Analysis of the development of the global and Chinese API industry from 2023 to 2028
API refers to raw materials that meet the requirements of relevant laws and regulations on drug administration and are used in the production of various types of drugs. They are the active ingredients in drugs.Perfect definition in ICH Q7A: Any substance or mixture of substances intended to be used in the manufacture of medicines, and when used in pharmaceuticals, it becomes an active ingredient of medicines.Such substances have pharmacological activity or other direct effects in the diagnosis, treatment, symptom relief, treatment or prevention of diseases, or can affect the function or structure of the body.
Global development trends
The size of the global API market will continue to grow
According to Advance Research data, the global API market size in 2022 will be US2204.04 billion, and it will grow at a compound annual growth rate of 6% from 2023 to 2032. It is expected that the global API market size will reach US。363.7 billion in 2032.
Demand: The proportion of innovative APIs will continue to increase
According to product types, global API products are divided into innovative APIs and general APIs.According to the type of manufacturer, the API market can be subdivided into commercial APIs and exclusive APIs.According to the type of synthesis, the API market is subdivided into biotechnology and synthetic products.
Benefiting from the steady growth of demand for the entire downstream pharmaceutical preparations and the continuous expansion of the global scale of generic drugs, the demand for innovative APIs continues to increase. According to Advance Research data, innovative APIs will account for the largest market share of active pharmaceutical ingredients in the world in 2022.With the development of new drugs, the proportion of innovative APIs will continue to increase
Domestic development status
China's chemical API operating income was 531.9 billion yuan
From 2012 to 2022, the overall demand for China's API market will show a fluctuating trend.According to data from the China Pharmaceutical Enterprise Management Association, the operating income of China's chemical raw Materials Industry increased by 15.0% year-on-year in 2022. According to preliminary statistics, in 2022, the operating income of China's chemical raw Materials will be 531.9 billion yuan.The main driving factor is that the prices of some bulk APIs in 2022 will be better than in 2021, and the export of antipyretic, analgesic, hormonal, and anti-infective APIs will be strong. The CDMO business of APIs will grow rapidly.
Supply and demand status quo：
Chemical raw materials are the basic raw materials for drug production, which directly affect the quality and production capacity of drugs.Due to the low technical threshold of traditional bulk API, the number of domestic traditional bulk API production enterprises has shown rapid growth in the early stage.According to data from the National Bureau of Statistics, China's chemical api industry has experienced a stage of long-term rapid development, and the scale of production once rose to more than 3.5 million tons, resulting in overcapacity of traditional bulk apis at this stage in the country. Starting in 2018, the domestic production of traditional bulk APIs began to decline, and the total domestic production of APIs fell to 2.3037 million tons in 2018.From 2021 to 2022, China's API supply and output have rebounded, with output in 2022 of 3.626 million tons.
The export value of API reached US551.8 billion
The APIs produced in China not only occupy an important position in the country, but also play an important role in the global pharmaceutical industry chain.China is a large exporter of raw materials. According to the data of the China Chamber of Commerce for Import and Export of Pharmaceutical and Health Products, except for a slight decline of 1% to 2% in 2015 and 2016, the scale of China's chemical raw materials exports has continued to grow over the years, from US115.98 billion in 2010 to US。35.7 billion in 2020, more than doubling in 10 years.In 2022, China's API exports will be US551.8 billion, an increase of 24.04% year-on-year.%
Future development trends
From the perspective of the overall environment, there are two more important directions for the development of APIs in the future. First, the integration of APIs + preparations. Preparations belong to the downstream market of APIs, but some API companies are optimistic about the profit margins and will gradually complete the integration.Second, it is green and environmentally friendly.With the proposal of the national strategy for carbon neutrality and carbon peak, green environmental protection can be said to be the future development trend of all industries. It depends on who can propose their own green technologies in the development of the industry.
For more research and analysis of this industry, please refer to the "China API Industry Market Outlook Forecast and Investment Strategic Planning Analysis Report" of the Forward-looking Industry Research Institute. At the same time, the Forward-looking Industry Research Institute also provides solutions such as industrial big data, industrial research, policy research, industrial chain consulting, industrial atlas, industrial planning, park planning, industrial investment attraction, IPO fundraising and investment research, IPO business and technology writing, IPO work draft consulting, etc.