Global Diphenhydramine Hydrochloride Prices Set to Rise in November Amid Supply Challenges

The global prices of Diphenhydramine Hydrochloride are expected to increase in November 2023. This projection is based on factors such as growing demand from end-user sectors, reduced inflationary pressure, and diminished inventories in the market. Diphenhydramine Hydrochloride, commonly known as Benadryl, alleviates symptoms of allergies, hay fever, and the common cold. With the onset of seasonal allergies, the cold and flu seasons, and other health-related trends, the demand for Diphenhydramine Hydrochloride is anticipated to surge in November, potentially leading to an upward price trend.

In China, the manufacturing sector is expected to encounter additional hurdles in the fourth quarter, with most factories striving to complete work by year-end. This scenario will likely result in low production and limited stocks in the market, potentially exerting upward pressure on Diphenhydramine Hydrochloride prices. Manufacturers have also noted higher prices for raw materials and oil, contributing to an increase in the rate of input inflation to a nine-month high, which could also impact the Diphenhydramine Hydrochloride market. Furthermore, new product launches and enhanced client demand, both domestically and internationally, are anticipated to bolster growth, maintaining a favorable market environment for Diphenhydramine Hydrochloride.

A similar trend in Diphenhydramine Hydrochloride is anticipated in the European and USA markets, where China plays a major role as an exporter of Active Pharmaceutical Ingredients (APIs). Recent observations indicate that the strengthening of the Chinese yuan against the USD may result in sluggish exports of APIs from China to foreign nations in November, thereby limiting the overall supply in the USA and European markets and potentially leading to an increase in Diphenhydramine Hydrochloride prices. Additionally, recent developments in the USA reveal a slowdown in inflation, attributed to lower gasoline prices, raising the likelihood that the Federal Reserve has concluded its interest rate hikes. Similarly, inflation is on a favorable trajectory in the Eurozone, reaching its lowest point in two years at 2.9% in October, down from its peak of 10.6% a year ago. This downward trend is anticipated to persist into 2024, potentially impacting consumer spending and increasing Diphenhydramine Hydrochloride prices.

In India, the manufacturing sector has experienced a recent deceleration, leading to a reduced inventory of Diphenhydramine Hydrochloride to meet the growing demand from both domestic and international markets, which has contributed to an upswing in prices. Furthermore, given that inflation has just dropped to a four-month low and is still below the 6 percent comfort level set by the Reserve Bank of India, there is a chance that consumer spending would rise, which could be advantageous for the Diphenhydramine Hydrochloride market.

According to ChemAnalyst's study, the Diphenhydramine Hydrochloride pricing forecast predicts a fall by the end of the fourth quarter, affected by a decline in end-user demand and the availability of abundant inventory in the market. Nonetheless, globally, prices are expected to rise at the start of FY24, driven by a revival in consumer confidence, resulting in a favorable market outlook.