$139.8bn
$XX.Xbn
538k
1,455
$X.Xbn
China is one of the largest producers of pharmaceutical raw materials (PRMs), largely due to its low production costs and large population. China accounts for approximately 70% of global vitamin C output, 70% of citric acid output and 90% of penicillin output.Rising health concerns among Chinese people and strong global demand led to steady industry growth in the past five years. From end of 2019, the COVID-19 began to outbreak and spread around the world, which greatly increased worldwide demand for certain pharmaceutical products. Over the past five years, revenue has been increasing steadily at an annualized 5.4%. Total revenue for the Pharmaceutical Raw Material Manufacturing in China is expected to total $139.8 billion in 2023, up by 7.7% from 2022.This industry relies heavily on exports. In 2023, exports are set to reach $70.0 billion, accounting for 50.1% of revenue. Meanwhile, competing imports as a share of domestic demand is expected to be 14.5% in 2023.Over the next five years, revenue for Pharmaceutical Raw Material Manufacturing in China is forecast to grow 5.0% annually, to reach $178.3 billion in 2028. Over $8.0 billion worth of patents of pharmaceuticals will expire over the period, attracting companies in the industry to manufacture generic versions of these products. In addition, expanding demand from rural areas in China will contribute to revenue growth.The Pharmaceutical Raw Material Manufacturing in China is expected to develop towards high-end direction, with increasing market demand for specialty raw materials and patented raw materials. In addition, with increasing environmental protection requirements in China, deepening implementation of the policy of purchasing generic drugs in bulk and intensified market competition, the industry concentration level is expected to increase gradually over the next five years.
Industry revenue has grown at a CAGR of 5.4 % over the past five years, to reach an estimated $139.8bn in 2024.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2023 | Revenue ($short_0)
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There are no companies that hold a large enough market share in the Pharmaceutical Raw Material Manufacturing in China industry for IBISWorld to include in this product.
Pharmaceutical Raw Material Manufacturing in China
Industry revenue is measured across several distinct product and services lines, including Bulk raw materials, Specialty raw materials and Patented raw materials. Bulk raw materials is the largest segment of the Pharmaceutical Raw Material Manufacturing in China.
Bulk raw materials segment has lower profitability
The Pharmaceutical Raw Material Manufacturing industry in China manufactures active pharmaceutical ingredients for further preparation of finished pharmaceutical products. Typical products in the industry include bacteriophage, endocrine products, basic vitamins, sulfanilamide medicine, salicylate, glucose and alkaloids. This industry acts as a bridge between the upstream chemical industry and the downstream medical market.
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Overseas market occupies an important position in the development of the industry. In 2023, exports as share of industry revenue increases to 50.1%.
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Bulk raw materials are the largest product segment for the industry. Bulk raw materials have lower profitability, abundant production capacity and great environmental pressur...
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East China generates over half of the industry's revenue. Having highly developed downstream industries and being close to ports and transport contribute to fast development ...
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The industry concentration level is low. The sales revenue of the top four enterprises are expected to account for 3.8% of total industry revenue in 2023.
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Most major companies develop their pharmaceutical industry chain. Developing active pharmaceutical ingredients-preparations helps enterprises to improve profit margins and en...
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The Government in China encourages the industry transformation and upgrading. The Government in China encourages the industry enterprises to enhance independent innovation ca...
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The industry profit margins have increased a little over the past five years. The industry profitability increased from 10.6% in 2018 to 11.3% in 2023.
Including values and annual change:
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Key data sources in China include:
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
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IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
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The market size of the Pharmaceutical Raw Material Manufacturing industry in China is $139.8bn in 2024.
There are 1,455 businesses in the Pharmaceutical Raw Material Manufacturing industry in China, which has grown at a CAGR of 1.3 % between 2019 and 2024.
The market size of the Pharmaceutical Raw Material Manufacturing industry in China has been growing at a CAGR of 5.4 % between 2019 and 2024.
Over the next five years, the Pharmaceutical Raw Material Manufacturing industry in China is expected to grow.
Bulk raw materials and Specialty raw materials are part of the Pharmaceutical Raw Material Manufacturing industry.
The level of competition is high and steady in the Pharmaceutical Raw Material Manufacturing industry in China.