The global vaccine market has grown quickly over recent years and is expected to exceed USD 10 billion in 2007. Part of this growth can be attributed to the growth of the market in China, which is currently entering an unprecedented period of expansion and development. China is the world's fourth largest market for vaccines, and in 2007, was estimated to be worth more than RMB 5 billion, with rabies and influenza vaccines the biggest sellers.

Currently, the largest market for vaccines in China is the 17 million children born each year, a market which is expected to grow rapidly in the coming years. There are currently 32 domestic and 5 multinational vaccine companies operating in China. Despite this, an increasing number of domestic and multinational companies are entering the market - attracted by the growing demand for vaccines. Increasing affluence and awareness of the widespread benefits of immunization are lures for both Chinese and multinational vaccine providers.

China's vaccine industry has well established vaccine development capabilities, but its research and innovation capabilities are behind those of leading vaccine producers.

Government policies have a profound influence on the direction of this industry, particularly its choices in reforming China's vaccine distribution system and the effects on the industry of the extension of the State-subsidized National Immunization Program (NIP) to cover many previously self paid vaccines.

The outbreak of SARS in 2002-2003 and more recent worries about the H5N1 influenza strain have greatly increased awareness of the benefits of annual influenza vaccination programs, and policies to develop the market for influenza vaccines are of increasing importance. If WHO recommendations on vaccination of at risk groups are followed, an annual market of many hundreds of millions will emerge.