Development Opportunities and Challenges of Chinese Herbal Medicine Industry
Recently, some media reported that since the beginning of this year, the number of Chinese herbal medicine companies that have been canceled GMP certification has reached 58, accounting for the vast majority of the GMP certificates that have been withdrawn. In the increasingly stringent industry standardization policy, the content of Chinese medicinal materials and Chinese herbal pieces has attracted strong attention from Chinese medicine companies.
Market demand is rising, the problem of overcapacity is still to be solved
As an important part of the industrial chain of traditional Chinese medicine industry, Chinese herbal pieces have reached an all-time high in terms of production scale and production capacity since 2010. The production capacity of Chinese herbal pieces increased from 332 tons in 2010 to 450 tons in 2014, while the annual output increased from 175 tons in 2010 to 315 tons in 2014.
According to statistics from the Ministry of Industry and Information Technology, the revenue of Chinese herbal pieces in 2014 was 49.563 billion billion yuan, an increase of 15.72 percent over the same period last year, which was higher than that of chemical drugs and biological drugs. However, from the perspective of profit margin, the profit margin of Chinese herbal pieces is only 7%, which is still far behind the profit margin of more than 10% for chemical and biological preparations.
Although the Chinese medicine decoction pieces industry maintains the scale growth of the super-pharmaceutical industry every year, like other pharmaceutical sub-industries, the overcapacity of Chinese medicine decoction pieces is still a major problem currently facing. Data show that in 2014, the domestic demand for Chinese herbal pieces was 300 tons, while the output reached 315 tons. The state of this overcapacity market has not changed since 2010.
From the sales of retail pharmacies, the sales scale of Chinese medicinal materials and Chinese herbal pieces in pharmacies has been within 10%, but compared with chemical medicines and Chinese patent medicines, the sales of Chinese medicinal materials and Chinese herbal pieces have increased significantly in recent years. Larger than patent medicine. Sales increased from 9.6 billion yuan in 2011 to 18.3 billion yuan in 2014, with an average annual growth rate of 23.7. However, judging from the data in the first half of 2015, the MAT sales data of Chinese medicinal materials and Chinese herbal pieces in pharmacies showed a downward trend.
From the point of view of the export of traditional Chinese medicine, the trend of export volume and export volume in the past five years is like ice and fire. From the perspective of the export volume of Chinese medicinal materials, the export of Chinese medicinal materials in my country has maintained a stable state, which has been maintained at about 20000 tons. In terms of export value, it has risen from $0.47 billion to $1.18 billion in 2013. Over the years, the import volume of Chinese medicinal materials has maintained a rapid growth trend, and the import amount has risen even more.
Overall, the market demand for Chinese herbal pieces is still growing, but the problem of overcapacity still needs to be solved. At present, the state has been aware of the market chaos brought about by ineffective capacity. How to improve the overall development level of Chinese herbal medicine industry? The problems in quality control, source supervision, classification and grading, standards and specifications, high quality and good price and other aspects need to be solved urgently.
New trends are taking shape
At present, the development of the Chinese medicine decoction pieces industry has faced many new opportunities and challenges, such as the impact of the Internet on the Chinese medicine industry, the transformation and utilization of modern technology on Chinese medicine decoction pieces, and the capital impact faced by the Chinese medicine decoction pieces industry.
At this stage, the transaction of bulk Chinese medicinal materials and Chinese herbal pieces is affected by factors such as logistics radius, safety stock and economic procurement batch. The traditional Chinese medicinal materials and Chinese herbal pieces market radiation has obvious regional boundary restrictions. These factors jointly restrict the national Chinese medicinal materials and Chinese herbal pieces. The formation of a unified market and the exertion of scale effects, and the e-commerce platform can effectively solve this problem. Therefore, it can be predicted that the trend of the Internet of Chinese herbal medicines and Chinese herbal pieces will be irreversible in the future.
The market size of Chinese medicine formula granules has grown rapidly in the past ten years, with an average annual compound growth rate of nearly 50%. Even so, the proportion of traditional Chinese medicine formula granules in China's proprietary Chinese medicine market is still less than 2%, and there is huge room for improvement. In addition, the technical threshold of traditional Chinese medicine formula granules is not high, and the average gross profit margin is as high as 70%, so the market prospect of traditional Chinese medicine formula granules in China is broad.
It is worth noting that in recent years, major pharmaceutical companies to invest in the Chinese medicine industry cases continue to emerge. Under the industrial upgrading, profit-driven and policy guidance, the Chinese herbal medicine industry is bound to set off a wave of M & A investment.