Market demand growth: Pharmaceutical raw materials, as the key products of Western medicine exports, account for about 80% of Western medicine exports. In recent years, the global demand for pharmaceutical raw materials has continued to grow, and China's position as a major supplier of global raw materials has not changed. Especially during the epidemic, the global demand for raw materials has surged, driving the rapid growth of China's raw materials exports.
Export situation: In 2024, China's total import and export of raw materials will be US$53.8 billion, a year-on-year increase of 5.6%. Among them, the export value is US$42.98 billion, a year-on-year increase of 5.1%; the import value is US$10.81 billion, a year-on-year increase of 7.9%. From 2015 to 2024, the annual compound growth rate of China's raw material exports was 7.7%, and the annual compound growth rate of export volume was 9.0%. In 2024, the export volume of raw materials increased by 19.4% year-on-year, a record high.
Technology accumulation and cost advantage: China's raw material industry has accumulated technology and agglomeration effects and cost advantages for many years, enabling it to quickly meet market demand. As industry competition intensifies, the average export price of APIs has fallen, but the export volume and market share continue to increase.
Import situation: In 2024, China's API imports will be US$10.82 billion, with a compound annual growth rate of 5.9%. In particular, the rapid growth of peptide hormone APIs indicates that the import value is expected to reach US$11.5 billion in the next two years, reflecting the continued growth in China's pharmaceutical industry's demand for high-quality APIs.
Industry challenges and opportunities: Despite the challenges of global market demand fluctuations and intensified industry competition, China's API industry still shows strong growth momentum. Technological innovation, active response to policies and ecological coordinated development are considered to be the three major development opportunities for the industry in the future.