Analysis of global API market trend

Jan 13 08:26 2012 David Yvon Print This Article

On the end of the first half of 2006, the global API seminar was held in Milan, Italy. Chemical Pharmaceutical Generic Association of Italy disclosed that:

Italy is steadily losing market share in the global API and India will soon overtake Italy as the world's second largest API producer.

China and India has are well prepared. for future development in many ways Both countries have plenty of cheap labor,Guest Posting environmental costs are very low; the same time, the government not only actively encourage enterprises to enter international markets, and give the relevant policies to encourage. Particularly in India, the government will regarded pharmaceutical industry as its pillar. In the long run, the deeper meaning when such support is a challenge China in the global API market leader position.

In 2005, India's API sales of $ 2.0 billion, ranking third in the world. It is expected that between 2006 to 2012, India's annual sales will increase 19% of ultra-high speed. In 2012, India is expected to reach global sales of API 4.8 billion.

Compared with India and China, much of Italy will be in trouble. As the years of rapid growth, government policies and API industry in upgrading both hardware and failed to keep up the pace of market development, the API is now the industry can not provide for its future growth potential related to hardware support. For example, the high cost of labor, industry, bureaucracy and popular awareness of the lack of competition among enterprises, the existence of these problems indicates that the Italian API industry glutathione is gradually losing its former prestige. In 2005, Italy API global sales of 32 billion U.S. dollars. Italian Chemical Pharmaceutical Generic In 2010, sales just increased of $ 100 million to $ 3.3 billion.

In 2005, China API global sales to $ 4.4 billion. This indicates that, in the short term, China will not be the challenge of India and Italy will have full control first in the world. Expected, the Chinese API sales will increase 17% annual growth rate, by 2010 global sales will reach $ 10 billion. Although this figure is 2 times more than India, but India will have a much longer period of time the strength of aspirations to global API manufacturing superpower status. There are two main reasons: first, in the three countries, India now has the highest annual sales growth rate; Second, India's major customers are manufacturers in the world regulate the market (such as Europe and the United States), and China's sales are mainly domestic market and non-standard world market (such as Southeast Asia, Africa, South America). Production enterprises standardize the market and non-standard market, the biggest difference is the profit, there is a big difference.

For the reality gap, the Chinese enterprises to make full use of their own characteristics change the inferior position of advantage. Resources have been focused on chemical synthesis, targeting low-tech production of the API to temporarily avoid the production of innovative drugs and to regulate the market of large-scale exports. Because, compared with Indian counterparts, Chinese API manufacturer to regulate the market in providing DMF (Drug Master File) files and the ability of the international GMP compliance has a clear weakness, they know now is not competing with Indian counterpart’s time. Although this is an objective historical reasons for the formation, but the Chinese API manufacturer can not use this as an excuse to give up on the world regulate the market for long-term planning, because the opportunity has quietly come to China.

In addition, peer-oriented API as India's international marketing and product line training also contributed to the lack of competitiveness of Chinese API manufacturer the main reason. At the government level, although China and India on intellectual property issues for innovative drugs are vague, but now the Indian government has been faster than the Chinese government in regulating legislation in this area. This move greatly increased the foreign investors invest in Indian API manufacturers confidence.

Now, China and India still have some shortages, but the two countries develop towards right direction. In contrast, it is pessimistic about the future of Europe more. As the cost of API products accounted for 50% of the total cost, so who can reduce the cost of the API, who will be able to eventually dominate the resveratrol market. In Europe, API manufacturers in India and China labor costs are 10 times. In China and India, plant and equipment costs only 25% -30% in Europe. The only good news for European companies is that they maintain a certain distance from the edge with producing various components of the API R & D and technological innovation.

In the next five years, global sales of the API is expected to increase by 8.2% per year rate .By 2010, the global API market reaches $ 46 billion. Unless other API manufacturers can quickly integrate together, the market will be commanded by China and India. Source:

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David Yvon
David Yvon

MHC INDUSTRIAL CO., LTD is a high-tech enterprise which complements in technology and management. The company is a manufacturer of raw materials for global healthy industry . It specializes in providing stable quality, safe and reliable active substance for pharmaceutical.

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