China’s veterinary drug industry is an important support for the healthy development of the livestock industry and has achieved remarkable progress in recent years. With the core of providing safe and effective veterinary drug products, this industry is committed to ensuring animal health and production performance, thereby promoting the sustainable development of the livestock industry. As the scale and intensification degree of the livestock industry have increased, the demand for veterinary drugs has continued to rise, which has driven the rapid development of the industry.
Meanwhile, the government has strengthened its supervision over the veterinary drug industry and improved the quality and safety of products. In the future, China’s veterinary drug industry will continue to strengthen technological innovation and product research and development, enhance product quality and competitiveness, and actively participate in international competition and cooperation to promote the industry to develop to a higher level. Generally speaking, China’s veterinary drug industry plays an important role in ensuring the healthy development of the livestock industry and improving the level of food safety and has broad development prospects.
01 Analysis of the Current Situation of China’s Veterinary Drug Industry
- Industry Scale and Growth
In recent years, the scale of China’s veterinary drug industry has continued to expand, with both output value and sales volume maintaining steady growth.
The market scale of China’s veterinary drug industry grew from 41,357 million yuan in 2015 to 67,105 million yuan in 2022, with a compound annual growth rate of 7.2% from 2015 to 2022.
In 2021, the sales volume of China’s veterinary drug raw materials market was 18,285 million yuan, among which antimicrobial drugs accounted for the largest share. The annual sales volume in 2021 was 15,332 million yuan, accounting for 83.85% of the total market.
In 2021, the market scale of veterinary traditional Chinese medicine in China rapidly rose from 3,684 million yuan to 6,500 million yuan.
As of the end of July 2023, there were 1,605 veterinary drug production enterprises across the country, including 195 biological drug enterprises and 1,410 chemical and traditional Chinese medicine enterprises. The output value and sales volume of these enterprises all showed a steady growth trend.
The expansion and growth of the veterinary drug industry scale benefit from the high attention paid by the state to the development of the livestock industry and the introduction of a series of support policies. Meanwhile, with the transformation of livestock production methods, especially the popularization of large-scale farming, the demand for veterinary drugs has been constantly increasing, providing a broad development space for the veterinary drug industry.
2. Technological Innovation and Product Research & Development
In terms of technological innovation, China’s veterinary drug industry is gradually transforming from imitation to innovation. More and more veterinary drug enterprises have begun to increase their investment in research and development, devoting themselves to the research and development of new veterinary drugs and new formulations as well as the secondary development of existing veterinary drug products. These efforts have not only improved the quality and efficacy of veterinary drug products but also promoted the upgrading and transformation of the veterinary drug industry.
Meanwhile, with the rapid development of biotechnology, new types of veterinary drug products such as genetically engineered vaccines and biological preparations have emerged continuously, injecting new vitality into the veterinary drug industry. These new veterinary drug products possess higher safety and efficacy and can better meet the needs of the development of the livestock industry.
3. Market Competition and Brand Building
In terms of market competition, China’s veterinary drug industry presents a diversified and differentiated competition pattern. On the one hand, large veterinary drug enterprises, relying on their brand advantages, technological strength and market share, dominate the market. On the other hand, small and medium-sized veterinary drug enterprises seek differentiated development by segmenting the market and providing characteristic products and services.
In terms of brand building, more and more veterinary drug enterprises have begun to attach importance to brand building and market promotion. They continuously enhance brand awareness and reputation by improving product quality, optimizing service processes and strengthening customer relationship management. These efforts not only help to improve the market competitiveness of veterinary drug products but also promote the sustainable development of the veterinary drug industry.
4. Policy Supervision and Compliant Operation
In terms of policy supervision, the Chinese government attaches great importance to the healthy development of the veterinary drug industry and has issued a series of laws, regulations and policy measures to strengthen the supervision over the production, operation and use of veterinary drugs. The introduction of these policy measures has not only regulated the order of the veterinary drug market but also improved the safety and efficacy of veterinary drug products. Meanwhile, as consumers pay more attention to food safety and animal welfare, the compliant operation of the veterinary drug industry has also become an important factor for the development of enterprises. More and more veterinary drug enterprises have begun to strengthen internal management, improve the quality control system and ensure the compliance and safety of veterinary drug products.
02 Prediction on the Future Development Trends of China’s Veterinary Drug Industry
1. Continuous Expansion of the Market Scale
It is expected that the scale of China’s veterinary drug market will continue to expand in the next few years. On the one hand, with the transformation of livestock production methods and the improvement of consumers’ requirements for food safety, the demand for veterinary drugs will continue to increase. On the other hand, the strengthened support from the state for the veterinary drug industry will further promote the development of the industry. In addition, the continuous expansion of the pet market will also drive the growth of the demand for pet drugs.
2. Acceleration of Technological Innovation and Product Research & Development
With the continuous progress of biotechnology and information technology, the veterinary drug industry will make remarkable progress in product research and development as well as supply chain management. Enterprises will introduce advanced production processes and improve the level of automation to reduce production costs and enhance the quality and stability of products. Meanwhile, positive achievements will also be made in the research and development of green and environmentally friendly veterinary drugs. These drugs have little impact on the environment during the production process and possess high safety and efficacy. In the future, breakthroughs are expected to be achieved in fields such as green veterinary drugs and multi-component and multi-valent vaccines.
3. Changes in the Market Competition Pattern
The competition pattern of China’s veterinary drug market will change significantly. On the one hand, large veterinary drug enterprises, relying on their brand advantages, technological strength and market share, will occupy a more dominant position in the market. On the other hand, small and medium-sized veterinary drug enterprises will seek differentiated development by segmenting the market and providing characteristic products and services. In addition, as market competition intensifies, enterprises need to strengthen innovation, improve product quality and gain differentiated competitive advantages to cope with market changes and challenges.
4. Strengthening of Policy Supervision and Compliant Operation
The Chinese government will continue to strengthen the policy supervision and requirements for compliant operation of the veterinary drug industry. On the one hand, the government will issue more laws, regulations and policy measures to regulate the production, operation and use of veterinary drugs. On the other hand, the government will strengthen the supervision, inspection and law enforcement on veterinary drug enterprises to ensure the safety and efficacy of veterinary drug products. Meanwhile, the government will also promote the transformation, upgrading and high-quality development of the veterinary drug industry.
5. Acceleration of the Internationalization Process
With the continuous development and growth of China’s veterinary drug industry, the internationalization process will be accelerated. On the one hand, Chinese veterinary drug enterprises will actively participate in international competition and cooperation to enhance their international influence and competitiveness. On the other hand, China’s veterinary drug industry will strengthen its connections and cooperation with the international veterinary drug market, introduce advanced technologies and management experiences, and promote the international development of the industry.
