November Likely to witness an Unremitting Rise in Sorbic Acid Prices

Within the North American region, primarily across the United States, the demand for Food excipients including Sorbic Acid is anticipated to expand at a continuous rate. Factors such as the escalated cost of production, higher downstream consumption, weakened supply, and currency fluctuation will continuing playing an important role in sustaining this higher pricing trajectory for Sorbic Acid in the US.             

Based on the market trends observed in the preceding month (October 2023), the demand for food excipients is forecasted to persist at elevated levels during the middle of the fourth quarter of 2023, specifically in November. Sorbic Acid, an efficient food preservative renowned for extending the shelf life of various products, proves especially valuable during winter months when colder temperatures and higher humidity increase the likelihood of food spoilage. Notably, the consumption of Sorbic Acid in the food industry reached an elevated status in October 2023, and this trend is expected to continue with the anticipation of increased orders for Sorbic Acid in major importing regions including North America and Europe, primarily originating from major exporting nations, notably China. One contributing factor to this sustained demand for Sorbic Acid is the advent of the holiday season. With various global festivities and celebrations underway, the consumption of processed foods is projected to remain high. This heightened demand encompasses preservatives, flavoring agents, and emulsifiers, thereby ensuring a continuous processing phase across exporting nations and maintaining elevated prices of end-products. Furthermore, anticipating potential shortages of goods during celebrations, individuals are likely to stock up on food items, thereby introducing an additional element supporting the upward trajectory of Sorbic Acid prices within importing regions like the United States.

Furthermore, economic conditions are expected to play another major role in the continued rise in the prices of Sorbic Acid. The demand for food excipients such as Sorbic Acid can also be affected by economic conditions. For example, during times of economic recession, people may be more likely to purchase processed foods that are less expensive than fresh foods.

As Sorbic Acid is a commodity that is traded worldwide, price changes in the major exporting countries of the world have an impact on North American consumers. For instance, if a shortage of Sorbic Acid arises in a key production area, it could result in elevated prices for Sorbic Acid on a global scale, including the United States. Market participants anticipate a potential disruption in the supply chain due to the delayed availability of Sorbic Acid in importing regions, which could perpetuate its upward pricing trajectory in the coming months. Adding to this complexity, Sorbic Acid is frequently traded in international markets, and fluctuations in exchange rates have the potential to impact its pricing. To illustrate, a weakening of the US dollar against other major currencies could render Sorbic Acid more expensive for buyers based in the United States.