China's prescription drug online retail industry will usher in new development

China's retail prescription medicine sector has seen rapid growth in the past few years, thanks to enhanced ties among parties related to the industry and digital tools, which are further pushing the sector forward on a healthy track, said a report by Boston Consulting Group.

According to the report, between 2015 and 2020, the compound annual growth rate of online retail sales of prescription medicines reached 53 percent. Specifically, the growth rate between 2019 and 2020 was as high as 79 percent. In 2020, the market volume reached 25 billion yuan ($3.7 billion).

In the future, with the rise in online consultations, it is expected that online sales of prescription drugs will maintain robust growth, the report said.

Chen Baiping, BCG managing director and partner, and leader of BCG's Health Care Practice in Greater China, said: "In the past three years, China's retail prescription medicine industry experienced rapid growth. However, the overall market structure has not undergone profound changes."

Chen said, currently, there is still a lot of room for improvement in the proportion of retail prescription medicine in total sales and the market size, reflecting a certain gap between China and developed countries, while the number of retail pharmacies per capita has almost reached the level of developed countries. Therefore, he said he believes the growth rate of the sector will remain at a high level in the following years and prospects in the industry are promising.