Melatonin Market Downturns in Q2 After Being Optimistic From the Beginning of 2023

After the first quarter of 2023, followed by a bullish market trend, prices for Melatonin began to noticeably decrease in the domestic market of North America as the second quarter got underway. ChemAnalyst records show that just in April, the FOB (Freight on Board) prices for Melatonin decreased by 1.24% from the first quarter of the year. This drop in Melatonin values might be linked to market participants nationwide who overstocked the supplement out of a serious concern that there might be a shortage of it in the US nutraceutical industry. However, the local suppliers and producers reduced their bids in response to the huge fall in customer demand for Melatonin in April, which is what caused the decline.

Contrariwise, after a protracted period of anarchy, conditions seem to be starting to get better in the US. Nonetheless, economists are closely monitoring the economy because of the US market's negative trend in the first quarter of 2023 in terms of commerce and inflation. US President Joe Biden has portrayed the slump as something that was necessary, notwithstanding the boom that followed the pandemic's reopening, particularly the zero-Covid tolerance policy. The American economy is still robust, he noted in his remarks, as it transitions to steady and stable growth. Numerous predictions and industry experts predict that the US economy will experience a recession this year; however, the exact timing of that event is yet unknown. Also, it is something worth mentioning that this decline in the market has barely made a dent in the dynamics of the nation's Melatonin industry.

Things started to go undesirable when demand for the product began to fall in the second half of April because end-users had sufficient stock to meet regional demand. This compelled them to reduce their prices in order to retain profit margins and de-stock existing inventory. As for the forecast, the experts from ChemAnalyst predict that Melatonin prices may witness a further decline in the upcoming month if the demand for Melatonin does not pick up.