China Pharmaceuticals Market Size, Share & Industry Analysis, By Type (Drugs and Vaccines, By Disease Indication (Oncology, Diabetes, Infectious, Cardiovascular, Neurology & Psychiatry, Respiratory, Renal, Obesity, Autoimmune, Ophthalmic, Gastrointestinal, Dermatology, Hematology/Blood, Liver/Hepatology, Genetic, Hormonal/Endocrine, Women’s Health, Reproductive, & Allergies), By Drug Type (Biologics & Biosimilars, and Small Molecules/Conventional Drugs), By Route of Administration (Oral, Parenteral, Topical, & Inhalation), By Age Group, By Distribution Channel, and Country Forecast, 2025-2032

The China pharmaceuticals market size was worth USD 252.37 billion in 2024 and is estimated to grow to USD 274.66 billion in 2025 and USD 540.78 billion in 2032. The market is projected to grow at a CAGR of 10.16% during the forecast period.

China’s pharmaceutical industry is experiencing rapid growth. It is the world’s second largest industry, and one of the leading markets in the Asia Pacific region. The country has also become a prominent player in pharmaceutical innovation, with its global presence in the drug development pipeline. This dominance can be attributed to rising prevalence of chronic disease, high share of vulnerable population, increased government investment in pharmaceutical industry, strategic initiatives undertaken by domestic players, and others.

• For instance, in June 2025, AstraZeneca and CSPC Pharmaceuticals Group Limited, China signed a strategic collaboration agreement with emphasis on artificial intelligence based research.

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As per the European Federation of Pharmaceutical Industries and Associations, in China around USD 16,035 million were spent on pharmaceutical R&D expenditure.

China Pharmaceuticals Market Trends

Surge in Clinical Trials for Innovative Drug Development, Leading to Considerable Market Growth

China’s pharmaceutical industry is experiencing a surge in clinical trials, in turn becoming a global center for research and development. This growth is majorly driven by factors such as increased R&D spending, large and growing population, and government initiatives to streamline regulations. China's investment in research and development within the pharmaceutical and biotechnology sectors has significantly increased in recent years. This has led to growing number of clinical trials for newer drug development. Additionally, the Chinese government has implemented reforms to simplify clinical trial approval process, making it more attractive for companies to conduct trials, thereby supporting the market growth.

• For instance, according to an article published by Axios in May 2025, in the year 2024, the number of clinical trials listed by China crossed 7,100 in the World Health Organization's International Clinical Trials Registry Platform.

China Pharmaceuticals Market Growth Factors

Rising Chronic Disease Burden in China to Propel Market Growth

China faces a rising burden of chronic diseases, with non-communicable diseases (NCDs) accounting for a significant portion of deaths. Several factors are responsible for this rising disease burden including population aging, and unhealthy lifestyles. Chronic diseases are more prevalent among older adults, and the number of elderly individuals in China is growing rapidly, in turn driving the market growth.

• For instance, according to the data provided by the World Health Organization (WHO), China’s share of population of people over 60 years old is estimated to reach 28% by 2040.

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China Pharmaceuticals Market Restraints

Pricing Pressure on Pharmaceuticals to Limit Market Growth

In China, pharmaceutical companies face significant price pressure. This is majorly due to initiatives undertaken by government with an aim to control healthcare costs and promote access to affordable medicines. This pressure is a result of policies such as volume-based procurement (VBP), and centralized drug procurement which incentivize companies to offer lower prices in exchange for large contracts with public hospitals.  The Chinese government's focus on controlling drug costs and promoting access to affordable medicines has created a challenging environment for pharmaceutical companies, marked by intense price pressure. The pharmaceutical companies must navigate these challenges by adapting their pricing strategies, demonstrating the value of their products, and potentially exploring alternative market segments.

Segmentation Analysis

By Type

Based on the type segment, the market is divided into drugs and vaccines.

The vaccines segment is anticipated to witness a fastest growth during the forecast period. The segment growth is augmented by several factors including increasing focus of government authorities on vaccine development and distribution, rising research and launch of innovative & advanced vaccines, and surge in prevalence of viral diseases across the country.

• For example, in October 202, GSK plc partnered with Zhi Fei Biological to co-promote its shingles vaccine, Shingrix, in China for an initial three-year period.

By Disease Indication

On the basis of disease indication, the market is segmented into diabetes, oncology, infectious, neurology & psychiatry, cardiovascular, respiratory, obesity, renal, ophthalmic, autoimmune, gastrointestinal, dermatology, liver/hepatology, hematology/blood, genetic, women’s health, hormonal/endocrine, reproductive, allergies, and others.

The infectious disease segment accounted for the significant share of the market in 2024. The growth of the segment is due to increasing number of infectious disease outbreaks in China coupled with growing number of approved products in the country.

• For example, in May 2022, GSK plc. received approval from China’s National Medical Products Administration (NMPA) for two-dose vaccine schedule for Cervarix to prevent cervical cancer in girls aged between 9-14 years.

By Drug Type

On the basis of drug type, the market is divided into small molecules/ conventional drugs and biologics & biosimilars.

Small molecules/conventional drugs segment account for a larger share of China pharmaceutical market. Factors fostering the segmental growth include strong R&D investments by pharmaceutical companies, increasing number of approved products, active involvement of domestic manufacturers in various strategic initiatives and others.

• For example, according to an article published in November 2024, in Biomedicine Industry Trends, since its 14th five-year plan, China has approved 113 innovative drugs.

By Route of Administration

Based on the route of administration segment, the market is segmented into parenteral, oral, topical, inhalation, and others.

The oral segment held a dominating share of the market in 2024. This dominance can be attributed to several factors such as increasing preference for oral formulations due to ease of administration and lower cost, rising demand for self-administered therapies, especially oral medications, and others. Additionally, increasing new product introductions by operating players further supports the market growth.

• For instance, in December 2024, the National Medical Products Administration (NMPA), China approved Simcere Pharmaceutical’s Sanbexin sublingual tablets to treat acute ischemic stroke.

By Age Group

In terms of age group, the market is segmented into adults and pediatrics.

The adults segment held the dominating position in 2024. China's population is undergoing a significant demographic shift, with a rapidly aging population and a declining birth rate, resulting in a smaller pediatric population. This results in more demand for medications by elderly population as this age group is more susceptible to various chronic diseases as well as infections.

• For instance, according to the study published in National Center for Biotechnology Information (NCBI) in June 2023, China's life expectancy has increased dramatically, from 44.6 years in 1950 to 77.47 years in 2020, and is projected to reach 80 years by 2050.

By Distribution Channel

Based on distribution channel, the market is divided into hospital pharmacies, drug stores & retail pharmacies, and online pharmacies.

The hospital pharmacies segment is anticipated to capture a leading share of the market throughout the forecast period. Public healthcare institutions, which include hospitals, are the primary channel for drug sales in China leading to their dominance in the market. Additionally, the Chinese government has emphasized pharmacists in healthcare, enacting legislation to address the rational use of medicines in medical institutions. Moreover, installation of advanced systems by these settings also support the segment growth.

• For instance, in January 2021, Shanghai Seventh People's Hospital partnered with ABB for the automation of drug dispensing in its pharmacy.

List of Key Companies in China Pharmaceuticals Market

Sinopharm Group, Shanghai Pharmaceuticals Holding Co., Ltd., and China Resources Pharmaceutical Group are some of the key players in the China pharmaceuticals market. Factors such as R&D-driven innovation, strong distribution network, expansion of manufacturing capabilities, and emphasis on new product launches & collaboration agreements are supporting the dominance of these companies in the region.

• For instance, in May 2025, Shanghai Pharmaceuticals Holding Co., Ltd. collaborated with Novartis AG to sell the latter company’s ophthalmic products in China.

The other Chinese companies with a notable presence in the market include Yunnan Baiyao Group, Wuxi Biologics, and Jiangsu Hengrui Medicine along with the presence of several emerging players in the market. These companies are actively involved in various strategic moves, which are projected to maintain their market share.

LIST OF KEY COMPANIES PROFILED

• Sinopharm Group (China)
• Shanghai Pharmaceuticals Holding Co., Ltd. (China)
• China Resources Pharmaceutical Group (China)
• Yunnan Baiyao Group (China)
• Wuxi Biologics (China)
• Jiangsu Hengrui Medicine (China)

KEY INDUSTRY DEVELOPMENTS

• July 2025: China’s regulatory body - National Medical Products Administration (NMPA) approved four new drugs that were developed by local biopharmaceutical companies.
• May 2025: Eisai Co., Ltd. announced that China’s National Medical Products Administration (NMPA) has approved DAYVIGO – an anti-insomnia drug.

REPORT COVERAGE

The China pharmaceuticals market report offers in-depth analysis of the current market scenario in the country. It encompasses various aspects such as key market dynamics, key insights including the prevalence of key chronic diseases in the country, regulatory overview of pharmaceutical products in China, recent industry developments, and new product launches in the market. The China pharmaceuticals market analysis also includes the profiles of the major companies operating in the Chinese market.

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Report Scope & Segmentation