Optimizing the opportunity in China

Authored by: Marc Yates

The pharmaceutical market in China has developed beyond recognition and is now the second largest, behind the USA. These changes have evolved China into a must win market for many pharmaceutical companies.

China’s vast population of 1.4 billion people, an ageing demographic, and a rise in lifestyle diseases such as obesity and diabetes make it a prime market for healthcare innovation and pharmaceutical growth.

The China Government’s Healthy China 2030 plan aims to improve access to quality healthcare. Policies encouraging innovation, including faster approval for new drugs, have made China attractive to companies looking to invest in local R&D facilities, often working in partnership with local manufacturing companies to take advantage of incentives, favourable tax benefits and regulatory support.

But with such a large population covering a wide geographic area and with a preference for local over global players, is it a market that is very accessible? What must global pharma companies do to play and win in China?

Research Partnership’s 40-strong emerging markets team have been supporting big pharma to optimise the opportunity in China for over 20 years. Having conducted over 400+ market research projects in the country, they truly understand the unique healthcare environment, the primary care and hospital system, the entrenched cultures and beliefs around private healthcare and traditional Chinese medicine. They bring a combination of executional excellence with a deep market knowledge allowing them to conduct market research that delivers the insights you need to make informed decisions about your China strategy.

According to the EM team, there are a number of critical success factors for success:

1. Market accessibility and focus on urban populations

China’s healthcare market is vast but varied. Urban cities like Beijing, Shanghai, and Guangzhou are focal points, as their populations can more easily afford healthcare. Despite a public healthcare system, much of China’s medical expenses remain out-of-pocket, influencing treatment choices, therapy duration, and compliance. Patients commonly bypass under-resourced primary care to seek specialists in hospitals directly, creating long wait times for highly regarded physicians.

However, for pharmaceutical and biotech companies, this translates into an opportunity to focus on urban markets where people are willing to invest in healthcare services. Urban areas are also more receptive to digital health platforms, pharmacy e-commerce, and telemedicine—areas where China is already a global leader. This digital transformation is driven by AI, big data, and health tech innovations, offering a promising future for integrated care.

2. Understand your competitive set

China is perhaps the most dynamic pharmaceutical market. Expedited approvals have reduced time to market. Biosimilars of off-patent products are available in China before any other market – Boyoubei^® was the first Prolia^® biosimilar available in the world. At least 15 companies are developing their own versions of semaglutide, which loses patent in 2026, with many already in late-stage clinical trials. Hangzhou Jiuyuan is positioned as a frontrunner among these competitors, having achieved comparable efficacy and safety to Ozempic in its trial.

It is also important to understand Traditional Chinese Medicine which can be a competitor for share of wallet.

With thousands of years of history, TCM remains an important aspect of Chinese healthcare, especially in rural areas and for preventive care. Treatments like acupuncture, herbal medicine, and practices focused on restoring qi (life energy) align with traditional Chinese beliefs about health and wellness. Although TCM lacks scientific validation for certain treatments, it is widely trusted by many for managing chronic conditions and is often preferred for its natural approach and fewer perceived side effects.

Urban areas, however, show a growing preference for Western medicine, particularly for acute, emergency, and surgical treatments, where it is seen as more effective and scientifically backed. Younger generations often use TCM as a complementary approach, integrating it with Western practices for a personalized healthcare experience.

3. Understanding the Government’s Role: Dual Support for TCM and Western Medicine

The Chinese government strongly supports TCM, promoting it as part of the country’s cultural heritage and a resource for global healthcare. Funding and research investments in TCM are substantial, and healthcare training often includes both TCM and Western practices. TCM hospitals and institutions receive governmental backing, and the government’s dual approach positions China as a market where both TCM and advanced pharmaceuticals can thrive.

4. Leveraging the opportunities for innovation and future growth

China’s push towards innovation is creating a fertile ground for cutting-edge healthcare solutions. The government encourages advancements in biotech, biologics, and gene therapy, fostering growth in areas like CAR-T cell therapy and digital health. These innovations are increasingly critical as China’s healthcare needs evolve, particularly given the rising burden of non-communicable diseases and an aging population.

The Healthy China 2030 plan also incentivizes foreign companies to localize their research and development efforts. This localization can lead to faster approvals and broader market access, making China a compelling choice for companies aiming to scale their innovative therapies and technologies.

5. Adopting a tailored approach is necessary

To succeed, foreign companies need a tailored approach, focusing on the affluent urban population while respecting the Chinese preference for TCM. Cultural understanding, collaboration with local entities, and familiarity with regulatory nuances are essential. The complexity of the Chinese healthcare market requires companies to balance Western treatments with TCM, addressing the dual expectations of modern and traditional health solutions.

China workshop offer

We could impart so much more about this exciting emerging market, but why not take advantage of this opportunity to find out for yourself why China could be a winner for your brand?

This winter, the Emerging Markets team are running individually tailored, custom-designed workshops entitled RP Informs, which will be focused on the key characteristics, considerations opportunities and challenges of operating in China for clients interested in either entering or optimising their strategy in this exciting market. Designed just for your team, at a time and date to suit you, this 90-minute workshop will focus on the characteristics of the China market you want to know more about. We will also discuss what considerations need to be made for conducting effective market research in the region so you can gain a deeper understanding of the market.

A number of companies have already signed up to take part. If this is something that would be of interest to your team, please complete the form below and we will contact you to organise a suitable date and time. Alternatively, email emergingmarkets@researchpartnership.com directly and we will be in touch.