The sodium benzoate market experienced a steep rise in price during March 2025 and is expected to persist with bullish pressure until April. Being one of the standard preservatives for the food and pharmaceutical sectors, sodium benzoate has been experiencing steep increases in costs at major producing and consuming countries like China, the United States, and Germany.

In China, the world's largest producer—prices increased consistently throughout March following the Lunar New Year holiday. Inventories accumulated prior to the holiday, carefully warehoused, were quickly consumed through ferocious post-festival discounting. When production resumed, fresh merchandise flooded into the market at significantly higher prices, deriving from surging energy, labor, and raw materials expenses.

The switch over from clearance inventory to newly produced lots has seriously restricted supply conditions for sodium benzoate and immediately caused the present price increase. Compounding these issues, key Chinese ports in March suffered severe congestion. Shanghai Port alone had posted 336 calls for container ships up to mid-month, reflecting enhanced logistical strain. Such shipping bottlenecks again weakened sodium benzoate supply chains and exacerbated price pressures.

Even the post-holiday re-opening of production plants was a problem, with manufacturers having gigantic backorders on sodium benzoate. Companies rushed production timetables, typically at overtime rates for workers and expedited shipping, adding to the increase in prices.

In March, the price of importing sodium benzoate into the United States jumped sharply due to recently imposed tariffs on specialty chemicals. The tariffs substantially raised landed costs for U.S. importers, triggering a cascading effect of price increases passed along the domestic supply chain.

Worsening the circumstances, critical port delays at strategic waterway hubs—notably the Port of Savannah—resulted in extended lead times and rising freight costs. Those transportation clogs added more expense to supply networks across the country, compounding the cost strain on sodium benzoate through the U.S. market.

Germany also experienced prices of sodium benzoate increasing, primarily due to increasing world supplies and increased freight costs. European food processors, who are very reliant on sodium benzoate for preservation, have been worried that prices like these will negatively impact their cost of production.

The outlook for demand for sodium benzoate continues to be strong in all markets. China's manufacturing economy is recovering, with the Purchasing Managers' Index at 50.5 in March, a sign of moderate expansion. The growth, combined with rejuvenated food processing and pharmaceutical industries after the holiday season, has provided strong demand for sodium benzoate at a time when conditions in supply have become tighter.

Industry players predict sodium benzoate prices will continue rising until April 2025. The US market specifically predicts consistent price hikes as tariff impacts fully take hold and logistical challenges persist. Similarly, Chinese producers predict ongoing price increases in sodium benzoate as they continue to be busy filling backlog orders amidst rising production costs.

For manufacturers that depend on sodium benzoate, these price trends present significant challenges. Food processing companies, in particular, will need to balance reformulation or cost absorption as preservatives become more expensive.

Market experts recommend that companies dependent on sodium benzoate review their purchasing strategies and consider longer-term agreements to stabilize prices in this uncertainty.