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9 November 2012
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Pharma's interest in outsourcing, combined with rising industrialization in India and China, will mark a drop in Japan's share of the continent's revenue. Japan's Active Pharmaceutical Ingredients (API) Asia-Pacific revenue share is expected to drop from a dominant 51% in 2011 to 34% by 2017, while less economically mature markets across the region expand their own.
Japan's API market revenue grew from $9.9 billion in 2006 to $15.6 billion last year, but we expect this growth to slow substantially in the future, reaching $17.2 billion in 2017, at a modest Compound Annual Growth Rate (CAGR) of just 1.7% from 2011.
By comparison, China's API market revenue will increase from the $6.6 billion posted last year to $17 billion by the end of 2017, representing a CAGR of 17.2% during the same time period. Similarly, the API industry in India is expected to expand in value, from $2 billion in 2011 to $5.2 billion in 2017, at a CAGR of 17.4%.
A major contributor to this disparity in growth is the growing popularity of outsourcing pharmaceutical processes to Contract Manufacturing Organizations (CMO) in developing countries where skilled workforces are readily available and labor costs can be as much as 12 times lower.
The CMO market for the Asia-Pacific region is expected to jump in value in the near future. From combined revenues of $6.6 billion last year, it is forecast that the sector will reach $16.5 billion by just 2017 at a healthy CAGR of 16.4%.
The total revenue generated by the Asia-Pacific Active Pharmaceutical Ingredients (APIs) market was $30,693m in 2011, which is expected to increase with a healthy CAGR of 8.5% during 2011-2017, to generate revenues of $50,070m in 2017. Major demand growth in the region's market is expected to come from the biotech and generic sectors. India and China in particular are expected to contribute high growth for the region's APIs market. The increasing elderly population, improving healthcare standards and changing lifestyles in these countries will drive the demand, which will be supported by increasing per capita income and increasing healthcare penetration.
The Rapidly Increasing Biotech APIs Market Will Challenge the Synthetic Market's Dominance in the Region's APIs Market in Future
Synthetic APIs have been the major product type in the Asia-Pacific APIs market, holding a share of around 87% by revenues in 2011. Biotech APIs held a revenue share of around 13% in 2011. Although synthetic APIs will continue to be the major product type, the latest advancements in biotech APIs and the increase in biopharmaceutical products are likely to support high growth for biotech APIs, which will expand their revenue share in the Asia-Pacific APIs market towards 2017.
Developing Countries such as China and India Will Lead the Region's APIs Market Demand
Japan has been the dominant market, with 50.9% of API market revenues in the Asia-Pacific region in 2011. However, with huge growth expectations from India and China, the revenue share for these two countries is expected to increase during the forecast period. This increase in revenue share for India and China will be at the expense of the revenue share held by Japan. By 2017, India and China are expected to account for around 45% of the Asia-Pacific API market revenues.
Improving Regulatory Framework Will Boost the APIs Market Growth in Asia-Pacific
The regulatory framework is continuously evolving in Asia-Pacific countries. Developing countries such as India and China are improving their regulatory frameworks to attract more multinational companies for manufacturing processes. All the regulatory changes in these two countries are focused on increasing pharmaceutical exports. South Korea is also molding regulatory frameworks to encourage the pharmaceutical market in the country, although South Korea's focus is more towards innovation and R&D. Meanwhile, the developed country of Japan has just established a regulatory pathway for biopharmaceutical drugs. This is expected to boost the biotech APIs market during the forecast period. Almost all countries in the Asia-Pacific region could reap the benefits from regulatory framework changes in their respective countries.
This report provides a detailed insight into the Asia-Pacific API market. The research presents detailed analysis and forecasts of the major economic and market trends affecting the API markets in this region. The report contains market forecasts, product type analysis, drivers and restraints. In addition, it includes therapeutic categories analysis and CMO growth in the region, and its influence on API manufacturing activity towards 2017. Overall, the report presents a comprehensive analysis of the Asia-Pacific API market, covering all of the major parameters. The report is built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis by our team of industry experts.
Asia-Pacific is the second largest regional market for APIs by revenue in the world. The Asia-Pacific active pharmaceutical ingredients market revenue held a share of around 28.3% of the global API market in 2011, with the global revenue standing at $108,613m. Total revenue generated by the Asia-Pacific API market was $30,693m in 2011, and is expected to grow at a CAGR of 5.6% to reach $63.8 billion by 2017. This will be supported by healthy demand from the biotech and generic API sectors.
- Market revenue data for APIs from 2005 to 2011 and forecasts for six years to 2017.
- API markets in key countries in the region, including Japan, China, South Korea and India.
- API industry structure and market trends, such as a shift in manufacturing and growth in biotechnology for the Asia-Pacific region.
- Drivers of the API market, such as the growth of generic drugs, and restraints.
- Detailed historic and forecast trends and share analysis of API revenue, based on product types (synthetic and biotech APIs) in the Asia-Pacific market, and in key countries of the region.
- Detailed historic and forecast trends and share analysis of API revenue, based on customer base (generic and innovative for synthetic APIs, biosimilars and biologics for biotech APIs) in the Asia-Pacific market, and in key countries of the region.
- Analysis of API revenue based on therapeutic categories at a regional and key country level.
- Develop business strategies with the help of specific insights on the Asia-Pacific API market.
- Identify opportunities and challenges in the Asia-Pacific API market.
- Invest in the growing segments of the API market.
- Increase future revenue and profitability with the help of insights on the future opportunities and critical success factors in the Asia-Pacific API market.
- Benchmark your operations and strategies against the major players in the global API market.
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