Fatty Acid Prices

Fatty Acid Prices June 2024

During the second quarter of 2024, the fatty acid prices in the United States reached 1865 USD/MT in June. The accumulation of natural gas inventories was a major role in the decline in energy prices, which in turn had an impact on general market pricing. In a similar vein, palm oil prices declined globally, which influenced the overall market attitude in a gloomy manner. The pricing changes in this region, which are a result of lower energy costs and seasonal demand fluctuations, have consequently been largely determined by these combined factors.

In the second quarter of 2024, fatty acid prices in China reached 2252 USD/MT in June. There were prominent price fluctuations in the fatty acid market of China, with a heightened demand from personal care and a significant rise in palm oil procurement. Fatty acid prices in the country recorded a strong upward movement this quarter. The robust interest from personal care, coupled with a higher import quantity of palm oil, will be major drivers of prices higher.

During the second quarter of 2024, fatty acid pricing in Germany reached 3161 USD/MT in June. The prices have surged due to a combination of factors, including lowered production, and increasing input prices. Less supply has been unable to meet the increasing demand, largely forced down the path of strained production due to plant breakdowns among other issues. The upward movement is also underpinned by seasonal factors, especially during the Q2 when personal care demand is higher.

Fatty Acid Prices March 2024

During the first quarter of 2024, the fatty acid prices in the United States reached 1828 USD/MT in March. The market experienced price increase driven by rising upstream palm oil costs and reduced supply levels. Winter conditions contributed to lower production rates, impacting the availability of finished goods. Additionally, demand from the personal care sector remained strong, further influencing price trends.

In the first quarter of 2024, fatty acid was priced at 2181 USD/MT in China in March. The prices have witnessed high volatility in the region. Fluctuating demand from end use industries, wherein fatty acids find application in numerous uses, mainly drives the market dynamics. Meanwhile, the availability of palm oil-a vital raw material in its production process-also exerts a significant influence on price trends.

During the first quarter of 2024, in Germany fatty acid was priced at 2673 USD/MT in March. The pricing trends in Germany's market have shown notable fluctuations. Initially, the market witnessed a period of relatively lower prices, marking a downward trend at the beginning of the quarter. However, as the quarter progressed, these prices began to rise steadily, reflecting a shift in market dynamics. By the end of the quarter, the market had undergone a significant increase in prices compared to where it started. This upward movement in prices indicates a response to changing supply and demand conditions, as well as other influencing factors within the market.

Fatty Acid Prices December 2023

The market in the United States experienced a moderate increase in price trends throughout the quarter. However, due to increased energy costs, the Israel-Hamas conflict, and disruptions in palm oil production in supplier countries, in December, the prices saw a decline, reaching 1695 USD/MT.

The price trend for fatty acid in China showcased a consistent downfall, reaching 2110 USD/MT in the last month of the quarter. This is due to disruptions in the supply chain caused by adverse weather conditions, increased interest rates, and the Israel-Hamas conflict that led to unpredictability in energy costs. 

In Germany, fatty acid prices witnessed a declining trend due to several factors. The rising inflation in the country because of heightened energy costs, subdued product demand from the personal care industry, and surplus availability of palm oil boosted the downward flow of prices, stopping at 2400 USD/MT in December.

Regional Coverage

The report provides a detailed analysis of the fatty acid market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends, price forecast and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of ex-works, FOB, and CIF prices, as well as the key factors influencing the fatty acid price trend.

Global Fatty Acid Price

The report offers a holistic view of the global fatty acid pricing trends in the form of fatty acid price charts, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level. This comprehensive analysis not only highlights the current price but also provides insights into fatty acid historical price trends, enabling stakeholders to understand past fluctuations and their underlying causes.

The report also delves into fatty acid price forecast models, projecting future price movements based on a variety of indicators such as expected changes in supply chain dynamics, anticipated policy shifts, and emerging market trends. By examining these factors, the report equips industry participants with the necessary tools to make informed strategic decisions, manage risks, and capitalize on market opportunities. Furthermore, it includes a detailed fatty acid demand analysis, breaking down regional variations and identifying key drivers specific to each geographic market, thus offering a nuanced understanding of the global pricing landscape.

Europe Fatty Acid Price

Q2 2024:

In Q2 2024, the European Fatty Acid market faced steady price hikes, supported by rising manufacturing expenses and higher palm oil prices. Manufacturing slowdowns further strained supply, while robust personal care industry demand resulted in the bullish price movement. Freight interruptions, particularly in the Red Sea, led to longer shipping periods and increased logistical costs, pushing prices higher. Germany, in particular, saw the sharpest rise in fatty acid prices, as limited supply and soaring input costs continued to pressure the market.

Q1 2024:

In the first quarter of 2024, fatty acid prices in Europe experienced fluctuations. Increased downstream demand and global supply chain disruptions, especially in the Red Sea region, caused shipment delays and higher prices. The Euro's depreciation against the dollar added complexity, raising costs for imported materials. Limited stock availability and supply chain issues further drove prices up. Towards the end of the quarter, improved product availability led to a slight price decrease, and challenges from low demand and weakened consumer confidence persisted.

Q4 2023:

Fatty acid prices have been weakening during Q4 2023. Demand has long been low, specifically in the personal care sector. This resulted in lower prices by producers for inventory circulation and boosting sales. Moreover, the price of fatty acid production has further decreased with the ample offering of an upstream critical raw material—palm oil. The oversupply has made palm oil prices come down. This, in turn, reduced the cost of production for fatty acid. The price has also been greatly affected by the energy market.

This analysis can be extended to include detailed fatty acid price information for a comprehensive list of countries.

North America Fatty Acid Price

Q2 2024:

The market for fatty acids in North America showed a variety of trends in the second quarter of 2024. The main driver of price increases, particularly in April, was the escalating cost of production, which was propelled by the high price of palm oil. Due to operational slowdowns and shortages of supplies, manufacturers kept their prices high in order to retain profit margins. In spite of these initial increasing trends, prices steadied within a constrained range at the conclusion of the quarter. The market's behavior was shaped by seasonal variations in demand as well as growing natural gas stockpiles; as the quarter went on, this dynamic became more balanced between supply and demand.

Q1 2024:

The fatty acid market in North America was affected by a number of events in the first quarter of 2024 that went beyond the normal. Reduced manufacturing over the winter had an effect on the accessibility of completed goods. Price adjustments were also influenced by requests from end use industries like personal care. January saw a significant price increase that was mostly caused by growing palm oil expenses. Additionally, the availability of palm oil decreased in Malaysia and Indonesia as a result of a greater emphasis on the manufacture of biodiesel, which put further strain on the market.

Q4 2023:

In Q4 2023, the market in North America exhibited a mix of trends impacted by varied factors. Production capacity was notably influenced by unfavorable weather driven by El Nino, which led to a moderate supply of fatty acid. This supply constraint contributed to a rise in prices across the region. However, the overall sales growth across the market was limited, reaching only a modest level.

Specific fatty acid historical data within the United States and Canada can also be provided.

Middle East and Africa Fatty Acid Price

The report explores the fatty acid pricing trends in the Middle East and Africa, considering factors like regional industrial growth, the availability of natural resources, and geopolitical tensions that uniquely influence market prices.

In addition to region-wise data, information on fatty acid prices for countries can also be provided.

Asia Pacific Fatty Acid Price

Q2 2024:

Prices in the Asia-Pacific market rose during the second quarter of 2024. Prices remained high due to rising palm oil prices and increased demand from the personal care industry. The supply issues were exacerbated by limited product availability and operational difficulties. The post-holiday production recovery and increased procurement led to a spike in fatty acid prices in China. Prices increased steadily throughout the area, with China driving the market's rising trend. A 1% gain in prices between the first and second halves of the quarter was attributed to seasonal production trends and robust demand from downstream industries, which sustained a good market sentiment.

Q1 2024:

The APAC fatty acid market had changes in several countries during Q1 2024, and overall it was constant. The availability of palm oil and interest from end use sectors caused major price swings in China. Following the Spring Festival, Chinese producers topped off stock, which increased demand from exporters in Malaysia and Indonesia. Due to increased demand from the personal care business and growing costs of palm oil, this resulted in a 1.4% price rise over the last quarter. On the other hand, the region's market faced more difficulties due to lower manufacturing operations and interruptions in shipping directions.

Q4 2023:

The market in the Asia-Pacific region faced significant challenges during the fourth quarter of 2023. The El Niño-induced weather conditions led to severe disruptions in the supply chain, making inventory management a complex task for businesses in the region. Moreover, the demand for fatty acid remained robust, particularly in anticipation of the festive season across South Asia, where market activities typically see an upswing. These factors collectively strained the market, impacting both supply and demand dynamics throughout the quarter.

This fatty acid price analysis can be expanded to include a comprehensive list of countries within the region.

Latin America Fatty Acid Price

The analysis of fatty acid prices in Latin America provides a detailed overview, reflecting the unique market dynamics in the region influenced by economic policies, industrial growth, and trade frameworks.

This comprehensive review can be extended to include specific countries within the region.

Fatty Acid Price Trend, Market Analysis, and News

IMARC’s newly published report, titled “Fatty Acid Prices, Trend, Chart, Demand, Market Analysis, News, Historical and Forecast Data Report 2024 Edition,” offers an in-depth analysis of fatty acid pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

It encompasses an in-depth review of spot price of fatty acid at major ports, a breakdown of prices including Ex Works, FOB, and CIF, alongside a region-wise dissection of fatty acid price trend across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.

The report examines the elements influencing fatty acid price fluctuations, such as changes in raw material costs, supply-demand dynamics, geopolitical factors, and industry-specific developments. Additionally, it integrates the latest market news, providing stakeholders with up-to-date information on market shifts, regulatory changes, and technological advancements, thereby offering a comprehensive overview that aids in strategic decision-making and forecasting.

Fatty Acid Industry Analysis

The global fatty acid industry size reached US$ 29.5 Billion in 2023. By 2032, IMARC Group expects the market to reach US$ 46.9 Billion, at a projected CAGR of 5.30% during 2023-2032.

• The growing usage of fatty acids in skincare, haircare, and other cosmetic products is propelling the market forward. The cosmetics sector is expected to expand to $618.7 billion by 2032, with a 4.8% growth rate, increasing the need for fatty acids. Additionally, the skincare sector is rising at a 4% yearly pace. In 2022, the skin and personal care market in Europe was assessed at Є88 billion for retail sales, with Germany accounting for Є14.3 billion, France 12.9 billion, Italy 11.5 billion, the UK Є10.5 billion, and Spain Є9.3 billion.
• The incorporation of fatty acids in the manufacturing of biodiesel and other biofuels increases their demand substantially. As biodiesel production rises to 39 billion liters by 2024, a 27% increase over 2014 levels, the need for fatty acids also surges. Furthermore, Europe is seeing tremendous increase in biofuel production, including bioethanol and biodiesels, which account for 6.3% of total transportation fuel usage. Additionally, the Renewable Energy Directive (2018/2001/EU) established a new binding renewable energy objective for the EU for 2030, including an additional 14% target for renewable fuels in transportation by 2030.
• Fatty acid is also becoming increasingly popular in the dietary supplements industry. The dietary supplement industry in India is estimated to rise at a rate of 13.49% yearly, reaching INR 491.4 billion by 2032. Omega-3 and omega-6 fatty acids offer improved heart health and cognitive function, leading to a surge in demand for dietary supplements. Also, the rising prevalence of lifestyle diseases leads to adoption of fatty acids for their preventive and therapeutic roles. It is estimated that about 170 million people in America will suffer from at least one chronic illness, such as hypertension, heart disease and arthritis by 2030. Heart disease affects more than 79 million Americans and is responsible for 40 percent of all deaths. Also, nearly 4 out of 15 people in Europe are affected by anxiety and depression every year, if all forms are included.
• In addition, fatty acid production is showing an upward trajectory as a result of its growing use in the food industry, serving as emulsifiers, flavoring agents, and texture enhancers. The global demand for convenience foods, rising at a rate of 5.47% annually, drives the need for ingredients that improve shelf life and sensory attributes. Additionally, the shift towards cleaner labels and natural ingredients has spotlighted fatty acids as a key component in formulating healthier and more sustainable food products. For instance, according to a survey by Ipsos on 1160 people across the United States, found out that around 62% of Americans give more importance to their health. Also, the functional food market is anticipated to reach US$ 368.9 Billion by 2032, exhibiting a growth rate of 5.7% during 2024-2032. It is also estimated that the average per-capita spending on functional foods is 26 euros in Europe, that includes fatty acids. The region also holds the dominant share of approximately 2.8 million euros, with a predicted growth rate of 14% in the coming years.

Fatty Acid News

The report covers the latest developments, updates, and trends impacting the global fatty acid industry, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, advancements in fatty acid production technologies, strategic market expansions by key industry players, and significant mergers and acquisitions that impact the fatty acid price trend.

Latest developments in the fatty acid industry:

• In February 2023, Grøntvedt Biotech, a Norway-based integrated biotechnology firm, launched CETO3 (specific type of fatty acid) due to its cetoleic acid and omega-3 components. It features high-quality cetoleic acid oil enriched with Omega-3 EPA and DHA. The ability of CETO3 to increase the body's production of EPA and DHA by up to 50% was established in a pilot study on two groups.
   

Product Description

Fatty acids are carboxylic acids with a long hydrocarbon chain, which can be either saturated or unsaturated. They are available in various types based on the presence or absence of double bonds, like saturated fatty acids lack double bonds, whereas unsaturated fatty acids contain one or more double bonds in their hydrocarbon chain. Fatty acids can be solid or liquid at room temperature, depending on their structure. They are derived from various natural sources, including animal fats, plant oils, and fish oils.

Fatty acids find application in manufacturing soap, detergents, lubricants, candles, cosmetics, food additives, pharmaceuticals, rubber, plastics, and biofuels. They offer numerous benefits, such as contributing to health by supporting cell structure, promoting heart health, enhancing brain function, improving skin and hair health, aiding in nutrient absorption, and acting as energy sources. Moreover, fatty acids are lauded for their biodegradability, versatility in applications, sustainability, and cost-effectiveness.
 

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of fatty acid pricing, covering global and regional trends, spot prices at key ports, and a breakdown of Ex Works, FOB, and CIF prices.
• The study examines factors affecting fatty acid price trend, including raw material costs, supply-demand shifts, geopolitical impacts, and industry developments, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights. The fatty acid price charts ensure our clients remain at the forefront of the industry.