60 Percent Workforce Held by Top 10 Firms! China’s TCM Industry Faces Fierce Reshuffle as Private Leaders Expand Fast

China’s traditional Chinese medicine (TCM) sector is undergoing a dramatic shift in workforce strategy, fueled by supportive policies and market upgrades. Major state-owned enterprises such as Baiyunshan, CR Sanjiu, and Tongrentang are solidifying their dominance with robust employee bases—Baiyunshan alone boasts over 28,000 staff, maintaining its lead. After streamlining in 2023, Tongrentang’s headcount edged up again in 2024, signaling renewed growth momentum.

Leading private firms are rewriting the rules. Kangyuan Pharma surged past 6,000 employees in 2024, and Guizhou Sanli nearly doubled its workforce in two years—a staggering 83% increase, making it the fastest-growing player. Conversely, some well-known names like Yiling Pharma and Buchang Pharma have cut their staff by more than 20% in just two years, reflecting divergent strategies in an evolving market.

In the mid- and small-scale segment, volatility is even more pronounced. Some, like Dong’e E-Jiao, posted robust growth under state backing, while others—such as Weikang Pharma—saw a steep 40% workforce drop in a single year. Meanwhile, Tibet Pharma, the sole Hong Kong/Macau/Taiwan-based brand, has remained the most stable in personnel numbers.

The top 10 companies now control 60% of the sector’s total manpower, while over half of the bottom 30 firms are slashing headcount. This sharp contrast—giant firms consolidating while smaller ones exit—marks China’s TCM industry’s shift from rapid expansion to a new era focused on efficiency and quality.