Calcium Propionate Witnesses an Improved Price Trend in May 2023 Across the Globe

Calcium Propionate is a common food preservative used in a variety of products, including bread, cheese, and baked goods. Calcium Propionate demand has grown as demand for these goods has increased. The cost of raw materials, such as Propionic Acid and Calcium Carbonate used to produce Calcium Propionates, has increased in recent years. As a result, Calcium Propionate producers' production costs have risen. China has recently implemented new regulations on the use of food preservatives. These regulations have made it more difficult for manufacturers to obtain approval for new food preservatives, which has limited the supply of Calcium Propionate. However, prices are probably going to stay high for a while. This is due to the continued increase in demand for Calcium Propionate and the high cost of raw materials.

In both the European and the North American regions, the demand for Calcium Propionate has been increasing due to the growing popularity of packaged and processed foods. These foods are often more convenient than fresh foods and are considered safer. Also, the supply of Calcium Propionate has been reduced in recent months due to a few factors, including the COVID-19 pandemic, which has disrupted the global supply chain, making it more difficult and expensive to get Calcium Propionate to Europe. Inflation has also contributed to the rising cost of Calcium Propionate.

According to the US Bureau of Labour Statistics, inflation in the United States is now at 4.93%. Inflation is a measure of the rate at which prices are rising, and it can significantly impact people's spending power. The US Federal Reserve is taking steps to try to control inflation, but it will likely remain elevated for some time. Europe's supply and demand dynamics in May 2023 are expected to be volatile, with a few factors contributing to uncertainty. On the supply side, the war in Ukraine continues to disrupt energy markets, with Russia being a major natural gas supplier to Europe. This has led to higher energy prices, putting upward pressure on inflation. Also, as the European economy is recovering from the COVID-19 pandemic, demand for goods and services is increasing. This also increased the product prices in the region.

Furthermore, Food inflation in the US has been on the rise in recent months, with prices for many food items increasing at a faster pace than overall inflation. The Consumer Price Index for food at home grew by 8.5% in the year ending May 2023, according to the US Bureau of Labour Statistics.

According to ChemAnalyst, the Calcium Propionate prices are likely to remain appreciated on the back of increased raw material Calcium Carbonate and Propionic Acid prices. Also, rising food inflation and increased food commodity prices will further support the rising trajectory.