Market Trends of China Inorganic Iodide Industry
This section covers the major market trends shaping the China Inorganic Iodide Market according to our research experts:
Animal Feed and Nutraceuticals Sector Expected to Serve as the Growth Engine
- Animal feed and nutraceuticals are one of the major applications of inorganic iodine products. Inorganic iodine is used as a supplement in the feed for animals and humans.
- Sodium iodide, potassium iodide, potassium iodate, calcium iodate, and cuprous iodide are majorly used iodine salts for applications in animal feed and nutraceuticals.
- China is one of the major animal feed-producing countries in the world, producing around 261.42 million tons of animal feed, accounting for around 8.9% of total global animal feed production.
- As per the China Feed Industry Association, in 2021, the total output value of the national feed industry in the country was CNY 1,223.41 billion (USD 180.72 billion), an increase of 29.3% compared to 2020. Moreover, the total operating income from the industry was CNY 1,168.73 billion (USD 172.64 billion), an increase of 28.8% from 2020.
- There were 957 feed factories in China in 2021, with a production capacity of more than 100,000 tons.
- Other than the growth trends in the feed industry of the country, the increasing demand for dairy products, eggs, and meat in the country is also expected to boost the demand for inorganic iodines, owing to applications of certain iodide salts for boosting milk, eggs, and meat production, along with the nutritional value of these products.
- Currently, the volume of the dairy products and eggs segment is around 34,157.83 million kg. It is further expected to reach 50,084.2 million kg over the next five years, with a CAGR growth of around 7.96%.
- In addition, currently, the meat market of the country is at 7,867.8 million kg , and it is expected to grow at a year-on-year growth rate of 17.1% and reach 17,347.5 million kg over the next five years.
- The strong growth of animal feed and nutraceuticals sector is expected to drive the demand for inorganic iodide in the country,
Understand The Key Trends Shaping This Market
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Rising Demand from the Pharmaceutical Industry
- Inorganic iodine salts are used as an active ingredient in antispasmodics, coronary vasodilators, and neuromuscular blocking agents. Iodides are among the most used APIs (active pharmaceuticals) in the pharmaceutical industry.
- Moreover, these salts are also used in the production of pharmaceutical compounds for endocrinology, gastroenterology, parasitology, pneumology, and rheumatology.
- The Chinese pharmaceutical industry generated total revenue of over CNY 3.3 trillion in 2021, registering a year-on-year growth of over 20%. China's pharmaceutical market is the second largest after the United States due to high domestic demand from hospitals and the large production base of APIs (active pharmaceutical ingredients) in the country.
- In 2021, the Chinese pharmaceutical industry witnessed a record number of new drug launches and emerged as a leading vaccine manufacturer and supplier during the COVID-19 pandemic.
- China is a global leader in the manufacturing and export of APIs, which is about 20% of the world's API production. This is owing to greater government support and the low cost of utilities. In 2021, the Chinese API market had over 7,000 API manufacturers, which increased by five times in the last five years, with a production capacity exceeding 2 million tons per year.
- Pharmaceutical manufacturing industry in China is anticipated to grow by about 17% year-on-year in 2022. Digestive and metabolic drugs account for around 14% of the total pharmaceutical market of the country. Increase in expenditure on R&D of newer drugs is a contributing factor to this growth.
- The strong year-on-year growth of the pharmaceutical industry is expected to drive the demand for inorganic iodide in the country during the forecast period.
