Last Updated on February 12, 2025
China’s pharmaceutical industry is one of the key business segments that contributes to the country’s impressive economic growth. In November 2024, its retail sales reached approximately 62.2 billion yuan.
With the Chinese government continuously supporting initiatives to encourage foreign investments in these markets, many international companies are becoming more eager to expand their reach within the country.
Read along as we discuss the complexities of entering the pharmaceutical industry in China. We’ll also share how foreign companies can maximize their digital marketing strategies to appeal to the Chinese consumer market.
How big is the Pharmaceutical Industry in China?
China has one of the fastest-aging populations worldwide. By 2030, around 26.4% of its residents are predicted to reach retirement age (over 60 years old).
Because of this, it’s not surprising that the Chinese pharmaceutical industry is saturated. Currently, over 5,000 foreign and domestic companies are trying to cater to the growing needs of the local market.
China’s pharmaceutical market primarily trades, researches, and develops traditional Chinese medicine, active pharmaceutical ingredients, and therapeutic medications. However, the dominant product category among these segments is still generic drugs, covering almost 90% of the market.
Although China is popular for its extensive medicinal drug development and clinical research, it’s the 5th largest importer of pharmaceutical products globally. Its high-demand imports from overseas markets include specialty medications, cancer drugs, specialty treatments (e.g., cell therapies), and many more.
Beyond prescription drugs, the wellness trend has brought health-related products to the forefront of the average consumer’s daily lives. In hindsight, its popularity stems from the country’s increasingly aging population.
Meanwhile, herb-infused goods, health supplements, and immune-boosting beverages are particularly sought-after as more Chinese Millennials and Gen Zers strive to incorporate traditional practices with modern healthcare technology.
Can Foreign Brands Enter The Chinese Pharmaceutical Market?
Yes, foreign companies can enter the pharmaceutical industry in China. These foreign players generate 10% to 20% of the market segment’s overall sales.
However, it’s worth noting that foreign businesses entering this industry may face complex market access procedures and strict regulations. Some processes include clinical trials, drug evaluation, product registrations, and quality control.
It can also be challenging to get listed on the National Reimbursement Drug List (NRDL) due to its competitive procedures, price negotiations, and priority given to Chinese pharmaceutical companies. Price points are a massive part of the conflict due to the intense competition within the market.
A global pharmaceutical company (Sanofi) participating in the China International Import Expo (Source: China Daily)
Current Trends in China’s Pharmaceutical Market
● Surge in Licensing and Collaborative Partnerships
It’s not uncommon for overseas companies entering the Chinese market to seek partnerships with Chinese firms, especially in a market as closely monitored as the pharmaceutical industry in China.
Through this joint venture, foreign businesses can better understand local industry standards and gain access to the distribution networks of other Chinese pharmaceutical companies.
Source: SCMP
An excellent example is the collaboration between US biotech company Moderna and some local pharmaceutical companies in 2023. The partnership aims to kickstart research and development of mRNA medicines in China to serve the unmet medical needs of the local market.
Apart from the potential of sales revenue or ROI, these collaborations can also assist foreign firms in addressing cultural nuances and adapting their marketing strategies to better resonate with Chinese healthcare providers and patients.
● Continued Demand for Biopharma
Biotech companies are doing well both in the global market and in Mainland China. In 2024, the country is witnessing a surge in biopharma approvals, with over 1,800 evaluation applications processed by the Chinese Center for Drug Evaluation (CDE) under the National Medical Products Administration (NMPA).
Nearly 900 therapeutic Investigational New Drug (IND) applications were approved. This shift in the regulatory landscape for biotechnology companies shows the willingness of the Chinese government to accommodate faster approvals and greater international integration in China’s pharmaceutical industry.
● Growing Interest in Innovative Drugs
The Chinese authorities are seemingly focusing on developing and approving new drugs that cater to the general public’s unmet medical needs. These innovative drugs are also seen as a way to improve price points, as they could curb the lack of medical solutions for specific areas.
Source: Xian Janssen (Johnson & Johnson’s Chinese Pharmaceutical Subsidiary)
In early 2025, Johnson & Johnson’s Balversa (erdafitinib), a targeted therapy for advanced urothelial carcinoma, was approved. Similarly, Eli Lilly’s Mounjaro (tirzepatide), a dual-targeted medication for type 2 diabetes and obesity, was launched in China just days into the new year.
With more innovative drugs set to obtain approval in China, the Chinese pharmaceutical market is clearly prioritizing medications and treatments related to chronic disease management.
Best Strategies for Marketing Pharmaceutical Products in China
The key to marketing pharmaceutical products in China is bridging cultural nuances, complying with regulations, and familiarizing yourself with the country’s distinct digital ecosystem.
Once properly licensed, foreign firms should focus on building trust by cooperating with local healthcare providers, engaging community health experts, and demonstrating a genuine interest in patient outcomes. This approach differentiates reputable brands from their competition.
1. Social Media for Patient Education & Brand Awareness
Navigating China’s digital ecosystem can be challenging for foreign pharmaceutical companies. Not only are top social media platforms different from those in the West, but Chinese internet users also utilize them differently.
While it’s no surprise that the pharmaceutical industry often operates through B2B partnerships, having a social media presence helps generate brand awareness. It also allows you to establish niche authority, mainly since 74.68% of the general population uses social media for their daily digital needs.
With enough market research, you can open official brand accounts on platforms where your target audience actively participates. For example, Maimai is a B2B social media marketing channel similar to LinkedIn. It enables businesses, employees, executives, and owners to connect and engage with one another.
A community-centric platform often includes more savvy and engaging users. This is why it’s an excellent place to share credible, easy-to-read content about new treatments, disease management tips, and clinical trial outcomes.
Similarly, WeChat’s varied social networking features can help maximize your audience reach in China’s most extensive super app. In addition to the one-to-one marketing approach through instant messaging, its mini-program functions can direct your audiences to specific services you offer (e.g., telemedicine, symptom checkers, or prescription guidance).
SDG’s work with ELEVANT®: Influencer Collaborations
As you promote on these social media platforms, it can get tempting to collaborate with popular influencers (KOLs and KOCs) with high engagement rates and followings. However, foreign pharma companies must be cautious when planning these partnerships. Remember that these online personalities hold a strong influence on China’s consumer market.
Try collaborating with influencers who share firsthand knowledge about treatments and wellness practices, such as doctors, pharmacists, and respected healthcare bloggers. This will add credibility to your business and prevent misinformation from damaging your brand.
At the same time, these online interactions must strictly comply with Chinese regulations governing pharmaceutical advertising, so it is wise to involve legal advisors from the outset.
2. Website Localization & Channel Optimization
As already mentioned, the pharmaceutical industry in China is highly regulated and closely monitored by local authorities. Because of this, some platforms also follow strict regulations when it comes to health-related content they can show in their built-in search results.
In our project with Elevant, our team made sure to moderate sensitive keywords in all of the brand’s digital content. This way, we can rest easy that their campaigns and listings won’t face censorship or blocking.
It’s also worth noting that a global pharmaceutical brand cannot simply translate its website into Mandarin and expect success in China. We recommend hosting your website locally for faster load times and better search rankings.
We discourage using machine translations when localizing your website, primarily because Chinese consumers trust brands that communicate naturally in their language. You must also remember that most local search engines prioritize content written in Simplified Chinese.
3. Niche-Specific User Engagement on Online Forums
Chinese consumers heavily rely on discussion-based platforms to research health products, exchange experiences, and seek expert opinions.
Zhihu, in particular, attracts a well-educated user base that values in-depth discussions. Many healthcare professionals, pharmaceutical researchers, and informed consumers contribute to these conversations.
A foreign pharmaceutical company aiming to build credibility in China can engage in these discussions by answering questions, dispelling myths, and providing well-researched insights.
This isn’t about direct promotion, especially as Chinese health consumers are wary of blatant advertising. Instead, the goal is to establish authority and trust by participating in knowledge-sharing.
4. Participation in Domestic Pharmaceutical Trade Shows
As a foreign pharmaceutical business, Chinese trade fairs are opportunities you can’t miss. This is especially true if you intend to find domestic partners and expand your network.
Events like CPhI China (Pharma Ingredients Expo) and the China International Medical Equipment Fair (CMEF) attract thousands of professionals, from distributors to hospital procurement managers.
Source: CMEF
These gatherings provide a firsthand look at market trends, policy updates, and competitor strategies. More importantly, they serve as crucial networking hubs. This is where international brands can connect with potential business partners, regulatory consultants, and government representatives.
What are the Marketing Regulations that Pharma Companies Must Follow in China?
While the country opened its doors to international pharmaceutical companies, strict advertising laws and compliance standards create some hurdles. Understanding these regulations is crucial if you want to establish a foothold in this complex and highly competitive market.
Digital Advertising Laws
Direct-to-consumer advertising of prescription drugs is highly restricted. This forces companies to take an indirect approach. Instead of promoting outright, brands focus on disease awareness campaigns, partnerships with healthcare professionals, and expert endorsements.
Before the release of any pharmaceutical advertisement, it undergoes a stringent approval process by provincial-level authorities like the National Medical Products Administration (NMPA). This process ensures that ads do not contain misleading claims about a drug’s efficacy or safety.
Under China’s general advertising laws, businesses cannot use comparative advertising or suggest that their product is superior to a competitor’s.
Prescription drugs, in particular, face the tightest restrictions. They cannot be advertised in mainstream media, and their promotion is typically limited to medical journals and industry events.
ICP License
Obtaining an Internet Content Provider (ICP) license is the only way companies can legally host a website on a Chinese server or engage in e-commerce activities within the country.
This license is issued by the Ministry of Industry and Information Technology (MIIT), and there are two main types:
- ICP Filing (Bei’an) – A digital license for brands launching websites for informational websites that do not conduct direct sales.
- ICP Commercial License – This is a requirement in addition to the ICP Filing license for businesses with websites that involve e-commerce functions, online sales, or financial transactions.
Johnson & Johnson ICP License Number on their Official Chinese Website
Without an ICP license, pharmaceutical companies are invisible in China’s digital ecosystem. They cannot rank on Baidu (China’s dominant search engine) or utilize domestic hosting for faster site performance.
Your Trusted Digital Marketing Partner in the Chinese Market!
The Chinese pharmaceutical industry is open to foreign brands, but only those willing to invest resources into understanding its highly regulated landscape. As China prioritizes healthcare innovation and regulatory modernization, opportunities will only expand for foreign brands eager to enter the market.
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At Sekkei Digital Group, we understand the complexities of China’s pharmaceutical market. With our experience and expertise in B2B digital marketing campaigns, we can help your business connect with the right audience.
Whether you’re localizing your website or launching campaigns for brand awareness, we have the digital solutions you need. Contact us today, and let’s discuss your next move in China’s competitive business landscape.
References:
Pharmaceutical industry in China – statistics & facts
Big Pharma Rushes to China for Deal Prospecting Despite Regulatory Uncertainty