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Medical Supply Manufacturing in China Industry Research Report – Now Available from IBISWorld
Date:7/14/2013

San Francisco, CA (PRWEB) July 14, 2013

In 2013, the Medical Supply Manufacturing industry in China is expected to generate $21.1 billion, reflecting average annualized growth of 24.9% over the past five years, says IBISWorld. With the development and implementation of healthcare reforms, such as the new Cooperative Medical Care System in rural areas and the new social security system, a growing number of Chinese people are able to afford medical services, creating a larger potential market for medical materials and supplies.

Apart from some dental and suturing materials, most medical supplies manufactured in China are low-end products using low-end technology. However, regulations such as GMP (Good Manufacturing Practice) certification are forcing manufacturers to improve product quality and manufacturing environments, which is expected to result in higher production costs. And as labor cost advantages in China are disappearing, and the price of cotton and other raw materials is increasing, IBISWorld expects the industry will begin to shift focus to higher value products.

In 2013, the top four companies in the Medical Supply Manufacturing industry in China – Shandong Weigao Group, Henan PiaoAn Group, Jiangsu Province JianErKang Medical Dressing, and Sichuan Nigale Biomedical –  account for about a quarter of total industry revenue, which represents a low industry concentration level. The industry concentration level has increased steadily in recent years, says IBISWorld, mainly due to the expansion of production capacity and the introduction of more advanced manufacturing facilities and equipment by large players. Industry concentration i
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