China's pharma potential cuts both ways
03 June 2015 | Analysis | By BioSpectrum Bureau
China's pharma potential cuts both ways
Active Pharmaceutical Ingredient Production in Asia
China continues to dominate the pharmaceutical market in Asia, both as a producer of active pharmaceutical ingredients (API) and as a major manufacturer of non-prescriptions medicines and biological products. Since 2013, the Chinese pharmaceutical market has been the largest in the region and second only to the United States.
A key driver for the phenomenal growth of pharmaceutical sector
are measures to extend healthcare to more Chinese citizens. Significantly incentives are also being explored to increase both domestic and foreign direct investment. Analysts also point out that a large number of original drug patents are expiring - another factor that could stimulate the domestic drug manufacturing industry.
When it comes API, it is well known that China has the greatest concentration of suppliers and dominates the market with just over a 60 percent share of the global market. China supplies leading transnational corporations as well as manufacturers in developing economies.
Packaging Sector
Overall, the consumer market remains healthy and continues to drive the growth in China's packaging industry. So much so that packaging demand in China is expected to surpass the United States by 2017, says market researchers Smithers Pira.
Smithers Pira also forecasts demand for packaging machinery in China to increase by 7.5% to annually to $6.4 billion in 2016. Medical, pharmaceutical and personal care packaging equipment demand is expected to expand fastest rate through 2016, with filling and form/fill/seal equipment taking the largest share and coding equipment as the fastest growing. Safety and functionality will remain in the top must-haves for packaging material selection, but material reduction and light-weighting will also be increasingly important.
Serving China and the World
Pharmaceutical products, including OTC drugs for colds, cough and indigestion, from China are present in every major market. For instance, Traditional Chinese Medicine is getting a dose of technology - from isolating bioactives and standardization of raw materials to standardized clinical trials and GMP, and opening new markets outside of China Interest in TCM is growing as part of the global trend in Health & Wellness for, natural as well as alternative medicine and modernization of a 2,000-year-old practice is expected to boost demand.
Natural, Health and Nutrition China (NHNC), the largest Asian event of its kind will cover the Health Wellness segments, such as foods that specifically address the nutrition, requirements of infants and toddlers expectant mothers, and seniors, which are expected to benefit from China's fastgrowing middle class. Urbanization will also spur demand for functional foods and beverages such as nutricosmetics and meal replacement drinks.
As with functional foods personal care formulated for specific demographics will be big over the next decade. Products designed for baby care, adolescents, men, and aging consumers will find a huge market, as will personal care and cosmetics which address skin problems associated with the fast-paced lifestyle in China's expanding urban market.
Integrated Model
This integrated model of the Chinese healthcare industry is empowering businesses - both local and international - to respond to clinical needs with comprehensive solutions including prevention, diagnosis and treatment of diseases. As the only event of its breadth and size in China, it will also transform key, sectors such as investment policies ,R&D, manufacturing, distribution clinical practices, educational initiatives and complementary service industries
(Article courtesy Show Dailysupplement published during The Health Industry Summit held in China)
