Aspirin Affordability Under Pressure in the US Market

The prices of Aspirin continued to rise in the United States market in May, maintaining the upward trend observed in the previous month. This increase is attributed to steady demand from end-user industries coupled with limited market supply. Additionally, the anticipated rise in the cost of Salicylic acid, a key raw material, has further driven the price hike for Aspirin.

Despite persistent inflation and high interest rates, the U.S. economy has shown resilience in 2024. However, the Federal Reserve will persist in its efforts to cool the economy and bring down inflation. The target inflation rate is 2%, but it currently remains above 3%, which is still considered too high. In May, consumer confidence in the U.S. rose after three consecutive months of decline, boosting consumer spending and contributing to the increase in Aspirin prices.

The United States is contending with a notable deficit in medications, including Aspirin, driven by a disparity between demand and supply stemming from production limitations and challenges within the supply chain, among other factors. This scenario, common across industries, often results in price escalations, offering opportunities for incumbent players. For Indian generic drug manufacturers, this crisis in the U.S. pharmaceutical market presents a window to step in and mitigate the shortfall. It also serves as a platform for Indian pharmaceutical companies to bolster their market shares in segments experiencing shortages. Aurobindo Pharma, Sun Pharmaceutical Industries, and Gland Pharma, with considerable exposure to products facing deficits in the U.S. markets, stand to gain the most from this development. The scarcity of medications, coupled with the influx of Indian generics, is likely to cultivate a competitive environment where existing supplies are stretched, thus bolstering the upward trajectory of Aspirin prices.

Moreover, starting in June, the expense of shipping cargo from India to Europe and the US by sea is poised to increase. Shipping lines are introducing surcharges to offset the added costs associated with rerouting vessels via the Cape of Good Hope. This adjustment will entail an extra $500 fee per container shipped from India to the US East Coast. Consequently, this will compound the upward movement of Aspirin prices.

A groundbreaking study conducted by researchers at Harvard T.H. Chan School of Public Health has illuminated a remarkably simple yet effective approach to reducing heart attack fatalities in the United States. Published in the Journal of the American Heart Association on May 1, the study emphasizes the life-saving benefits of promptly taking Aspirin after experiencing severe chest pain. This revelation has the potential to spur greater demand for Aspirin, thereby driving prices higher.

According to analysis by ChemAnalyst, the prices of Aspirin are projected to continue rising in the coming months due to a persistent increase in demand from end-user healthcare and pharmaceutical sectors. Market suppliers and distributors observing this trend might seize the opportunity to quote higher prices for Aspirin in the USA market to capitalize on the situation.