On May 22, 2025, TENDATA was invited to participate in the 2025 Global Pharma Market Product & Trend Forum, co-hosted by ECHEMI and API China. The event brought together pharmaceutical industry leaders, policymakers, and supply chain stakeholders from around the world to address the challenges and opportunities facing the active pharmaceutical ingredient (API) sector. Drawing on its deep expertise in supply chain data analysis and market strategy, TENDATA offered forward-looking solutions aimed at helping businesses gain a competitive edge as the global pharmaceutical landscape continues to shift.

Navigating Headwinds: Overcapacity, Price Wars, and Trade Barriers

China’s API sector is facing intense pressure. Excess production capacity has led to significant price drops, with costs rising due to tighter environmental regulations. Add to this the impact of U.S.–China trade tensions and increasing competition from India, and many Chinese API manufacturers are caught in a profit squeeze.

Take semaglutide, for example: its price plummeted from $3,000/gram to just RMB 150/gram, with over 50 domestic companies now in the market. Despite strong demand in North America, growing trade restrictions and the global trend toward supply chain diversification are making exports more difficult.

At the forum, Ms. Liu Yalan, representing TENDATA, provided in-depth insights based on global import and export data for APIs such as amino compounds, vitamins, hormones, and antibiotics. She explained:

“In the past three years, China's API trade structure has undergone fundamental changes. Varying policy adjustments and localization efforts have reshaped demand resilience across import markets. Companies need to identify responsive, high-potential markets to optimize their global resource allocation.”

Breaking the Cycle: Strategic Integration, Collaboration & Emerging Markets

To counteract current industry bottlenecks, TENDATA proposed a “vertical integration + horizontal collaboration + market diversification” framework:

1. Vertical Integration: From Intermediate to API Powerhouse

TENDATA encourages companies to extend control upstream—from intermediates to core raw materials. By producing intermediates in-house, businesses can reduce dependency on volatile suppliers and stabilize both costs and quality. This not only strengthens resilience but builds a solid foundation for long-term competitiveness.

2. Horizontal Collaboration: Price Alliances for Healthy Competition

To combat irrational price wars among domestic firms, TENDATA advocates for price coordination mechanisms. For example, global demand for sitagliptin is only around 700 tons annually, yet China’s capacity exceeds 1,500 tons. By forming alliances, setting shared standards, and jointly exploring new markets, manufacturers can grow the market instead of undercutting each other.

3. Emerging Market Focus: Southeast Asia as a Key Entry Point

According to TENDATA’s data, Southeast Asia relies heavily on API imports (Malaysia’s import dependency exceeds 70%). The region’s growing pharmaceutical demand and pro-industry policies offer new growth opportunities.

In antibiotics (HS code 2941), China leads global exports thanks to its robust supply chain and cost efficiency. India ranks second, largely exporting generic drugs. Other top importers include Switzerland, Italy, the U.S., Spain, Belgium, Panama, Denmark, and South Korea.

Billy Urudra, Executive Director of the Malaysian Organisation of Pharmaceutical Industries (MOPI), remarked:

“Chinese firms are entering a pivotal window of opportunity.”

TENDATA recommends that companies combine data-driven market insights with flexible supply chain strategies to break into ASEAN markets, diversify risk, and unlock new revenue streams.

From Data to Action: Empowering Global Pharma Strategy

TENDATA also presented its proprietary analytics report, “Global API Trade Flows and Market Resilience Analysis,” highlighting real-time market shifts. One example: while the U.S. remains the top importer of vitamin APIs, tariffs and policy shifts tied to U.S.–China trade tensions have already altered global sourcing patterns.

Rajesh Nargotra, Director of Bioprecis Ltd., emphasized:

“Enterprises must adopt a proactive, diversified strategy to ensure product accessibility and supply continuity.”

Ms. Liu Yalan added:

“Success in the API sector depends not only on innovation but also on strategic foresight. TENDATA’s mission is to empower clients with end-to-end support—from market intelligence to supply chain optimization—to help them stay ahead in global competition.”

TENDATA data shows that for vitamins (HS: 2936), the U.S., Netherlands, Germany, and France led imports in 2024, with the U.S. topping the list due to its robust pharmaceutical, food, and health supplement industries. However, trade dynamics are shifting under rising geopolitical tensions and tariff policies.

Looking Ahead

As global pharmaceutical supply chains continue to evolve, TENDATA remains committed to delivering data-driven insights and practical strategies. Whether it’s navigating established markets under pressure or entering new ones with untapped potential, TENDATA is ready to be the trusted partner for companies aiming to lead in the next era of global pharmaceutical trade.