Identifying key international markets
For Hong Kong SMEs in the life sciences and healthcare industry, identifying and targeting the right international markets is crucial for expansion.
Asia Pacific
Singapore is channeling over $25 billion into research and development as part of its RIE2025 plan2, fueling growth in the biotech and medtech sectors. For Hong Kong SMEs, Singapore offers a collaborative and innovation-rich market, especially for companies specializing in diagnostics, biologics and health tech innovations.
Based on data by Grand View Research, China’s digital health market is projected to hit US$63.7 billion by 20303, driven by AI-powered diagnostics and telehealth. With CAGR estimates of over 23% from the years between 2030 and 2050, notes Imarc4, this presents massive potential for Hong Kong firms offering tech-enabled solutions. Aligning with Chinese distributors or forming joint ventures in healthcare can fast-track entry.
Official statistics reveal that India supplies 60% of global vaccines5 and leads in biosimilars manufacturing. The biologics sector in the country is also expected to hit US$12 billion by 20256. With strong government incentives and Good Manufacturing Practices (GMP) alignment, it is a strategic market for Hong Kong healthcare businesses focused on affordable care and scale.
North America
The North American market, particularly the United States (US), remains a key destination for healthcare industry expansion. With 68% of life sciences executives forecasting revenue growth through 2025, driven by AI and personalized medicine investments, as noted in a Deloitte report8, opportunities abound. Canada's focus on rare disease therapies and public-private partnerships creates unique entry points for specialized healthcare solutions, supported by significant government funding and research initiatives.
Europe
Europe remains a compelling destination for Hong Kong businesses seeking international expansion. According to Precedence Research9, the region’s pharmaceutical Contract development and manufacturing organizations (CDMOs) market is set to nearly double from US$45.68 billion in 2025 to US$88.84 billion 2034, driven by rising demand for specialized drug development and manufacturing expertise.
Germany leads as Europe’s pharmaceutical powerhouse and is the fourth largest worldwide10, with strong growth in biologics, AI-driven drug discovery, and a supportive regulatory environment. Meanwhile, Sweden is setting global benchmarks in digital health. With 99% of prescriptions now electronic and over US$1.2 billion invested annually in healthcare infocomm technology, as reported by Statista11, the country’s vision to be the world leader in eHealth by 2025 makes it an attractive hub for digital-first healthcare ventures.
Navigating regulatory and compliance requirements
Expanding into international markets comes with complex and varied regulatory hurdles. For example, businesses must navigate stringent Federal Drug Agency (FDA) requirements, including phased clinical trials and detailed submissions for drug and medical device approvals, to enter the US.
Over in the European Union, the new Health Technology Assessment (HTA) Regulation mandates joint clinical assessments for oncology, orphan disease and advanced therapies. Compliance will expand by 2028.
In India, the Central Drugs Standard Control Organisation (CDSCO) is revamping its framework to enforce GMP on all sterile equipment manufacturers by end-2025. On the other hand, Japan has modernized its regulatory environment for Software as a Medical Device (SaMD). From 2024, some digital tools may receive conditional approvals for specific use cases, pending broader acceptance after additional data.
Building strategic partnerships and collaborations for success
Global expansion in the healthcare business is also about building strategic partnerships to open doors to localized expertise, regulatory compliance and market credibility.
Joint ventures and alliances in healthcare
Joint ventures provide valuable access to local market intelligence, from cultural preferences to regulatory frameworks. For Hong Kong SMEs, forming joint ventures with established healthcare players in North America or Asia can help navigate complex entry points.
Alliances also play a vital role in enhancing R&D capabilities. By pooling resources with universities, biotech firms or multinationals, SMEs can accelerate product development and clinical trials. Technology transfer agreements further allow for mutual benefit through knowledge sharing and licensing deals.
Such collaborations help distribute financial risk while enhancing the speed and scope of international business expansion. SMEs can also benefit from better brand recognition, government incentives and trust-building in new regions.
Distributor and reseller agreements
Partnering with experienced distributors is a cost-effective way to enter foreign markets. Distributors bring with them regional know-how, local logistics capabilities and an established customer base. They can manage warehousing, marketing and even handle import declarations and compliance, allowing SMEs to focus on innovation and production.
While distributors can assist with local logistics within the target market, you’ll still need the expertise of a global logistics provider to handle international shipping from Hong Kong. A logistics provider with both global networks and local expertise like DHL Express can even allow you to forgo the distributor and deliver directly to customers.
However, it is essential to craft agreements that safeguard product quality and brand integrity. Clear expectations on quality checks, brand messaging and compliance with healthcare standards should be included in contracts.