July 1, 2014
Research: Chinese animal vaccine market grows by 26.3%
During 2004 to 2013, Chinese animal vaccine market size maintained a high growth rate of 26.3%, reaching about RMB11.5 billion (US$1.85 billion) in 2013, with market-oriented vaccines leading the expansion from 2011.
In line with policies, Chinese animal vaccineproducts are divided into compulsory immunisation vaccines and market-oriented vaccines. The growth in 2007-2010 was mainly driven by the expansion of governmental tender vaccine. Since 2011, the bids for compulsory vaccines proposed by the Chinese government have turned to be more competitive, with limited growth potential. However, market-oriented vaccines have developed faster, enjoying 40%-50% market share in 2013.
At present, compulsory immunisation vaccines include foot-and-mouth disease (FMD), bird flu, porcine reproductive and respiratory syndrome (PRRS), swine fever, and peste des petits ruminants (PPR). Market oriented vaccines refer to porcine circovirus (PCV), Newcastle disease, porcine parvovirus (PPV) and other varieties. The Chinese animal vaccine market is basically occupied by local companies, showing a self-sufficiency rate of around 90%.
Europe and the United States and other developed countries are the main force of traditional animal vaccine markets in the world, still taking around 60% nowadays. However, in recent years, European and American animal vaccine markets have decelerated growth due to quality safety, high maturity and other factors, while the fast-growing animal vaccine market of China and other emerging countries will become a new highlight.
As the scale of Chinese farming escalates, the demand for animal vaccines will continue to grow steadily. In the next few years, the Chinese animal vaccine industry is expected to keep a growth rate of approximately 15% and see market value of about RMB17.5 billion (US$2.82) in 2016.
In 2006, China implemented mandatory veterinary drug GMP certification to raise the threshold, resulting in a sharp decline in the number of animal vaccine companies and the accompanying increased industry concentration. In 2013, CAHIC seized the highest market share of 10.5% among Chinese listed animal vaccine companies, followed by Jinyu Group, Tecon and Dahuanong with a combined proportion of about 15%.
By species, Chinese swine vaccines and poultry vaccines accounted for more than 80% of the animal vaccine market in 2013. In addition, the emerging Chinese pet industry is boosting the demand for pet vaccines.