Fiducia Strategy Advisory — Healthcare and Medical Sharing

The Chinese medical industry is continuously improving with residents’ rising health awareness, population aging and the development of technologies. In the past year, Fiducia Strategy Advisory has provided support to globally leading clients in the medical technology field, and gathered many valuable insights:

Market for Surgical Instruments and Diagnostic Consumables:

  • The market is expected to grow with a CAGR of around 20% in the next 3 to 5 years
  • The market is dominated by imported brands with high technology thresholds
  • Due to central procurement and local substitutions, domestic manufacturers are increasing market share while multinational companies are accelerating their local production processes

Dentistry:

  • The Chinese market is expected to continue generating significant demand for oral treatment and care in the future
  • The key opinion leaders (KOLs) in public hospitals remain crucial for client education
  • In the coming years, China’s dental market will gradually shift towards private channels; therefore, international brands need to proactively identify and establish partnerships

CDMO Market:

  • The Contract Development and Manufacturing Organisation (CDMO) sector in China’s life sciences and IVD fields remains in its early stages of development, primarily focused on consumable production. The penetration of CDMOs in the equipment segment is only 1%
  • Foreign bioscience companies are deepening their localisation strategies in China, contributing approximately 60% of the CDMO demand in China; domestic brands currently account for about 40% of the demand
  • Due to the Sino-U.S. trade tensions, some American companies are seeking to relocate their manufacturing operations from Chinese CDMOs to Southeast Asia or back to the United States. Concurrently, certain Chinese life science enterprises are exploring opportunities in the U.S. market, leading to a growing demand for local CDMO suppliers there

Medical Nebuliser:

  • The medical nebuliser market is projected to grow at a compound annual growth rate (CAGR) of 14% over the next five years
  • The home-use segment is experiencing rapid growth, outpacing that of hospital markets
  • Online channels are expanding more rapidly than offline channels. Consequently, traditional hospital-oriented nebuliser manufacturers are accelerating their efforts to establish a presence in online sales channels
  • Influenced by penetration of nebulisation treatment, competition among brand manufacturers, and promotional activities across various channels, there is a slight downward trend in nebuliser end-market prices. International brands need to broaden their pricing portfolio to enhance their customer base and improve market competitiveness

Injection Pen and Syringe：

  • The market for insulin pens, automatic injection pens, and pre-filled syringes in China holds significant potential, with an anticipated growth of around 15% annually over the next five years
  • Currently, the Chinese market for insulin pens and automatic injection pens is led by foreign brands who account for over 70% of the market shares. Foreign companies are intensifying their localisation strategies in China to increase the proportion of domestic manufacturing
  • In recent years, the pre-filled syringe market in China has undergone transformative changes, with domestic brands surpassing foreign ones in market shares and still expanding. Weight management and cosmetic injections serve as the primary growth driver for both automatic injection pens and pre-filled syringes

Fiducia Strategy Advisory continues to leverage our extensive experience in the healthcare field supporting medical technology clients across the globe. We welcome further discussions and engagement with you regarding such topics.