China API Market to Reach USD 17.28 Billion by 2035 | CAGR 6.4%

China's Active Pharmaceutical Ingredients (API) market is projected to grow from USD 9.2 billion in 2024 to USD 17.28 billion by 2035 at a CAGR of 6.4%.

CA, UNITED STATES, September 23, 2025 /EINPresswire.com/ -- China's Active Pharmaceutical Ingredients (API) market is poised for significant growth, with projections indicating an increase from USD 9.2 billion in 2024 to USD 17.28 billion by 2035, reflecting a robust Compound Annual Growth Rate (CAGR) of 6.4% during the forecast period. This expansion underscores China's pivotal role in the global pharmaceutical supply chain.

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China API Market Trends

• Dominance in Generic API Production: China continues to lead in the production of generic APIs, supplying a substantial portion of the global market. This dominance is attributed to cost-effective manufacturing processes and a vast production capacity.
• Shift Towards Biotech APIs: There's a notable transition from traditional synthetic APIs to biotechnology-derived APIs, driven by advancements in biologics and biosimilars. This shift is particularly evident in oncology and autoimmune disorder treatments.
• Government Initiatives: The Chinese government's support through policies and incentives is fostering domestic API production, reducing dependency on imports, and enhancing export capabilities.

China API Market Limitations & Challenges

• Regulatory Hurdles: Navigating the complex regulatory landscape, both domestically and internationally, remains a challenge for API manufacturers, impacting market entry and expansion.
• Environmental Concerns: The environmental impact of API manufacturing, including waste management and emissions, is under scrutiny, necessitating sustainable practices.
• Supply Chain Vulnerabilities: Disruptions in the global supply chain, as witnessed during the COVID-19 pandemic, highlight the need for resilient sourcing strategies.

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China API Market Competitive Landscape

The China API market is characterized by the presence of several key players focusing on innovation and strategic partnerships to expand their market share. Notable companies include:

• Shanghai Pharmaceuticals Holding Co., Ltd.
• Shaanxi Hanjiang Pharmaceutical Group
• Jiangsu Hengrui Medicine Co., Ltd.
• Zhejiang Hisun Pharmaceutical Co., Ltd.
• Sinopharm Group Co., Ltd.

These companies are focusing on expanding their product portfolios, enhancing manufacturing capabilities, and exploring new therapeutic areas to maintain a competitive edge.

China API Market Recent Developments

• Strategic Acquisitions: In March 2025, Shanghai Pharmaceuticals announced the acquisition of a biologics API manufacturing facility in Suzhou to bolster its production capabilities in biologic APIs.
• Collaborations: In October 2024, Jiangsu Hengrui partnered with a European biotech firm to co-develop and commercialize APIs for oncology treatments in China.
• Product Launches: Zhejiang Hisun launched a new generic API for rheumatoid arthritis treatment in China following NMPA approval, expanding access in the domestic market.

China API Market Segmentation Analysis

By API Type
• Synthetic APIs: The synthetic API segment is projected to dominate the market due to its widespread use in generic drug formulations.
• Biotech APIs: The biotech API segment is expected to witness increased adoption due to the rising demand for biologics and biosimilars.

By Application
• Oncology: The oncology segment is expected to hold the largest market share, driven by the increasing prevalence of cancer in China.
• Cardiovascular Diseases: The cardiovascular diseases segment is projected to grow due to the rising incidence of heart-related conditions.
• Diabetes: The diabetes segment is expected to witness steady growth as awareness of the condition increases.

By End-Use
• Pharmaceutical Companies: Pharmaceutical companies are expected to be the largest end-use segment, driven by the high volume of patients requiring treatment for various conditions.
• Contract Manufacturing Organizations (CMOs): CMOs are projected to witness significant growth due to the increasing demand for outsourced API production.
• Research Institutions: Research institutions are expected to grow steadily, driven by the need for APIs in drug development and clinical trials.

By Region
• Eastern China: The Eastern region, including Shanghai and Zhejiang, is a hub for pharmaceutical research and development.
• Southern China: The Southern region, encompassing Guangdong and Jiangsu, has a strong pharmaceutical manufacturing presence.
• Northern China: The Northern region, particularly Beijing and Tianjin, is known for biotech innovation and pharmaceutical manufacturing.

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Anurag Tiwari
Orion Market Research Pvt Ltd
+91 91798 28694
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