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Indonesia
Malaysia
United States
China
Brazil
NetherlandsLooking ahead to the fourth quarter of 2024 and beyond, expectations for a partial recovery in production will have become optimistic as weather conditions stabilize and labor issues are addressed. Nevertheless, the Fatty alcohol market will remain volatile through 2030, influenced by ongoing climate change effects, shifting trade policies, and evolving consumer preferences for sustainable and alternative products.
In the third quarter of 2024, upward price pressure has persisted due to ongoing supply constraints and consistent demand from the personal care sector. The market has remained sensitive to global supply chain disruptions, including transportation issues and export restrictions, which have continued to shape price dynamics. As of August 2024, fatty alcohol prices have averaged around USD 2,000 per metric ton, marking a significant increase from the previous month. This fluctuation has reflected a complex interplay of persistent production challenges and resilient market demand.
As we entered the first half of Q2 2024, the Fatty alcohol market continued to contend with production challenges stemming from adverse weather and logistical issues. However, demand from the personal care and cosmetics industries had stayed robust, with a 3% increase in consumption reported. By May 2024, prices had begun to stabilize as supply dynamics improved, allowing for a gradual recovery in production and easing previous Fatty alcohol price pressures.
The fatty alcohol market is primarily dominated by Indonesia and Malaysia, which together account for about 80-85% of global production. However, other significant contributors include the USA, Netherlands, China, and Brazil, which also play vital roles in manufacturing fatty alcohol. In the first quarter of 2024, Fatty alcohol prices in Indonesia hovered around USD 1,600 per metric ton due to production disruptions in Southeast Asia. Extreme weather events and logistical challenges significantly impacted output, creating notable production constraints. Despite these setbacks, demand from essential sectors such as personal care and cleaning products remained strong.
PriceWatch is your trusted resource for tracking global fatty alcohol price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the fatty alcohol 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 alcohol prices worldwide. Stay ahead of the curve with PriceWatch’s reliable, accurate, and timely fatty alcohol market data.
Track PriceWatch's fatty alcohol 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.
Supply Chain Disruptions (2020-2022)
During the COVID-19 pandemic, significant supply chain disruptions led to reduced production capacity and shipping delays. Despite these challenges, the demand for fatty alcohols remained stable throughout this period. However, the inability to meet demand due to supply constraints resulted in considerable price volatility, prompting manufacturers to reassess purchasing strategies.
Environmental Regulations and Sustainability Pressures (2020-2023)
The introduction of stricter environmental regulations increased production costs for fatty alcohol manufacturers. While this regulatory environment put pressure on traditional fatty alcohol demand, it simultaneously sparked increased interest in sustainably sourced alternatives. Consequently, demand for eco-friendly fatty alcohols grew, reflecting a notable shift in consumer preferences.
Raw Material Price Volatility (2021-Present)
Volatility in the prices of key raw materials, such as palm oil and coconut oil, impacted the overall market. While demand for fatty alcohol remained stable, the fluctuations in raw material costs prompted manufacturers to seek alternatives, potentially affecting long-term demand patterns and leading to cautious purchasing decisions.
Geopolitical Tensions and Trade Policies (2021-Present)
Trade tensions and evolving export policies have influenced raw material availability for fatty alcohol production. Although demand remained stable, uncertainties in sourcing may lead manufacturers to explore local alternatives, subtly shifting demand dynamics in various regions.
Consumer Shifts Towards Sustainable Alternatives (2023-2024)
As consumer preference for sustainable and plant-based products grows, the demand for eco-friendly fatty alcohols is experiencing a significant increase. Health and environmental concerns are driving this trend, particularly in North America and Europe, where consumers are more environmentally conscious. Manufacturers are actively developing greener alternatives, indicating a positive outlook for the demand for sustainable fatty alcohols.
This research methodology ensures that PriceWatch delivers the most accurate, timely, and actionable Fatty Alcohol 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 alcohols, also known as long-chain alcohols, are organic compounds with a high molecular weight and a linear chain structure. These compounds can be sourced from natural fats or created synthetically, and are essential in industries such as cosmetics, cleaning products, and manufacturing. Typically composed of 4 to 26 carbon atoms, fatty alcohols function as emulsifiers, surfactants, and thickeners in personal care formulations, improving the performance of detergents. They are also vital in the production of plasticizers, lubricants, and solvents. Fatty alcohols can be sustainably produced from renewable resources, combining practical functionality with environmentally friendly manufacturing. Their distinct properties make them crucial in a wide range of applications.
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 |
| Grade | Industrial Grade |
| Purity | 98% |
| Storage | Room Temperature |
| Classification | Inorganic Chemicals |
| Application | Industrial purposes |
| Molecular Formula | C12H26O |
| Form | Liquid |
Applications
Fatty alcohols are versatile ingredients used in personal care and cosmetics as emulsifiers, in household cleaning as surfactants, and in industrial applications like lubricants and coatings. They are also key feedstocks for biodiesel, used as emulsifiers in food, enhance agrochemicals, and improve fabric treatments in textiles, highlighting their importance across multiple sectors.
The pricing of fatty alcohol is influenced by several factors, including raw material costs, production processes, and global demand. Key raw materials like palm oil and coconut oil significantly impact prices due to their availability and market fluctuations. Additionally, production methods and technological advancements can alter manufacturing costs. Understanding these dynamics helps procurement heads make strategic purchasing decisions and manage budget effectively.
Procurement heads can anticipate future pricing trends for fatty alcohol by analyzing historical price patterns, monitoring market demand, and keeping an eye on the availability of raw materials. Tracking global economic indicators and industry reports can also provide insights into potential price shifts. Engaging with suppliers and industry experts helps build a comprehensive view, enabling better forecasting and more informed procurement strategies.
Sustainability practices increasingly impact fatty alcohol pricing as consumers and companies prioritize eco-friendly products. Sourcing from sustainable raw material suppliers can lead to higher upfront costs; however, it often results in long-term benefits such as enhanced brand loyalty and compliance with regulatory standards. Procurement heads should consider the balance between sustainability and pricing, as investing in sustainable fatty alcohol can align with corporate responsibility goals and meet market demand for greener products.
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