Bayer officially expanded its China Center of Innovation and Partnership (CCIP) to Shandong province on Wednesday, marking the establishment of a second hub nearly two years after launching its flagship site in Shanghai. The expansion underscores Bayer’s strategic focus on the rapidly growing consumer health market in China, driven by increasing public awareness of wellness and supportive government policies promoting medical innovation.

At the opening ceremony in Jinan, Bayer signed cooperation agreements with several local institutions, including the Shandong Institute for Food and Drug Control, Jewim Pharmaceutical (Shandong) Co Ltd, and Shandong Freda Biotechnology Co Ltd. These partnerships are intended to bolster joint research, scientific verification, and commercial development under the CCIP framework.

David Evendon-Challis, president of global research and development and chief scientific officer at Bayer Consumer Health, highlighted China’s significance as the second-largest market in Bayer’s global consumer health business. “Innovation plays a very important role within China,” he said, noting ongoing investments in brand development, scientific research, innovation, and manufacturing capabilities in the country.

Construction is underway on a new Bayer factory in Shandong, scheduled to be operational by 2028. The facility, which is expected to be completed later this year, will support the company’s efforts to expand product portfolios and enter new market segments.

The CCIP model establishes an innovation ecosystem that integrates consumer insight analysis, collaborative research, and the translation of scientific achievements into internationally marketed products. An example cited involves a joint product with Sirio Pharma Co Ltd from Guangdong province, currently available in China and poised for launch in overseas markets, including Australia.

Bayer’s consumer health sales in China reached €3.47 billion ($4 billion) last year, with expectations for steady growth in the coming years. Evendon-Challis emphasized a market shift favoring preventive and daily care products over treatment-focused offerings, alongside rapid growth in e-commerce and digital commerce channels enhanced by artificial intelligence.

Karen Hackney, vice-president of dermatology research and development at Bayer Consumer Health, pointed to the evolving skincare market as a key driver of sector expansion. Factors such as aging populations and social media influence are expanding demand, with ongoing research into skin barrier function considered a priority for innovation.

Li Xiaomeng, head of R&D at Bayer Consumer Health China, explained the selection of Shandong for the new CCIP hub due to its status as China’s second most populous province and third-largest economy. The province’s concentration of top-tier hospitals, including Qilu Hospital with a leading gastroenterology department in the Asia-Pacific region, provides a strong foundation for clinical collaboration and product development.

Thorsten Umland, vice-president of digestive health R&D at Bayer Consumer Health, stressed the importance of collaborative partnerships in driving innovation. He described the cooperation with Jewim Pharmaceutical as more than a manufacturing relationship, noting how the partner contributed to product improvements and manufacturing efficiency.

Through its expanded CCIP presence in Shandong, Bayer aims to deepen its innovation capacity and strengthen its position in China’s dynamic consumer health market.