China: A Lucrative Market for First Aid Products

First aid products, such as adhesive bandages, gauzes, and disinfectants, comprise a miniscule percentage of the overall wound care market, however, owing to increasing awareness among consumers, demand for first aid products is on the increase. China, which accounts for nearly 8.9% of the wound care market value, is one of the most lucrative markets for both international and local players.

Adhesive bandages are used for dressing up small cuts and wounds. Bandages also protect the wound from microorganisms, dirt, and dust, helping in quicker healing.

Gauzes are also used to protect wounds and cuts, and are generally produced using sterilised cotton fabric. Gauzes are available as gauze rolls, gauze pads, and gauze sponges.

Disinfectants are available in liquid form, usually as spray and wipes. These are used to clean up and antisepticise the wound. Use of disinfectants allows the wound to heal faster and prevent further contamination.

What’s Driving the China First Aid Products Market?

Government Focus on Healthcare

The government in China is prioritising the healthcare sector. In a bid to provide seamless healthcare service for its population of 1.3 billion, the country allocated nearly US$ 125 billion towards healthcare reforms in 2012. China is one of the fastest growing economies in the world— the per capita income, which was US$ 165 in 1978, reached US$ 6,807 in 2013. The annual growth rate has averaged 9% in the last three decades.

Economic progress in China has allowed the government to spend on welfare plans, and the healthcare sector has also received an impetus. Owing to the emphasis of Chinese government on the healthcare sector, the first aid market is also anticipated to witness steady growth in the near future.

Increasing Geriatric Population

Geriatric population constituted 14% of overall population of China in 2104. The development in China’s healthcare sector has meant that the life expectancy in China has increased by 30 years since 1960, reaching 75 years in 2012.

The geriatric population is vulnerable to falls and trips, owing to which first aid becomes a necessity in many households. Demand of first aid products is strong from China’s geriatric population, and it is expected to remain steady in the near future as well.

Mushrooming of Hypermarkets and Supermarkets

Along with drugstores and pharmacies, hypermarkets and supermarkets are a key retail sales channel for first aid products in China. Although Tier 1 cities, such as Beijing and Shanghai have witnessed massive infrastructure investment in the past, it is the Tier 2 and Tier 3 cities in China which are on the radar of investors now.

Several hypermarkets and supermarkets have come up in Tier 2 and Tier 3 cities. Foreign investment in China’s retail sector has witnessed massive growth, with the sector growing at 12% average growth; the global growth average is 8.6%.

Growth in China’s retail sector is anticipated to scale up product visibility and open up new buying avenues for the consumers.

Why International Companies Need to Build their Presence in China

International wound care companies that do not have a strong presence in China are missing out on a plethora of opportunities. The China first aid market is expected to expand at compound annual growth rate (CAGR) of 6.3% till 2020.

The global wound care market was valued at US$ 14.9 Bn; in contrast, the China first aid market was valued at US$ 1.3 Bn. The demand for first aid products is expected to witness a massive upsurge in Tier 2 and Tier 3 cities. International players, in collaboration with local companies, can consolidate their position and cash in on the booming market.

Related Research Report: First Aid Market: China Industry Analysis and Opportunity Assessment 2015-2020