China API Market

China API market is experiencing a CAGR of 7.9% during the forecast period. The market growth is fueled by the increasing prevalence of chronic diseases, an aging population, growing healthcare spending, and the need for self-sufficiency in pharmaceutical manufacturing.

The increasing number of chronic diseases in China has emerged as a key driver for the API market, where cancer and cardiovascular diseases top the rising disease prevalence. According to an article published in the British Ecological Society in March 2023, in China, an estimated 330 million individuals are affected by cardiovascular diseases, including coronary heart disease, stroke, atrial fibrillation, and pulmonary heart disease, highlighting the increasing demand for innovative medications and pharmaceutical ingredients. Furthermore, a BMC Public Health article from June 2023 projects that approximately 40 million individuals in China can experience Alzheimer’s disease and related dementias by 2050, underscoring the rising chronic disease burden.

The rising usage and approval of biologics and biosimilars in China have emerged as one of the key drivers for the biological active pharmaceutical ingredients market. According to an article published by JAMA Network Open in October 2023, the Chinese regulatory agency approved around 20 biosimilars produced by local firms, making China one of the leading biosimilar producers following the US and Europe. The growing emphasis on biosimilar production has generated tremendous investment in pharmaceutical chemical manufacturing facilities. Furthermore, in January 2024, Biogen and Eisai’s Leqembi was approved by China’s National Medical Products Administration, which makes China the third nation after the US and Japan to approve this antibody-based therapy for treating Alzheimer’s disease.

The rise of biologic APIs is fueled by investment in insulin production in China, thereby driving market growth. For instance, in March 2025, Sanofi launched its first biotherapeutic API project in China, investing around $1.0 billion in a new insulin production facility in Beijing E-Town. This marks Sanofi’s fourth manufacturing and supply base in China and marks its largest single investment in the country.

The rising prevalence of obesity and diabetes is driving a surge in the demand for chronic disease APIs, thereby driving market growth. According to the International Diabetes Federation, in 2024, China’s population of diabetics is estimated to grow from $140.8 million in 2021 to $174.4 million in 2045, and WHO data report that 6.40% of China’s population (or about 1.43 billion individuals) were obese in 2022. These health statistics are leading pharma companies to increase their API manufacturing capacities, especially for chronic disease management drugs. The sector is reacting by investing more in research and development, capacity expansion, and the implementation of new manufacturing technologies to address this increasing demand.

Major players influencing the Chinese API market include CSPC Pharmaceutical Group, WuXi AppTec, Reyoung Pharmaceuticals, and Sandoz Group AG. It invested in R&D, capacity growth, and compliance upgrades to global standards. Contract manufacturing organizations (CMOs) such as Lonza are also significantly contributing by collaborating with pharma companies for niche and high-volume API manufacturing. The competitive dynamics are additionally fueled by technology mergers and acquisitions aimed at increasing product offerings and operational performance.

Recent Developments

• In April 2024, WuXi STA opened a 169-acre active pharmaceutical ingredient (API) manufacturing facility in Taixing, China, that is one of the largest globally. The site, which spans over 169 acres, aims to increase the company’s total reactor volume for API to 3,773 m3 by 2024. WuXi TIDES has tripled its peptide-manufacturing capacity, with two new plants in China, and plans to enhance SPPS capacity in Taixing and its upcoming Singapore site.