China Active Pharmaceutical Ingredients (API) Market Size (2024 - 2029)

China Active Pharmaceutical Ingredients (API) Market Analysis

The China Active Pharmaceutical Ingredients Market size is estimated at USD 14.81 billion in 2024, and is expected to reach USD 21.62 billion by 2029, growing at a CAGR of 7.86% during the forecast period (2024-2029).

The market is expected to grow due to the increasing prevalence of chronic disorders and the rising adoption and approval of biologics and biosimilars during the forecast period.

The increasing prevalence and incidence of chronic diseases, infectious diseases, and genetic disorders in China are driving the demand for effective and safe drugs. Thus, the need for active pharmaceutical ingredients across the country is increasing for the development of novel drugs for various diseases. This, in turn, is further expected to fuel the growth of the active pharmaceutical ingredients market during the forecast period. For instance, according to an article published in the Chinese Medical Journal in March 2022, it has been observed that about 4.82 million new cancer cases were diagnosed in China in 2022, compared to 4.5 million cases in the last year. Thus, the expected increase in the number of people who have cancer, including colorectal cancer, raises the demand for novel drugs for the treatment. This, in turn, is anticipated to propel the growth of the APIs market during the forecast period.

Also, ischemic heart disease, stroke, Alzheimer’s and other dementias, and chronic obstructive pulmonary disease are the four most frequent causes of disability-adjusted life years among the population. For instance, according to an article published in BMC Public Health in June 2023, it was observed that about 40 million people living in China are expected to suffer from Alzheimer’s disease and related dementias by 2050. Thus, the expected increase in the patient population raises the need to develop novel biological drugs, which is expected to increase the demand for APIs in China.

Moreover, the increasing adoption and approval of biologics and biosimilars are expected to drive the market during the forecast period. Healthcare systems worldwide actively seek ways to lower costs and raise revenues. Innovative formulary management provides a way to save prescription prices without sacrificing patient care. Specialty pharmaceuticals are one prominent area in which cost reductions would make a significant difference because of the high cost of biologics, which results in a disproportionate contribution to the total national drug spending. Thus, using less expensive biosimilars offers a chance to reduce drug costs and spending on biologics without compromising patient outcomes.

For instance, according to an article published in Health Policy in October 2023, it was observed that the cost of cancer biosimilars was 69% to 90% of the costs for the reference drugs, and their uptake reached 54% to 83% in China in 2022. Hence, biosimilars' lower cost and clinical benefits are expected to increase their adoption, ultimately driving the market during the forecast period. Similarly, in an article published in Bioengineered in June 2022, the Chinese researchers observed that biosimilar monoclonal antibodies are one of the hotspots of research and development in China, with continuous improvement of policies and increasing interest in research and development of biosimilars.

Thus, owing to the development of biopharmaceuticals markets, the demand for biosimilars in China is expected to grow gradually, with the improvement of the national guidelines, further increasing its adoption for the treatment of various chronic and infectious disorders, contributing to the market growth.

Therefore, the market is expected to grow during the forecast period due to the aforementioned factors, such as the increasing prevalence of chronic diseases and the increasing adoption and approval of biologics and biosimilars. However, the country's stringent regulations for drug approvals and drug price policies are expected to hinder market growth during the forecast period.

China Active Pharmaceutical Ingredients (API) Industry Segmentation

As per the scope of the report, an active pharmaceutical ingredient (API) is a part of any drug that produces its effects. Some drugs, such as combination therapies, have multiple active ingredients to treat symptoms or act differently. They are produced using highly technological industrial processes during the R&D and commercial production phases. The Chinese active pharmaceutical ingredients (API) market is segmented by business mode, type of drug, and application. By business mode, the market is segmented into captive API and merchant API. By drug type, the market is segmented into generic and branded. By synthetic type, the market is segmented into synthetic and biotech, and by application, the market is segmented into cardiology, oncology, pulmonology, neurology, orthopedics, ophthalmology, and other applications. The report offers the value (USD) for the above segments.