US Benzoic Acid Excipient Prices Surge Amidst Increased Demand and Supply Chain Challenges

Since the end of the second quarter of 2023, the price of Benzoic Acid Excipient has been rising steadily across the North American region, and this trend is expected to last until the start of the fourth quarter. Some factors supporting its rising market trend in the North American region, particularly in the United States, include rising end-user demand for its end product, higher shipping costs, and higher upstream costs.

Increased demand for Benzoic Acid Excipients in the chemical, food, beverage, and pharmaceutical industries kept their prices increasing. The popularity of processed foods and cosmetics and the growing use of Benzoic Acid Excipient as a preservative were the main causes of this price increase. Aside from that, disrupted weather patterns also contributed to the rise in demand for Benzoic Acid Excipients by affecting the availability of processed and canned foods for an extended period and causing their deterioration. The market participants rely on the use of Benzoic Acid Excipients in their industries due to the application of microbial preservatives that are also cost-effective and safe due to the hotter weather conditions across the United States. Additionally, this leads to safer access to downstream end products over a longer period.

In addition, the previous month's statistics show that the US manufacturing sector contracted in July for the ninth consecutive month as companies reduced headcount and production, and new orders suffered due to a slowing in demand. At the same time, the US Consumer Price Index accelerated from the 3.0% growth seen the month before to rise by 3.2 percent year-over-year to 305.691 points in July 2023. Additionally, the Yuan that buyers and traders paid to buy Benzoic Acid Excipient and related goods decreased as China's economy raised concerns about global growth. In addition, inflation is also a factor in the Benzoic Acid Excipient price increase. Toluene, labor, and transportation costs are all rising, which raises the price of benzoic acid production in the exporting countries.

Along with the hotter weather, Benzoic Acid Excipient imports also suffered. Higher freight costs from exporting countries, particularly from China, aided this. The availability of Benzoic Acid Excipient was still being affected owing to supply chain issues, which contributed to the price increase. Transportation bottlenecks from China to other importing nations, particularly the USA, partially caused by logistical challenges, have also hindered the efficient supply of finished goods. As a result, suppliers were motivated to raise their prices nationwide, raising costs for buyers and purchasers.