Market Trends of China Pharmaceutical Warehousing Industry
Increase In Population is driving the market
In 2022, China had a population of over 1.43 billion. The healthcare sector in China is one of the biggest and fastest-growing industries in China. The increasing demand for high-quality healthcare and services led to rapid growth in various healthcare sectors. Improving health outcomes is one of the top priorities of the Chinese government for many years. The government currently needs to address major challenges, including an aging population and uneven access to healthcare across different regions. To address these challenges, the government will need to invest heavily in expanding and enhancing healthcare resources and capacities. It presents huge growth opportunities for domestic and foreign companies.
The policy programs outlined in China's 14th Five-Year Plan and the Healthy China 2030 initiative both emphasize the significance of healthcare reforms, including the reduction of inequalities in insurance coverage ranges and the enhancement of public services. Reform initiatives within the industry also focus on expanding access to medicinal products, making them more accessible. It provided silver economy products to meet the needs of China's aging population.
China is the world’s second-largest medical device market after the United States. Over the next decade, China’s government will continue to expand healthcare budgets as the country’s aging and growing population strains healthcare systems and infrastructure. These are the main reasons for the growth of the warehousing market.
Technological Advancement is driving the market
Artificial intelligence and the Internet of Things (IoT) are enabling automated cold chain technologies to progressively become more intelligent and automated. For instance, IoT sensors can be used to monitor and track food in real-time, thus enhancing quality and safety. Cold supply chain management is undergoing a period of rapid growth due to the emergence of intelligent, information-driven, and digitized technologies. The Internet of Things (IoT) and big data analysis are both contributing to the improvement of cold chain logistics efficiency and quality. An example of this is the establishment of a smart cold supply chain management (CSCM) platform for a leading Chinese food enterprise (Jingdong Logistics) in 2022.
This platform enabled the Chinese food enterprise to effectively monitor its products from start to finish and allocate delivery vehicles accordingly. Additionally, automation is being employed in the supply of fresh food, medicinal products, and express delivery services. For instance, the leading Chinese unmanned instant delivery platform, Dada Group (Dada Group), launched its unmanned delivery Open Platform (Dada) in 2021. This platform utilizes unmanned vehicles to facilitate the logistics services of supermarkets to consumers.
