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Pharmaceutical Raw Material Manufacturing in China Industry Data and Analysis
China is one of the largest producers of pharmaceutical raw materials (PRMs), largely due to its low production costs and large population. China accounts for approximately 70% of global vitamin C output, 70% of citric acid output and 90% of penicillin output.Rising health concerns among Chinese people and strong global demand led to steady industry growth in the past five years. From end of 2019, the COVID-19 began to outbreak and spread around the world, which greatly increased worldwide demand for certain pharmaceutical products. As end of 2022, epidemic prevention and control entered a normalized state and the Government in China fully liberalized the prevention and control measures for the COVID-19. Market demand for pharmaceutical raw materials decreased in 2023 and industry exports decreased sharply, which contributed to revenue decline in 2023. Over the past five years, revenue has been increasing at an annualized 3.9%. Total revenue for the Pharmaceutical Raw Material Manufacturing in China is expected to total $129.9 billion in 2025, up by 6.2% from 2024. In 2025, industry profitability is expected to be at 11.1%.This industry relies heavily on exports. In 2025, exports are set to reach $50.9 billion, accounting for 39.2% of revenue. Meanwhile, competing imports as a share of domestic demand is expected to be 14.2% in 2025.Over the next five years, revenue for Pharmaceutical Raw Material Manufacturing in China is forecast to grow 4.8% annually, to reach $164.4 billion in 2030. Over $8.0 billion worth of patents of pharmaceuticals will expire over the period, attracting companies in the industry to manufacture generic versions of these products. In addition, expanding demand from rural areas in China will contribute to revenue growth.The Pharmaceutical Raw Material Manufacturing in China is expected to develop towards high-end direction, with increasing market demand for specialty raw materials and patented raw materials. In addition, with increasing environmental protection requirements in China, deepening implementation of the policy of purchasing generic drugs in bulk and intensified market competition, the industry concentration level is expected to increase gradually over the next five years.
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What's included in this industry analysis
IBISWorld's research coverage on the Pharmaceutical Raw Material Manufacturing industry in China includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released July 2025.
About this industry
What's this industry report about?
The Pharmaceutical Raw Material Manufacturing industry in China operates under the industry code 2710. The Pharmaceutical Raw Material Manufacturing industry in China manufactures active pharmaceutical ingredients for further preparation of finished pharmaceutical products. Typical products in the industry include bacteriophage, endocrine products, basic vitamins, sulfanilamide medicine, salicylate, glucose and alkaloids. This industry acts as a bridge between the upstream chemical industry and the downstream medical market. Related terms covered in the Pharmaceutical Raw Material Manufacturing industry in China include active pharmaceutical ingredient, antipyretics and analgesics.
What's included in this industry?
Products and services covered in Pharmaceutical Raw Material Manufacturing industry in China include Bulk raw materials, Specialty raw materials and Patented raw materials.
What companies are included in this industry?
Companies covered in the Pharmaceutical Raw Material Manufacturing industry in China include Zhejiang NHU Co., Ltd., The United Laboratories International Holdings Limited and Apeloa Pharmaceutical Co., Ltd.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Pharmaceutical Raw Material Manufacturing industry in China.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed product and service segmentation, analysis of major markets and international trade data for the for the Pharmaceutical Raw Material Manufacturing industry in China.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Pharmaceutical Raw Material Manufacturing industry in China.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Pharmaceutical Raw Material Manufacturing industry in China. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Pharmaceutical Raw Material Manufacturing industry in China. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Pharmaceutical Raw Material Manufacturing industry in China. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Pharmaceutical Raw Material Manufacturing industry in China. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Pharmaceutical Raw Material Manufacturing industry in China.
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Frequently Asked Questions
What is the market size of the Pharmaceutical Raw Material Manufacturing industry in China in 2026?
The market size of the Pharmaceutical Raw Material Manufacturing industry in China is $129.9bn in 2026.
How many businesses are there in the Pharmaceutical Raw Material Manufacturing industry in China in 2025?
There are 1,470 businesses in the Pharmaceutical Raw Material Manufacturing industry in China, which has grown at a CAGR of 0.9 % between 2020 and 2025.
How may import tariffs affect the Pharmaceutical Raw Material Manufacturing industry in China?
The Pharmaceutical Raw Material Manufacturing industry in China is likely to be impacted by import tariffs with imports accounting for a moderate share of industry revenue.
How may export tariffs affect the Pharmaceutical Raw Material Manufacturing industry in China?
The Pharmaceutical Raw Material Manufacturing industry in China is likely to be significantly impacted by export tariffs with exports accounting for a high share of industry revenue.
Has the Pharmaceutical Raw Material Manufacturing industry in China grown or declined over the past 5 years?
The market size of the Pharmaceutical Raw Material Manufacturing industry in China has been growing at a CAGR of 3.9 % between 2020 and 2025.
What is the forecast growth of the Pharmaceutical Raw Material Manufacturing industry in China over the next 5 years?
Over the next five years, the Pharmaceutical Raw Material Manufacturing industry in China is expected to grow.
What are the biggest companies in the Pharmaceutical Raw Material Manufacturing industry in China?
The biggest companies operating in the Pharmaceutical Raw Material Manufacturing industry in China are Zhejiang NHU Co., Ltd., The United Laboratories International Holdings Limited and Apeloa Pharmaceutical Co., Ltd.
What does the Pharmaceutical Raw Material Manufacturing industry in China include?
Bulk raw materials and Specialty raw materials are part of the Pharmaceutical Raw Material Manufacturing industry in China.
Which companies have the highest market share in the Pharmaceutical Raw Material Manufacturing industry in China?
The company holding the most market share in the Pharmaceutical Raw Material Manufacturing industry in China is Zhejiang NHU Co., Ltd..
How competitive is the Pharmaceutical Raw Material Manufacturing industry in China?
The level of competition is high and steady in the Pharmaceutical Raw Material Manufacturing industry in China.
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