TAIJI GROUP(SH:600129) Chan Ye Xin Xi Wang·2025-11-19 02:10Core Viewpoint - The incidence of rhinitis in China is rising due to environmental changes and increased life stress, leading to a growing demand for rhinitis medications, particularly traditional Chinese medicine (TCM) products, which are favored for their convenience and fewer side effects. The sales of TCM rhinitis medications are projected to reach 3.27 billion yuan in 2024, representing a year-on-year growth of 12.06% [1][7]. Market Policy - The Chinese government has issued several policies to support the development of the TCM industry, including measures to enhance scientific regulation, promote innovation, and improve the quality of TCM products, creating a favorable environment for the growth of the TCM rhinitis medication sector [3][4]. Industry Chain - The upstream of the TCM rhinitis medication industry includes suppliers of traditional Chinese medicinal materials such as Cang'erzi, Xinyi, Baizhi, and Peppermint, as well as suppliers of pharmaceutical excipients and production equipment. The midstream consists of manufacturers of TCM rhinitis medications, while the downstream includes medical institutions, retail pharmacies, online pharmacies, and end consumers [5][6]. Development Status - The demand for rhinitis medications is increasing, with TCM products gaining popularity due to their ease of use and lower side effects. The market is seeing accelerated innovation and development, with new TCM products entering the market, such as Yiling Pharmaceutical's Qifang Nasal Tablets and Kangyuan Pharmaceutical's Suxin Tongqiao Granules [7][11]. Competitive Landscape - The market for TCM rhinitis medications in China is highly concentrated. In retail pharmacies, the top five companies (CR5) hold a market share of 57.27%, with Tai Chi Group having the largest share at 16.96%. In public medical institutions, the CR5 market share is even higher at 62.48%, with Lunan Pharmaceutical leading at 22.05% [8][9]. Industry Representative Companies - Lunan Pharmaceutical Group is a comprehensive pharmaceutical company with a strong presence in the TCM rhinitis medication market, particularly with its product Nasal Congestion Granules, which has seen significant sales growth. Tai Chi Group also plays a major role in the market, with a diverse product range and substantial revenue from both pharmaceutical manufacturing and commercial operations [10][11]. Development Trends - The future of TCM rhinitis medications will focus on clinical research to validate efficacy and safety through large-scale, multi-center, randomized controlled trials. There is also potential for TCM rhinitis medications to enter international markets, with companies expected to enhance international cooperation and adhere to global standards in research, production, and quality control [11][12].