Traditional Chinese medicine industry is an industry with strong profitability and high product profit margin. As a national medicine industry in China, traditional Chinese medicine has long been an important area of medical policy support in China. With the rapid development of China's economy over the years, the Chinese medicine industry has maintained a good momentum of development.
In February 2016, the Outline of the Strategic Plan for the Development of Traditional Chinese Medicine (2016-2030) was released, which proposed to promote the digitalization, networking and intelligent construction of the traditional Chinese medicine industry, accelerate the standardization and modernization of the production process and process of traditional Chinese medicine, and gradually form large traditional Chinese medicine enterprise groups and industrial clusters. The total output value of the traditional Chinese medicine industry accounts for more than 30% of the total output value of the pharmaceutical industry, This is a once-in-a-lifetime development opportunity for the Chinese medicine industry and enterprises.
Business cycle of Chinese medicine industry
At present, the development of Chinese medicine manufacturing industry in China has the following characteristics:
Competition characteristics: due to the extensive industry foundation, the market competition of products is very fierce, and the business cycle of general products is short, especially bulk products. The decisive factors for effectively extending the product business cycle are "brand" and "feature". For example, Niuhuang Qingxin Pill of "Tongrentang", Wuji Baifeng Pill and Zhangzhou "Pianzai Huang" have survived for hundreds of years, mainly due to brand effect.
Demand characteristics: With the emergence of an aging society and the strengthening of consumers' awareness of health care, the demand for traditional Chinese medicine continues to rise. With the reform of the medical system, more consumers will enjoy comprehensive medical insurance, and the consumption of traditional Chinese medicine products will increase. Moreover, medical care is related to human health, and it is a continuously developing industry. With the development of economy, the Chinese medicine manufacturing industry will certainly get long-term development.
Production characteristics: from the perspective of the whole Chinese medicine manufacturing industry in China, the proportion of loss making enterprises in the total number of enterprises in the industry has declined year by year, indicating that the production status of the industry has been developing steadily.
Development status of Chinese medicine industry
With the rapid development of Chinese medicine, the service capacity has been significantly enhanced, and the scale of Chinese medicine industry has expanded significantly. The annual scale of China's traditional Chinese medicine industry has reached more than 410 billion yuan, accounting for 30% of the domestic pharmaceutical market. The export of traditional Chinese medicine has reached 2.332 billion dollars. There are nearly 1500 traditional Chinese medicine production enterprises in China.
Today, the United States has become the third largest market for Chinese herbal medicine exports. In the first half of 2015, the total value of Chinese herbal medicines exported from China to the United States reached 270 million dollars, accounting for 14.1% of China's exports of Chinese herbal medicines, of which plant extracts accounted for 78.2% of Chinese herbal medicines exported to the United States.
