Analysis Of The Upper, Middle And Downstream Markets Of China's API Industry Chain in 2023

APIs refer to APIs used in the production of various preparations, and are the active ingredients in preparations. With the gradual liberalization of epidemic prevention and control and the continuous expansion of the pharmaceutical market, APIs are the basic raw materials for drug production, and the API market will usher in recovery.

 

1. Industrial chain

The upstream of Chinese APIs includes basic chemicals, Chinese medicinal materials planting and animal breeding; Midstream is an API, which can be divided into bulk APIs, characteristic APIs and patented APIs; Downstream applications in medicine, health products, feed, cosmetics, food and other fields.

 

2. Upstream analysis

1. Planting area of Chinese medicinal materials

In recent years, with the advancement of China's agricultural supply-side structural reform, the state's support for the Chinese medicinal materials industry has been continuously strengthened, and the planting area of traditional Chinese medicinal materials has increased significantly. Data show that from 2017 to 2020, the planting area of domestic Chinese medicinal materials increased from 34.6689 million mu to 43.58 million mu, with an average annual compound growth rate of 5.89% during the period. It is estimated that by 2025, the area of traditional Chinese medicinal materials in the country will be stable at about 45 million mu.

2. Production of Chinese medicinal materials

There are more than 1,000 varieties of Chinese medicinal materials in China, and among the more than 600 kinds of commonly used Chinese medicinal materials, more than 300 kinds have been artificially cultivated, and the output of cultivated and cultivated varieties of Chinese medicinal materials accounts for more than 70% of the supply of Chinese medicinal materials. With the continuous expansion of the planting area of Chinese medicinal materials, the domestic output of Chinese medicinal materials has maintained a steady growth trend. In 2021, the output was about 4.875 million tons, and it is expected that the output of Chinese medicinal materials in China will reach 5.31 million tons in 2023.

 

3. Midstream analysis

1. Operating income of chemical APIs

As one of the world's major chemical API production locations, from 2018 to 2020, due to environmental protection policies, overcapacity, epidemic and other factors, the output of the API industry has declined, and the growth trend has resumed. According to the China Chemical and Pharmaceutical Industry Association, the total operating income of China's chemical API industry reached 426.5 billion yuan in 2021, and it is expected that the operating income of China's chemical API industry will reach 473.6 billion yuan in 2023.

2. Metronidazole API

(1) Sales

Metronidazole is a more commonly used antibiotic in clinical practice, and there are different types of metronidazole on the market, such as tablets, suppositories, and injections. For different types, the method of use is also different. From 2017 to 2021, the sales of metronidazole drugs in China continued to rise, from 1.937 billion yuan in 2017 to 2.559 billion yuan in 2021, with a compound annual growth rate of 7.21%, which is significantly faster than the average growth rate of the global market, and it is expected that the sales of metronidazole drugs in China will reach 3.01 billion yuan in 2023.

(2) Competitive landscape

In the domestic market, metronidazole API market concentration is high, and the production enterprises are mainly concentrated in Hubei Province. In 2021, Hongyuan Pharmaceutical's market share was more than 62%, and it was the largest manufacturer of metronidazole APIs in China; Huanggang Galaxy Adi Pharmaceutical Co., Ltd. is the second largest manufacturer of metronidazole APIs in China, with a market share of 14.92% in 2021; Wuhan Wuyao Pharmaceutical Co., Ltd. ranked third, with a market share of 13.50% in 2021. Other companies have a smaller market share.

3. Tinidazole API

The adverse reactions of tinidazole are rare and mild than metronidazole, and occasionally mild gastrointestinal reactions, headache, dizziness, skin itching, rash, constipation and general malaise. These side effects usually disappear quickly after stopping the drug. From the perspective of sales, from 2017 to 2021, the overall sales of China's tinidazole drug market showed an upward trend, which has risen to 403 million yuan in 2021, and it is expected that the sales of China's tinidazole market will reach 447 million yuan in 2022.

4. Ibuprofen API

Ibuprofen has been successfully developed for 60 years since the 60s of last century, and China was first introduced and produced at the end of the 70s to prepare the mainstream aryl 1,2-transposition rearrangement method of ibuprofen APIs, and now the technology is mature. In 2021, China's ibuprofen API production capacity is about 14,380.95 tons, and it is expected that due to the impact of the epidemic liberalization, the demand for ibuprofen API will increase, and the production capacity will increase to 14,700 tons in 2023.

 

4. Downstream analysis

1. Medicine

With the continuous growth of China's economy and the continuous improvement of per capita disposable income, the main business income of China's pharmaceutical industry has increased significantly. In 2020, the main business income of China's pharmaceutical industry reached 2.243979 billion yuan, it is expected that in the future, with the acceleration of population aging and the sound medical insurance system and other factors, it is expected that China's demand for drugs will continue to increase in the future, the pharmaceutical industry will grow rapidly, and the main business income of the pharmaceutical industry will reach 2.818859 billion yuan in 2023.

2. Health products

The market size of China's health care products market has maintained stable growth, and the market size of China's health care products industry reached 380.82 billion yuan in 2021, a year-on-year increase of 2.59%. With the improvement of people's living standards, the acceleration of population aging, and the increasing attention to their own health care, the market size is expected to reach 410 billion yuan in 2023.

3. Feed

Feed is the main use of vitamin B2, the feed industry uses vitamins account for about 70% of the total consumption of vitamins, so the application of feed vitamins dominates the development of China's vitamin market. In November 2022, the national feed production in the month decreased compared with the same period last year. In November 2022, the national feed output was 28.565 million tons, down 1.3% year-on-year. From January to November 2022, the national feed output was 294.893 million tons, down 0.1% year-on-year.