COVID-19 Vaccine Market Expected to Grow Again This Year... Vaccine Trade Deficit Deepens

Pharmaceutical Bio Association Analyzes Vaccine Export and Import
Global Vaccine Market Dominated by Major Pharmaceutical Companies
South Korea's Vaccine Trade Deficit of $1.8 Billion Last Year
Calls for 'Innovative Support Measures' for Domestic Vaccine Industry

[Image source=Yonhap News]

[Asia Economy Reporter Lee Gwan-joo] Sales of COVID-19 vaccines are expected to show significant growth again this year. Although South Korea's vaccine exports have tripled, the trade deficit has greatly increased due to imports of COVID-19 vaccines.

According to the analysis paper "Global Vaccine Market and Domestic Vaccine Export-Import Status" released on the 6th by the Bioeconomy Research Center of the Korea Pharmaceutical and Bio-Pharma Manufacturers Association, the global vaccine market before the COVID-19 pandemic (based on 2019) was estimated at $33 billion. Four major global pharmaceutical companies?GSK, Pfizer, Merck, and Sanofi?accounted for 89% of the total market.

By vaccine type, the pneumococcal vaccine (PCV) had the largest market at $7 billion, followed by vaccines including diphtheria and tetanus at $4.3 billion, human papillomavirus vaccine (HPV) at $4.1 billion, and seasonal flu vaccine at $4 billion. The center cited the World Health Organization (WHO)'s Global Vaccine Market Report, forecasting rapid growth of PCV and HPV vaccines through 2030.

Additionally, citing a recent COVID-19 vaccine market revenue forecast report published by global market analyst Airfinity, it was reported that COVID-19 vaccine sales reached a total of $65.6 billion last year. This is nearly twice the size of the entire existing vaccine market. The figure excludes Chinese COVID-19 vaccines, and sales are expected to increase by 29% to $84.9 billion this year. In particular, mRNA vaccines from Pfizer and Moderna are predicted to record sales of $42.6 billion and $25.7 billion respectively this year.

Last year, South Korea's vaccine exports amounted to $500 million, imports to $2.3 billion, resulting in a trade deficit of $1.8 billion. Although exports increased by 200% compared to 2020 ($173 million), imports rose significantly due to the procurement of COVID-19 vaccines.

Looking at major export and import countries, South Korea's main vaccine export destinations had been South American and Southeast Asian countries, but last year included Australia and the Netherlands. This is presumed to be due to exports of contract-manufactured COVID-19 vaccine volumes. Notably, exports to the Philippines surged from $700,000 in 2020 to $170 million last year, and exports to Australia reached $90 million. Among import countries, imports from Belgium increased sharply from $40 million in 2020 to $1.37 billion last year, which also appears to be related to COVID-19 vaccine import volumes.

The center emphasized the need to establish groundbreaking support measures for the development of the domestic vaccine industry beyond research and development (R&D) and workforce training. Currently, South Korea is gradually laying the foundation for mid- to long-term vaccine industry development through ongoing R&D on mRNA vaccines and vaccine raw materials, designation of national strategic technologies, and designation as a WHO global bio workforce training hub. The center suggested, "To accelerate the commercialization of COVID-19 vaccines and various high value-added vaccines, more proactive incentives such as acquisition of overseas companies and introduction of foreign technologies may be necessary," adding, "Support measures such as tax benefits should be devised accordingly."