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As Chinese people's request for life quality increases due to the economic
development and popularization of reproductive health knowledge, the use of
condom keeps rising. And its function has been expanded from contraception alone
to contraception, prevention of sexually transmitted diseases (STD) like AIDS and
improvement in the quality of sexual life.
Before 2002, Condom Industry was strictly controlled by the government as
hygiene item, which resulted in its low capacity and limited market size. Since
2002, condom industry has developed fast for the Chinese government has lifted
the restrictions on it. In 1995, the annual output of condom was only about 1 billion
while in 2015 this figure surpassed 10 billion. By the end of 2015, the annual
output capacity of condom has exceeded 15 billion which not only meet the
domestic demand but also are exported to such countries as United Kingdom,
Brazil, Spain and Russia and bring in an export value of over USD 80 million.
As a special product, condom market in China can be divided into two parts. On one
hand, governments at all levels each year purchase over 1 billion condoms from 17
designated enterprises and distribute them to people free for family planning and
protection from STD. Although the Chinese government purchases large amounts of
condoms, the unit price was only CNY 0.2-0.5. But things are changing, for
example, in the first half of 2013, the Chinese Center for Disease Control and
Prevention has purchased more than 10,000 female condoms, providing them to
sex workers in the country. The China Contraceptive Supplies Center at the National
Health and Family Planning Commission bought another 40,000, which are mainly
handed out to married women. In the end of 2015, the Hebei Provincial Center for
Disease Control and Prevention has purchased some condoms for gay.
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On the other hand, competition in the commercial market of condom is quite fierce.
There are hundreds of condom makers in China most of which order condoms from
other makers or purchase imported ones and then sell them rather than produce by
themselves. The unit price of condom is CNY 0.5-20 in 2015 and its market size in
2015 surpassed CNY 8 billion. As the profit margin in commercial market is large,
many enterprises are vying for it.
As some Chinese consumers think that imported condom is better than domestic
one, large amounts of condoms are imported into China each year from such
countries as Japan, Malaysia and Thailand. In 2015, the import value of condom
reached about USD 279 million and the trade deficit exceeded USD 200 million.
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