2017 China Pharmaceutical Brand Value Rankings Unveiled: First-Ever Brands Surpass RMB 10 Billion, Total Value Exceeds RMB 154.5 Billion

VCBeat (WeChat ID: vcbeat) learned on the evening of August 18 that the 2017 “Healthy China Brand Value Ranking” was unveiled at the Xipu Conference. Dong-E-E-Jiao and Yunnan Baiyao demonstrated strong performance, maintaining their leading positions in brand value for several consecutive years. Both companies surpassed the RMB 10 billion mark in brand value, marking a milestone event for the “Healthy China Brand Value Ranking.”

The 2017 “Healthy China • Brand List” Value Ranking is based on research into the brand value of pharmaceutical brands featured on the 2017 “Healthy China • Brand List,” calculating only their brand value within designated categories in the Chinese market. Based on the model’s calculations, the top 50 brands by brand value are published.

This year, the minimum brand value threshold for inclusion on the list rose to RMB 672 million (an increase of RMB 40 million from last year), with the total value of all listed brands reaching RMB 154.5 billion., an increase of RMB 13.5 billion from the previous year, representing a 9.6% growth. Ten brands have values exceeding RMB 5 billion, with a cumulative total value of RMB 74.6 billion, accounting for nearly 50% of the total value of all listed brands. This demonstrates a trend where stronger brands continue to strengthen their dominance in brand value.

A total of 33 OTC-dominated brands for common diseases made it onto the brand value list, with a cumulative brand value of RMB 79 billion and an average brand value of RMB 2.4 billion. Although only 17 chronic disease medication brands were included, their cumulative brand value reached RMB 75.5 billion, with an average brand value of RMB 4.44 billion. The four major chronic disease categories—cardiovascular and cerebrovascular drugs (chemical drugs), antihypertensive drugs, cardiovascular and cerebrovascular drugs (traditional Chinese medicine), and diabetes medications—lead in both cumulative and average brand values. Among the top 10 brands by brand value, Plavix, Novolin, Lipitor, Norvasc, Adalat, Glucobay, and Tasly’s Compound Danshen Dripping Pills all belong to the chronic disease medication segment within the aforementioned therapeutic areas.

 Bubble size represents the cumulative value of brands listed in the category.

As population aging intensifies, the prevalence of chronic diseases such as cardiovascular and cerebrovascular disorders, malignant tumors, and diabetes continues to rise. The “Healthy China 2030” Planning Outline, released last year, mandates strengthened prevention and standardized treatment of chronic diseases from a top-level strategic design perspective. There remains significant room for improvement in the awareness and treatment rates of chronic diseases, and these product categories and brands are poised for sustained strong growth in the future.

In this brand value ranking, two brands in the tonic and wellness category were shortlisted, with a combined total value of RMB 15.2 billion, an increase of RMB 3.056 billion from the previous year, accounting for 22.5% of the total incremental brand value. As a representative brand in the tonic and wellness segment and a well-established time-honored Chinese medicine brand, Dong-E-E-Jiao® demonstrates exceptionally strong brand premium capability.

Including the category of tonics and health preservation, traditional Chinese medicine (TCM) brands are widely distributed across 14 categories in the value ranking. A total of 22 brands entered the TOP 50, with a total brand value of RMB 64.419 billion, accounting for 41.6% of the total brand value. The contribution of TCM brands to the incremental growth in brand value is even more prominent, representing 52.7% of the total increment!

The rapid development of traditional Chinese medicine (TCM) brands is driven by the growing public awareness of self-care and proactive prevention, the deepening understanding of the TCM concept of “preventive treatment of disease” for health preservation and wellness, and an increasingly strong willingness to pay for health. The Outline of the Healthy China 2030 Plan explicitly calls for “fully leveraging the unique advantages of traditional Chinese medicine,” and the Law on Traditional Chinese Medicine has officially come into effect. Against the backdrop of continuous policy dividends being released, the future prospects for traditional Chinese medicine are promising!

In 2017, the number of domestic brands on the list increased to 29, with a total brand value of RMB 74.4 billion and an average value of RMB 2.6 billion; there were 21 foreign (joint venture) brands, with a total brand value of RMB 80.1 billion and an average value of RMB 3.8 billion.

Among the top 10 brands by market share, seven are foreign-owned, underscoring their deep brand heritage and strong brand power. Although domestic brands still lag behind foreign (including joint-venture) brands in terms of total sales volume and average value, they contributed 63.3% of the RMB 13.5 billion in incremental growth. This rapid momentum and overall impressive performance are quickly reshaping the traditional competitive landscape and shifting market trends.