Pectin prices across the globe increased in the first half of the third quarter after experiencing a persistent downward market trend, and it is estimated that this trend will continue until the last few weeks of August. There are several factors, such as the erratic supply of upstream citrus fruits in the US and German markets, rising freight costs, higher energy prices, rising food inflation, and supply constraints due to lower yields, which result in less availability on both the domestic and global markets and a sizable currency fluctuation. These factors led to a higher price trend for Pectin in both regions.

The already bleak forecast for Florida's 2023 citrus harvest in North America, which Hurricane Ian already impacted, was made even worse. In addition, the storm came after years of fruit tree damage from the bacterial infection known as citrus greening, which can kill citrus trees. The citrus greening disease has caused a recent decline in Florida's citrus production. Citrus fruits were more expensive than in previous years due to the shortage caused by the decline in production in the U.S. market. H.M. Pectin, among other downstream products, experienced a significant market trend change as a result of this significant decline in the upstream material, resulting in its higher prices across the region as the demand from the neighboring countries surged until the beginning of August and might remain at edge throughout the end of this Q3.

In a similar vein, the ongoing geopolitical tension between Russia and Ukraine has had an impact on the world supply market and continues to do so. As a result, the European region continues to face significant production and export challenges. The market expert claims that German businesses dependent on Russian gas imports have had to pay higher prices. Costs for production have gone up as a result. In addition, the lower yield of upstream material resulting from unfavorable weather in Germany in July 2023, such as frost and drought, is a major worry for the downstream Pectin industry. Pectin is another ingredient employed in several sectors, such as the food, cosmetics, and pharmaceutical industries. Pectin supply is already under pressure due to rising demand from these sectors of the economy. Pectin production has become more expensive recently due to rising energy and raw material costs. This has made it more challenging for Pectin manufacturers to turn a profit, which has caused some manufacturers to leave the market. A skilled labor shortage in recent months has made it challenging for Pectin producers to find employees. This has also caused a decrease in production, weakening availability for both the domestic and global markets. Pectin production requires skilled labor, and there is a shortage of skilled labor.