China's Cephalosporin API and Intermediate Exports Demonstrate Strong Momentum in 2024
China's Cephalosporin API and Intermediate Exports Demonstrate Strong Momentum in 2024
Cephalosporin antibiotics are among the most widely used antibiotics in clinical practice. They contain a β-lactam ring and share structural and functional similarities with penicillins, carbapenems, and monobactams. Cephalosporins are predominantly semi-synthetic, with mainstream production involving fermentation to obtain key intermediates such as 7-Aminocephalosporanic Acid (7-ACA), 7-Amino-3-deacetoxycephalosporanic Acid (7-ADCA), and 7-Phenylacetamido-3-chloromethylcephalosporanic Acid p-Methoxybenzyl Ester (GCLE). These intermediates are then chemically modified with various side chains to produce different cephalosporin products.
1. Cephalosporin Market Holds a Significant Share
In 2023, the global antibiotics market was valued at $45.6 billion, with cephalosporins accounting for 31%. In China, data from the Pharmaceutical Comprehensive Database (PDB) indicates that cephalosporins accounted for 41% of antibiotics used in sample hospitals in 2022. Since cephalosporins are mainly administered via injection in hospitals, their market share in outpatient settings is lower. Overall, cephalosporins hold approximately 35% of the total antibiotic market in China.
2. Chinese Policies Drive High-Quality Development in the Cephalosporin Industry
China's National Development and Reform Commission (NDRC) has been actively guiding the restructuring of the pharmaceutical industry. The 2019 "Industrial Structure Adjustment Guidance Catalogue" categorized the construction of new production facilities for penicillin industrial salt, chemical synthesis of 7-ACA and 7-ADCA, and cephalosporin C fermentation under restricted industries. The 2024 edition of this catalog further tightened restrictions by removing the "chemical synthesis" and "fermentation" qualifiers, thereby strengthening industry oversight.
These regulatory changes have accelerated technological upgrades in China's cephalosporin sector. With comprehensive manufacturing capabilities spanning fermentation, intermediate synthesis, API production, and formulation, Chinese enterprises continue to enhance their position in the global cephalosporin supply chain, ensuring both domestic supply and international exports.
3. Steady Growth in China's Cephalosporin API and Intermediate Exports
China is a major producer and exporter of cephalosporin APIs and intermediates. Between 2015 and 2024, export revenues in this sector grew from $433 million to $792 million, reflecting a compound annual growth rate (CAGR) of 6.9%.
Key export products include ceftriaxone, cefalexin, cefotaxime, cefazolin, and intermediates such as GCLE, 7-ACA, and 7-ADCA. Ceftriaxone has consistently been the largest export category, accounting for approximately 30% of total exports. Cephalosporin core intermediates represent the second-largest category, contributing 17-19% of total exports in recent years. Collectively, cefalexin, cefotaxime, and cefazolin make up 15-20% of total exports.
#3.1 Ceftriaxone Exports Remain Stable
As the leading cephalosporin export product from China, ceftriaxone has maintained a stable export trajectory. Between 2015 and 2021, ceftriaxone exports grew from $146 million to $241 million, with a CAGR of 9.2%. In 2024, China's ceftriaxone API exports reached $226 million, marking a slight 2.3% year-on-year decline.
India, Pakistan, and Russia were the top three markets for Chinese ceftriaxone in 2024, with India alone accounting for nearly 50% of total exports ($113 million). The remaining major export markets registered revenues in the multimillion-dollar range.
#3.2 Balanced Supply and Demand for Cephalosporin Core Intermediates
China has long held a cost advantage in fermentation-based production of cephalosporin core intermediates. From 2015 to 2024, exports of these intermediates increased from $70.63 million to $137 million, with a CAGR of 8.0%. India remains the dominant export market, accounting for over 80% of shipments, followed by Pakistan at approximately 8%.
#3.3 Growing Demand for Cefalexin
Cefalexin is a widely used oral antibiotic known for its high bioavailability and patient compliance. Between 2015 and 2020, China's cefalexin API exports remained steady at around $25 million. However, post-pandemic demand for respiratory infection treatments led to a surge in global demand. From 2021 to 2024, cefalexin exports soared from $27.82 million to $62.09 million, reflecting a remarkable CAGR of 30.7%.
In 2024, China exported cefalexin to 51 countries, with India leading the market at $10.3 million (46.6% year-on-year growth). Taiwan, Vietnam, Algeria, and the UAE ranked as the next largest markets.
4. India's Policy Push for Local Cephalosporin Production
Since 2020, India has implemented various measures to encourage domestic pharmaceutical production, reducing reliance on imports. One key initiative is the Production Linked Incentive (PLI) scheme, which provides up to 20% sales incentives for manufacturing certain APIs, including ceftriaxone, cefalexin, cefoperazone, and cefixime, as well as intermediates like 7-ACA.
As of December 2024, India's Ministry of Chemicals and Fertilizers has approved 48 projects under the PLI scheme, with 34 already operational. Despite these efforts, India's local production capabilities still lag behind China's well-established cephalosporin industry.
5. Strong Growth in China's Cephalosporin API and Intermediate Exports to India
From 2015 to 2024, China's cephalosporin API and intermediate exports to India nearly doubled, growing from $148 million to $294 million, with a CAGR of 7.8%.
- Core intermediates: Exports to India have been growing rapidly since 2020, reaching $114 million in 2024 (+5.8% YoY).
- Ceftriaxone API: Exports to India remained stable at $113 million (-3.0% YoY).
- Cefalexin API: India-bound exports surged 46.6% in 2024 to $10.3 million, indicating strong growth potential.
- Cefotaxime and cefazolin APIs: Though export volumes are smaller, they continue to expand, with 2024 shipments rising 14.3% and 40.4%, respectively.
- Cefoperazone API: The only major product experiencing significant decline, with exports dropping 14.4% year-on-year to $12.81 million.
6. Outlook for Cephalosporin API and Intermediate Exports
- Demand growth: Rising healthcare needs in Africa and Latin America continue to drive global demand for cephalosporin antibiotics, offering expansion opportunities for manufacturers.
- China-India cooperation: Both countries are making significant advancements in pharmaceutical manufacturing, improving localization capabilities and lowering production costs. Their complementary strengths in cephalosporin production remain unchanged.
- Logistical challenges: Persistently high international shipping costs, container shortages, and port congestion are increasing export expenses, particularly for low-margin bulk intermediates, impacting companies' export decisions.
Despite these challenges, China's well-developed cephalosporin industry remains a key player in the global pharmaceutical supply chain, ensuring stability and accessibility of essential antibiotics worldwide.