Market Trends of China Active Pharmaceutical Ingredients (API) Industry
This section covers the major market trends shaping the China Active Pharmaceutical Ingredients (API) Market according to our research experts:
Oncology Segment Expects to Register a High CAGR
The oncology segment is expected to witness significant growth in the API market over the forecast period owing to the factors such as the rising prevalence of various types of cancer and increasing company activities in developing cancer drugs.
An article published in NCBI in February 2022 expected about 4.8 million new cancer cases to be reported in China in 2022. As per the same source, this number is projected to increase to 6.85 million new cancer cases by 2040. As per GLOBOCAN 2020 report, about 815,563 new lung cancer, 478,508 stomach cancer, 416,371 new breast cancer, 306,078 colon cancer, 244,550 rectum cancer, and 124,994 pancreas cancer cases were reported in China in 2020. Thus, the expected increase in the number of people suffering from cancer is anticipated to increase the demand for effective and safe cancer drugs. This further fuels the demand for APIs for drug formulation, hence boosting the market growth.
Furthermore, the rising company focus on developing various cancer-treating drugs raises the demand for APIs, propelling the market growth. For instance, in August 2022, Sanofi collaborated with Innovent Biologics to bring innovative medicines to patients in China to treat cancers. The company focused on accelerating the development and commercialization of two critical Sanofi clinical-stage oncology assets, SAR408701 (PIII) and SAR444245 (PII), combined with sintilimab, the leading checkpoint inhibitor in China.
Also, in April 2022, the China National Medical Products Administration (NMPA) approved BeiGene's tislelizumab for treating patients with locally advanced or metastatic oesophageal squamous cell carcinoma (ESCC), a type of oesophageal cancer. Similarly, in May 2021, the National Medical Products Administration (NMPA) of China approved Phyton Biotech's Drug Master File for paclitaxel active pharmaceutical ingredients produced via plant cell fermentation (PCF).
Therefore, owing to the factors mentioned above, the segment is anticipated to witness growth over the forecast period.
Branded Segment Expected to Own the Significant Market Share
The branded segment is expected to grow over the forecast period owing to the factors such as the high burden of chronic diseases such as hypertension, cancer, diabetes, and others, raising awareness regarding branded drugs among the population, as well as increasing company activities in developing drugs in the country. For instance, an article published in the journal Annals of Translational Medicine in May 2021 stated that the burden of breast cancer is increasing in China, and it is expected to reach 4.5 million by 2030. In addition, endocrine therapy for treating breast cancer has become more common across the country in recent years. This is anticipated to increase the demand for breast cancer drugs, fueling the demand for APIs to develop branded cancer drugs.
Additionally, an article published in the International Journal for Equity in Health in August 2021, it has been observed that 75.8% of the elderly population aged 60 years and above are troubled by one or more chronic diseases such as heart disease, cancer, chronic lung diseases, and others, which cause a lot of physical and psychological harm to the patients due to the long course of the disease and the protracted condition and decrease the life years, in China. Also, the increasing diabetic population in the country raises the risk of developing cardiovascular diseases and chronic kidney diseases. Thus, the high burden of chronic diseases, especially
among the aging population, is anticipated to increase the demand for effective drugs for treating chronic diseases. This is anticipated to fuel the demand for APIs for drug development and formulation, hence boosting the market growth.
The rising company activities adopting various business strategies, such as agreements, collaborations, and facility expansion in the country, are contributing to the market's growth. For instance, in March 2022, Lonza completed a laboratory expansion at its active pharmaceutical ingredients (API) manufacturing site in Nansha, China. The expansion focused on increasing the capacity and capabilities of the development labs and kilogram-scale cGMP production facilities for the clinical delivery of highly potent APIs.
Furthermore, in January 2022, the Chinese industry ministry specified that it would toughen law enforcement to curb monopoly practices and unfair competition in the pharmaceutical industry as the government seeks to foster a good business environment.
Therefore, factors such as the high burden of chronic diseases coupled with the geriatric population and increasing facility expansions by companies for boosting API production are anticipated to augment the market growth over the forecast period.
