalization of consumer needs, the diversification of channels and the upgrading and development of big health services, retail pharmacies should use the Internet, big data, cloud platforms and other scientific and technological means to broaden their business scope and service groups, and extend service content
    .
    At the same time, it uses intelligent medical equipment to innovate a new retail model that integrates customer drug purchase experience and health management, and explores characteristic development models
    such as pharmacy, health station and smart pharmacy.

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