Europe Expand Paracetamol Production to Prevent Supply Shortage

After experiencing a dwindling market situation for the past two months, Paracetamol prices rebounded by the end of January 2023 and are further predicted to follow an upward trend worldwide in the first quarter of 2023. Several factors, including pandemic resurgence, supply disruption, and shortage of drugs, have boosted the market sentiments for Paracetamol across the globe. The Paracetamol prices trajectory leaped in January 2023, with values increasing by 11.04% in Germany and 14% in China, respectively.

The market for Paracetamol is anticipated to be significantly impacted by the COVID-19 pandemic's reappearance. The sale of Paracetamol pills for cough, cold, and flu has surged, particularly in emerging markets like India and China, as more consumers rely on OTC medications to treat common ailments.

Rising technological developments in the production of Paracetamol and rising Research and Development efforts in the healthcare and pharmaceutical industries have influenced the market in the European region. In the predicted period, growing emerging markets with an aging demographic base will further produce new opportunities for the Paracetamol market as it is commonly used in pain relief and fever. The supply of pharmaceuticals has also been hampered by inflation and the energy crises. It is a result of both decreased supply and raised demand. Due to concerns about drug scarcity, the French government has banned the online sale of Paracetamol-based medications until the end of January. The government said that the global supply chain had been impacted by an export ban in China, where cases of Covid-19 are dramatically rising following the sudden lifting of drastic health restrictions. Only pharmacies are permitted to sell over-the-counter medications in France, including Paracetamol, Ibuprofen, and cold and flu medicines, to cope with drug scarcity. Sandoz, one of the biggest manufacturers in the European generics market, is reporting a "difficult supply scenario." They continued by saying that Sandoz is now able to meet demand, but they are "facing difficulty." Patients have had trouble obtaining essential medications, including penicillin and Paracetamol, due to the increase in winter sickness in the northern hemisphere and the reduced exports from China.

The German government is considering amending the law to relax the procurement restrictions that oblige health insurance to purchase medications from numerous providers, including more expensive ones, to ensure a more consistent supply. In order to prevent shortages, the Netherlands recently passed a law forcing suppliers to maintain inventories for six weeks. A similar regulation is currently being considered in Sweden. In Germany, the head of the medical association called for establishing unofficial "flea markets" where people may sell their leftover medications to persons in need keeping the market robust.

According to ChemAnalyst, " It is projected that the cost of Paracetamol would rise in the approaching month of the first quarter of 2023. The government is attempting to eliminate a widespread shortage of medications in Europe by stockpiling medications and compelling producers to ensure supplies. According to the European Commission, the EU regions will also work to expand local production capacity and lessen their dependency on China.