August 25, 2011

China's animal vaccine industry posts average growth rate of 13.6%

The burgeoning animal vaccine industry in China has progressed rapidly while keeping to an average growth rate of 13.6% in 2006-2010, and reached around RMB7.5 billion (US$1.2 billion)  in 2010, up 21.0% on-year, according to a new report published by Research and Markets.

With the increase of state investment in animal epidemic funds, the expansion of compulsory immunisation against animal epidemics and immunisation, and the strengthening of China livestock breeding industry standardisation, China's animal vaccine industry is expected to continue to maintain a relatively high growth momentum in future, the report "China Animal Vaccine Industry Report, 2010-2011" states.

Although there are nearly 60 animal vaccine manufacturers in China, the market share is concentrated in the hands of a few enterprises. CAHIC, Yebio QD, Guangdong Dahuanong Animal Health Products, Tecon and Chengdu Tech-Bank are representatives of the Chinese animal vaccine industry, accounting for a market share of 37.4%. Sales of these companies mainly come from the government procurement of compulsory vaccines, wherein, the revenue from government compulsory vaccines accounted for 88% of the total animal vaccine revenue of CAHIC in 2010.

According to China's compulsory immunisation plan against animal epidemics in the past three years, China not only expands the application scope of the existing animal immunisation products, but also attaches great importance to the upgrading of animal vaccine products at the same time.

In recent years, the scope of China's animal compulsory vaccinations scheme is being gradually expanded. Constrained by economic conditions, the compulsory immunisation against animal epidemics currently only contains five kinds of Epidemics of Class I, while there are about 17 kinds of epidemics of Class I in China and other epidemics lead to greater risk as well. With the increasing recognition of animal epidemic prevention and control from breeding enterprises and individuals, the future demand for conventional self-pay vaccinations will be further enhanced. As China's livestock breeding relies mainly on raising pig and poultry, Newcastle disease vaccines and porcine circovirus vaccines will be two conventional vaccines with good market prospects.