Analysis of the development of the medical consumables industry

Analysis of the development of the medical consumables industry

-The market demand is strong, and the future development potential is huge.

Keywords: medical consumables, population aging, market size, localization trend

1. Development background: In the context of demand and policy, medical consumables are gradually developing. With the rapid economic growth, people’s living standards are gradually improving, people pay more and more attention to health issues, and spend more and more on health care. According to the National Bureau of Statistics, health care expenditures have increased from 1451 yuan in 2017 to $2120 in 2022. At the same time, the degree of aging in my country is intensifying, and there is a greater demand for medical care. Data show that the population aged 65 and above is also showing an increasing trend, increasing from 159.61 million to 209.78 million. The gradual increase in demand has prompted the continuous increase of medical equipment, and the market size of medical consumables will gradually expand.

The medical industry is related to the life and safety of the people, and has always been a key industry in the country’s development process. However, in recent years, problems such as inflated prices and overuse of some medical consumables have frequently appeared, and the market for medical consumables is chaotic. The standardization trend is developing in an orderly manner, and the state has issued a series of measures to supervise the medical consumables industry.

2.Development status: medical consumables are widely used, and the market scale is showing continuous growth.

Due to the wide variety and large quantity of medical consumables in my country, there is no unified classification standard for medical consumables at this stage. However, according to the value of medical consumables in practical applications, they can generally be divided into low-value medical consumables and high-value medical consumables. Although the price of low-value medical consumables is relatively low, the amount used is relatively large, which is closely related to the vital interests of patients. From the perspective of the market structure of low-value medical consumables, injection puncture and medical hygiene materials account for more than 50%, of which injection puncture products account for more than 50%. The ratio is 28%, and the proportion of medical and sanitary materials is 25%. However, high-value medical consumables do not have an advantage in terms of price, but they have strict requirements on safety and are widely used in clinical practice. Judging from the proportion of high-value medical consumables, vascular interventional consumables accounted for 35.74%, the highest in the market. Ranked first, followed by orthopedic implant consumables, accounting for 26.74%, and ophthalmology consumables ranked third, accounting for 6.98%.

China’s medical consumables market structure

At present, medical consumables for injection and puncture can be divided into infusion, puncture, nursing, specialty and consumer, and their application fields are very wide. The demand for puncture products is gradually increasing, and the future development potential is huge, and its market size shows a steady growth trend. According to statistics, in 2021, the market size of my country’s medical injection and puncture products will reach 29.1 billion yuan, a year-on-year increase of 6.99% compared with 2020. It is expected to maintain a growth trend in 2022, growing at a rate of 14.09% to 33.2 billion yuan.

Vascular interventional consumables refer to the high-value consumables used in vascular interventional surgery, using puncture needles, guide wires, catheters and other consumables to introduce them into the lesion for minimally invasive treatment through blood vessels. According to the treatment site, they can be divided into: Cardiovascular interventional consumables, Cerebrovascular interventional consumables and peripheral vascular interventional consumables. According to statistics, from 2017 to 2019, the market size of China’s vascular interventional consumables gradually increased, but the market size will decline by 2020. This is mainly because the state organized the centralized procurement of high-value medical consumables coronary stents in those years, resulting in a decline in product prices. , which in turn led to a reduction in the market size of 9.1 billion yuan. In 2021, the market size of China’s vascular interventional consumables will reach 43.2 billion yuan, a smaller increase than 2020, which is 3.35%.

In recent years, affected by downstream demand, the market size of medical consumables has been increasing year by year, from 140.4 billion yuan in 2017 to 269 billion yuan in 2021. It is expected that with the increase of the aging population in the future, the incidence of various chronic diseases will increase. Climbing year by year, the number of medical institutions and the number of hospitalizations are increasing rapidly. The huge base of diagnosis and treatment patients, especially hospitalized patients, has brought great market space for the development of the medical consumables industry. In 2022, the market size of medical consumables will reach 294.2 billion yuan, a year-on-year increase of 9.37% from 2021.

3. Enterprise structure: The gross profit margin of medical consumables related enterprises is relatively high, and the market competition is relatively fierce

With the natural growth of the global population, the aging of the population, and the economic growth of developing countries, the global medical device market will continue to grow in the long run, so the production and sales of medical devices by related companies will continue to increase.

4. Development trend: The process of domestic substitution is accelerating, and medical consumables are ushering in a golden period of development

1. Affected by the demand of downstream industries, medical consumables ushered in rapid development

With the development of China’s medical and health services, medical consumables play an increasingly important role in medical services. Medical consumables not only help to improve the safety of inspections and prevent the spread of diseases caused by medical devices between doctors and patients, but also many products, such as disposable surgical kits, implantable high-value consumables, etc. The effect has a crucial impact, and its quality and safety are related to the health and life of patients. In recent years, with the aging of the population, consumption upgrades and the improvement of payment ability brought about by the new medical reform, the number of hospitals and the increase of medical staff are far from keeping up with the market demand. The shortage of supply has become the main contradiction of the current “difficulty in seeing a doctor”, which has prompted China With the vigorous development of the medical industry as a whole, the medical consumables industry is ushering in a golden period of development.

2. The trend of domestic substitution is obvious

In recent years, my country has frequently promulgated policies to encourage the development of domestic medical devices, and domestic medical device companies have ushered in a golden opportunity period. As an important market segment of medical devices, high-value medical consumables have a complete range of categories after years of rapid development. However, since most of the domestic market segments are still dominated by imports for a long time, most of the market share of high-value medical consumables is occupied by foreign manufacturers, and only a few varieties of domestic products have a certain position. To this end, the state has issued a series of policies to promote the development of the industry. For example, under the promotion of the centralized procurement policy, domestic leading enterprises can not only achieve accelerated market share, but also occupy channel advantages and win the trust of doctors. It has laid a good foundation for more new products to enter the hospital in the future. Domestic consumables have also begun to usher in the spring of development.

3. The concentration of the industry has been further improved, and the R&D investment of enterprises has been strengthened

Affected by the national policy of mass procurement, the price of medical consumables has gradually declined. Although this has an advantage in product prices for domestic leading companies, it also has advantages in production capacity and supply capacity. However, this has led to small and medium-sized enterprises. It is difficult to compete with leading companies, which has further increased the concentration of the industry. In addition, due to the large drop in the winning bid prices of many high-value medical consumables, it has caused a certain short-term pressure on the performance of domestic companies. Many companies have continued to increase research and development investment to obtain new profit growth points.