Potassium Benzoate Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of Potassium Benzoate in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Potassium Benzoate Price Trend for the Q1 of 2024

Asia

In China, a shift towards positive consumer inflation coincided with continued producer decline, highlighting the economic challenges in the region. The Lunar New Year festivities supported the increased consumer spending, driving consumer confidence in the market. However, upstream industries continued to face significant deflationary pressure, emphasizing the subdued sales figures of these industries.

Potassium Benzoate Price Chart

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Amidst these challenges, the traders of potassium benzoate regularly adjusted their pricing in accordance with the changing market dynamics, which further contributed to the uprise in the sentiments of the potassium benzoate price trend. The surging crude oil prices and intricate supply chain dynamics further complicated operations.

Europe

The potassium benzoate market experienced unprecedented price hikes due to a combination of factors such as disruptions in the supply chain, geopolitical tensions, and increased raw material costs. The surge in demand from various industries, including food and beverage, pharmaceuticals, and cosmetics, and limited inventories following reduced production rates during the previous holiday season raised the gap between supply and demand sectors.

The manufacturers responded to this heightened demand by raising the prices of potassium benzoate. The situation was further intensified by sharp increases in the prices of key raw materials like benzoic acid. Additionally, rising production costs, influenced by escalating prices of crude oil, have further contributed to the price surge.

The geopolitical tensions, particularly in the Middle East, disrupted global shipping routes, resulting in higher freight charges and supply chain delays, impacting the potassium benzoate market. The situation was further influenced by disruptions in the Red Sea, forcing cargo ships to reroute around the Cape of Good Hope and leading to significant shipping cost increases and delivery delays.

North America

In the first quarter of 2024, the United States potassium benzoate market registered a significant price surge. This surge is attributed to the escalation of demand from industries such as food and beverage, pharmaceuticals, cosmetics, and personal care. Other factors contributing to this surge were increased inquiries from overseas downstream industries, limited availability of finished stocks due to reduced operating rates during the last quarter of 2023, and a rebound in the US markets following stable interest rates.

Additionally, rising prices of potassium benzoate's raw material, benzoic acid, along with disruptions in global shipping routes due to geopolitical tensions and adverse weather conditions, further amplified the upward pressure on prices.

Analyst Insight

According to Procurement Resource, the price trend of Potassium Benzoate is expected to continue the escalating journey in the forthcoming quarters as the rising cost of feedstock materials and the appetite of several end-user industries present an optimistic outlook for potassium benzoate prices.

Potassium Benzoate Price Trend for the October - December of 2023

Asia

The potassium benzoate price trend usually mirror the variations in its feedstock potassium hydroxide (caustic potash) and benzoic acid markets. Since potassium benzoate is a potassium salt of the benzoic acid, it has strong antimicrobial activities It is extensively used as a potent preservative chemical in various food and pharma industries.

So, the quantity of market queries and orders from these sectors also determines the market performance for potassium benzoate. During the concerned period of Q4’23, the potassium benzoate prices were observed to be dwelling between confined limits for the majority of the time period.

Since the existing inventory was already at optimum levels and the demand curve was also consolidated for most of the given period, the variations in potassium benzoate prices were of short amplitude. Overall, mildly wavering price trend were observed for potassium benzoate during the said period.

Europe

The European market trend for potassium benzoate were found to be wavering on the lower end of the price curve during the concerned time period. Along with the low upstream cost support provided by the feedstock prices, steadiness in the demand dynamics also failed to motivate the market graph very positively.

North America

The North American potassium benzoate market followed its European counterpart closely during the said period of Q4’23. The freight disturbances amidst growing geopolitical tensions heavily influenced the market activities of the said market. Overall, mixed market sentiments were observed.

Analyst Insight

According to Procurement Resource, the Potassium Benzoate prices are expected to continue to waver in the coming months. Since the market trend are currently being governed by market demands and supply outlooks, swift variations are anticipated.

Potassium Benzoate Price Trend for the July-September of 2023

Asia

The potassium benzoate market exhibited positively wavering price trend throughout the given period of Q3’23. There were several factors that contributed to the inclining price graph of potassium benzoate. Since people started going out more freely after the COVID restrictions were removed, the potassium benzoate demands surged from the food preservatives and pharmaceutical industries.

The surge in feedstock benzoic acid and bicarbonates also pushed the potassium benzoate market prices upwards. Overall, since both the upstream factors with feedstock and downstream factors with consumer demands worked in favor of the potassium benzoate market trend, the potassium benzoate price index registered consistently growing numbers. Overall, very positive market sentiments were observed.

Europe

The European potassium benzoate market mirrored the growing trend of the Asian market as the prices remained on an upward trajectory here as well. With rapidly normalizing economic activities, the potassium benzoate demands showed an inclination, especially from the food and personal care sectors. Toluene prices, too, surged during the given time, which further pushed the potassium benzoate prices upwards. Overall, positive market sentiments were observed.

North America

The North American potassium benzoate market could not behave any differently than its Asian and European counterparts. Since the other industrial sectors were mostly in a regressive zone, the food and personal care sectors were still flourishing in the region. Overall, a positively inclined price graph was observed for potassium benzoate during the said period of Q3’23.

Analyst Insight

According to Procurement Resource, Potassium Benzoate prices are projected to continue wavering in a positive manner in the coming months as well. The current demand dynamics project a positive market response going forward.

Potassium Benzoate Price Trend for the First Half of 2023

Asia

In the Asia Pacific region, prices of potassium benzoate declined in the initial phase due to the falling market activities of the food, pharmaceuticals, and related sectors. But towards the end of the quarter, the trend inclined till the middle of the second quarter. This phase of the market was positively influenced by a significant rise in the number of new orders from both domestic and international buyers, with a strong supply to sustain this high demand.

The cost of raw materials and fluctuations in the energy sector also supported the northward trajectory of the potassium benzoate price trend. However, in the later months, the prices began to decline. Several factors, such as the reduced number of new orders, the falling market of raw materials, and the increasing level of inventories, adversely affected the potassium benzoate prices.

Europe

The European region was negatively impacted by the ample availability of feedstock materials and falling demand dynamics of the region in the first quarter of 2023. The trend improved slightly in the later months of the first quarter and in the initial phase of the second quarter. This hike was supported by the unexpected increase in domestic orders and surging costs of energy production and shipments. The rise was, however, short-lived as the prices of potassium benzoate declined again as weak demand dynamics circled around the market.

North America

The low prices of feedstock materials and sufficient availability of the product in the market hampered the growth of potassium benzoate prices. A phase of stability was observed in the initial months of the second quarter, but the trend soon declined again. The hike was supported by the improvement in demand and a reduction in the number of inventories. However, the decline in prices was attributed to the slow market activities and hesitation in consumer confidence in the market.

Analyst Insight

According to Procurement Resource, the price of Potassium Benzoate is estimated to depict a fluctuating trajectory as the falling global market activities and slow demand will negatively impact the potassium benzoate price trend.

Procurement Resource provides latest prices of Potassium Benzoate. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.