Exclusive article by China's well-off network
Text: "Xiaokang", reporter of China's well-off network, descending Yunzhang
With the continuous promotion of the "Healthy China" strategy, the big health industry will have greater room for growth, and the market prospect is good, and it is bound to become a pillar industry of the national economy.
Photo by Ning Ying
In recent years, with the change of people's health concept and the improvement of health attention, the big health industry in mainland China is developing rapidly. As of 2023, the scale of the mainland's big health industry will reach 14.48 trillion yuan. According to Yao Jun, president of the China Health Management Association, it is expected that by 2025, the mainland's big health industry will reach 17.4 trillion yuan and 29.1 trillion yuan by 2030. It can be judged from this that big health will be an industry with great potential for future development in the mainland, and it is bound to become a new economic growth point.
In August 2016, the Central Committee of the Communist Party of China and the State Council issued the "Healthy China 2030" Planning Outline (hereinafter referred to as the "Planning Outline"), which clearly stated that in the future, it is necessary to establish a health industry system with a complete system and optimized structure, form a number of large-scale enterprises with strong innovation ability and international competitiveness, and become a pillar industry of the national economy. The "Planning Outline" is the first long-term strategic plan in the field of health at the national level since the founding of the People's Republic of China, which marks the official rise of the big health industry to a national strategy, and the big health industry has also ushered in a period of opportunity for rapid development.
At present, the mainland is in a critical period of in-depth implementation of the "Healthy China" construction. The report of the 20th National Congress of the Communist Party of China (CPC) regards "Healthy China" as an important aspect of the mainland's overall development goal for 2035, proposes to "put the protection of people's health in a strategic position of priority development, improve people's health promotion policies", and make comprehensive arrangements for "promoting the construction of a healthy China". The mainland's big health industry has ushered in a new round of rapid development opportunities.
"Xiaokang" magazine and China's well-off network found that since the "Healthy China" rose to a national strategy in 2016, some large and medium-sized cities with a slight industrial base in China have upgraded the big health industry into a local pillar industry, and have set the goal of building hundreds of billions and trillions of industrial clusters, and allocated attractive policies and financial support to attract enterprises to settle down, expand the industrial chain, and compete for the "head players" of the big health industry.
Become a new economic growth point
The concept of "Healthy China" was first proposed at the national level in 2015. During the National People's Congress and the National People's Congress in March of that year, "Healthy China" was included in the government work report for the first time; In October of the same year, the Fifth Plenary Session of the 18th Central Committee of the Communist Party of China proposed for the first time to promote the construction of "Healthy China", which elevated "Healthy China" to a national strategy. In August 2016, the CPC Central Committee and the State Council convened the National Health and Wellness Conference and issued the Planning Outline, which put forward a series of goals and tasks for the construction of a "Healthy China". Among them, it is clear that by 2030, "a health industry system with a complete system and optimized structure will be established, and a number of large-scale enterprises with strong innovation capabilities and international competitiveness will be formed to become a pillar industry of the national economy." ”
On June 25, 2019, the State Council issued the "Opinions on the Implementation of the Healthy China Initiative", based on which the Healthy China Action Promotion Committee was established, and the "Healthy China Action (2019-2030)" (hereinafter referred to as the Healthy China Action) was issued, and the General Office of the State Council issued the "Healthy China Action Organization Implementation and Assessment Plan". This series of measures has deepened the Healthy China strategy. The Healthy China Initiative can be said to have formulated specific construction drawings for further promoting the Healthy China Strategy and the Planning Outline.
The 14th Five-Year Plan for National Health, released in May 2022, states that during the 14th Five-Year Plan period, "the safety and health of the people will be put first, the construction of a healthy China will be comprehensively promoted, and the implementation of the Healthy China Action will be accelerated". From an industrial point of view, this means that the big health industry will usher in greater room for development. Zhongkang Technology is one of the leading enterprises in the domestic data medical industry, according to the company's comprehensive analysis of big data, by 2030, the mainland's big health industry will reach 16 trillion yuan; Correspondingly, the structure of the big health industry will also undergo great changes.
Li Junguo, vice president of Zhongkang Technology, introduced that while the scale of the big health industry is expanding, the non-disease treatment market will expand to 40%; The pure commodity trading market fell to about 40%; Driven by consumer-oriented medical care, private medical care has risen rapidly, and its market share has expanded to 30%; The market share of out-of-hospital drugs has expanded from 30% to 45%; The drug structure has also undergone significant changes, and the market share of innovative drugs will exceed 50%.
Li Junguo revealed that the scientific research team of Zhongkang Science and Technology has the following judgments on the development trend of the big health industry: First, the scale of China's pharmaceutical market continues to expand, and the growth rate is expected to reach 2.89 trillion yuan by 2030. The Chinese market is expected to account for 1/6 of the global market, and the growth rate may be slightly higher than the global market. Second, it is expected that the drug channel will continue to differentiate in the future, and the importance of the retail channel will increase; In the future, brick-and-mortar pharmacies and e-commerce B2C will continue to make efforts, and the proportion of channel share will continue to grow. With the increase in the number of outpatient and emergency services, the medical channel will increase to a certain extent, but due to the outflow of prescriptions to the retail channel due to the separation of pharmaceutical policies, the proportion of channel share may decline in the future. Third, the concentration of retail channels will be further improved, and e-commerce will maintain rapid development. With the promulgation of the outpatient mutual aid policy, it will be easier for large chain pharmacies to meet the application conditions for outpatient co-ordination, which will further strengthen the competitiveness of large chain pharmacies. Fourth, biological drugs and Chinese patent medicines launched an onslaught to shake the dominance of chemical drugs. During the epidemic, the "treasure" of traditional Chinese medicine has played an indelible role; In the post-epidemic era, self-diagnosis and treatment and self-care will become the core driving force for the development of the Chinese medicine industry. With the continuous development of gene technology, cell therapy and other high-tech products, biological products have unlimited potential; Chemical drugs are still the protagonists in drug development, and the competition on the track is fierce, and differentiated competition will become the way to break the situation in the future. Fifth, the scale of the patented drug market is expanding rapidly, the market for anti-tumor drugs accounts for a large proportion, the development of innovative drugs is accelerating, and the future of drugs for children and rare diseases is promising. In the future, biotechnology will drive the further growth of anti-tumor drugs, and it is estimated that by 2030, about one-fifth of the drug market will be occupied by anti-tumor drugs. Sixth, the mainland's health management is still in its infancy, and the market for early screening, health examination, and health care products can be expected in the future. Among them, the coverage rate of health examination in developed countries can reach 70%~90%, while the current coverage rate of health examination in mainland China is very low, and the space is huge. Seventh, a multi-level medical security system will be built to protect the health of residents in an all-round way, and commercial health insurance will develop rapidly. The government has substantially increased the participation rate through a combination of various policies, and promoted the information sharing between the medical insurance information platform and the commercial insurance health insurance platform. At the same time, we will guide commercial health insurance and Huimin Insurance to do a good job in the connection and supplement of basic medical insurance, and jointly build a multi-level medical security system. Eighth, from "single-point digitalization" to "comprehensive digital intelligence", information technology helps industrial development, and digitalization is regarded as the underlying productivity and social operation mode. In the process of pursuing the balance between supply and demand and the efficiency revolution of the big health industry in the next decade, digitalization will continue to explore the application scenarios of the integration of technology and health around the industrial chain.
It is worth noting that although the big health industry has been popular in recent years, and capital from all parties is also flocking in, on the whole, the development of the big health industry in mainland China is still in the initial stage, there are still shortcomings in the medical security system, the pain points of some industries need to be broken urgently, and the big health industry has not yet formed a good profit model.
Li Junguo said that in terms of scale, there is still a certain gap between the scale of the mainland's current big health industry and that of developed countries. In 2022, the total health expenditure of the mainland will be 8,052.8 billion yuan, accounting for 6.82% of GDP, while Japan's health industry accounts for more than 10% of GDP, and the United States' health industry expenditure accounts for more than 18%. Yao Jun, president of the China Health Management Association, also cited data that at present, in the medical and health industry in the United States, the proportion of family and community health management services accounts for about 50%, while in the mainland medical and health industry, the proportion of family and community health management services only accounts for about 5%, which can be seen that the development potential of the mainland health management service industry is huge.
From the national level, the country is paying more and more attention to the health industry and the health of the people, and the "Healthy China" strategy is a national strategy to further clarify the status of the health industry, that is to say, the development of the health industry is supported by national policies. There is no doubt that with the continuous promotion of the "Healthy China" strategy, the big health industry will have a lot of room for market growth, and the market prospects will also be good.
Actively lay out the trillion blue ocean
People's health is an important symbol of national prosperity and national strength. From the report of the 19th National Congress of the Communist Party of China to the report of the 19th National Congress of the Communist Party of China to the report of the 20th National Congress of the Communist Party of China, it is clear that a "healthy China" will be built by 2035, which will elevate the big health industry to an unprecedented national strategic height, and also provide a strong impetus for a new round of development of the big health industry.
"Xiaokang" magazine and China's well-off network noted that in recent years, in order to promote the development of the big health industry and expand the territory of the big health business, all parts of the country have opened the layout of the new economy and new forms of health.
It can be seen from the important economic development policies introduced by various provinces, autonomous regions and municipalities in the past five years that almost all provinces, autonomous regions and municipalities across the country have listed pharmaceutical manufacturing and biological industries as advantageous industries or priority industries; Among the 399 national industrial parks (169 national high-tech zones and 230 national economic development zones) in the country, more than 200 regard the biomedical industry as the key development direction, accounting for more than half, which shows that the competition around the big health industry is extremely fierce.
Beijing Economic and Technological Development Area covers an area of 225 square kilometers, and medicine and health are a "golden signboard" for Beijing's industrial development. The Beijing Economic and Technological Development Zone accounts for nearly half of the city's pharmaceutical and health industry. By the end of 2022, the Beijing Economic and Technological Development Area has gathered more than 3,500 biomedical and health enterprises of various types, including 21 listed companies, gradually forming a development pattern led by leaders and clusters, laying a solid foundation for the development of the entire health industry in Beijing.
On February 14, 2023, the Beijing Economic and Technological Development Area held a global "new drug intelligent manufacturing" partner conference, and issued the "Beijing Economic and Technological Development Area Action Plan for Accelerating the Construction of a Global "New Drug Intelligent Manufacturing" Industrial Highland (2023-2025)", proposing that by 2025, the scale of the biomedical and health industry in the Beijing Economic and Technological Development Area will exceed 200 billion yuan, the total number of enterprises above the designated size will exceed 120, and the number of listed companies will exceed 30. Cutting-edge tracks such as intelligent manufacturing of high-end medical equipment have formed innovative breakthroughs, and more than 100 new drugs and Class II and Class III medical device products have been newly declared for marketing, building a global "new drug intelligent manufacturing" industrial highland.
As one of the most influential innovation highlands in the biomedical industry in mainland China. After 30 years of development, Shanghai's biomedicine has grown from a total output value of less than 5 billion yuan to an industrial output value of nearly 200 billion yuan and a total scale of nearly 900 billion yuan. At present, 80% of the top 20 pharmaceutical and medical device companies in the world have their headquarters in China or R&D and production in Shanghai, and 16 of the top 20 companies in China are located in Shanghai, and a world-class biomedical industry cluster like a "tropical rainforest" is taking shape at an accelerated pace.
Since its establishment in 2018, the National Medical Products Administration has approved a total of 136 innovative drugs for marketing, among which the Yangtze River Delta region, led by Shanghai, is very active in biomedical innovation. Since 2019, a total of 17 Class I innovative drugs have been approved in Shanghai, accounting for about 1/4 of the country; A total of 23 Class III innovative medical devices have been registered and approved, accounting for about 1/6 of the country. Shao Mingli, former vice minister of health and former director of the State Food and Drug Administration, publicly stated that health, as one of the five future industries in Shanghai, will strongly support the innovation and development of biomedicine and health industry.
Since "Healthy China" has become a national strategy, Guangzhou and Wuhan have been strong contenders for the "head players" of China's big health industry. In the context of biotechnology and other new pillar industries being written into the "Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area" issued by the Central Committee of the Communist Party of China and the State Council in 2019, Guangzhou is speeding up the construction of a global biomedical industry highland. In 2022, the added value of Guangzhou's biomedicine and health industry will be 165.147 billion yuan, accounting for 5.73% of GDP, a year-on-year increase of 8.5%; In the first three quarters of this year, the added value reached 124.182 billion yuan. According to public data from the Guangzhou Municipal Government, there are more than 6,400 biomedical enterprises of various types, including 12 Fortune 500 companies, 139 enterprises above the designated size, and 54 listed companies. Guangzhou has become an important pole in the development of the biomedical industry in mainland China.
On April 7, the 2023 World Health Expo was held in Wuhan. Wang Qinghua, vice mayor of Wuhan, said at the health expo that Wuhan currently has more than 600 high-tech enterprises and 12 listed companies in the field of health, the first P4 laboratory in Asia, and 8 state key laboratories in the field of health, attracting more than 30 academicians at home and abroad to innovate and start businesses in Wuhan. According to the development plan of Wuhan's big health industry, we will strive to build a leading biomedical and medical device industry cluster, a life and health industry development cluster and a national health consumption center in China by 2025.
"Xiaokang" magazine and China's well-off network also noticed that Guizhou, Hunan, Shandong, Jiangxi and other provinces, autonomous regions and municipalities are also cultivating and expanding the big health industry with biomedicine as the core, helping the mainland to become the world's largest market for the big health industry.
Prosperity Some large and medium-sized cities with a slight industrial base in China have upgraded the big health industry into a local pillar industry, and have set the goal of building 100 billion or trillion scale industrial clusters. Photo by Ning Ying
There are many challenges
The big health industry covers many production and service fields closely related to human health, such as medical services, pharmaceutical and health products, nutrition and health food, health care equipment, leisure and health care services, and health consulting management. Driven by policy dividends and the market, more and more eyes are focused on the "big health industry". In this context, what opportunities and challenges will the mainland health industry face, where will the development of the big health industry go, and how to explore a new model of the big health industry?
iiMedia Consulting is a third-party data mining and analysis organization in the global new economy industry. According to the agency's analysis, affected by the three-year new crown epidemic, the big health industry will maintain a growth trend for a long time, and there is great potential for absorbing capital. Driven by policy and market demand, hospital investment is a hot spot in the future. Among the main bodies of diversified medical services, private hospitals are an important leverage point for social capital to enter, while doctor groups and high-end medical services are the secondary markets that attract attention. The field of traditional Chinese medicine (TCM) has received the most capital attention, with the largest number of projects receiving financing, while private doctors, doctor-patient services and physician communities are new investment growth points worth paying attention to.
Internet mobile technology not only connects doctors and patients and improves the efficiency of doctors' consultations, but also leverages the links of medical prescription allocation and procurement and distribution, and is interlinked with medical consultation. In the field of pharmaceutical services, biological/chemical pharmaceuticals, drug R&D and pharmaceutical production have always been the most capital-intensive fields, and pharmaceutical e-commerce has become one of the most important growth points for Internet-enabled pharmaceutical retail services.
With the explosion of demand for listing in the big health industry, the risks of the big health industry have gradually become prominent, the pressure of government supervision has increased, and the veto rate of medical and health IPOs has further increased. In the future, government supervision will pay more attention to problems such as abnormal business income, imperfect internal control, disguised benefit transfer, violations of laws and regulations, and unreasonable fundraising and investment projects. Healthcare companies should be mindful of issues that may affect approvals.
iiMedia Consulting analysts believe that in the future, the business model innovation of China's big health will focus on the field of medical services. Through the application of third-party service providers and new technologies, new areas of medical services such as community clinics, public surgery centers (and third-party imaging centers), doctor entrepreneurship platforms, convenient clinics (one-minute clinics), medical real estate, and doctor finance are constantly developing.
Big data, artificial intelligence, Internet of Things and other emerging technologies empower some big health industry fields, including public health big data, rapid diagnosis of diseases, telemedicine, identification and diagnosis, drug research and development, rehabilitation treatment, etc., making the collection, analysis and utilization of health data more accurate and efficient, improving the diagnosis and treatment level of medical services, improving the medical experience, expanding the service territory of the big health industry, and reducing service costs. It is foreseeable that emerging technologies such as big data, artificial intelligence, and the Internet of Things will have a far-reaching impact on the big health industry, and the application prospects are extremely broad.
At present, there are three main types of enterprises in the big health industry: first, the leading pharmaceutical and health enterprises represented by Sinopharm Group, which mainly focus on the core business of crude oil to build a big health industry ecology and improve the overall layout of the industry. Second, real estate companies represented by Wanda, Poly and Fuxing, in the case of the gradual fading of the dividends of the real estate industry, strive to quickly enter the field of big health through cooperation, mergers and acquisitions, self-construction and other ways to seize the opportunity for future development. Third, Internet companies represented by Tencent, Baidu, and Alibaba hope to integrate information technology such as mobile Internet and artificial intelligence with the big health industry to create emerging fields. While developing the big health industry, these corporate giants are also facing severe challenges.
In general, while seeing the new opportunities brought by the prosperity of the big health industry, we can't ignore the severe challenges faced by the big health industry. First of all, with the gradual expansion of the scale of the big health market, the competition between enterprises is becoming increasingly fierce. How to stand out in the fierce competition has become an urgent problem for big health enterprises. Secondly, with the continuous accumulation and application of health-related data, how to ensure personal privacy and data security has also become a major challenge. Finally, although emerging technologies have brought new opportunities to the big health industry, how to apply these technologies to practical scenarios and achieve business model innovation and breakthroughs is also a major problem facing big health enterprises.
("Xiaokang", exclusive article of China's well-off network)
This article was published in the early December 2023 issue of Xiaokang