Chinas Pharma Glass Industry Needs to Consolidate for Higher Success
Published By : 19 Jun 2014 | Published By : QYRESEARCH
The Chinese pharmaceutical glass industry is characterized by low entry barriers. This has encouraged the influx of a number of small and medium players, leading to an overcapacity of low-end and medium-quality products. This has eventually caused the market to grow at a sluggish rate.
The demand for high-quality, neutral and waterproof borosilicate glass is high in developed countries. However, China doesn’t seem to have the best capabilities to meet this high demand as the country still continues to use and produce low and semi-neutral borosilicate glass and sodium-calcium glass. All of these glass types do not satisfy the chemical neutrality and stability required of pharmaceutical glass.
However, for applications that do require high-quality pharmaceutical glass, China looks towards countries such as Germany. It typically imports prefilled injection system glass and other high-end products from German brands such as Gerresheimer and Schott.
Even after several years of development and an abundant number of players, China hasn’t managed to penetrate its domestic pharmaceutical glass market. However, in certain Chinese regions and provinces, competitive market leaders have emerged. This has happened in regions such as Shandong, Jiangsu, and Zhejiang. For instance, Shandong Pharmaceutical Glass is ranked among the top five Chinese suppliers of prefilled syringes, with an annual capacity of 50 million units.
However, this market share is still low when pitched against the joint venture established by Schott in China. This company -- Schott Xin Kang Pharmaceutical Packaging Co. – has the capacity to produce 1 billion - 1.5 billion pharmaceutical glass vials and ampule bottles annually.
According to market research reports, China’s annual pharma glass bottle capacity in 2013 was 80 billion units, adding up to nearly 250,000-300,000 tons.