Research Report on China's Condom Industry, 2019-2023

SKU ID : CRI-14246390

Publishing Date : 22-May-2019

No. of pages : 50

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  • Description
    According to , as China’s economy develops and Chinese people pursue higher living standards, the functions of condoms have extended from avoiding conception to preventing sexually transmitted diseases (STDs) and improving the quality of sexual life.
    Since 2002 when the Chinese government liberalized the control over the condom industry, China’s condom industry has achieved fast development. According to , the annual production volume of condoms in China was only about 1 billion units in 1995 while it exceeded 13 billion units in 2018. At the end of 2018, the annual production capacity of condoms in China exceeded 20 million units. In addition to satisfying domestic demand, China-made condoms are also exported in large quantities. In 2018, China's condom exports exceeded 3 billion units.
    Considering the family planning policy and the prevailing commercial sex, every year, the Chinese government purchases over 1 billion condoms from about 20 designated manufacturers for distribution to encourage population control and reduce the incidence of STDs. The unit price is only about CNY 0.20 to CNY 0.50 (USD 0.03 to USD 0.08) on average. With such limited budget, the condoms purchased by the government are of poor quality. Because of few distribution channels and the relaxation of the family planning policy, government at all levels are buying less condoms at higher unit prices.
    The condom market excluding government procurement is a competitive free market. There are hundreds of condom enterprises in China, most of which do not produce condoms but rely on ODMs or OEMs. Some of them even import condoms in large quantities from Thailand and other countries. In 2018, the unit retail prices of commercial condoms ranged from CNY 0.50 to CNY 20, representing a market size of over CNY 10 billion. The high profit margin has attracted many market players. In China, condoms brands fall into three categories: (1) brands that produce and sell products in China, for example, Durex and Jissbon; (2) brands that sell products in China but base production abroad, for example, Okamoto and Trojan; and (3) brands that rely on OEMs for production and the Internet for sales, for example, Daxiang. Some other condom enterprises survive on government procurement and supplying condoms on an OEM basis because their own brands do not sell in lack of commercial sales channels and brand awareness.
    As some Chinese consumers believe that imported condoms have higher quality than domestic-made ones, China imports a large quantity of condoms every year, mainly from Thailand, Japan, Malaysia, etc. In 2018, the import value of condoms exceeded USD 100 million, representing a trade deficit. China’s condom imports are mainly medium-high end products while its condom exports are dominated by medium-low end ones.
    According to , China’s condom market has huge potential. By the end of 2018, China had a population of nearly 1.40 billion people, of which over 900 million are sexually active people aged between 16 and 59. Moreover, premarital sex and commercial sex have grown in the last 30 years, which stimulates the demand for condoms. Commercial sex is prohibited by Chinese law, but it cannot be eliminated. Therefore, the Chinese government encourages night clubs, hotels and other public places to provide condoms to prevent the spread of STDs such as AIDS.
    expects that with increasing income and health consciousness, Chinese people will need more and better condoms. For global condom manufacturers and brands, the Chinese market presents numerous opportunities.

    Topics covered:
    - Policy environment for China's condom industry
    - Supply of and demand for condoms in China
    - Government procurement of condoms in China
    - Major brands and enterprises of condoms in China
    - Import and export of condoms in China
    - Retail prices of major condom brands in China
    - Survey on condom consumers in China
    - Market opportunities and driving forces for China's condom industry from 2019 to 2023
    - Prospect of China's condom industry from 2019 to 2023