Opportunities and challenges presented by Chinese medical plastics market

        The high tech, high value-added and fast-growing medical market is seen by many as a new star in the plastics industry. Since the 1990s, China’s medical equipment industry has been growing by double-digit rates. In 2010, the market value topped RMB 100 billion for the first time in history, becoming the second largest medical equipment market in the world. The medical plastics industry in China is also riding on this opportunity to become a major force in the global market in the fields of manufacture and processing technology, medical equipment, polymers, etc.

        New opportunities emerging in the medical equipment market

        The medical equipment market involves various industries such as medicine, machinery, electronics and plastics. It attracts highly developed countries and international corporations to look for business opportunities because of its multi-discipline, knowledge-intensive, capital-intensive, profitable and strategic features.

        Due to the increasing demand and improved economy, the medical equipment industry in China maintained double digit growth since the 1990s. The medical policy reform boosted its CAGR to 19.4% from 2006-2011. According to the forecast of Frost & Sullivan, the number could reach 20.1% from the period 2012-2015.

        Analysis points out that the Chinese government’s effort in providing a medical safety net would boost the demand for basic medical equipment in rural areas, villages and small towns. At present, there are more than 80,000 county-level hospitals and town-level health care centers in China. In addition, the ageing population, increasing income and stronger sense in health-related issues will make a strong push for portable and home use of medical equipment.
The huge potential of medical equipment in turn spurs the growth of medical plastics industry.

                                                 Excerpted By Wangdanqiao