Along with the constant improvement of Chinese economy, the increase of floating population and the declining fertility rate caused by one-child policies and the rising status of women in China, it is predicted that the demand for condoms in fields like contraception and VD prevention will keep increasing constantly. It is predicted that the CAGR of annual condom demand will reach over 8% and that of market scale will reach over 10% in China in 2013-2017. For global condom manufacturing enterprises and brand enterprises, there are great commercial opportunities in China market.
Condom industry belongs to relative special industries in China. Its market can be divided into two parts. One is government purchase. Chinese government purchases over 1 billion condoms every year, which are used in birth control and venereal disease (VD) protection for free. Although, the number of condoms purchased by Chinese government is huge, the average unit price is extremely low. The other is the commercial market, covering products from low end to high end with yearly growing shares.
In 1974, Chinese government enlisted condoms into contraceptive drugs and tools that are freely provided for people at the reproductive age. From 1985, the government's formal purchase of condoms was gradually conducted. In 2005, Chinese government started condom purchase for preventing AIDS for the first time and distributed 3.05 million condoms to hotels, amusement places and communities for free. It was also the first time that Chinese government purchased condoms with special financial allocation to prevent AIDS. Condoms purchased by Chinese government are distributed to every enterprise, public institutions through the subordinate contraceptives stations. Along with the sharp increase of floating population and the improving personalized requirements on condoms, the importance of this route slightly declined.
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