Recently published research from CRI, "Research Report on China Condom Industry, 2013-2017", is now available at Fast Market Research

Boston, MA -- (SBWire) -- 10/29/2013 --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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In 2012, Chinese government purchased about 1.35 billion condoms for free distribution. Generally speaking, the number of condoms purchased by Chinese government is declining year after year. Although the purchasing price of government is much lower than the average retail price, government purchase is an important marketing goal of some condom manufacturers due to its huge amount and profound influence in promoting brands.

There are over 300 million sexually active men in China and the domestic consumption volume of condoms exceeded 9 billion in 2012. China has always been the net exporter of condoms in recent years with import and export volume of condoms exceeding 4,000 tons in 2012.

According to the research of China Research and Intelligence (CRI), in 2012, the domestic sales volume of condoms was about 9.55 billion in China, increasing by 9.77% YOY. The annual growth rate of domestic condom sales volume in 2011-2012 was lower than that was forecasted by CRI in 2009, which mainly because of the declining volume of government purchase and the lack of influential new products in China condom market. Therefore, the growth rate can increase steadily instead of booming.

In 2012, the market scale of condoms was about CNY 7.65 billion in China, increasing by 12.8% YOY. Among that, the share of government purchase declined constantly. The growth rate of sales value is higher than that of sales volume in China condom market, which results from the constant upgrading of China condom market and the continuous increase of the average retail price.

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