Pharmaceuticals and Medical Equipment in Asia Pacific

September 2020

In 2019, Asia Pacific was the largest producer of pharmaceuticals and medical equipment, with a turnover value of USD770.5 billion. On account of the COVID-19 pandemic, short-term revenue contraction is set to occur. Yet, production is anticipated to return to growth in 2021 over favourable governmental policies.

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Key findings

Asia Pacific to maintain global leadership

Although turnover growth of Asia Pacific pharmaceuticals and medical equipment companies is expected to witness a considerable slowdown in 2020, the industry’s long-term outlook remains positive due to surging volume demand in China and increasing manufacturing capabilities in Indonesia and India. The region is expected to remain the primary driver of global medical products’ growth over 2019-2030.

China to continue driving growth

Following the Coronavirus pandemic in 2020, China’s pharmaceutical and medical device production growth is expected to be slightly subdued, yet, maintain a strong growth, in line with the continuously improving business environment and government-mandated push towards innovation.

Japan and South Korea’s growth subdued due to government regulations

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

Supply chains disturbed due to the health crisis

One of the major outcomes from the Coronavirus (COVID-19) pandemic is set to be severe disturbances to global supply chains. The lockdown in China caused waves of supply process inefficiencies around the world, with Asia Pacific not immune. For example, India’s production of generic drugs was disturbed due to the drop in China’s API manufacturing. Over the forecast period, supply chains are anticipated to be restructured, alongside the countries implementing more protectionist policies.

US-China trade war and COVID-19 crisis push international companies to transfer production

Regional pharma companies are to suffer as multinationals are expected to transfer production to secure supply chains and minimise dependence on China. Whereas, the expected drop in foreign direct investment is likely to leave the industry vulnerable to external shocks.


Key findings

Production Outlook

Asia Pacific to lead drug and device production globally
Growth anticipated to bounce back in 20 21
China is set to continue leading growth in Asia Pacific
Growth in China driven by improving R&D investment
China: region’s leading supplier of active pharmaceutical ingredients
India and South Korea: among the most attractive investment destinations
Japan’s medical products sector sees growth subdued by regulation

Competitive Landscape

The industry remains fragmented
Medium-sized corporations continue to gain ground in Asia Pacific

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


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