How Private Sector is Fueling APAC Vax Demand

As vaccine debates resurface in global politics, most recently fuelled by renewed anti-vaccine rhetoric from the US President Donald Trump, attention is once again turning to the critical role vaccines play in safeguarding public health. Across the Asia-Pacific region, vaccines are evolving from a purely public health tool into a broader healthcare priority with growing private sector participation. Private-sector vaccine sales now account for an estimated 15-35 per cent of total revenue. According to Frost & Sullivan, private-market shares vary widely from around 20 per cent in China and 25-30 per cent in India to as high as 35-40 per cent in parts of Southeast Asia. Strengthened by post-pandemic health awareness, expanding middle-class purchasing power, and new manufacturer strategies, Asia's private vaccine market is becoming an increasingly important force shaping growth, innovation, and access across the region. Let's explore further.

- Ayesha Siddiqui

The vaccine landscape in Asia-Pacific is undergoing significant transformation and growth. While public-sector programmes have historically led immunisation efforts, the private sector is now emerging as a key growth driver reshaping access, innovation, and commercial strategy across the region. Private-sector vaccine sales account for an estimated 15-35 per cent of total uptake, with the strongest expansion seen in urban centres and middle-income economies where healthcare infrastructure is rapidly improving.

Private-sector vaccine sales in Asia-Pacific currently represent an estimated 20-30 per cent of total vaccine developers' revenue in the region as of 2024-2025. This marks a substantial evolution from approximately 10-15 per cent a decade ago, reflecting a fundamental shift in market dynamics. The proportion varies significantly by country and market maturity.

“Currently, around 15-20 per cent of our vaccine business is driven by the private sector. While India's vaccination landscape continues to be predominantly public-sector led through the Government's Project Indradhanush initiative, the private segment is steadily growing—particularly in urban and semi-urban regions where parents are increasingly seeking flexibility, convenience, and access to newer combination vaccines,” said Dr Rajesh Jain, Chairman & Managing Director, Panacea Biotec Limited, India.

In most markets, public-sector procurement through national immunisation programmes remains the dominant channel for routine childhood vaccines. However, the private sector plays a much larger role in adult, travel, and non-routine ('optional') vaccines, especially in urban, high-income geographies and medical tourism hubs such as Singapore, Hong Kong, Malaysia, Thailand, Australia, New Zealand, and South Korea.