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The latest data released by the China Investment Advisor on "2009-2012 China's Chinese Herbal Pieces Market Investment Analysis and Forecast Report" shows that in 2008, China's Chinese Herbal Pieces Industry achieved a total product sales revenue of 33 billion yuan, an increase of 37% over the same period of last year; The total accumulated profits amounted to nearly 2 billion yuan, an increase of 34% over the same period of last year. In the first two months of 2009, the revenue of the TCM decoction pieces industry increased by 76%, and the profit growth rate was 118%. It was the best performance among all the medical sub-sectors. The TCM Decoction Pieces gradually became the new darling of the TCM market.
Guo Fanli, an analyst with the pharmaceutical industry at China Investment Advisors, pointed out that in the new medical reform program, “prevention of illness†indicates that the government has strengthened pre-ill control rather than post-ill treatment, while Chinese herbal medicine has traditional advantages in health care. With the increase of people's health awareness, people began to take more and more health products, which provided an opportunity for the Chinese Herbal Pieces industry.
However, in the “Opinions of the State Council on Supporting and Promoting the Development of Traditional Chinese Medicine†just published by the State, China has proposed to strengthen the circulation supervision of the production quality of Chinese Herbal Medicine Pieces and Chinese herbal medicines and Chinese Herbal Medicines. Strengthen the management of the use of TCM decoction pieces and preparations of TCM preparations in medical institutions, and encourage and support medical institutions to develop and apply special TCM preparations, which paves the way for the rapid development of TCM decoction pieces industry.
The China Investment Consulting Industry Research Center predicts that about half of the more than 700 essential medicines in the National Essential Medicines List are proprietary Chinese medicines and traditional Chinese medicine. Since the Chinese Herbal Pieces Industry began to implement GMP certification in 2008, the industry concentration has been greatly improved, and Chinese Herbal Medicines are likely to be included in the Essential Drugs Catalogue. The extensive use of drugs in the Essential Drugs List will bring tremendous benefits to the entire Chinese Herbal Pieces Industry. The expansion of the market will have a major positive effect on the TCM decoction pieces industry.
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