Bayer expanded its China Center of Innovation and Partnership (CCIP) to Shandong province on Wednesday, nearly two years after launching its flagship hub in Shanghai.

The expansion advances the CCIP's "in China, for the world" concept, betting on the country's fast-expanding consumer health market fueled by rising wellness awareness and supportive government policies for medical innovation.

At the inauguration ceremony of the CCIP in Jinan, Shandong, Bayer signed cooperation agreements with the Shandong Institute for Food and Drug Control, Jewim Pharmaceutical (Shandong) Co Ltd and Shandong Freda Biotechnology Co Ltd.

"China is the number two market in our global consumer health business, and it is a very dynamic market. Innovation plays a very important role within China," said David Evendon-Challis, president of global research and development and chief scientific officer of Bayer Consumer Health. "We continue to invest in our brands, our science, our innovation and our manufacturing and supply chains in China."

The company is investing in a new factory that will be put into operation in 2028, with construction scheduled to finish this year. The facility will enable Bayer to steadily expand and launch new products.

Built around the CCIP framework, Bayer has established an innovation ecosystem spanning consumer insight analysis, joint research, scientific verification and commercial conversion, creating a bridge for bringing achievements to international markets.

One example is a joint product developed with Sirio Pharma Co Ltd based in Shantou, Guangdong province, which has already been rolled out in China and is poised to enter overseas markets such as Australia.

Last year, Bayer generated 3.47 billion euros ($4 billion) in sales from China, and the company anticipates the consumer health market will continue to grow consistently over the next several years.

"We see a balance shifting from treatment products to prevention and daily care," Evendon-Challis said.

He also noted a huge increase in e-commerce and digital commerce, with artificial intelligence and large language models helping people make choices.

Karen Hackney, vice-president of dermatology research and development at Bayer Consumer Health, said that skincare is evolving from beauty into a key health segment, driving sector growth.

"Aging populations and social media influence fuel market expansion, with skin barrier research standing as a core innovation priority for the division," she said.

Li Xiaomeng, head of R&D at Bayer Consumer Health China, explained the rationale behind choosing Shandong as the second CCIP hub after Shanghai.

"Shandong is China's second most populous province and the third-largest economy," Li said. "We need a population base as we serve consumers and want to reach more people."

The province is also home to top-tier hospitals, including Qilu Hospital, whose gastroenterology department ranks among the best in the Asia-Pacific region. "This provides a strong foundation for collaborative product development and clinical efficacy research," said Li.

Thorsten Umland, vice-president of digestive health R&D at Bayer Consumer Health, emphasized the importance of trusted partnerships in innovation.

"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," he said.