The 170 billion market will explode!

Recently, the state has successively issued heavy policies to vigorously develop the traditional Chinese medicine industry
.
As one of the three pillars of the traditional Chinese medicine industry, in 2020, the market size of the processing market of traditional Chinese medicine decoction pieces will reach 178.
2 billion yuan
.
According to the forecast data of Minet.
com, in 2021E, the sales volume of Chinese herbal decoction pieces in urban physical pharmacies in China has recovered, and the ranking of TOP20 products has changed
.
Under the series of policies, the market concentration of TCM decoction pieces/Traditional Chinese herbal formula granules is expected to increase, and the battle for the leader will become more intense
.
Favorable policies continue! The market of 170 billion Chinese herbal decoction pieces may break out.
Since the official implementation of the "Traditional Chinese Medicine Law" in July 2017, the Chinese medicine industry has entered a new historical period of legal development and governance; in October 2019, the State Council proposed 20 guiding opinions to promote the inheritance and innovation of traditional Chinese medicine.
development
.
Recently, the state has successively issued a series of policies to vigorously develop the traditional Chinese medicine industry, and the development of traditional Chinese medicine has ushered in new opportunities
.
In May 2021, the State Council issued the "Key Tasks for Deepening the Reform of the Medical and Health System in 2021", which clearly identified the promotion of the revitalization and development of traditional Chinese medicine as one of the key tasks; It is clarified that the traditional Chinese medicine decoction pieces can continue to be increased by 25%, and the traditional Chinese medicine medical institutions do not implement DRG payment for the time being; Western medicine, which has attracted much attention in the industry, has also made breakthroughs in the development of traditional Chinese medicine diagnosis and treatment services.
After passing the training and assessment, they can carry out traditional Chinese medicine diagnosis and treatment activities related to their original scope of practice
.
Decoction pieces of traditional Chinese medicine are one of the three pillars of China's traditional Chinese medicine industry and an important raw material for proprietary Chinese medicines.
For a long time, in addition to having a talisman that prohibits foreign investment in the processing of traditional Chinese medicine decoction pieces, it has been "loved" by policies in recent years.
National essential medicines, national medical insurance, not subject to restrictions on the proportion of medicines, allowing hospitals to retain price markups,
etc.
According to the "2020 Economic Operation Report of China's Pharmaceutical Industry", the market size of Chinese herbal medicine decoction pieces processing market will reach 178.
2 billion yuan in 2020.

.
As a derivative and innovation of Chinese herbal decoction pieces, Chinese herbal formula granules have the advantages of high standardization, convenient and hygienic, clear weight, easy storage, and not easy to deteriorate.
They are gradually valued by enterprises and recognized by patients.
Increase year by year
.
In February 2021, four departments including the State Food and Drug Administration and the State Administration of Traditional Chinese Medicine issued an announcement to end the pilot work of traditional Chinese medicine formula granules
.
The new policy clarifies that traditional Chinese medicine formula granules are included in the management of traditional Chinese medicine pieces, and the relevant medical insurance refers to the management of category B, and can be used in all medical institutions
.
After the traditional Chinese medicine formula granules get rid of the "pilot" restrictions, the number of enterprises participating in R&D and production will increase, the scope of use will also expand, and the industry will usher in a period of rapid growth
.
Is the pharmacy market picking up? The ranking of TOP20 products has changed in pharmacies.
In recent years, the state has successively issued policies such as the hierarchical and classified management of retail pharmacies across the country, and the special rectification of Chinese herbal medicine pieces.
In addition, some pharmacies have changed their business directions, and Chinese medicine halls have increased their competition.
After 2017, the sales revenue of Chinese herbal decoction pieces in urban physical pharmacies continued to decline, and the decline in 2020 will be close to 8%.
6.
5%
.
Sales of Chinese herbal decoction pieces in urban physical pharmacies in China (unit: RMB 10,000) Source: Competitive landscape of physical pharmacy terminals in urban China From the perspective of treatment categories, among the TOP10 treatment categories, tonics, hemostatic drugs, and heat-clearing drugs have been in the top three for many years.
, among which tonic drugs take the top spot, with a market share of more than 50%, and there is a trend of increasing year by year; or driven by the epidemic, the reliever drugs rose from the fifth place in 2019 to the fourth place in 2020, and it is expected to continue to stabilize in 2021.
ranked fourth
.
2021E China's urban brick-and-mortar pharmacy terminal terminal Chinese herbal medicine TOP10 treatment categories Source: Minet China's urban brick-and-mortar pharmacy terminal competition pattern is subdivided into products, it is estimated that in 2021 China's urban brick-and-mortar pharmacy terminal terminal Chinese medicine slice TOP20 products will exceed 15 billion yuan in total sales, accounting for The overall market share is close to 60%
.
The sales of 9 TCM decoction pieces exceeded 500 million yuan, of which 5 exceeded 1 billion yuan
.
2021E TOP20 products of traditional Chinese medicine decoction pieces in Chinese urban physical pharmacies Note: The products marked with * are in the national medical insurance catalogue.
Source: Minet.
com China's urban physical pharmacy terminal competition pattern From the perspective of growth rate and changes in ranking, it is expected that bird's nest, Ganoderma lucidum spores, and Cordyceps sinensis will rise better.
, with an increase of more than 10% year-on-year, among which Ganoderma lucidum spores replaced Ophiopogon japonicus and ranked among the TOP20 products for the first time
.
With the acceleration of the aging process, the improvement of living standards, and the improvement of health care awareness, such nourishing tonic products are becoming more and more popular; the Panax notoginseng market continues to shrink seriously, and the growth rate and ranking of honeysuckle are also expected to decline significantly
.
Kangmei Pharmaceutical has completed the reorganization, and the competition for the leading position is fierce.
At present, the manufacturers of Chinese herbal decoction pieces in China are scattered and the industry concentration is low
.
However, in recent years, as the state has increased its support for the Chinese medicine industry, the market for Chinese herbal decoction pieces has increased.
In addition, with the gradual improvement of the quality standards of Chinese herbal medicine pieces and the tightening of industry supervision, small enterprises will be under pressure and will be gradually eliminated.
Large and standardized enterprises stand the test of the regulatory system and ultimately benefit, and the concentration of the entire industry is expected to increase
.
Among the listed pharmaceutical companies, China Traditional Chinese Medicine, China Resources Sanjiu, Hongri Pharmaceutical, Xiangxue Pharmaceutical, Tailong Pharmaceutical and other companies are all involved in the R&D and production of Chinese herbal decoction pieces / Chinese herbal formula granules
.
In the first half of 2021, the revenue of Chinese herbal decoction pieces (including Chinese herbal formula granules, Chinese herbal medicine, etc.
) of China Traditional Chinese Medicine, Hongri Pharmaceutical, Tailong Pharmaceutical, and Shenwei Pharmaceutical was 6.
029 billion yuan, 1.
8 billion yuan, 333 million yuan, 320 million yuan
.
Although China Resources Sanjiu did not disclose the sales of sub-products, its operating income of traditional Chinese medicine formula granules in 2020 exceeded 2 billion yuan
.
China Traditional Chinese Medicine is a leading enterprise of traditional Chinese medicine formula granules.
In the first half of 2021, the company's revenue of traditional Chinese medicine formula granules was 5.
32 billion yuan, an increase of 16.
4% over the same period last year.
, an increase of 20.
1% over the same period last year, one of the uses is to improve quality standard research, focusing on formula granule standard research
.
As a former leading enterprise of traditional Chinese medicine decoction pieces, Kangmei Pharmaceutical's bankruptcy reorganization took more than a year, and the reorganization plan will be completed by the end of 2021, and all debts have been paid off
.
In January and July, *ST Kangmei issued a number of announcements, the company's directors, supervisors and senior management will change blood, and many non-independent directors are from the holding company Guangdong Shennong
.
With the smooth implementation of the restructuring plan, Kangmei Pharmaceutical's debt crisis has been resolved.
With the strategic support of the controlling shareholder Guangdong Shennong and financial investors, can Kangmei Pharmaceutical be reborn and continue to take the lead in the Chinese herbal medicine industry? Minet will continue to pay attention
.
Source: Minet database, announcements of listed companies, etc.
Note: Minet China's urban physical pharmacy terminal competition pattern database covers 297 urban physical pharmacies in cities and above (excluding county and rural physical pharmacies), and continuously monitors all categories.
Enlarged version of the city's physical pharmacy database
.
The above sales are calculated based on the average retail price of the product in the terminal
.