Medical high-value consumables are defined relative to low-value consumables, usually referring to those consumable medical devices that have extremely high safety requirements, must be strictly controlled in the production and use process, and are limited to certain specialties and have relatively high standards. These consumables are primarily used in specific medical specialties**, such as cardiac interventions, peripheral vascular interventions, and artificial joints.
Aging Population and Increasing Chronic Diseases: With the deepening of the aging population and the increase in chronic diseases, the demand for high-value medical consumables is growing. The elderly population has a high demand for high-value consumables in diagnosis, ** and **, such as cardiac interventional materials, artificial joints, etc.
Medical Technology Advancements and Innovations: The continuous advancements and innovations in medical technology are important factors driving the growth of the high-value medical consumables industry. The advent of new diagnostic technologies, surgical instruments, implant materials, etc., has improved medical outcomes and quality, driving the development of the high-value consumables market.
Medical system reform and medical insurance policy: The promotion of medical system reform and the reform of medical insurance policy have had an important impact on the high-value medical consumables industry. The reform has enabled more patients to receive coverage and reimbursement for high-value consumables, which has contributed to the growth of market demand.
Policy support and norms and policy centralized procurement: ** policy support and regulatory norms have played an important role in promoting the development of the industry. For example, the "Reform Plan for the Governance of High-value Medical Consumables" issued by the General Office of the People's Republic of China in 2019 mentions the improvement of the whole-process supervision and management of high-value medical consumables and the formation mechanism of the first generation to protect market order and consumer rights and interests. In addition, policy centralized procurement has an important impact on the high-value consumables industry. Taking the centralized procurement of intraocular lenses as an example, through centralized procurement and negotiation, better procurement conditions can be obtained and medical costs can be reduced. For high-value consumables enterprises, the scale effect brought by policy centralized procurement may increase market competition, requiring enterprises to improve product quality, innovation ability and chain management. At the same time, the policy of centralized procurement also provides greater market opportunities for high-value consumables enterprises, especially for those enterprises that can obtain first-class procurement contracts, which can bring long-term stable orders.
Upstream: the initial stage, including raw material suppliers and equipment suppliers. At this stage, raw material vendors provide a variety of materials, such as metals, plastics, fibers, etc., as the basic materials needed to manufacture high-value consumables.
The equipment supplier is mainly responsible for the production of all kinds of equipment required.
Midstream: The core link, including the manufacturer of high-value consumables. At this stage, manufacturers of high-value consumables will assemble and process the parts and assemblies obtained from upstream to produce various types of high-value consumable products, such as cardiovascular interventional materials, joint implants, cranial materials, etc. Manufacturers need to comply with relevant quality standards and regulations to ensure the safety and quality of their products.
Downstream: The final stage, which includes distributors, healthcare facilities, and end users. Distributors are responsible for selling high-value consumables to healthcare facilities or other distributors. Medical institutions, such as hospitals, clinics, etc., are the main users of high-value consumables, and they use high-value consumables products for medical diagnosis and ** in clinical operations. The end user is the patient receiving medical care.
Each link of the industrial chain is interdependent, with upstream raw material suppliers and equipment manufacturers providing the materials and production equipment needed for high-value consumables manufacturers in the midstream, and midstream manufacturers providing products to downstream distributors and medical institutions, ultimately serving patients. This synergy constitutes a complete ecosystem of the high-value medical consumables industry chain.
The global market for high-value consumables reached 1634With a scale of $2.7 billion, it accounts for about one-third of the overall medical device market. The global high-value consumables market grew at an average rate of 1483%, the growth rate is significantly faster than the overall market. High-value consumables involve several medical device segments, among which cardiovascular and orthopedic devices are key focus areas in the high-value consumables market.
The size of China's high-value consumables market in 2020 is about 130.5 billion yuan, accounting for 17% of China's overall medical device market, but compared with the global market, the proportion is relatively low, and there is room for improvement. The growth rate of China's high-value consumables market averaged about 20% from 2015 to 2019, but due to the impact of factors such as the centralized procurement of some varieties of high-value consumables and the new crown epidemic, the growth rate in 2020 fell to 407%。Vascular interventional consumables and orthopedic implant consumables are key segments of China's high-value consumables market, with market sizes of 55.8 billion yuan and 30.4 billion yuan respectively in 2019, accounting for nearly 70% of the market share. These segments are important areas of focus for the high-value consumables market.
China's high-value consumables industry has regional characteristics to a certain extent, and enterprises are mainly concentrated in areas with abundant R&D resources.
Shanghai: Shanghai's superior geographical location and innovation environment bring together many high-value consumables manufacturing enterprises, scientific research institutions and innovation centers, providing favorable conditions for the R&D, production and sales of high-value consumables, and is one of the important gathering places of China's high-value consumables industry.
Suzhou, Jiangsu: Suzhou is one of the important bases of China's medical device industry and a gathering place for the high-value consumables industry. There are many high-value consumables enterprises in Suzhou, covering products and technologies in different fields. The region has a mature ** chain and support system, which provides support for the development of the high-value consumables industry.
Shenzhen, Guangdong: As one of China's manufacturing centers and scientific and technological innovation centers, Shenzhen also has certain strength in the field of high-value consumables. Many high-value consumables companies have production bases and R&D institutions in Shenzhen, enjoying the innovative atmosphere and convenient first-chain environment in the region.
Beijing area: As the political and cultural center of China, Beijing is also one of the important gathering places for the high-value consumables industry. Many high-value consumables companies have headquarters and R&D centers in Beijing, and work closely with first-class and scientific research institutions.
In addition to the above-mentioned regions, some other cities in China also play an important role in the high-value consumables industry, such as Hangzhou in Zhejiang, Qingdao in Shandong, Tianjin, etc. These regional agglomerations have formed a relatively complete industrial ecosystem, which provides favorable conditions for the development of the high-value consumables industry.
Competitors in the high-value medical consumables industry can be divided into three main categories. The first is the global medical device giants, which have production bases and sales channels in China. The second is small and medium-sized foreign companies, which have just entered the Chinese market, have a good reputation abroad, and have good product performance. Finally, there are local high-value medical device companies, which tend to have average product performance and weak R&D strength, and many of them imitate imported products. This competitive landscape makes the industry fiercely competitive, with giant companies having a dominant position, foreign companies having an innovation advantage, and local companies needing to strengthen their product R&D and innovation capabilities to enhance their competitiveness.
In 2021, among the world's major value-added consumables companies, Medtronic achieved 107Of the $7.2 billion in revenue, Johnson & Johnson's orthopedic devices business generated revenue of 85$8.8 billion, and Alcon's ophthalmic devices business earned 47$0.3 billion in revenue, while Straumann's dental instruments business generated $2.1 billion in revenue. These companies have become the leading enterprises in their respective segments.
Domestic first-tier enterprises such as MicroPort Medical, Weigao Group and Lepu Medical have made certain achievements in the field of high-value consumables, but their related business revenue has not yet reached the level of 5 billion yuan. Compared with the tens of billions of dollars in revenue of foreign giants, there is still a huge scale gap between domestic high-value consumables companies and international giants. Among them, the core enterprises of domestic high-value medical consumables are mostly start-ups, and they are widely distributed in various subdivisions, and the development potential is promising.
The industry as a whole. In recent years, investment and financing activities in the field of high-value consumables have continued to rise globally, especially in the field of cardiovascular consumables. In 2020, the total amount of financing in this area doubled, up 140% month-on-month, with cardiovascular consumables financing accounting for the vast majority. This trend continued in 2021 as well. As of the first quarter of 2022, there were 38 financing events in the global high-value consumables segment, totaling approximately 3$7.7 billion. Compared to the previous two years of large capital injections, it is expected that financing activities will gradually return to a calm state in 2022.
The financing growth rate in the domestic high-value consumables field is obvious, and the total financing in 2020 increased by 287% month-on-month due to the impact of the national volume procurement policy and capital promotion. A total of 160 financings were generated in 2021, totaling about 35$6.6 billion. In the first quarter of 2022, volume procurement shifted to the field of artificial joints and orthopedic consumables
Subdivide the track. The field of cardiovascular consumables has attracted much attention in the high-value consumables industry around the world, attracting a large number of start-ups and investments. Coronary intervention consumables are the most active track in this field, and many emerging companies have emerged, and 15 companies have successfully carried out IPOs. Most of these companies are in the early stage of financing or have already gone public, indicating that the market has confidence in the development potential of cardiovascular technologies and products. In recent years, the number of cardiovascular consumables companies has grown rapidly, especially those established after 2020, and some of them have successfully conducted Series A+ financing. At the same time, a certain proportion of companies have completed IPOs, especially the number of cardiovascular consumables companies listed in 2021 is more prominent.
Regulatory and Regulatory Environment: The high-value medical consumables industry is subject to stringent regulations and regulatory requirements. From product development and production to market access, there are many regulations and standards that need to be met. The complexity of these regulatory and regulatory environments can increase the cost and time commitment of businesses, while also limiting opportunities for innovation and market entry.
Technological innovation and competitive pressure: The technological innovation speed of the high-value medical consumables industry is fast, and the market competition is fierce. To maintain a competitive edge, companies need to continuously develop and innovate to improve the performance, safety, and effectiveness of their products. At the same time, enterprises also need to face competitive pressure from domestic and foreign competitors to improve product differentiation and added value.
Cost control and pressure: The cost of high-value medical consumables is usually high, including R&D costs, production costs, and marketing costs. At the same time, the healthcare system is sensitive to the highest level of demand, and the pricing and reimbursement requirements for high-value consumables are becoming more stringent. Therefore, enterprises need to ensure product quality and performance while seeking ways to control costs to meet the requirements of the market.
Market access and channel management: Market access and channel management for high-value medical consumables is a complex and time-consuming process. Companies need to establish partnerships with medical institutions, business providers, and insurance institutions, and obtain approval for the purchase and use of products. At the same time, it is also a challenge to understand market needs and establish effective sales and distribution channels.
Adoption and promotion of medical technology: The process of promotion and adoption of high-value medical consumables can take time and involves the acceptance and adaptation of new technologies by medical institutions and physicians. Some new high-value consumable technologies may require changes in medical practices and surgical processes, so adequate training and education are needed to facilitate the adoption and diffusion of the technology.
Risk management and safety issues: The use of high-value medical consumables involves the health and safety of patients. Therefore, enterprises need to establish a sound risk management system to ensure the quality and safety of products. At the same time, data protection and privacy management need to be strengthened for some high-value consumables that involve patient data and privacy.
Opportunities in overseas markets.
Opportunities in emerging markets: Healthcare demand in some emerging markets is growing rapidly, while local markets for high-value consumables may be relatively weak or immature. China's high-value consumables companies can use their technological advantages and cost competitiveness to enter these emerging markets and occupy a certain share.
Medical cooperation projects: China has established extensive medical cooperation with some countries and regions, including medical assistance, cooperative research and medical services. Chinese high-value consumables companies can expand overseas markets by participating in these medical cooperation projects and cooperating with local medical institutions.
Belt and Road Initiative: China actively promotes the Belt and Road Initiative and strengthens economic cooperation with countries and regions along the Belt and Road. This provides an opportunity for China's high-value consumables enterprises to enter and expand the markets of countries and regions along the route through investment, cooperation and other forms.
The competitive advantage of domestic high-value consumables.
There is still a huge scale gap between domestic high-value consumables enterprises and international giants, but China's high-value consumables can improve the importance of domestic enterprises in the international market through the following advantages.
Cost competitiveness: China has relatively low production costs, including raw materials, labor and production equipment. This makes China's high-value consumables have a competitive advantage in terms of quality and attracts some customers who are sensitive to the market.
Manufacturing capacity and economies of scale: China has huge manufacturing capacity and economies of scale. China's high-value consumables enterprises can rely on such manufacturing capabilities to achieve large-scale production and high-quality production to meet the needs of the global market.
Rapid market adaptability: China's high-value consumables enterprises have strong market adaptability. Due to the fierce competition in the domestic market, Chinese companies are experienced in a rapidly changing market environment and are able to react quickly and adjust their strategies to meet the needs of different countries and regions.
Challenges of overseas expansion.
It should be noted that despite these advantages of China's high-value consumables, Chinese high-value consumables companies need to face the following challenges when entering overseas markets, and adopt appropriate strategies and measures to improve their competitiveness and market share.
Regulatory and market access requirements: Different countries and regions have different regulations and market access requirements for medical devices. China's high-value consumables companies need to understand and comply with the regulations and requirements of their target markets, including product registration, certification, and standard compliance.
Brand building and market recognition: In overseas markets, Chinese high-value consumables companies need to carry out brand building and marketing to improve product visibility and market recognition. Building a good brand image and reputation takes time and resources.
Technology competition and intellectual property protection: In overseas markets, Chinese high-value consumables companies may face challenges from international competitors in terms of technology competition and intellectual property protection. Companies need to protect their intellectual property while strengthening their technological innovation and R&D capabilities to maintain a competitive edge.
Chain Management & Logistics: Entering overseas markets involves the challenges of chain management and logistics. Enterprises need to establish an efficient first-chain system to ensure on-time delivery of products and effective support for after-sales service.
Technological innovation and personalized medicine: With the continuous advancement of science and technology, the high-value medical consumables industry will continue to benefit from the emergence of new technologies. For example, the application of 3D printing technology, biomaterials, and nanotechnology will drive innovation in high-value consumables and the development of personalized medicine.
a) High-value consumables + 3D printing.
The application of 3D printing technology in the field of high-value medical consumables provides new possibilities for personalized medicine and customization**. It improves patient outcomes, reduces surgical risk, and brings greater flexibility and innovation to the design and development of medical devices. With the further development of technology, 3D printing technology is expected to play a greater role in the field of high-value medical consumables.
Customized implants: 3D printing technology can create customized implants, such as artificial joints, bone plates, and prostheses, according to the specific needs and anatomy of the patient. This personalized implant is able to better adapt to the patient's body structure, providing a better fit and best results.
Cardiovascular interventional devices: 3D printing technology can manufacture high-precision cardiovascular interventional devices, such as vascular stents and heart valves. These devices can be customized according to the patient's vascular structure and heart morphology, providing better results and adaptability.
Surgical models and aids: With 3D printing, accurate surgical models can be manufactured for simulated surgical operations and training. In addition, auxiliary tools such as surgical guides and positioners can be printed to help doctors position and operate more accurately during surgery.
2) High-value consumables + biomaterials.
The application of biomaterials provides more options and innovations in the field of high-value medical consumables. Through the rational selection and design of biomaterials, the biocompatibility, durability and best effect of medical devices can be improved. With the advancement of biomaterials science and the development of technology, it is expected that biomaterials will continue to play an important role in the field of high-value medical consumables and drive innovation and advancement in the medical field.
Implantable medical devices: Biomaterials play an important role in the manufacture of implantable medical devices. For example, biodegradable polymers can be used to make absorbable sutures, bone plates, and bone fusion scaffolds. These materials are able to gradually degrade in the body and promote the healing and regeneration of tissues.
Embedding and filling materials: Biomaterials can be used as embedding and filling materials in high-value medical consumables. For example, biodegradable gels and fillers can be used to fill soft tissue defects and promote tissue repair and regeneration.
Medical coatings and surface modifications: Biomaterials can improve the performance and biocompatibility of high-value medical consumables through coatings and surface modifications. For example, bioactive coatings on the surface of biomaterials can promote the growth of bone and tissue, reducing infection and rejection.
3) High-value consumables + nanotechnology.
The application of nanotechnology provides new possibilities and solutions in the field of high-value medical consumables. Through the innovation and application of nanotechnology, the performance, function and effectiveness of consumables can be improved, and the accuracy and efficiency of medical diagnosis, ** and monitoring can be improved. With the continuous development of nanotechnology, its application in the field of high-value medical consumables is expected to further promote innovation and development in the medical field.
Modification and enhancement of nanomaterials: Nanotechnology can be used to improve and enhance the performance of high-value medical consumables. By introducing nanomaterials into the manufacturing process of consumables, their physical, chemical, and surface properties can be altered. For example, nanoparticles can increase the strength and hardness of materials, and nanocoatings can improve the antimicrobial properties of consumables.
Diagnostics and Imaging: Nanotechnology can be used for diagnostic and imaging applications of high-value medical consumables. For example, nanoprobes can be used to detect and label disease markers, enabling highly sensitive diagnostics. Nanomaterials can also be used to enhance medical imaging techniques such as magnetic resonance imaging (MRI) and X-ray imaging.
Technological development and prospects of regenerative medicine.
2024 Panorama Analysis Research Report on the Atlas of China's Health Care Industry Chain.
Forbes' latest release: Top 10 Innovative Trends in Healthcare for 2024.
Insights into innovation in the healthcare industry
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