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Fatty Acid Price Trend and Forecast

UNSPC code: 12352106
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âźł Weekly Update
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Historical Data Since 2015
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Forecast for 2026

fatty acid Price Trends by Country

idIndonesia
myMalaysia
nlNetherlands
inIndia
brBrazil

Global fatty acid Spot Market Prices, Trend Analysis and Forecast

Fatty acid price trend further strengthened in Q2 2025, supported by firm demand dynamics across key end-use sectors and sustained strength in palm kernel oil (PKO) feedstock prices. The quarter witnessed over a 5% increase quarter-on-quarter with gains building steadily on the pricing momentum observed in Q1 2025.

Demand remained robust from the personal care, surfactant, and industrial lubricant segments, while limited supply from select Southeast Asian producers further tightened market fundamentals. Track real time fatty alcohol price trend analysis.

Buyers in South Asia and the Middle East remained active, contributing to elevated trade volumes throughout the quarter. Despite occasional logistical disruptions, overall sentiment stayed firm. According to PriceWatch, Fatty acid (Lauric acid) prices were assessed at USD 2,140–2,200 per metric ton FOB Belawan, Indonesia, reflecting a strong finish to the quarter.

Fatty Acid Price Trend Analysis: Q2 2025

Fatty acid prices further strengthened in Q2 2025, supported by firm demand dynamics across key end-use sectors and sustained strength in palm kernel oil (PKO) feedstock prices. The quarter witnessed over a 5% increase quarter-on-quarter, with gains building steadily on the pricing momentum observed in Q1 2025.

Demand remained robust from the personal care, surfactant, and industrial lubricant segments, while limited supply from select Southeast Asian producers further tightened market fundamentals.

Buyers in South Asia and the Middle East remained active, contributing to elevated trade volumes throughout the quarter. Despite occasional logistical disruptions, overall sentiment stayed firm. According to PriceWatch, Fatty acid (Lauric acid) prices were assessed at USD 2,140–2,200 per metric ton FOB Belawan, Indonesia, reflecting a strong finish to the quarter.

Fatty acid prices rose sharply in Q1 2025, driven by a confluence of limited production capacity, strong downstream demand, and a sustained rally in palm kernel oil (PKO) prices. The quarter opened with tight availability across major Southeast Asian producers, while heightened interest from the personal care, detergent, and oleochemical sectors placed upward pressure on prices. Regional restocking in South Asia and firm contract buying from global buyers further contributed to bullish sentiment.

In particular, lauric acid, a key derivative, experienced robust gains amid constrained feedstock flows and logistical tightness. Market participants cited aggressive short-term procurement as a key driver of price strength. By the end of the quarter, Lauric Acid prices in Indonesia exceeded USD 2,000 per metric ton FOB Belawan, marking a strong quarterly performance.

Fatty Acid Price Trend Analysis: Q4 2024

Fatty acid prices surged in Q4 2024, supported by tightening supply fundamentals and renewed demand from key downstream sectors, particularly personal care and industrial lubricants. The market climbed to an 18-month high in December, driven by constrained availability of palm-based feedstocks and heightened global interest in bio-based ingredients. An unexpected uptick in European demand added pressure to already tight supply chains, while logistical congestion at Port Kelang further exacerbated delays and elevated price risks.

Buying momentum remained strong across most markets, with aggressive restocking evident in South Asia and the EU. The quarter’s steady upward trend reflected a structural imbalance between demand and supply. Lauric Acid prices in Malaysia averaged USD 1750 per metric ton FOB Port Kelang in Q4 2025, marking one of the strongest closes in recent years.

Fatty acid prices strengthened through Q3 2024 as the market rebounded from early summer lows. Demand accelerated from the home and personal care sectors, driven by seasonal consumption, school-season restocking, and robust global retail activity. September proved especially active, supported by a pickup in buying from South Asia and disruptions in alternative oil supply chains due to weather-related events in the U.S.

The European market saw renewed attention toward renewable and palm-based feedstocks, spurred by regulatory shifts favouring sustainable inputs. As a result, fatty acids maintained a premium over competing derivatives, with Malaysian and Indonesian exports leading global flows. Throughout the quarter, sentiment remained firm. Lauric acid prices in Indonesia stood at USD 1350 per metric ton FOB Port Belawan, reflecting steady market momentum.

Fatty acid prices posted strong gains in Q2 2024, supported by tightening availability and firm international demand. Labor shortages in Malaysian plantations disrupted palm kernel oil production, leading to constrained feedstock availability and reduced fatty acid output. Buyers in India front-loaded purchases ahead of the monsoon, while European restocking activity resumed after prior inventory drawdowns. At the same time, tight fundamentals across the palm complex—including strength in CPKO and PKO—amplified bullish sentiment.

Despite rising input costs pressuring downstream margins, demand from surfactant, cosmetic, and industrial users held firm. Traders reported increased short-term buying and limited forward selling. This bullish environment drove Fatty Acid prices in Indonesia to their strongest quarterly level since 2021, with quarterly averages of Lauric acid at USD 1120 per metric ton FOB Belawan.

Fatty acid prices declined in the first half of Q1 2024, largely due to slow post-holiday demand and cautious procurement across key markets. However, the market gained momentum in the second half of the quarter, as demand picked up from Middle Eastern and South Asian buyers. This was supported by a post-monsoon recovery in industrial activity, and rising concern over El Niño-related production risks, which lifted market sentiment and encouraged restocking.

Traders noted a firming trend in late February through March, with palm kernel oil prices also beginning to strengthen. The quarter closed on a stronger note than it began, with increased confidence in forward supply dynamics. Fatty acid, Lauric acid, prices in Indonesia averaged USD 970 per metric ton FOB Port Belawan for the first quarter of 2024.

Technical Specifications of Fatty Acid Price Trends

Fatty Acid Industrial Applications

Fatty acids are essential in various industries: they improve hydration in personal care products, act as emulsifiers in food, and are key in biodegradable lubricants and cleaning products. They enhance drug stability in pharmaceuticals, serve as renewable biodiesel, and improve textiles and animal feed, showcasing their versatility and importance.

Historically, several events have caused significant fluctuations in Fatty Acid prices

  • EU Renewable Directive Shift (2024): 

In 2024, the European Union implemented stricter sustainability regulations, incentivizing the use of bio-based and renewable chemicals. This led to a structural increase in demand for palm-derived fatty acids, especially in personal care and industrial sectors. Prices responded with sharp gains, especially in Q4 2024.

  • Russia-Ukraine War & Energy Shock (2022): 

The war disrupted sunflower oil exports and caused a global edible oil shortage, increasing reliance on palm-based alternatives. Crude oil price spikes also raised freight and processing costs. The dual impact of supply shift and inflationary pressures pushed fatty acid prices higher through mid-2022.

  • COVID-19 Pandemic Disruptions (2020–2021): 

The global pandemic severely disrupted supply chains, including palm oil and its derivatives. Lockdowns led to reduced plantation labor availability in Malaysia and Indonesia, curbing palm kernel oil (PKO) production. Simultaneously, demand for fatty acids surged due to heightened consumption of hygiene and personal care products. This mismatch caused a spike in prices, especially during late 2020 and early 2021.

Why PriceWatch?

PriceWatch is your trusted resource for tracking global fatty acid price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the fatty acid market. By monitoring critical events such as geopolitical tensions, supply chain disruptions, and economic shifts, PriceWatch keeps you fully informed of market dynamics.

In addition, PriceWatch provides detailed forecasts and updates on production capacities, enabling you to anticipate market changes and make well-informed decisions. With PriceWatch, you gain a competitive edge in understanding all the elements that influence fatty acid prices worldwide. Stay ahead of the curve with PriceWatch’s reliable, accurate, and timely fatty acid market data.

Track PriceWatch's fatty acid price assessment on a weekly basis since 2015 onwards, along with short-term forecasts, and get access to the detailed report in a downloadable format.

Data Collection and Sources​

  • Real-Time Market Data: PriceWatch aggregates real-time pricing data from a diverse range of sources, including global commodity exchanges, industry reports, and proprietary databases. This ensures that our assessments reflect the most current market conditions.
  • On-the-Ground Intelligence: Our team gathers insights directly from key market participants, including producers, suppliers, traders, and end-users, across major fatty acid production hubs. This ground-level intelligence is crucial for understanding localized market dynamics.
  • Supply Chain Monitoring:  We track the entire fatty acid supply chain, from raw material availability (e.g., vegetable oils and animal fats) to production and distribution. This involves monitoring feedstock prices, production capacities, and transportation logistics to ensure efficient production and timely delivery, effectively meeting market demand.

Event Tracking and Impact Analysis​

  • Natural Disasters: Disruptive events like hurricanes can lead to supply shortages and price spikes, creating uncertainty for both producers and consumers.
  • Raw Material Price Volatility: When feedstock prices (e.g., palm oil, soybean oil) rise, production costs for fatty acids increase, pushing prices higher. Conversely, falling raw material prices can provide relief.
  • Geopolitical Tensions: Conflicts in key producing regions can disrupt supply chains, leading to unpredictable price swings and challenges for businesses trying to maintain stability.
  • Regulatory Changes: New environmental regulations may increase costs and limit supply, causing prices to climb. Favorable trade policies can help stabilize the market, offering some predictability.
  • Market Demand Shifts: Growing consumer interest in sustainable and organic products can drive demand and prices up, while declines in sectors like textiles may lower prices.
  • Technological Advances: Innovations can reduce production costs, potentially lowering prices. However, if alternatives gain traction, traditional fatty acids may face downward pressure.
  • Global Economic Conditions: Economic growth boosts demand and prices, while recessions can dampen them. These shifts affect everyone in the supply chain, from producers to consumers.
  • Epidemic or Pandemic Events: Health crises like COVID-19 can disrupt supply chains and alter consumer behavior, leading to sharp price fluctuations and challenges for many businesses.

Production Capacity and Supply Analysis

  • Current Production Monitoring: We maintain a comprehensive database of global fatty acid production facilities, tracking their operational status, maintenance schedules, and output levels. This allows us to assess current supply availability accurately.
  • Future Capacity Projections: Our research includes detailed forecasts of upcoming fatty acid production capacities, factoring in new plant constructions, expansions, and technological advancements. This helps in predicting future supply trends and potential price stabilization.

Demand Forecasting

  • Sectoral Demand Analysis: PriceWatch provides in-depth analysis of demand trends across key sectors, including packaging, automotive, and construction. We track year-on-year demand growth and project future consumption patterns based on economic indicators and industry developments.
  • Global Demand Dynamics: Our methodology considers regional demand variations and how they influence global fatty acid pricing. This includes understanding the impact of shifts in manufacturing bases, trade policies, and environmental regulations.

Pricing Model Development

  • Dynamic Pricing Models: PriceWatch utilizes advanced econometric models to forecast fatty acid prices, incorporating real-time data, historical trends, and projected market conditions. Our models are continuously refined to enhance accuracy and predictive power.
  • Scenario Analysis: We conduct scenario-based assessments to evaluate potential future market conditions. This includes best-case, worst-case, and most likely scenarios, helping our clients prepare for a range of market outcomes.

Reporting and Client Support

  • Comprehensive Reports: Our clients receive detailed reports that include current price assessments, future price forecasts, and in-depth analysis of market drivers. These reports are designed to be actionable, providing clear insights and recommendations.
  • Ongoing Support: PriceWatch offers continuous updates and personalized support to our clients, ensuring they have the most up-to-date information to make informed decisions. Our experts are available to discuss specific market developments and provide tailored advice.

This research methodology ensures that PriceWatch delivers the most accurate, timely, and actionable fatty acid pricing assessments, helping our clients stay ahead of market trends and make informed business decisions.

Fatty Acid Market Price Trend provided by PriceWatch is a base price and excludes VAT/Taxes, discounts, or offers. The information herein is accurate to the best of our knowledge as of the date indicated and is provided solely for the convenience of our customers as a reference for fatty acid. PriceWatch disclaims any warranties or representations regarding the accuracy of results derived from this information. It is the sole responsibility of the user to assess the suitability of the product for their specific application. This document does not constitute an endorsement to use the product in violation of any applicable patent rights.

The pricing of fatty acids is influenced by several key factors, including raw material costs, production methods, supply chain dynamics, and market demand. Fluctuations in the prices of feedstocks such as palm oil and coconut oil can significantly impact fatty acid prices. Additionally, environmental regulations and shifts towards sustainable sourcing can lead to increased production costs. Understanding these factors is essential for procurement heads to make informed purchasing decisions.

To ensure the sustainability of your fatty acid supply, consider sourcing from certified suppliers who adhere to eco-friendly practices and standards. Look for suppliers that provide transparency in their sourcing and production processes and consider those who invest in sustainable agriculture. Collaborating with suppliers committed to sustainability can not only mitigate risks but also enhance your brand reputation in the market.

The price trend for fatty acids is expected to remain volatile due to ongoing factors such as raw material price fluctuations, geopolitical tensions, and increasing consumer demand for sustainable products. While short-term price spikes may occur, the long-term outlook suggests a potential stabilization as more suppliers adopt sustainable practices and as production technologies improve. Staying informed about market developments and maintaining strong supplier relationships will help procurement heads navigate these trends effectively.

Access Real-Time Fatty Acid Price Trends