Paracetamol

Paracetamol Global Market Outlook:

MARKET OVERVIEW

Global market value –USD 1,190 million (2022)

Expected to grow at a CAGR of 5 percent to $1,579 Million by 2028

MARKET TRENDS:

Rising demand from pharmaceuticals.

Increase in the price of API, due to cost of bulk drugs and import surges.

• The global market value is USD 1,190 million in 2022, and it is expected to grow at a steady rate of 5 percent, due to significant use of paracetamol as an API in large number of OTC drugs

• The pharmaceutical is the end-use industry for paracetamol. The increasing demand, due to few key factors boosting the market growth of the API, is rising cases of chronic diseases, fever, and increasing population, which have shown rising demand of raw material

• Due to the panic buying, suppliers are overwhelmed with demand, and raw material shortages are driving prices up. The pandemic has led to a market failure, where high demand meets the limited supply

Market Overview: Paracetamol

• The paracetamol market is expected to grow at a significant market share during the forecast period, owing to increasing population and rising dominance of diseases and disorders.

• The global Paracetamol market was valued at $1,190 million in 2022, and it is expected to grow at a CAGR of 4-5 percent during the forecasted period, 2021–2024

• The global production of paracetamol is concentrated in India and China. These two countries occupy about 83.86 percent of the global production. China holds 59.02 percent and India holds 24.84 percent of the total global paracetamol production, respectively, and their market share is increasing in the recent years

• The global production capacity is at 150 kilo tons, and the supply of paracetamol API meets the global demand. There were no major supply disruptions, due to COVID, as Chinese manufacturers resumed production

• The US is the biggest consumption market in the world

Cost Structure Analysis for Paracetamol API

• The raw material cost varies according to the grade of the API & Excipients used and has a major impact on the production cost

• The labor cost is not so significant, mainly due to the fully automated process for the production process

• Facility overhead covers such expenses as electricity, cleaning, heat, plant depreciation, and facility support labor (depending on the company) have low impact on the total cost of production

Porter's Analysis on Paracetamol

Supplier Power

• Paracetamol can be manufactured from the basic raw materials, such as phenol and PNCB, or directly from PAP

• Since most manufacturers are backward integrated, supplier power is minimal

Barriers to New Entrants

• Several players in the market have large capacities for APAP. Therefore, the market is well equipped to meet the demand for APAP. This might act as a barrier for new entrants

Intensity of Rivalry

• Market is being fragmented, the intensity of rivalry is also high

• Competition exists among Indian and Chinese manufacturers to supply paracetamol to the developed markets

Threat of Substitutes

• There are several analgesics in the market, but APAP has its own market, which it has been holding for several years

• Therefore, there is no threat of substitutes for this API in the near future

Buyer Power

• Although several manufacturers are available in the market choosing a supplier, who has DMF or CEP approved suppliers are crucial

• Buyer power is moderate, since the number of buyers in the market is also high