August 26, 2021
At present, China has become the fastest growing market in the global animal health products industry. Since the implementation of the "Good Manufacturing Practice for Veterinary Drugs" in 2002, that is, GMP certification standards, the industry has undergone qualitative changes.
"As a result of the implementation of this standard, the production capacity of certified companies has been greatly increased. After certification, the production capacity of more than 1,800 companies has jumped sharply, which is 10 times that of the more than 3,000 companies before certification. However, the demand for veterinary drug products in the breeding industry during the same period The amount has only doubled." Recently, Chen Laihua, an analyst at Beijing Qingmaitian Technology Development Co., Ltd., told the China Animal Husbandry and Veterinary News, "It can be seen that the competition in China's veterinary drug industry will also become increasingly fierce."
my country's veterinary drug research and development capital investment is increasing year by year
In 2013, the world's TOP20 animal insurance companies accounted for 80% of the world's animal insurance market. In recent years, the total global sales of animal health products have exceeded 140 billion yuan.
According to the data given by Chen Laihua, classified by animal species: the global pet medicine market and livestock and poultry animal medicine market are 48 billion yuan, accounting for 34% of total sales, and the livestock and poultry animal medicine market is 92 billion yuan, accounting for 66%.
According to the statistics of the China Veterinary Drug Association, in 2013, 1661 veterinary drug manufacturers across the country completed a total production value of 43.746 billion yuan, sales of 40.183 billion yuan, a gross profit rate of 12.027 billion yuan, and an average gross profit rate of 29.93%. In the past six years, the overall scale of the industry has gradually expanded, with output value and sales increasing year by year. In 2013, the compound annual growth rate of output value was 14.55%, and the compound annual growth rate of sales was 13.64%.
Feng Zhongwu, director of the my country Institute of Veterinary Drug Control, said that in 2013, 72 crude drug companies in China completed a total production value of 10.456 billion yuan, sales of 9.433 billion yuan, gross profit 5.305 billion yuan, and an average gross profit margin of 56.24%.
Another set of data shows that in 2013, my country’s 1,589 chemical pharmaceutical companies completed a total production value of 33.29 billion yuan, a sales volume of 30.75 billion yuan, a gross profit of 6.678 billion yuan, and an average gross profit margin of 21.72%. In 2013, veterinary drug production enterprises invested a total of 2.519 billion yuan in R&D funds, accounting for 6.27% of the sales revenue of the veterinary drug industry, and crude drug companies invested 716 million yuan in R&D funds, accounting for 7.59% of the total sales revenue. The total investment in research and development funds of chemical pharmaceutical companies is 1.803 billion yuan, accounting for 5.86% of the total annual sales.
"In China's animal health market of more than 40 billion yuan, animal medicines for livestock and poultry account for more than 95%, of which the pig health product market accounts for 50%, followed by aquatic products, poultry and cattle, and the pet medicine market is still in its infancy. "Chen Laihua said.
Veterinary drug industry competition presents a multi-faceted development pattern
With the deepening of the development of the veterinary drug industry, important changes are taking place within the industry, and industry competition is being fully carried out. According to Chen Laihua's analysis, there are mainly three competitive situations:
One is a competitor from the industry. From 2007 to 2012, international giants such as Boehringer, Eli Lilly, and Shuo Teng came to China to invest in China, setting up factories or R&D headquarters in China, and continuously increasing investment in the Chinese market; domestic veterinary drug companies such as Tianjin Ruipu, Companies such as Beijing Dabeinong have expanded their industrial layout through capital, and companies such as Wuhan Keqian and Luoyang Pleike have consolidated their core competitiveness through R&D advantages; capital and technical means will become the main focus of competition in China's veterinary drug industry.
The second is the competition of new entrants. For example, large-scale breeding groups and companies with shares of experts and professors directly enter the veterinary drug industry to gain market share.
The third is price control and competition in the terminal market. Farming giants represented by Chia Tai and Young Eagle Farming and Animal Husbandry, through expansion, use the advantages of the industrial chain to drive farmers to form a one-stop breeding system and take the initiative in pricing. Or related industries and enterprises directly involved in the veterinary drug industry, represented by Dabeinong.
"As the country pays more attention to animal food safety, industry supervision is becoming stricter and stricter. The next few years will continue to be a period of rapid integration and development of my country's veterinary drug industry, and powerful veterinary drug companies will enjoy huge market demand. It brings a broader space for development."
The development path and integration trend of the veterinary drug industry
During the recent National Veterinary Medicine Conference and Veterinary Medicine Conference, from the understanding of reporters and industry representatives, most small and medium-sized enterprises are currently in a period of wandering, and some companies even shouted "Where to go."
"From 2017 to 2020, the industry will enter a period of frequent integration. Listed companies will use capital and technological advantages to actively carry out industrial layout, covering the entire industrial chain of raw materials, veterinary drug preparations, and biological products; annual sales will be 1 billion yuan ~3 billion veterinary drug companies with R&D and capital advantages will occupy the first group position, and the upper level of the pyramid will basically take shape." Chen Laihua gave a set of data to reporters.