Pharmaceutical Exports Up, Medical Devices and Cosmetics Down
Increase in CMO Exports, Decrease in Demand for Diagnostic Products
[Asia Economy Reporter Kim Young-won] The cumulative export value of the health industry in the third quarter of this year increased by 3.3% compared to the previous year. Pharmaceutical exports rose year-on-year, driven by contract manufacturing organization (CMO) product exports, but exports of medical devices and cosmetics declined as the spread of COVID-19 stabilized relatively and global supply chain instability persisted.
On the 18th, the Korea Health Industry Development Institute (KHIDI) announced the '2022 Third Quarter Cumulative Export Performance of Pharmaceuticals, Medical Devices, Cosmetics, and Other Health Industries,' which contains these details.
According to KHIDI, the cumulative export value of the health industry in the third quarter of this year recorded $19.08 billion (approximately 25.536 trillion KRW), a 3.3% increase compared to the same period last year. By sector, medical devices accounted for $6.58 billion, pharmaceuticals $6.46 billion, and cosmetics $6.04 billion, with exports exceeding $6 billion in all industries.
Pharmaceutical exports increased by 34.6% compared to the cumulative figure in the third quarter of last year ($4.8 billion), maintaining the only export growth trend among health industry sectors. Among these, vaccine exports ($880 million) and biopharmaceutical exports ($2.8 billion) accounted for 57.1% of total pharmaceutical exports.
In the first half of the year, COVID-19 vaccine CMO products saw a significant increase in vaccine exports to countries such as Australia, but exports gradually decreased in the second half as COVID-19 stabilized. Vaccine export values this year were $458 million in Q1, $320 million in Q2, and $104 million in Q3.
Medical devices, which have the highest export share among health industries, decreased by 3.9% compared to the same period last year. Exports of diagnostic reagents, which accounted for a large portion of medical device exports since the outbreak of COVID-19, amounted to $2.91 billion, down 13.6% from the same period last year. This is also influenced by the base effect from last year's high performance. The average monthly export value of medical devices rose sharply from $460 million in 2020 to $760 million last year, then decreased relatively to $730 million this year.
On the other hand, exports of key medical device items such as ultrasound diagnostic devices, implants, and radiography equipment increased by 17.5%, 30.6%, and 13.7%, respectively, compared to the same period last year.
In the case of cosmetics, the cumulative export value in the third quarter decreased by 11.5% compared to the same period last year. In particular, China is expected to have difficulty recovering exports for the time being due to COVID-19 quarantine measures, changes in cosmetics-related policies, and the continued 'Guochao' culture favoring domestic products. During this period, cosmetics exports decreased by 22.4% in China, 34.7% in Hong Kong, and 5.1% in Russia.
Han Dong-woo, head of the Health Industry Innovation Planning Division at KHIDI, stated, "The decline in performance in the second half was due to reduced global demand leading to decreased diagnostic kit exports, and the base effect from last year's high performance also had an impact. With the global economic slowdown, interest rate hikes, sluggish economic recovery in China, and prolonged Russia-Ukraine war, the domestic and international environment is deteriorating, making it necessary to prepare countermeasures."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
