Traditional Chinese Medicine Manufacturing in China - Market Research Report (2014-2029)
Beijing, China
Last Updated: May 2024
2730Revenue
$45.4bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
206k
Businesses
1,479
Wages
$X.Xbn
Traditional Chinese Medicine Manufacturing in China industry analysis
Chinese skepticism surrounding Western medicine's effectiveness has led to the rising popularity of traditional Chinese medicine, which is considered to be less toxic and to have fewer side effects. Patients are increasingly choosing traditional Chinese medicine as their primary medicinal treatment. Additionally, China's aging population and rising health consciousness are contributing to higher industry demand.Along with the Healthy China strategy, medical and healthcare system reforms have continued. The Traditional Chinese Medicine Manufacturing industry's revenue is expected to increase an annualized 5.0% over the five years through 2023. Industry revenue has recovered since the COVID-19 pandemic outbreak, and is expected to increase 7.0% in 2023, to $45.4 billion.Traditional Chinese medicine pills are the main product used in traditional Chinese medicine clinics and are also important components of Chinese patent drugs. The top four industry participants, TongRenTang, Kangmei, China TCM and Ruilong, account for a combined share of less than 10% of total industry revenue in 2023, indicating low market share concentration. The industry includes many small-scale enterprises. As the industry matures, some smaller companies will likely struggle to remain viable, and more competitive manufacturers will gain an increasing market share, pushing up concentration.The Chinese Government has strongly focused on the Traditional Chinese Medicine Manufacturing industry, and will continue to issue standards and specifications to increase its global competitiveness. Industry revenue is forecast to grow an annualized 6.0% over the five years through 2028, to total $60.8 billion.
Trends and Insights
- Traditional Chinese medicine has a very long history in China. This strong cultural foundation provides favorable conditions for rising industry demand.
- Herbal traditional Chinese medicine is the largest product segment. Herbal traditional Chinese medicine is the most commonly used products and represents around 90% of industry revenue.
- Industry activities are relatively concentrated. Raw materials are important for traditional Chinese medicine production so manufacturers mainly operate in regions with abundant Chinese medicinal herb resources.
- The industry exhibits low concentration. The top four companies in the industry represent a combined market share of less than 10% in 2023.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 5.0 % over the past five years, to reach an estimated $45.4bn in 2024.
Trends and Insights
Traditional Chinese medicine culture has supported industry growth
- Traditional Chinese medicine culture is an important component of Chinese traditional culture, with a long history of thousands of years.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Chinese residents' increasing incomes will stimulate industry demand
- As income levels increase, people are more concerned about health and willing to spend more on healthcare.
Biggest companies in the Traditional Chinese Medicine Manufacturing in China
| Company | Market Share (%)
2023 | Revenue ($short_0)
2023 |
|---|
There are no companies that hold a large enough market share in the Traditional Chinese Medicine Manufacturing in China industry for IBISWorld to include in this product.
Products & Services Segmentation
Traditional Chinese Medicine Manufacturing in China
Products & Services
Industry revenue is measured across several distinct product and services lines, including Herbal traditional Chinese medicine, Animal-based traditional Chinese medicine and Mineral-based traditional Chinese medicine . Herbal traditional Chinese medicine is the largest segment of the Traditional Chinese Medicine Manufacturing in China.
Trends and Insights
Herbal traditional Chinese medicine is the most commonly used
- Herbal traditional Chinese medicine refer to traditional Chinese medicine processed from the roots, stems, flowers, fruits of various Chinese medicinal herbs.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Pharmaceutical Raw Material Manufacturing in China
- Pharmaceutical Manufacturing in China
- Biological and Biochemical Product Manufacturing in China
Complementors
- Chinese Patent Drug Manufacturing in China
International industries
- There are no industries to display.
Table of Contents
About this industry
Industry definition
The Traditional Chinese Medicine Manufacturing industry in China produces herbal, animal-based and mineral-based Chinese medicine and extracts.
What's included in this industry?
Herbal traditional Chinese medicineAnimal-based traditional Chinese medicineMineral-based traditional Chinese medicineCompanies
Purchase this report to view all major companies in this industry.
Related Terms
GMP (GOOD MANUFACTURING PRACTICE)OTC (OVER THE COUNTER)GOOD SELLING PRACTICE (GSP)Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Traditional Chinese medicine has a very long history in China. This strong cultural foundation provides favorable conditions for rising industry demand.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Herbal traditional Chinese medicine is the largest product segment. Herbal traditional Chinese medicine is the most commonly used products and represents around 90% of indust...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Industry activities are relatively concentrated. Raw materials are important for traditional Chinese medicine production so manufacturers mainly operate in regions with abund...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The industry exhibits low concentration. The top four companies in the industry represent a combined market share of less than 10% in 2023.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Domestic companies dominate the market. Traditional Chinese medicine is an important component of Chinese medical culture and domestic companies have the advantage of legacy ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Regulation is intensifying. The Chinese Government has implemented several rounds of rectification works on the production, circulation and application of traditional Chinese...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Industry profit margins have been volatile. Profitability has been volatile in recent years due to increasing raw material prices and intensive price competition.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
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Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in China include:
- National Bureau of Statistics China
- General Administration of Customs
- People’s Bank of China
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
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Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Traditional Chinese Medicine Manufacturing industry in China in 2024?
The market size of the Traditional Chinese Medicine Manufacturing industry in China is $45.4bn in 2024.
How many businesses are there in the Traditional Chinese Medicine Manufacturing in China industry in 2024?
There are 1,479 businesses in the Traditional Chinese Medicine Manufacturing industry in China, which has grown at a CAGR of 3.1 % between 2019 and 2024.
Has the Traditional Chinese Medicine Manufacturing industry in China grown or declined over the past 5 years?
The market size of the Traditional Chinese Medicine Manufacturing industry in China has been growing at a CAGR of 5.0 % between 2019 and 2024.
What is the forecast growth of the Traditional Chinese Medicine Manufacturing industry in China over the next 5 years?
Over the next five years, the Traditional Chinese Medicine Manufacturing industry in China is expected to grow.
What does the Traditional Chinese Medicine Manufacturing in China include?
Herbal traditional Chinese medicine and Animal-based traditional Chinese medicine are part of the Traditional Chinese Medicine Manufacturing industry.
How competitive is the Traditional Chinese Medicine Manufacturing industry in China?
The level of competition is high and increasing in the Traditional Chinese Medicine Manufacturing industry in China.
