Cocamidopropyl Betaine Faces Price Drop in India on Lower Feedstock Costs and Weak Consumption
- 11-Jun-2025 3:45 PM
- Journalist: S. Jayavikraman
According to ChemAnalyst, in May 2025, Cocamidopropyl Betaine prices in the Indian market witnessed a significant decline, driven largely by a pronounced imbalance between supply and demand. A key contributor to this downward trend was the surge in domestic production, which stemmed from India’s strategic focus on boosting local manufacturing capabilities. Recent capacity expansions across key chemical production hubs led to an influx of product into the domestic market, resulting in oversupply and intensifying competitive pricing pressures.
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In May 2025, Cocamidopropyl Betaine prices in India fell due to domestic surplus as production increased and capacity expanded.
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Lower Monochloroacetic Acid prices reduced Cocamidopropyl Betaine production cost and added to the overall correction in the Indian market.
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Weak demand from key downstream segments like cosmetics, personal care and cleaning products kept Cocamidopropyl Betaine demand low in the month.
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US dollar appreciation against Indian rupee made Cocamidopropyl Betaine exports more competitive but domestic prices remained under pressure due to global surplus.
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As per market sources, Cocamidopropyl Betaine prices in India are expected to rise in June 2025 as demand stabilizes and supply-demand gets balanced.
Further compounding the situation was the decline in prices of Monochloroacetic Acid (MCAA), the essential feedstock used in Cocamidopropyl Betaine production. Lower MCAA costs allowed manufacturers to reduce production expenses, enabling them to adjust selling prices downward. On the international front, Chinese Cocamidopropyl Betaine exporters also slashed prices amid soft global demand and surplus availability, creating additional pricing strain for Indian producers and pushing local benchmarks even lower.
On the demand side, fundamentals remained weak throughout the month. India’s manufacturing sector was stagnant with the manufacturing activity showing flat growth in production backlogs and a significant slowdown in new order inflows. This was in line with the broader industrial trends and resulted in reduced offtake from key consumer industries like cosmetics, personal care and cleaning products.
In terms of international trade dynamics, the appreciation of USD against INR made Indian exports more competitive. But this marginal advantage was nullified by slow demand overseas and already saturated global markets. Cocamidopropyl Betaine exports were meagre and domestic suppliers couldn’t divert enough stock to foreign buyers adding to the local surplus.
Geopolitical tensions especially with Pakistan further dampened the market sentiment. Importers and distributors were cautious in their buying and were minimizing their exposure in view of the regional instability. Also, better domestic logistics and shorter lead times made bulk procurement unnecessary and reinforced the just-in-time inventory model and limited short term demand.
In terms of supply chain developments, the inventory levels remained high, and purchasers throughout the value chain continued to abstain from new purchases. The net result of all these factors—greater domestic production, lower feedstock prices, weakened demand, geopolitical caution, and faster logistics processes—meant that Cocamidopropyl Betaine pricing fell broadly in India through May 2025.
As per market experts, Cocamidopropyl Betaine pricing in India is predicted to begin a gradual recovery in June 2025. The demand for Cocamidopropyl Betaine from down-stream sectors is expected to stabilize, particularly as the personal care and cosmetic markets restock in anticipation of seasonal demand growth. With supply pressures easing and patterns of consumption returning to a more normal trajectory, the market outlook and balance of supply and demand in June has a more bullish look that supports an eventual moderate upward price movement.