China has emerged as the second largest medical device market globally, exhibiting impressive growth that outpaces more mature markets. This remarkable trajectory is supported by several key trends and strategic government initiatives aimed at fostering innovation and expanding healthcare access.
Accelerated Focus on Innovation
The Chinese government is actively promoting the development of new and innovative medical products. This focus is essential in meeting the diverse healthcare needs of its vast population, particularly as the country faces an aging demographic. Accelerated approval pathways for products addressing unmet medical needs are put in place. The rapid growth of high-value consumables reflects this trend, growing at rates exceeding the overall market.
Preference for Imported Products
High-value products, particularly those imported from countries in the DACH region (Germany, Austria, and Switzerland), are highly regarded in China. This appreciation stems from their advanced technology and reliability, making them a focal point for healthcare providers seeking quality medical solutions.
The Shift Towards Localization
In response to government directives encouraging local production, there is a clear trend toward locally manufactured products. However, the definition of what constitutes “local” remains vague, and the degree of localization required is not well specified. This uncertainty poses challenges but also opportunities for both domestic manufacturers and foreign companies looking to adapt to the evolving regulatory landscape.
Volume-Based Procurement: A New Norm
Volume-Based Procurement (VBP) is becoming the standard for medical devices in China, following similar initiatives in the pharmaceutical sector. This shift aims to reduce costs and improve access to medical devices, but it also necessitates that manufacturers and distributors adapt to more competitive pricing structures and align their strategies with various provincial alliances.
Aging Population and Rising Consumer Expenditure
China’s rapidly aging population is a significant driver of demand for medical devices. As healthcare needs increase, consumer health expenditure per capita is rising at a pace stronger than the Asian average. This trend highlights the growing importance of healthcare spending in the lives of Chinese citizens, further fueling the demand for advanced medical technologies.
Expansion of Healthcare Infrastructure
Over the next 30 years, China is poised to add a substantially higher number of hospital beds compared to the rest of Asia. This expansion is critical for enhancing healthcare capabilities to meet the rising demand for services, especially as the population ages and chronic diseases become more prevalent.
Conclusion
China’s medical device market is at a pivotal moment, characterized by rapid growth and transformation. With government support for innovation, a shift towards local production, and changing procurement practices, the landscape is evolving rapidly. As the country addresses the challenges posed by an aging population and rising healthcare demands, stakeholders must navigate these dynamics to capitalize on the opportunities within this vibrant market. The future of healthcare in China promises to be both innovative and expansive, setting the stage for significant advancements in medical technology.
What we can do for you
Our longstanding experience and knowledge within the Melchers Group along the value chain of the Chinese healthcare industry through sales, management, and compliance activities, as well as corporate services enables us to offer tailored and brand-oriented market approaches for all our partners.
We from Altride Healthcare, a subsidiary of the Melchers Group, with our local distribution Joint-Venture Meddax-Medical, are in an ideal position to help you grow your China medical devices business. We guide you through regulatory processes and take care of your market access and channel management with our dedicated medical device sales force, utilizing decades of experience. Financial transparency, compliance and trust are the key pillars of how we conduct business.