Azithromycin Prices Show Upward Trend Amidst Rising Consumer Demand

The prices of Azithromycin have risen in the global market in June 2023 due to several factors, such as increasing inquiries from domestic and international markets, moderate supply among market participants, and increased prices of Active pharmaceutical ingredients (APIs). Azithromycin treats various bacterial infections such as bronchitis, chest infections, and nose, ears, or tonsil infections. This makes Azithromycin a very important drug for treating a wide range of infections, suggesting that there is always a consistent demand for this drug in the pharmaceutical and healthcare sectors.

India and China are major antibiotics APIs producers and exporters. The prices of Azithromycin increased in the Chinese market due to limited supply and strong demand from healthcare and pharmaceutical sectors. China’s official Purchasing Manager Index (PMI) fell to 49 in June 2023 from 48.8 in the prior month, which suggests less manufacturing activity leading to less supply of Azithromycin in the market. Surging demand for Azithromycin from end-user sectors amid rising antibiotic resistance bacteria kept the prices upper side. Apart from that, despite the ease of the COVID protocol, the supply chain remains disrupted amid the Russian-Ukraine war, increasing the overall transportation cost and increasing prices.

The prices of Azithromycin followed the same trend in the US market. The PMI of the US settled at 46.3 in June from 46.9 in the prior month, suggesting a lack of enough inventories among market participants. However, demand increased from end-user industries that supported the increased prices. The prices of Azithromycin also increased from exporting countries like China, leading to high prices in the US market. Apart from that, factors like increased freight charges, increased wages, and higher interest rates have all led to increased prices of Azithromycin.

The pandemic and subsequent war between Russia and Ukraine have affected the healthcare system of several European countries. In Europe, specifically in Germany, the inflation rate increased by 6.4% in June from 6.1% in the prior month resulting in more cost of production and maintenance of APIs, which led to increased prices of Azithromycin. Energy prices increased by 3% in June, leading to high costs for businesses relying on APIs. Also, the post-pandemic spread of infectious diseases has reduced the availability of Azithromycin in the European market, accompanied by strong demand, resulting in higher prices.

As per the ChemAnalyst analysis, the prices of Azithromycin are continued to increase in upcoming months due to consistent demand from end-user healthcare and pharmaceutical industries. Enough supply and improvement in trade activities might keep the market situation favorable.