Much of Macau’s international recognition is due to the gaming industry, which, besides generating hundreds of billions of patacas annually, attracts tens of millions of visitors.
However, in addition to this leading sector, another industry has been quietly growing rapidly over the years and is now taking on a central role in retail.
Especially in the city center, it is not easy to walk down any street without finding several pharmacies, drugstores, or traditional Chinese medicine shops.
Still, while the last type are holding steady or growing by small percentages, pharmacies are blooming faster and do not seem to be affected by the increase in similar offerings.
According to data disclosed by the Pharmaceutical Administration Bureau (ISAF) at the request of the Times, at the end of September this year, there were a total of 539 of these establishments operating in Macau, accounting for a tentative growth of at least 5.3% this year (with one full quarter still remaining to be counted).
In 2024, the sector grew 3.6% year over year, while in 2023 it recorded a 10.8% increase.
Despite the numbers speaking for themselves, the trend has become more evident to locals and visitors alike, with new pharmacies opening every month.
These new stores are also occupying premium commercial spaces previously used by other industries, such as jewelry and watch retailers, as well as food and beverage establishments that could not survive under the pressure of rising rents and declining revenue.
Strong demand for products from the SARs
To learn more about the development of this sector, the Times spoke with Henry Lei, an economist, economics professor, and associate head of the Department of Finance and Business Economics at the University of Macau.
He explained that the increase in the number of establishments for pharmaceutical products “is likely related to the continuous growth in incoming tourists from the mainland, as well as the surge in total non-gaming expenditure from our tourists, despite a shrinking per capita expenditure.”
He added, “According to the recently released tourist survey for the third quarter (Q3), total tourist expenditure has increased to MOP20.38 billion, representing a 10.65% growth compared to the same period last year. Unfortunately, we do not have the breakdowns for pharmacies, but they should account for a significant portion of the expenditure.”
When asked why mainland visitors show strong interest in acquiring pharmaceutical products in Macau, he said, “The choice and variety, the genuineness of the products together with the trust are, perhaps, the priorities of the tourists, with price level also a consideration.”
He remarked, “When some drugs are not registered or unavailable in mainland China, or the stores only sell the Made-in-China edition, tourists may prefer imported products available in Macau and Hong Kong.”
Lei noted that this is also true for online commerce. “In fact, if you search on Taobao, sellers are doing the so-called ‘Overseas Purchase’ and will even take a video to show the process of purchase in a Macau/Hong Kong pharmacy as proof. This reflects the strong demand for pharmaceutical products from the SARs, and the increasing number of shops is evidence of this.”
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