Glyoxylic Acid Market Prevails Bearish Trend Amidst Dwindling Demand

During the first half of June 2024, the global Glyoxylic Acid market exhibited bearish sentiments, with demand remaining subdued in recent weeks. Despite expectations of increased procurement orders of Glyoxylic Acid from the downstream cosmetics and haircare industries due to the summer season, this anticipated surge in demand did not materialize.

In Europe, the Glyoxylic Acid market experienced a downward trajectory following a period of stagnation. This decline occurred amidst the stable price of essential feedstock, nitric acid. Recently, Elf Beauty's projection of annual sales and profit figures falling below Wall Street expectations highlighted the challenges facing the cosmetics industry. Persistent inflation has constrained Americans' disposable income, reducing their ability to spend on affordable luxuries like cosmetics and skincare products. This decrease in consumer spending directly affects the demand for Glyoxylic Acid, a key ingredient in many cosmetic and haircare formulations. Additionally, retailer Ulta Beauty reported a slowdown in demand across various categories. Moreover, the European market saw a narrowed disparity between demand and supply due to a smooth flow of cargoes from exporting country the USA, with no major supply chain disruptions recorded. The consistent supply ensured no significant shortages of Glyoxylic Acid, maintaining a balanced yet oversupplied market condition.

Similarly, the Asian Glyoxylic Acid market experienced a downturn in prices, declining by 0.8% in the Indian market during the first half of June 2024. Despite expectations of a surge in consumption from the downstream cosmetics and personal care industry due to the summer season, demand remained modest. The Consumer Price Index for the Personal Care sector, released by the Ministry of Statistics and Programme Implementation (MOSPI) India, increased from 191.3 points in March to 196.9 in April, with projections indicating further increases in May and June 2024. However, the increase in domestic demand was not substantial enough to offset other market factors. International demand for Glyoxylic Acid remained restricted due to elevated freight charges, making international consumers hesitant to make bulk purchases. This reluctance from global contributed to the overall modest demand scenario in the Indian Glyoxylic Acid market. Despite these demand-side challenges, manufacturing units producing Glyoxylic Acid within the country continued to operate at a healthy rate, ensuring no major shortages in inventories and maintaining a stable supply in the market.

Looking ahead, the forecast for the Glyoxylic Acid market remains cautious. While some recovery in demand for Glyoxylic Acid from the cosmetics and personal care industries is expected as inflationary pressures ease and consumer confidence improves, the market may continue to face challenges from elevated freight costs and global economic uncertainties. Additionally, any fluctuations in the supply chain or feedstock prices could impact Glyoxylic Acid market stability. Continuous monitoring of economic indicators and industry trends will be crucial for stakeholders to navigate the evolving market dynamics in the coming months.