Bayer has expanded its China Center of Innovation and Partnership (CCIP) to Jinan, Shandong, nearly two years after launching its flagship hub in Shanghai. The move signals the German healthcare giant's deepening commitment to China's fast-growing consumer health and medical aesthetics market, offering new collaboration opportunities for overseas buyers and distributors in the supply chain.
Strategic expansion into Shandong
Bayer inaugurated the CCIP in Jinan on Wednesday, advancing its "in China, for the world" strategy. The hub is designed to leverage China's rising wellness awareness and supportive government policies for medical innovation. Shandong was chosen as the second location due to its large population base—the second most populous province in China—and its strong economy, ranking third nationally. The province also hosts top-tier hospitals like Qilu Hospital, whose gastroenterology department is among the best in the Asia-Pacific region, providing a solid foundation for collaborative product development and clinical efficacy research.
Partnerships and product development
At the inauguration, Bayer signed cooperation agreements with the Shandong Institute for Food and Drug Control, Jewim Pharmaceutical (Shandong) Co Ltd, and Shandong Freda Biotechnology Co Ltd. These partnerships aim to enhance joint research, scientific verification, and commercial conversion. A notable example is a joint product developed with Sirio Pharma Co Ltd, based in Shantou, Guangdong, which has already launched in China and is set to enter overseas markets such as Australia. Thorsten Umland, vice-president of digestive health R&D at Bayer Consumer Health, highlighted the value of trusted partnerships: "One example is how we worked with Jewim, a partner in Shandong, who sat down with us to improve the product and make manufacturing more efficient. They weren't just a contract manufacturer. They helped us make the product better and develop it further."
Market signals: Consumer health and skincare
Bayer generated 3.47 billion euros ($4 billion) in sales from China last year, and the company expects consistent growth in the consumer health market. David Evendon-Challis, president of global R&D and chief scientific officer of Bayer Consumer Health, noted a shift from treatment products to prevention and daily care. He also observed a surge in e-commerce and digital commerce, with AI and large language models aiding consumer choices. Karen Hackney, vice-president of dermatology R&D, emphasized that skincare is evolving from beauty into a key health segment, with aging populations and social media influence driving market expansion. She stated, "Skin barrier research stands as a core innovation priority for the division."
Manufacturing investment and supply chain
Bayer is investing in a new factory in China, with construction scheduled to finish this year and operations expected to begin in 2028. The facility will enable the company to steadily expand and launch new products, reinforcing its supply chain capabilities. The CCIP framework has created an innovation ecosystem spanning consumer insight analysis, joint research, and commercial conversion, bridging achievements to international markets.
What buyers should watch
For overseas importers, distributors, and clinic buyers, Bayer's expanded CCIP in Shandong signals increased collaboration opportunities with Chinese partners in consumer health and skincare. The focus on skin barrier research and joint product development may lead to new formulations and technologies suitable for global markets. Additionally, Bayer's investment in local manufacturing could streamline supply chains for products targeting prevention and daily care, aligning with growing demand in the medical aesthetics sector.
Source: Read the original report | Published: June 05, 2026