Why Enter the China Market
China healthcare industry is currently ranked the second largest in the world behind the US.
The market has grown at a consistently rapid rate in the past five years, and in 2019, the market reached RMB 7.82 trillion (US$1.1 trillion), an increase of 10 percent when compared to that from the previous year.
Despite this, the market remains relatively undeveloped, with China’s health expenditure – including pharmaceuticals, medical devices, distribution, hospital, pharmacies and insurance – accounting for only 6.57 percent of the total GDP in 2018, while the US reached 17.8 percent in the same year.
By 2030, China is expected to have more than 25 percent share of the global medical device industry at over US$200 billion, second only to the US who is expected to cross US$300 billion in sales in the same period, according to a 2018 KPMG report.
The market reached RMB 7.82 trillion (US$1.1 trillion) in 2019, which provides plenty of growth opportunities for companies.
In 2020, China closed 395 healthcare deals for a record $12.1B. In comparison, all of Europe closed 377 deals for a total of $8.2B.
Moreover, according to statistics on average a concrete China execution may increase the valuation of a US/Europe company by at least 20 percent.