Why China's pharma market is now a consumer game

Stakeholders must understand this moment, as it signifies a fundamental shift in the industry.

The Chinese pharmaceutical market, a colossal landscape valued at an astonishing $252b (CNY 1.8t), stands at a pivotal "crossroads,” according to an industry expert.

Dai Zhengli, a senior industry researcher at the China National Pharmaceutical Industry Information Centre, said this juncture is marked by two opposing pressures: whilst medical insurance reform and centralised procurement policies exert downward pressure, the development of innovative drugs, the awakening of consumer self-purchasing behaviour, and the rise of biopharmaceuticals bring new opportunities.

Speaking at the 40th China Pharmaceutical Industry Market Information Conference held during API China 2025 in Chongqing, Dai laid out insights into where future growth points will be found.

For business stakeholders in the healthcare industry, understanding this moment is critical, as a fundamental shift is underway. The most significant force at play is the undeniable trend of "medical consumerisation," fundamentally reshaping how medicines are bought, sold, and perceived.

He highlighted how "the decision-making power of purchasing drugs from the hands of doctors in the past is gradually shifting [to] consumers." This is a seismic shift, empowering patients to become "truly autonomous health consumers."

This evolving dynamic is starkly visible in the burgeoning "external market," which includes physical and online pharmacies. The figures speak volumes: online pharmacy sales in the first half of 2015 experienced a staggering "year-on-year growth of about 40% which was quite remarkable."

This explosive growth signals a significant "diversion" of prescriptions and a proactive consumer base seeking out their own healthcare solutions.

The implications for pharmaceutical companies are profound. As the "previous dividend of generic drugs is fading away and structural opportunities are emerging," embracing this consumer-centric model is no longer optional—it's essential for sustained growth.

CNY1 = $0.14