The pharmaceutical industry is set to experience sustained growth in 2014, with the global market expected to increase by over 8%. Furthermore, emerging pharmaceutical markets are projected to achieve even greater growth rates. As a result, the demand for raw materials in both domestic and international markets is expected to continue to rise.
Raw materials from China are popular in the global market and hold a significant market share due to their large-scale production, making it challenging for other countries to replace them in the near future.
The price of Chinese APIs has experienced a substantial increase due to several factors, but these factors are inflexible and are expected to remain high in 2013. This price hike is unlikely to significantly affect China's API export volume. The average price of imported APIs in 2012 went up by 28.21%, and although global API prices are increasing, China still maintains a competitive edge in terms of pricing. Despite the rising costs, China's API sector continues to thrive.
Chinese manufacturers are taking significant steps to avoid competing on homogenous terms and instead focusing on developing specialty raw materials. They are also targeting developed countries, actively obtaining high-end market certification, and constantly improving the quality of their export products. As a result of these efforts, the export space for Chinese raw materials is expanding, creating ample opportunities for growth and success.
Encouraging and implementing the country's export policy consistently will greatly contribute to the raw material export growth.