Pharmaceuticals and Medical Equipment in Asia Pacific

Strategy Briefing

About This Report

Dec 2018

With the turnover value of USD504.6 billion, Asia Pacific is the world’s largest pharmaceutical and medical device producer, surpassing Western Europe. Following the slowdown in 2017, the region’s medical products manufacturing is anticipated to return to stronger growth from 2018, primarily thanks to positive dynamics in China, India and Indonesia. Meanwhile, the industries in Japan and South Korea are posed for a slower yet steady rise thanks to accelerating exports.

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Pharmaceuticals and Medical Equipment in Asia Pacific

Key Findings

Asia Pacific set to remain global leader in pharmaceutical and medical device production to 2030.

Asia Pacific is both the largest consumer and producer of pharmaceutical and medical equipment in the world. Although turnover growth of regional drug and device companies registered a considerable slowdown in 2017, the industry’s long-term outlook remains highly positive thanks to surging volume demand in China, and increasing manufacturing capabilities in Indonesia and India. As a result, the region is expected to remain the primary driver of global medical products growth over the period to 2030.

China expected to  continue driving growth within the region.

Following the slowdown in 2017, China’s pharmaceutical and medical device production is expected to pick up in 2018, in line with the continuously improving business environment and government-mandated push towards innovation.

Lucrative domestic markets facilitate growth in India and Indonesia.

Substantial growth is also expected in India and Indonesia, as countries become increasingly significant investment destinations. Foreign multinationals are set to be primarily attracted by surging domestic markets, in line with the population’s increasing access to healthcare services, and rising disposable incomes.

Japan and South Korea expected to win on exports.

South Korea and Japan are poised for steady yet slower development, as governments continue to implement regulatory pricing pressures. However, respective countries are anticipated to maintain their positions as world experts in innovative solutions, and raise exports, capitalising on surging global demand for biologics.

Imports and exports within the region expected to remain subdued.

Overall trade across the region, however, will remain limited as countries, including China, India, and Singapore, push for increasing domestic manufacturing capabilities rather than relying on foreign suppliers. 

Introduction

Scope
Key findings

Production Outlook

Asia Pacific to lead the global drug and device production
Growth anticipated to rebound in 2018
China is set to continue leading growth in Asia Pacific
Growth in China driven by rapidly improving business environment
China: region’s supplier of pharmaceutical ingredients
India and Indonesia: among the most attractive investment destinations
In South Korea and Japan growth subdued by policy pricing pressures

Competitive Landscape

Industry becomes more fragmented
Medium-sized corporations continue to gain ground

Foreign Trade

Asia Pacific: lags behind in export value
Production localisation trend subdues import potential

Country Snapshots

China: production context
China: foreign trade landscape
Japan: production context
Japan: foreign trade landscape
South Korea: production context
South Korea: foreign trade landscape
Taiwan: production context
Taiwan: foreign trade landscape
Hong Kong (China): production context
Hong Kong (China): foreign trade landscape
Singapore: production context
Singapore: foreign trade landscape
Philippines: production context
Philippines: foreign trade landscape
India: production context
India: foreign trade landscape
Thailand: production context
Thailand: foreign trade landscape
Vietnam: production context
Vietnam: foreign trade landscape
Malaysia: production context
Malaysia: foreign trade landscape
Indonesia: production context
Indonesia: foreign trade landscape
Pakistan: production context
Pakistan: foreign trade landscape
Kazakhstan: production context
Kazakhstan: foreign trade landscape
Uzbekistan: production context
Uzbekistan: foreign trade landscape
Azerbaijan: production context
Azerbaijan: foreign trade landscape

Appendix: Competitor Analytics

Competitor Analytics tool
Overview
Competitors
Market Overlap
Treemap
Overlap Matrices

Appendix: Industry Forecast Model

About Euromonitor International’s Industry Forecast Model
Soft drivers and the Industry Forecast Model
Growth decomposition explained
Significance and applications for growth decomposition
Key applications for Industry Forecast Models