Medical equipment export to China in smooth growth… KRW 170 trillion golden plastic surgery market in lead
Nam Do Yeong | namdo0@ | 2018-04-23 10:56:41
Korean medical device makers are spurring on the Chinese market. With the expansion of plastic surgery and dentistry, China is expected to become the largest medical device exporting country.
According to the Korea Food and Drug Administration (KFDA) on April 22, exports of medical devices to China reached KRW 575.1 billion last year, second only to the US (578.5 billion). Exports to the United States rose only 2.1% from a year earlier, but exports to China grew 14.3%. This year, China is likely to become the largest exporter of medical devices.
A typical product that has been exporting to China is `molding filler`. Botox is a specialty medicine, but fillers are classified as medical devices and applied to medical techniques. As the Chinese molding market grew, exports surged 35.6 % from KRW 161.1 billion in 2016 to KRW 21.2 billion last year. According to the China Industrial Information Network, the Chinese molding market is estimated to reach CNY 1 trillion (about KRW 170 trillion) by 2019.
In Korea, LG Chem is the leader in the Chinese market for the first time in 2013, surpassing 30 billion won in sales. In 2015, HumaxDix acquired a license to sell its products to China. Medytox has established a joint venture, Mediblom, with local companies. This year, Hugel will apply for permission to sell to Chinese regulators.
Dental implants also recorded exports to China of 56.9 billion won last year, a 14% growth rate. China has about 90 dental clinics, 10 times higher than Korea, and 15,000 dentists annually. However, the number of doctors who can implant implants is only about 2%, which means there is still room for growth in the market.
Osstem Implant, which occupies the largest market share in the Chinese market, increased its sales in China by 26.2% to 73.7 billion won last year. The company aims to grow more than 15% this year with a strategy to educate more than 2,000 dentists in China on implant treatment each year.
Vatec, a specialist in dental imaging equipment, expects to receive permission to sell the new 3D dental x-ray "Pax Ai 3D Smart" in China in the second quarter.
The Chinese market has a strict licensing process and the Chinese government has been trying to spread the use of domestic medical devices. Medical device organizations are focusing on strengthening local networks.
The Korea Medical Device Industry Cooperative has invited the Consulate General of Shanghai and Guangzhou Consulate to introduce Korean companies to the 79th China Spring International Medical Equipment Exhibition. An industry representative said, "The fast-growing Chinese medical device market is very attractive," he said. "We expect to see strong earnings growth if we take a steady local investment."
By Nam Do Yeong namdo0@
[ copyright ⓒ The Digitaltimes ]
According to the Korea Food and Drug Administration (KFDA) on April 22, exports of medical devices to China reached KRW 575.1 billion last year, second only to the US (578.5 billion). Exports to the United States rose only 2.1% from a year earlier, but exports to China grew 14.3%. This year, China is likely to become the largest exporter of medical devices.
A typical product that has been exporting to China is `molding filler`. Botox is a specialty medicine, but fillers are classified as medical devices and applied to medical techniques. As the Chinese molding market grew, exports surged 35.6 % from KRW 161.1 billion in 2016 to KRW 21.2 billion last year. According to the China Industrial Information Network, the Chinese molding market is estimated to reach CNY 1 trillion (about KRW 170 trillion) by 2019.
In Korea, LG Chem is the leader in the Chinese market for the first time in 2013, surpassing 30 billion won in sales. In 2015, HumaxDix acquired a license to sell its products to China. Medytox has established a joint venture, Mediblom, with local companies. This year, Hugel will apply for permission to sell to Chinese regulators.
Dental implants also recorded exports to China of 56.9 billion won last year, a 14% growth rate. China has about 90 dental clinics, 10 times higher than Korea, and 15,000 dentists annually. However, the number of doctors who can implant implants is only about 2%, which means there is still room for growth in the market.
Osstem Implant, which occupies the largest market share in the Chinese market, increased its sales in China by 26.2% to 73.7 billion won last year. The company aims to grow more than 15% this year with a strategy to educate more than 2,000 dentists in China on implant treatment each year.
Vatec, a specialist in dental imaging equipment, expects to receive permission to sell the new 3D dental x-ray "Pax Ai 3D Smart" in China in the second quarter.
The Chinese market has a strict licensing process and the Chinese government has been trying to spread the use of domestic medical devices. Medical device organizations are focusing on strengthening local networks.
The Korea Medical Device Industry Cooperative has invited the Consulate General of Shanghai and Guangzhou Consulate to introduce Korean companies to the 79th China Spring International Medical Equipment Exhibition. An industry representative said, "The fast-growing Chinese medical device market is very attractive," he said. "We expect to see strong earnings growth if we take a steady local investment."
By Nam Do Yeong namdo0@