For the Quarter Ending June 2023
North America
In the United States market, the prices of Aspartame demonstrate a mixed trajectory, but overall, it sustained its downward market trend until the end of the second quarter. The beginning of the second quarter witnessed a decremented price trend for Aspartame, followed by the market trend of the previous month. This trend was supported by an incessant drop in domestic demand coupled with higher supplies among the market participants. However, in Early May, the prices improved slightly because of a moderate surge in domestic inquiries. The merchants, additionally, possessed enough inventories for this that could cater to the overall demand side. In addition, at the end of the second quarter, Aspartame prices decreased again, displaying a weaker market trend. The significant decrease was attributed to several factors. Firstly, domestic merchants were destocking down on Aspartame inventories at lower rates owing to consistently weak demand. Secondly, the recent news from the WHO (World Health Organization) that Aspartame is likely to classify as a potential carcinogen by the International Agency on Cancer (IARC) miffed the demand for all artificial sweeteners, especially the Aspartame, thus keeping the market trend of Aspartame on the fragile side and causing merchants to be concerned about their stocks.
Asia Pacific
During the second quarter of 2023 across the APAC region, primarily concerning both China and India, Aspartame prices experienced a contrary market trend. As for the Chinese market, aspartame prices dropped throughout the second quarter, with a negligible rise in the middle of the second quarter of 2023. While across the Indian market, it went down consistently, sustaining a downward trend. As of April, the demand for Aspartame used as a sweetener in the food industry continued to remain on the weaker side as the inquiries from both the domestic and international markets were negligible, resulting in lessened production activity. Manufacturers across the Chinese market primarily focused on destocking their inventories from warehouses rather than stocking them up. Similarly, in the Indian market also, owing to a consistent drop in inquiries, the traders pulled back their further quotations on account of consistent weak demand anticipations in upcoming months. As the month of May comes to an end, the price of Aspartame continues to show its weak price trend in the Indian market while there were signs of recovery in demand observed across the Chinese market. Additionally, the merchants had more than enough inventory in comparison to the demand, which slightly increased in China. Moreover, in June, the prices of Aspartame decreased drastically in both regions. Owing to this, the manufacturers had to reduce their production activity and destock inventory in order to maintain their profit margin.
Europe
Across the European market, the price of Aspartame fell throughout the second quarter of 2023, with a marginal rise in May 2023. Following the market trend of the previous month, the prices of Aspartame dropped across the German market during the month of April. However, in May, the participants witnessed a positive market sentiment for Aspartame as demand rose slightly, which was further balanced out by overall inventories available among the domestic merchants. But as June concludes, the prices fell across the German market by more than 15 percent as a result of weakened global demand and domestic inquiries. Traders and suppliers across the German market additionally pulled back their orders and focused on clearing out their accumulated stockpiles first. In addition to that, the decrease in the consumption of diet cokes containing Aspartame as a result of recent news from WHO, which is likely to categorize Aspartame as having carcinogen as it might result in the carcinogenic effect has affected consumer purchasing power, resulting in weak buying activity a sudden drop in its prices.
