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Indonesia
Malaysia
Netherlands
India
BrazilLooking ahead to the fourth quarter of 2024 and beyond, a partial recovery in fatty acid production will have been anticipated as supply chain issues are addressed and weather conditions stabilize. However, the market will have been expected to remain volatile through 2030. Ongoing impacts of climate change, shifts in trade policies, and evolving consumer preferences for sustainable alternatives will have continued to influence price fluctuations and overall market stability.
In the third quarter of 2024, the fatty acid market has seen prices rise to USD 1,000 per metric ton in Malaysia, driven by persistent supply constraints and slightly increased demand from the personal care and food sectors. The market has remained sensitive to global supply chain disruptions, including transportation delays and export limitations. This upward trend in prices has reflected the complex supply and demand dynamics affecting industry.
In the first half of Q2 2024, the fatty acid market continued to confront ongoing production challenges stemming from adverse weather and logistical issues. Despite these constraints, demand from the food industry had remained stable, and prices had fluctuated within a narrow range. By May 2024, fatty acid prices had begun to stabilize as production volumes improved, easing some of the upward pressure on prices in key markets.
In the first quarter of 2024, fatty acid prices in Indonesia had averaged around USD 950 per metric ton, experiencing a significant rise due to production disruptions in major producing regions, particularly Southeast Asia and North America. Production had been adversely affected by extreme weather conditions and logistical challenges. The price increase had been compounded by strong demand from various sectors, notably personal care and food industries.
Meanwhile, the market faced a slight decline in demand from certain industrial applications, attributed to shifts towards alternative materials. Overall, the fatty acid market had been characterized by tight supply and rising prices during the initial months of the year.
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.
During this period, the demand for fatty acids remained relatively stable, particularly in essential sectors like food and personal care. However, the supply chain disruptions led to significant volatility in prices. As production facilities faced lockdowns and labor shortages, output decreased while demand stayed steady, causing prices to spike. This situation highlighted the market’s sensitivity to supply chain issues.
In response to increasing regulatory pressure and consumer preference for sustainability, demand for sustainably sourced fatty acids has increased. Manufacturers have adapted to these new standards, resulting in a gradual upward trend in prices. While demand remained stable, the push for eco-friendly practices led to higher production costs, which were passed on to consumers, causing a moderate increase in prices.
The volatility in raw material prices, particularly for palm oil and coconut oil, has directly impacted the fatty acid market. As these raw materials experienced price increases due to weather-related disruptions and geopolitical tensions, the fatty acid prices followed suit. Demand for fatty acids has remained stable; however, rising prices have led some manufacturers to explore alternative sources or formulations, which could affect long-term demand dynamics.
Geopolitical tensions and changes in trade policies have caused fluctuations in supply and prices. Export bans or tariffs from key producing countries have led to disruptions in supply chains, resulting in price increases. Despite these challenges, the demand for fatty acids in critical applications has remained steady. However, companies are increasingly cautious, which may lead to shifts in sourcing strategies and a potential decline in demand for certain types of fatty acids that are more impacted by trade dynamics.
The market for bio-based and sustainably sourced fatty acids has seen a significant increase in demand, driven by growing consumer awareness of health and environmental issues. This shift has led manufacturers to invest in sustainable sourcing and production methods, resulting in a wider range of eco-friendly products. As consumers are willing to pay a premium for sustainability, pricing strategies have adapted, with many companies maintaining stable or slightly elevated prices. Overall, demand has remained stable to increase, reinforcing the importance of sustainability in the fatty acid industry.
This research methodology ensures that Price-Watch delivers the most accurate, timely, and actionable fatty acid pricing assessments, helping our clients stay ahead of market trends and make informed business decisions.
Molecular Weight[g/mol]
CAS No
HS Code
Molecular Formula
Fatty acids are long-chain organic compounds derived from plant or animal fats, essential in numerous industries including food, pharmaceuticals, and personal care. These acids play a key role in soap manufacturing, biodiesel production, and the creation of lubricants, detergents, and cosmetics. The major types include saturated fatty acids like stearic acid and unsaturated fatty acids such as oleic acid. Leading producers of fatty acids include companies such as Wilmar International, Cargill, and IOI Group, with the top production countries being Indonesia, Malaysia, and the United States. As demand grows for natural ingredients, fatty acids are gaining traction in the formulation of green and sustainable products across multiple sectors.
Packaging Type
Grades Covered
Incoterms Used
Synonym
PriceWatch Quotation Terms:
Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.
| Properties | Specification |
| Appearance | White or faintly yellowish solid @25 ºC |
| Odour | Faint fatty odour |
| Melting point / freezing point | 33 ºC |
| Initial boiling point and boiling range | >300 ºC @ 760mm Hg |
| Flash point | >200 ºC (Pensky-Martens closed cup) |
| Evaporation rate | Not applicable |
| Flammability (solid, gas) | Not flammable |
| Explosive limits | Not explosive |
| Vapour pressure | <1.0 mm Hg @ 131ºC |
| Solubility | none @ 20 ºC |
| Partition coefficient: n-octanol/water | 4.2 |
| Auto-ignition temperature | >250 ºC |
| Density @ 75 ºc | 0.848-0.851 g/ml |
| Relative molecular mass | 200.4-228.4 |
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.
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.
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