The bulk API industry enters the recession period, and the competition will intensify in the future

[China Pharmaceutical network industry trends] China is one of the world's largest producers of APIs After decades of development, a relatively complete industrial system has been formed In recent years, after adjustment and upgrading, the API industry is expected to maintain a rapid growth rate, with a good prospect, and will become an important thrust for the upgrading of the pharmaceutical industry At present, China is the second largest pharmaceutical consumer market in the world In 2015, China's pharmaceutical retail market has reached 332.3 billion yuan In addition, China has entered an aging society In 2015, the population over 65 years old exceeded 140 million, and the consumption demand for pharmaceutical products will continue to increase, indirectly promoting the demand for APIs in China According to statistics, from 2011 to 2015, the number of Enterprises above the scale of API industry in China increased year by year, but the growth rate of the number of enterprises decreased year by year In 2015, the number of Enterprises above the scale of API industry was 1249, the same as the previous year The growth of sales revenue of API industry in China can also reflect the growth trend of sales volume year by year, but in recent three years, due to environmental protection and other factors, the growth rate of revenue has declined significantly In 2015, China's API industry achieved sales revenue of 440112 million yuan, up 3.79% year on year In addition, China's API industry technology has been in a rapid growth stage, and the continuous development of technology will enrich the product categories of API, improve product quality level, and promote the development of the industry In general, from the perspective of market demand, APIs, as an important part of the pharmaceutical industry in China, as well as the upstream raw materials of chemical preparations, still have a good prospect of demand with the continuous growth of medical and health care needs of Chinese residents It is estimated that by 2022, the sales scale of China's API industry will be close to 700 billion yuan However, with the continuous growth of residents' health care knowledge and the continuous increase of "anti drug restriction order", the market demand for antibiotic APIs will continue to decline in the future The development trend of API industry: first of all, in terms of market competition, with the industry entering the adjustment stage, as well as the environmental protection policies and market forces, the competition in bulk API industry will gradually ease in the future, but it will still be higher than other subdivisional product areas of API Bulk API is the main label of China's API industry, and also the important reason why China has become a big country of API After years of development, China's bulk API market has serious overcapacity Under the multiple pressures of price decline and cost rise, the bulk API industry has entered the integration period From the perspective of industry life cycle, some bulk APIs have entered the recession period However, due to the high technical barriers, the entry barriers for new entrants are relatively high, so there will be no obvious intensified competition in the short term But in the long run, with the continuous decline of bulk API market, more and more enterprises will transform to characteristic API enterprises, and the competition will be intensified in the future   In terms of industry investment, with the decline of overall profitability, the increase of production cost, and the intensification of competition in API industry, the competitive pressure faced by industry enterprises will continue to increase, and more enterprises will extend their business to the downstream, increase their profit points through the way of industrial chain extension, resist the impact of the decline of profitability in API industry, and improve enterprises The comprehensive competitiveness of the industry In addition, the API industry is in a mature period, and some bulk API products have entered a recession period For industry investors, new investment not only faces a longer return cycle, but also faces greater market risk Through the way of merger and reorganization to invest, we can quickly cut in and get returns At this stage, investors can choose more target enterprises and have more initiative Therefore, M & A will become the main way of investment Original title: good prospect of API industry will become an important thrust for upgrading of pharmaceutical industry