Active Pharmaceutical Ingredients (API) Market in Asia-
Pacific to 2016 - The Merchant Market for Generics
Continues to Grow as the Competition Increases
Reference Code: GBICH0051MR Publication Date: July 2011
Asia-Pacific API market is Active Pharmaceutical Ingredients (APIs), also known as bulk drug substances, are defined as any
expected to grow at a substance or mixture of substances intended to be used in the manufacture of a drug or any
CAGR of 9.6% in the medicinal product that, when used in the production of a drug, becomes an active ingredient of the
forecast period drug or medicinal product. This active substance is responsible for the therapeutic effect of the drug
and the efficacy of a drug entirely depends upon the concentration and composition of the API.
Asia-Pacific API Market is Set to Grow at a Faster Rate in the Forecast Period
Asia-Pacific is the third largest regional market for APIs by revenue in the world after North America
and Europe. The region is the fastest growing API market in the world. The Asia-Pacific API market
grew consistently at a Compound Annual Growth Rate (CAGR) of 6.7% from 2005 to 2010. The
year-on-year growth rate also increased continuously in this period. It is expected to witness an
even higher growth rate in the forecast period. The Asia-Pacific API market’s revenues will grow at
a CAGR of 9.6% from 2010 to 2016.
API Market, Asia-Pacific, Revenues, $m, 2005-2016
40,000 CAGR (2010-2016) - 9.6%
35,000
30,000
CAGR (2005-2010) - 6.7%
25,000
Revenue ( $m)
20,000
15,000
10,000
5,000
0
2005 2010 2016
Source: GBI Research, Primary Interviews with API Manufacturing and Pharmaceutical Companies
Active Pharmaceutical Ingredients (API) Market in Asia-Pacific GBICH0051MR / Published JUL 2011
to 2016 - The Merchant Market for Generics Continues to Grow
as the Competition Increases Page 1
© GBI Research. This is a licensed product and is not to be photocopied
The Generic Sector Dominates the Asia-Pacific API Market
Generic sector accounts The generic sector is the dominating one in Asia-Pacific region. The generic APIs held a share of
for more than 71% share 71.5% in the region’s API revenue in 2010, while innovator APIs held a share of 28.5%. The share
in the region's API market of innovator sector APIs is higher in Japan and lower in China and India.
revenues
API Market, Asia-Pacific, Revenue Share Analysis by Product Type Based on Customer
Base, %, 2010
Generic
71.5%
Innovator
28.5%
Source: GBI Research, Primary Interviews with API Manufacturing and Pharmaceutical Companies
Japan is the largest Market for APIs followed by China in Asia-Pacific Region
Japan is the largest market for APIs in the Asia-Pacific region. Japan contributed 42.8% of the
Japan is the largest region’s total API market revenues. China is the second largest and the fastest growing API market
market for APIs in the in Asia-Pacific. China currently holds a share of 20.8% in the region’s total API market revenues.
Asia-Pacific India is the third largest API market in the region accounting for a share of 10.3%. South Korea is
another important API market in Asia-Pacific, accounting for a share of 8.1% in the region’s total
API market revenues.
API Market, Asia-Pacific, Revenue Share Analysis by Country, %, 2010
India
10.3% South Korea
8.1%
China
20.8%
Others
18%
Japan
42.8%
Source: GBI Research, Primary Interviews with API manufacturing and pharmaceutical companies
Active Pharmaceutical Ingredients (API) Market in Asia-Pacific GBICH0051MR / Published JUL 2011
to 2016 - The Merchant Market for Generics Continues to Grow
as the Competition Increases Page 2
© GBI Research. This is a licensed product and is not to be photocopied
1 Table of Contents
1 Table of Contents ........................................................................................................................ 3
1.1 List of Tables..................................................................................................................... 6
1.2 List of Figures ................................................................................................................... 7
2 Introduction .................................................................................................................................. 8
2.1 GBI Report Coverage ....................................................................................................... 8
3 Asia-Pacific API Market ............................................................................................................... 9
3.1 Asia-Pacific API Industry Structure ................................................................................... 9
3.2 Asia-Pacific API Distribution Structure ............................................................................ 10
3.3 Asia-Pacific API Industry Challenges .............................................................................. 10
3.3.1 Growing Capacity May Prove out to be Surplus and become a Challenge to the
Producers ................................................................................................................ 10
3.3.2 Price Fluctuations Affect the Revenue Growth of the Asia-Pacific API market ........ 10
3.3.3 Rising Raw Material Costs in India and China Threaten the Profit Margins of API
Producers ................................................................................................................ 10
3.4 Asia-Pacific API Market Overview................................................................................... 11
3.5 Asia-Pacific API Market Trends ...................................................................................... 12
3.5.1 API Manufacturing is Shifting from Western Countries to China and India .............. 12
3.5.2 Indian Companies are Exporting to Japanese Market to Beat the Price Erosion in
the US ..................................................................................................................... 12
3.5.3 Japanese Generic Market is Attracting Tie-Ups by Global Companies ................... 12
3.5.4 The Focus on Biotech API Drugs in Asia-Pacific is Increasing ................................ 12
3.5.5 Some Companies in India are Making a Move Towards HPAPIs ............................ 12
3.5.6 Peptide APIs are Offering Growth Opportunities for the Region’s Market ............... 13
3.5.7 Indian Producers are Becoming Keen on Expansion Through Acquisitions ............ 13
3.6 Asia-Pacific API Market Revenue Analysis and Forecasts to 2015 ................................ 13
3.7 Asia-Pacific API Market Revenue Share Analysis by Product Type and Forecasts to
2016 ................................................................................................................................ 15
3.7.1 Asia-Pacific API Market Revenue Share Analysis by Product Type Based on
Synthesis Route and Forecast to 2016 .................................................................... 16
3.7.2 Asia-Pacific API Market Revenue Share Analysis by Product Type Based on
Customer Base and Forecast to 2016 ..................................................................... 19
3.8 Asia-Pacific API Market Revenue Share Analysis by Country and Forecasts to 2016 .... 22
3.9 Asia-Pacific API Market Competitive Landscape ............................................................ 23
3.10 Force Field Analysis on Transition Toward Biotech API ................................................. 24
3.10.1 Push Forces ............................................................................................................ 25
3.10.2 Pull Forces............................................................................................................... 26
3.10.3 Conclusion ............................................................................................................... 26
4 Japan API Market ...................................................................................................................... 27
4.1 Japan API Market Overview............................................................................................ 27
4.2 Japan API Market Drivers ............................................................................................... 28
4.2.1 Increased Focus on Generic Sector Drugs will Help the Growth of the Overall API
Market in Japan ....................................................................................................... 28
4.2.2 Government Support for Generic Drugs Boosts the Country’s API Market ............. 28
4.2.3 Growth in the Ageing Population Drives the Growth of the API Market in Japan .... 28
4.3 Japan API Market Restraints .......................................................................................... 28
4.3.1 Mature Pharmaceutical Market Allows Less Scope for Growth to the API Market in
the Country .............................................................................................................. 28
4.3.2 Lesser Focus on Innovative Drugs to Reduce Healthcare Expenses May Hamper
the Growth of the Japanese API market .................................................................. 28
4.4 Japan API Market Revenue Analysis and Forecasts to 2015 ......................................... 29
4.5 Japan API Market Revenue Share Analysis by Product Type and Forecasts to 2015 .... 31
4.5.1 Japan API Market Revenue Share Analysis by Product Type Based on Synthesis
Route and Forecasts to 2015 .................................................................................. 31
Active Pharmaceutical Ingredients (API) Market in Asia-Pacific GBICH0051MR / Published JUL 2011
to 2016 - The Merchant Market for Generics Continues to Grow
as the Competition Increases Page 3
© GBI Research. This is a licensed product and is not to be photocopied
4.5.2 Japan API Market Revenue Share Analysis by Product Type Based on Customer
Base and Forecasts to 2015 .................................................................................... 34
4.6 Japan API Market Revenue Share Analysis by Therapeutic Category ........................... 37
4.7 Japan API Market SWOT Analysis ................................................................................. 39
4.7.1 Strengths ................................................................................................................. 39
4.7.2 Weaknesses ............................................................................................................ 40
4.7.3 Opportunities ........................................................................................................... 40
4.7.4 Threats .................................................................................................................... 41
5 China API Market ...................................................................................................................... 42
5.1 China API Market Overview ............................................................................................ 42
5.2 China API Market Drivers................................................................................................ 43
5.2.1 Rapidly Growing Economy Supports the Growth of the API Market ........................ 43
5.2.2 Growth in the Generics Drug Sector Spurs the Growth in Demand for APIs ........... 43
5.2.3 Government’s Plan to Develop Multi-level Insurance System Set to Boost the
Growth of the API Market in China .......................................................................... 43
5.2.4 Development in Biotech Drugs Improves the Growth of Biotech APIs ..................... 43
5.3 China API Market Restraints ........................................................................................... 43
5.3.1 Price Erosion Reduces the Revenue Growth of the API Market in China ................ 43
5.3.2 The Global Economic Downturn in the Last Few Years has Impacted the Demand in
the Chinese API Market ........................................................................................... 43
5.4 China API Market Revenue Analysis and Forecasts to 2015 .......................................... 44
5.5 China API Market Revenue Share Analysis by Product Type and Forecasts to 2015 .... 46
5.5.1 China API Market Revenue Share Analysis by Product Type Based on Synthesis
Route and Forecasts to 2015 .................................................................................. 46
5.5.2 China API Market Revenue Share Analysis by Product Type Based on Customer
Base and Forecasts to 2015 .................................................................................... 49
5.6 China API Market Revenue Share Analysis by Therapeutic Category ............................ 52
5.7 China API Import and Export Analysis ............................................................................ 54
5.8 China API Market SWOT Analysis .................................................................................. 58
5.8.1 Strengths ................................................................................................................. 58
5.8.2 Weaknesses ............................................................................................................ 59
5.8.3 Opportunities ........................................................................................................... 59
5.8.4 Threats .................................................................................................................... 59
6 India API Market ........................................................................................................................ 60
6.1 India API Market Overview.............................................................................................. 60
6.2 India API Market Drivers ................................................................................................. 60
6.2.1 Population Growth and Change in Demographics Set to Boost the Growth of API
Market ..................................................................................................................... 60
6.2.2 Increasing Demand in Rural Areas and Tier II Cities Boost the Growth of API Market
in India ..................................................................................................................... 60
6.2.3 Increasing Spending Capacity on Healthcare Facilities ........................................... 61
6.3 India API Market Restraints ............................................................................................ 61
6.3.1 Price Erosion Leads to Reduced Growth in the Overall API Market ........................ 61
6.3.2 Economic Recession Leads to Reduced Consumption of API ................................ 61
6.4 India API Market Revenue Analysis and Forecasts to 2015 ........................................... 61
6.5 India API Market Revenue Share Analysis by Product Type and Forecasts to 2015 ...... 63
6.5.1 India API Market Revenue Share Analysis by Product Type Based on Synthesis
Route and Forecasts to 2015 .................................................................................. 63
6.5.2 India API Market Revenue Share Analysis by Product Type Based on Customer
Base and Forecasts to 2015 .................................................................................... 66
6.6 India API Market Revenue Share Analysis by Therapeutic Category ............................. 69
6.7 India API Market SWOT Analysis ................................................................................... 71
6.7.1 Strengths ................................................................................................................. 71
6.7.2 Weaknesses ............................................................................................................ 72
6.7.3 Opportunities ........................................................................................................... 72
6.7.4 Threats .................................................................................................................... 72
Active Pharmaceutical Ingredients (API) Market in Asia-Pacific GBICH0051MR / Published JUL 2011
to 2016 - The Merchant Market for Generics Continues to Grow
as the Competition Increases Page 4
© GBI Research. This is a licensed product and is not to be photocopied
7 South Korea API Market ............................................................................................................ 73
7.1 South Korea API Market Overview ................................................................................. 73
7.2 South Korea API Market Drivers ..................................................................................... 73
7.2.1 Continued Growth in Generics Will Help the API Market Growth in South Korea .... 73
7.2.2 Increasing Focus on the Innovator Sector Will Drive the API Market ...................... 73
7.2.3 Support from the Government Will Help Growth in Innovator and Biotech Sector ... 73
7.3 South Korea API Market Restraints ................................................................................ 73
7.3.1 Delay in Drug Development Process ....................................................................... 73
7.4 South Korea API Market Revenue Analysis and Forecasts to 2015 ............................... 74
7.5 South Korea API Market Revenue Share Analysis by Product Type and Forecasts to
2015 ................................................................................................................................ 76
7.5.1 South Korea API Market Revenue Share Analysis by Product Type Based on
Synthesis Route and Forecasts to 2015 .................................................................. 76
7.5.2 South Korea API Market Revenue Share Analysis by Product Type Based on
Customer Base and Forecasts to 2015 ................................................................... 79
7.6 South Korea API Market Revenue Share Analysis by Therapeutic Category ................. 82
7.7 South Korea API Market SWOT Analysis ....................................................................... 84
7.7.1 Strengths ................................................................................................................. 84
7.7.2 Weaknesses ............................................................................................................ 84
7.7.3 Opportunities ........................................................................................................... 85
7.7.4 Threats .................................................................................................................... 85
8 Appendix ................................................................................................................................... 86
8.1 Abbreviations .................................................................................................................. 86
8.2 Market Definitions ........................................................................................................... 86
8.3 Methodology ................................................................................................................... 86
8.3.1 Coverage ................................................................................................................. 86
8.3.2 Secondary Research ............................................................................................... 87
8.3.3 Primary Research .................................................................................................... 87
8.3.4 Expert Panel Validation ........................................................................................... 87
8.4 Contact Us ...................................................................................................................... 87
8.5 Disclaimer ....................................................................................................................... 88
Active Pharmaceutical Ingredients (API) Market in Asia-Pacific GBICH0051MR / Published JUL 2011
to 2016 - The Merchant Market for Generics Continues to Grow
as the Competition Increases Page 5