Chinese domestic growth to outpace exports

Chinese domestic growth is predicted to outpace exports, according to a new report from business-to-business data provider CPhI.

The outlook for growth in Chinese pharma is very positive, with the domestic market emerging as the main driving force behind this growth. It will remain a rapidly expanding market, but, unlike western pharma manufacturing, China’s growth is not dependent on exports and regulatory standards being met. Domestic respondents to the survey predict a near doubling in their sales over the next five years, showing growth in the sector remains strong for the immediate future. Almost 70% of those surveyed said they are focusing mainly on investing in active pharmaceutical ingredients (APIs) and generics. IMS Health research showed that growth is not uniform across the territory, and emerging cities represent the highest growth potential. This is where domestic manufacturers are now looking to target their business efforts.

The report forecasts that the market may begin to develop higher margin, lower volume finished formulation drugs once a critical demand is reached from China’s middle-class population, which is growing increasingly informed and aware. It is thought, however, that China’s API and generics domination could be hindering the development of its evolution into exports and finished formulations.