Insights into the potassium sorbate market
Product information on potassium sorbate
Potassium sorbate acts as a preservative in a variety of applications. It is an indispensable component in manufacturing processes for many products, not only food. Primarily added to beverages, and meat and sausage products, it is also used in pet food, agricultural additives, and sports, health and personal care products, to name but a few.
Potassium sorbate is a sorbic acid salt (E200). It occurs as a natural substance – in rowan berries, for instance – but is produced synthetically for commercial purposes. It is manufactured in a chemical process without using genetically modified bacterial strains or molds.
Potassium sorbate is mainly used as a preservative since it is virtually tasteless and odorless, meaning it has little or no effect on the end product’s final properties.
Compared to sorbic acid, potassium sorbate offers the advantage that it is soluble in fat and highly soluble in water. No animal products are used in potassium sorbate production.
Information on the current market situation
Prices for potassium sorbate and sorbic acid are currently at historically low levels. It is therefore currently a very good time to procure quantities under favorable conditions and secure supplies for the long term. Even though some raw material prices for production have risen dramatically over recent weeks, the prices for potassium sorbate have scarcely changed.
As in the past, the requirements for the coming year are largely finalized between September and December. Consequently, there may be shortages in availability once more, as was the case last year, and reaching the duty-free quota could become highly challenging. We therefore advise you to set out your requirements and conclude contracts in good time.
Outlook
The reason for this price trend is primarily the weak demand and the stagnant economic figures in China. However, this situation is not expected to persist for the long term and prices will increase again. The Chinese government will do all it can to provide stimulus and revive the sluggish economy, out of self-interest if for no other reason. It should also not be assumed that manufacturers can achieve a financially viable manufacturing process with prices at their current level. Regulation through calculation or even capacity restrictions cannot be ruled out.
We will be happy to monitor further developments for you and look forward to receiving inquiries about your contract volumes. Feel free to contact us!
Stefan Koch
Head of BU Life Science
Phone: +49 40 300 501 8141
Mail: s.koch@terchemicals.com