In the first quarter of 2024, prices for Fatty Alcohol Ethoxylates (FAEs) had ranged between USD 1,600 to USD 1,700 per metric ton, driven by strong demand from industries such as personal care, cleaning, and agrochemicals. The demand for bio-based FAEs had continued to grow, fueled by a rising consumer preference for eco-friendly and sustainable products. However, the market had faced challenges with raw material cost volatility, particularly for fatty alcohols, which had seen prices fluctuating due to agricultural commodity price shifts. Despite these challenges, supply chains had largely recovered from earlier disruptions, allowing manufacturers to meet demand.
As we had moved into Q2 2024, the FAE market had shown signs of stabilization as production issues had eased and demand had remained strong. Consumption had increased by 4% by May 2024, reflecting continued growth, particularly in the bio-based FAE segment, driven by strong demand from the personal care, cleaning, and agrochemical sectors. Although challenges like raw material price volatility and logistical disruptions had persisted, the overall market demand had remained stable, and production had gradually improved, easing some of the pressures on supply.
By the third quarter of 2024, prices have remained stable at USD 1,600 to USD 1,700 per metric ton, supported by steady demand from the personal care and biofuel sectors. The demand for bio-based FAEs has stayed strong, with manufacturers increasingly using renewable feedstocks like palm and coconut oil to meet sustainability requirements.
Looking ahead to the fourth quarter of 2024 and beyond, there will have been cautious optimism for a recovery in Fatty Alcohol Ethoxylates (FAEs) production as logistical issues are resolved and market conditions stabilize. However, the market will have been expected to remain volatile through 2030, influenced by factors such as raw material availability, regulatory changes, and the growing consumer demand for sustainable, bio-based, and eco-friendly products.