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Lactic Acid Market Gains Momentum in the US Commencing with Q2 2023
Lactic Acid Market Gains Momentum in the US Commencing with Q2 2023

Lactic Acid Market Gains Momentum in the US Commencing with Q2 2023

  • 22-May-2023 3:14 PM
  • Journalist: Rene Swann

After a protracted period of chaos, conditions in the United States appear to be beginning to improve. The US market's downward trajectory in the first quarter of 2023, though, has economists keeping a close eye on the economy. Despite the boom that followed the pandemic's reopening, US President Joe Biden has framed the downturn as a necessary adjustment. As it shifts to steady and stable growth, the American economy is still strong, he said in his statement. The US economy will likely enter a recession this year, according to many forecasts and industry experts, although when that will happen is still uncertain. According to the recent report on GDP, the broadest indicator of economic activity, the financial state has now expanded for three consecutive quarters now. All these elements together have had an impact on the domestic US market for nutraceuticals, including Lactic Acid, which experienced a decline in the first quarter of 2023. The first three months of the year saw a slowdown in the United States as companies scaled down spending in response to rising borrowing prices.  

However, in the second quarter of 2023, Lactic Acid prices started to pick up steam in the domestic market of the US. Since the beginning of 2023, the CFR (Cost and Freight) prices of Lactic Acid had been falling; however, as the second quarter got underway, the trajectory accelerated at a steady pace with a price variance of ~4.6% in April alone. The primary causes of the increase in Lactic Acid prices across the country in April 2023 were the destocking of local manufacturers' and suppliers' inventories as well as the improved demand for its new stock from end-user industries like food and beverage (F&B), cosmetics, and nutraceuticals. The fact that freight charges between North Asia, i.e., China and the US, also increased dramatically in April helped to support the positive price chart for Lactic Acid, which indicates an upbeat demand and supply dynamic. Although there is currently no evidence that greater import demand or better bookings have supported the trans-Pacific rate hikes, growing regional demand for Lactic Acid has been a contributing factor to the high Lactic Acid prices across the nation. 

In the forthcoming months, Lactic Acid's price is predicted by ChemAnalyst to decrease once again. Although most leading signs of recession are still flashing red and the impact of tighter credit conditions hasn't fully materialised, market analysts and economists are anticipating a more pronounced deterioration soon. Analysts are anxiously waiting to see how the biggest economy in the world responds to a combination of rising interest rates and shifting market conditions, including those for the Lactic Acid market.

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