Additionally, the global supply chain for APIs has become increasingly complex and interconnected. Many pharmaceutical manufacturers rely on a mix of domestic and international suppliers for their API needs. This globalization presents both opportunities and challenges, including concerns over quality control and intellectual property rights. The COVID-19 pandemic highlighted vulnerabilities within this supply chain, prompting a reevaluation of sourcing strategies and an increased focus on local production capabilities.
3. Application Demand The demand for polyacrylamide varies across industries. The agricultural sector, for example, is increasingly using this polymer for soil conditioning and water retention. As global agricultural practices shift towards more sustainable methods, the demand—and consequently the price—of polyacrylamide used in agriculture is expected to rise.
The global API market is significantly dominated by a few key players. China stands out as the leading producer of APIs, contributing to around 40% of the world's total API supply. The country's robust chemical manufacturing infrastructure, combined with lower production costs, allows for economies of scale. Chinese manufacturers have heavily invested in production facilities, regulatory compliance, and quality control measures to meet international standards. This dominance is further aided by government policies promoting the pharmaceutical sector and encouraging exports.