Analysis of the upstream, midstream and downstream markets of China's API industry chain in 2023

Raw material drug refers to the raw material drug used in the production of various preparations, and is the active ingredient in the preparation. With the gradual liberalization of epidemic prevention and control and the continuous expansion of the pharmaceutical market, APIs are used as the basic raw materials for pharmaceutical production, and the API market will usher in a recovery.

1. The upstream of China’s raw materials in the industrial chain includes basic chemical industry, planting of Chinese herbal medicines and animal breeding; the midstream is raw materials, which can be divided into bulk raw materials, characteristic raw materials and patented raw materials; the downstream is used in medicine, health care products, feed, cosmetics , food and other fields.

2. Upstream analysis
1. Planting area of ​​Chinese medicinal materials
In recent years, with the advancement of China's agricultural supply-side structural reform, the state's support for the Chinese medicinal material industry has continued to increase, and the planting area of ​​​​Chinese medicinal materials has increased significantly. The data shows that from 2017 to 2020, the planting area of ​​Chinese medicinal materials in China increased from 34.6689 million mu to 43.58 million mu, with an average annual compound growth rate of 5.89% during the period. It is estimated that by 2025, the national area of ​​traditional Chinese medicinal materials will stabilize at about 45 million mu.
2. Production of Chinese medicinal materials
There are more than 1,000 varieties of Chinese medicinal materials in China. Among the more than 600 commonly used Chinese medicinal materials, more than 300 have been cultivated artificially. More than 70%. With the continuous expansion of the planting area of ​​Chinese herbal medicines, the domestic production of Chinese herbal medicines has maintained a steady growth trend. The output in 2021 is about 4.875 million tons, and it is expected that the output of Chinese medicinal materials in 2023 will reach 5.31 million tons.
3. Midstream analysis
1. Operating income of chemical raw materials
As one of the world's major chemical raw materials production sites, from 2018 to 2020, affected by various factors such as environmental protection policies, overcapacity, and epidemics, the output of the raw materials industry has declined. The growth trend has now resumed. According to the data of China Chemical Pharmaceutical Industry Association, the total operating income of China's chemical raw material medicine industry will reach 426.5 billion yuan in 2021, and it is expected that the operating income of China's chemical raw material medicine industry will reach 473.6 billion yuan in 2023.
2. Metronidazole API
(1) Sales
Metronidazole is a commonly used antibiotic in clinical practice. There are different types of metronidazole in the market, such as tablets, suppositories, and injections. For different types, its usage is also different. From 2017 to 2021, the sales of metronidazole drugs in my country will continue to rise, from 1.937 billion yuan in 2017 to 2.559 billion yuan in 2021, with a compound annual growth rate of 7.21%, which is significantly faster than the average growth rate of the global market It is estimated that the sales of metronidazole in my country will reach 3.01 billion yuan in 2023.
(2) Competition pattern
In the domestic market, the market concentration of metronidazole raw materials is relatively high, and the production enterprises are mainly concentrated in Hubei Province. In 2021, Hongyuan Pharmaceutical will have a market share of more than 62%, making it the largest manufacturer of metronidazole raw materials in China; Huanggang Yinhe Adi Pharmaceutical Co., Ltd. is the second largest manufacturer of metronidazole raw materials in China. The market share is 14.92%; Wuhan Wuyao Pharmaceutical Co., Ltd. ranks third, with a market share of 13.50% in 2021. Other companies have smaller market share.
3. Tinidazole
The adverse reactions of tinidazole are less common and milder than metronidazole. Occasionally, mild gastrointestinal reactions, headache, dizziness, skin itching, rash, constipation and general discomfort may occur. These side effects usually disappear quickly after stopping the drug. In terms of sales, from 2017 to 2021, the sales of my country's tinidazole drug market showed an overall upward trend, and it has risen to 403 million yuan in 2021. It is estimated that the sales of my country's tinidazole market will reach 447 million yuan in 2022.
4. It has been 60 years since ibuprofen
was successfully developed in the 1960s, and China introduced and produced it earlier in the late 1970s to prepare the mainstream aryl 1,2- The transposition rearrangement method is now a mature technology. In 2021, the production capacity of ibuprofen raw materials in China is about 14,380.95 tons. It is expected that due to the impact of the epidemic situation, the demand for ibuprofen raw materials will increase, and the production capacity will increase to 14,700 tons in 2023.
4. Downstream Analysis
1. Medicine
With the continuous growth of my country's economy and the continuous increase of per capita disposable income, the main business income of my country's pharmaceutical industry has increased significantly. In 2020, the main business income of my country's pharmaceutical industry will reach 2,243.979 billion yuan. It is expected that driven by factors such as the acceleration of population aging and the sound medical insurance system in the future, it is expected that my country's demand for drugs will continue to increase in the future, and the pharmaceutical industry will grow rapidly. In 2023 The annual main business income of the pharmaceutical industry will reach 2.818859 billion yuan.
2. Health care products
The market size of China's health care products has maintained a steady growth. In 2021, the market size of China's health care products industry will reach 380.82 billion yuan, a year-on-year increase of 2.59%. With the improvement of people's living standards, the acceleration of population aging, and people's increasing emphasis on their own health care, the market size is expected to reach 410 billion yuan in 2023.
3. Feed
Feed is the main application of vitamin B2. The vitamins used in the feed industry account for about 70% of the total vitamin consumption. Therefore, the application of feed vitamins dominates the development of the vitamin market in China. In November 2022, the monthly output of national feed decreased compared with the same period last year. In November 2022, the national feed output will be 28.565 million tons, a year-on-year decrease of 1.3%. From January to November 2022, the national feed output will be 294.893 million tons, a year-on-year decrease of 0.1%.