First Half of the Year Health Industry Exports Down 18%... Decreased Demand for COVID-19 Vaccines and Diagnostics

Exports of the health industry in the first half of this year decreased by 18.2% compared to the same period last year. This is due to reduced demand for vaccines and diagnostic devices as the COVID-19 pandemic stabilized.

On the 23rd, the Korea Health Industry Development Institute announced that the total health industry export value, including pharmaceuticals, cosmetics, and medical devices, in the first quarter of this year was $10.87 billion, down 18.2% from the same period last year. Despite strong exports of biopharmaceuticals, exports of vaccines and in vitro diagnostic devices sharply declined. In cosmetics, the export share to China, the largest export market, decreased. Instead, export routes diversified to North America and Southeast Asia.

COVID-19 Vaccines and Diagnostic Device Exports Decline

Pharmaceutical exports amounted to $3.84 billion, a 9.5% decrease. This was due to a sharp drop in vaccine exports. Exports of biopharmaceuticals and toxoids increased. Vaccine exports totaled $170 million, down 78.5% from the previous year, with significant declines especially in Taiwan and Australia.

Biopharmaceuticals, which account for more than half (53.1%) of total pharmaceutical exports, reached $2.04 billion, up 22%. There was significant growth in Europe and North America. In particular, exports to the United States ($360 million), Hungary ($220 million), Belgium ($190 million), and the Netherlands ($70 million) surged by 23.7%, 195%, 276%, and 20,472%, respectively.

Exports of toxoids increased by 87.2% to $150 million, showing growth centered on China, the United States, and Brazil.

Due to the global decline in demand for in vitro diagnostic devices, a representative export item during the COVID-19 period, medical device exports fell 40.9% to $2.95 billion. Exports of in vitro diagnostic devices, which accounted for half of medical device exports, plummeted 81.7% to $480 million. This decline occurred in most countries due to the endemic phase of COVID-19, with sharp decreases especially in the United States, Japan, and Taiwan.

Exports of implants and radiography devices increased. Implant and radiography device exports were $370 million and $350 million, rising 9.9% and 6.8%, respectively.

Cosmetics Exports Similar to Previous Years

Cosmetics exports in the first half reached $4.08 billion, a 0.6% increase. Despite a decrease in exports to the Chinese market, exports increased mainly to North America and Southeast Asia. Exports of basic skincare products amounted to $3.1 billion, up 0.2%. Exports to China ($1.13 billion) and Japan ($220 million) decreased by 24.3% and 17.1%, respectively. Conversely, exports to the United States ($360 million), Hong Kong ($220 million), Vietnam ($180 million), and Russia ($170 million) increased significantly. Color cosmetics, which sold well in Japan and the United States, rose 13.1% to $520 million.