APIs (Active Pharmaceutical Ingredients) and intermediates are key raw materials to manufacture pharmaceutical formulations like tablets, capsules, syrups, etc. Rapid growth in new medical technologies is going to demand generic drugs worldwide along with the import of more raw pharma ingredients from the emerging markets. China is the world's largest producer of pharma ingredients and the world’s second largest pharma market. China’s population growth, rapidly aging population and increasing medical needs make it the world’s biggest producer and exporter of pharmaceutical ingredients. Covering 40% of global APIs production, the Chinese pharma market has huge opportunities for growth.
China is the second-largest pharmaceutical market in the world, forecast to grow at an annual growth rate of 9.1 percent. From now through 2018, it is expected to expand at an annual rate of 17 percent. China is holding a dominant position in the global API industry by its large scale manufacturing capabilities, cost efficiency and adequate availability of commodity bulk drugs and intermediates due to strong technological capability and fermentation. The bulk drugs market has evolved rapidly in the country over the years and is largely diversified with around 7,000 API manufacturers. China accounted for over 20% of the revenues for the Asia Pacific API industry in 2017.
China is going to face a major issue with intellectual property rights protection that leads to low-level market penetration for branded drugs thus, allowing generics to dominate the domestic market. With the government that is determined to tighten regulations, which will govern intellectual property rights, it will be going to expect that the market for APIs in China is going to witness a major boost in the coming years. The API market is moving fast due to the increased demand for pharmaceutical drugs that is driven by the increasing aging population, the rising prevalence of chronic diseases such as diabetes, cardiovascular, cancer, neurological and infectious diseases. With the government’s increasing investment in healthcare and R&D, China present’s great opportunities for developing innovative products and technologies, and for collaboration between domestic and international pharmaceutical companies.
The API market is segmented by API Synthesis (Biotech API, Synthetic Chemical API, and HPAPI), by Type of Manufacturing (Contract Manufacturing and In-House API Manufacturing), by Type of API (Synthetic API and Biological API), by Drug Type (Branded Drugs, Generic Drugs and OTC Drugs), for Cardiology, Oncology, Anti-Inflammatory, Gastrointestinal and Other Application - Global Industry Perspective, Comprehensive Analysis and Forecast, 2015 – 2021”. High Potential Active Pharmaceutical Ingredients (HPAPI) has seen a boom while biotech API lagged behind a bit.
Chemical API Segment dominates the API Market in China. China stood as the world's second largest producer and exporter of chemical APIs, mainly in antibiotics, antipyretics, vitamins, and analgesics, etc. The growth of the market is driven by sustained growth in chemical drugs, especially the continuing patent expiries over the next few years are also considered to be a key driver for the demand for chemical APIs. The key competitors in this segment include CSPC Pharma, Northeast Pharmaceutical Group, NCPC, and other foreign and local companies. The next highlight of the API Industry in China is focused on Biotech APIs. The ongoing research of biosimilars and the advancements in biotechnology are expected to provide a great advantage for the growth of the global API market.
China is the major supplier of APIs to North America due to their low production capacities, the presence of more number of global and domestic players, and labor costs. The safety of medication APIs are subject to stringent regulations and oversight from the country they are shipped to Sun Pharmaceuticals Industries Limited, Teva Pharmaceuticals Limited, and Aurobindo, are some key players in the market.
Report Description: The report covers in-depth analysis on API Market in China. The report assesses the pipeline Active Pharmaceutical Ingredients by stage of development (early development, pre-clinical, clinical and in approval), by application (diabetes, cardiovascular, cancer, neurological and other diseases). In addition, the report includes key insights on other development activities, including (but not limited to) – licensing (In and Out), collaborations, acquisitions, reimbursement, patent, and regulatory designations.
The report includes in-depth company profiles of key players in API Market in China. The company profile includes key information on overview, financial highlights, product portfolio, business strategies, and key recent developments.
The report highlights information on emerging companies with potentially disruptive technologies and new market entrants.
Data Collation (Primary & Secondary)
In-house Estimation (Based on proprietary databases and Models)
Market-related information is assembled from both primary and secondary sources.
Primary sources involved participants from all global stakeholders such as experts from several related industries and suppliers that have been interviewed to obtain and verify critical information as well as to assess prospects of the market. The participants included are CXOs, VPs, and managers. Plus, our in-house industry experts having decades of industry experience contribute their consulting and advisory services.
Secondary sources include public sources such as regulatory frameworks, government IT spending, government demographic indicators, industry association statistics, and company publications annual reports press releases along with paid sources such as Factiva, OneSource, Bloomberg among others.
Top-down and bottom-up approaches: The overall market size was used in the top-down approach to estimate the sizes of other individual submarkets (mentioned in the market segmentation by product, type of manufacturing, and disease) through percentage splits from secondary and primary research. The bottom-up approach was also implemented (wherever applicable) for data extracted from secondary research to validate the market segment revenues obtained.