At the 2024 CIRP Conference, Zhongkang Technology produced a white paper report "High-potential Categories: Deconstructing the Secrets of Anti-Aging and Youthfulness", which focuses on the incremental opportunities brought by the market insights of anti-aging and youthfulness. The report points out that sleep quality is a health indicator that people of all ages pay attention to, so tonic and sleep aids are one of the eight major opportunity categories.
1. The sales of Chinese patent medicines for tonic and sleep aids have increased for three consecutive years
Figure 1: Consumers' health distress in the past year Data source: 2024 Zhongkang CMH Consumer Health Insights
In the "intensive cultivation era", consumers' pursuit of health quality has increased significantly, especially the health problems of common and chronic diseases such as skin, hair, and sleep, which often reflect the signs of aging. According to Zhongkang CMH Consumer Health Insight, with the change of living habits and the intensification of social competition, 22.9% of consumers currently have sleep problems in the past year, mainly manifested in poor sleep quality, insomnia, intermittent sleep, etc.
Figure 2: 2018-2023 sales of Chinese patent medicines for tonics, calming the nerves, and aiding sleep
In 2023, the retail market sales of Chinese patent medicines will be 3.179 billion yuan, an increase of 6.5% year-on-year, and continue to grow for three consecutive years. Sleep quality is a health indicator of all ages, among which the elderly are concerned about the impact of sleep on physical and mental health; Young people are more concerned about the impact of sleep on their skin and spirit, and it is expected that the growth trend of Chinese patent medicines will continue in 2024.
2. Tranquilizing and cerebral tonic fluid is a star product of nourishing and soothing Chinese patent medicine
Figure 3: Top 10 products in retail sales of Chinese patent medicines in 2023 (blue indicates positive growth, red indicates negative growth) Data source: Zhongkang CMH
In 2023, the best-selling Chinese patent medicines in the tonic and tranquilizing category are Tranquilizing Brain Liquid, Naoxinshu Oral Liquid, and Nourishing Serum Brain Granules, etc., and the above three drugs have occupied the TOP 3 of tonic and tranquilizing Chinese patent medicine products for 7 consecutive years. Tranquility and Brain Replenishment Liquid is one of the star products of tonifying and calming Chinese patent medicines, with retail sales increasing by 9.3% year-on-year in 2023, among which Lunan Houpu Pharmaceutical's Tranquility Brain Replenishment Liquid was recognized as a well-known brand in Shandong in 2023.
3. Analysis of the competition pattern of Polygonum multiflorum, the core raw material for soothing nerves and helping sleep
Figure 4: The competitive landscape of industrial raw materials in Polygonum multiflorum in 2023
The soothing brain fluid is mainly made of deer antler velvet, Polygonum multiflori, epimedium weed, dried ginger, licorice, and jujube, which has the effects of nourishing qi and nourishing blood, strengthening the brain and calming the nerves, among which the consumption of Polygonum multiflorum ranks fourth in the demand for raw materials for soothing the nerves and replenishing the brain, and the demand for Polygonum multiflorum in this Chinese patent medicine will exceed 300 tons in 2023.
According to the statistics of Zhongkang Yunling Traditional Chinese Medicine Industry Data System, the national output of Polygonum multiflorum in 2023 will be around 12,004 tons, and the national consumption in 2023 will be around 12,271 tons. Thereinto:
Figure 5: Price trend of Polygonum multiflorum from 2004 to 2023
(1) In the market: the coexistence of family species and wild resources of Polygonum multiflorum multiflorum, because the production threshold of domestic varieties is not high, and the yield per mu is high, so the production cost of domestic varieties is low, and the market has been running smoothly at a low level for many years in history. This round of price increases, mainly due to the shrinking planting area in recent years, the reduction of production, coupled with the reduction of inventory, after the new production this year, the price does not fall but rises, according to the Zhongkang Yunling traditional Chinese medicine industry data system prediction, the price of Polygonum multiflorum will climb to a historical high in 2024 and 2025, and businesses need to be cautious in investment.
(2) In terms of the distribution of consumption channels: the demand for Chinese patent medicine is 6,981 tons, the demand for decoction pieces is 3,170 tons, the demand for e-commerce is 65 tons, and the demand for other products is 2,055 tons.
(3) In terms of the distribution of drug channels: the demand for raw materials for Chinese patent medicine accounted for 57%, and the demand for Polygonum multiflorum decoction pieces accounted for 26%.
(4) In terms of the demand for Chinese patent medicines: through the screening of 7,702 kinds of Chinese patent medicines monitored by the platform, there are currently 379 kinds of Chinese patent medicines containing Polygonum multiflori, and the top Chinese patent medicines in demand are Shengxuebao Mixture, Urine Poison Qing Granules, Vitality Su Oral Liquid, Tranquilizing Brain Liquid, Moisturizing and Anti-itching Capsules, etc.
As of 2023, there will be 507 domestic manufacturers using He Shou Wu patent medicine, and the top demand enterprises are Tsinghua Deren Xi'an Happiness Pharmaceutical Co., Ltd., Kangsun Pharmaceutical (Inner Mongolia) Co., Ltd., Sinopharm Tongjitang (Guizhou) Pharmaceutical Co., Ltd., Hunan Kangshou Pharmaceutical Co., Ltd., Chengdu Diao Group Tianfu Pharmaceutical Co., Ltd., etc.
Fourth, comprehensive evaluation
1. Tonic and sleep aid drugs are high-potential categories in the future Decreased sleep quality is one of the symptoms of sub-health, and long-term lack of adequate sleep may accelerate human aging, affecting many aspects including nervous system, immune function, metabolism and skin health. Young and old alike recognize the importance of quality sleep for physical and mental health. Therefore, improving the sleep quality of people of all ages has become a key health issue, and the demand for tonic and sleep aids will continue to grow.
2. The demand for soothing varieties will rise or drive the market upward According to Zhongkang CMH statistics, in 2023, among the top 10 products in the market share of brain health and sleep aids, traditional Chinese medicine varieties will occupy 9, and Chinese patent medicines such as Wuling capsules, soothing brain tonic liquid, and brain and blood clearing granules have been on the list.
For more detailed interpretation, please contact the background and refer to the "2023 Blue Book on the Development of Traditional Chinese Medicine Industry" and the "Industrial Big Data and Trend Analysis in the Next Three Years" series of reports launched by Zhongkang Yunling Traditional Chinese Medicine Industry Data System (click on the picture below to get the full text of the catalog)!
(Unless otherwise noted in the article, the data are from Zhongkang Yunling)