During the initial June of 2025, the Asian Fatty Alcohol market recorded a significant price increase, especially in China and Indonesia, due to constricted supply, strong demand from home care and personal segments, and increasing palm oil prices. Indonesian sellers were confronted by supply tightness, while Chinese consumers hastened purchases amid steady imports and relaxed trade tensions. The increasing demand for high-end skincare products throughout Asia also fueled the bullish sentiment. With continued seasonal restocking and tight inventories, ChemAnalyst expects prices to stay firm in the immediate term.
In early June 2025 the Fatty Alcohol market in Asia witnessed a noticeable price rise, especially in Indonesia and China. This increase was mainly driven by limited supply and firm demand from downstream sectors like personal care and home care. The market trend remained strong throughout the first week of June. Exporters in Indonesia raised Fatty Alcohol prices due to tight inventories, high production costs and increased buying interest while a positive market outlook and easing trade tensions between the USA and China further supported this upward movement.
In Indonesia the Fatty Alcohol market faced supply-side difficulties at the start of June. Reduced operating rates in oleochemical plants and rising palm oil prices pushed up production costs. Feedstock palm oil, which played a key role in Fatty Alcohol production saw price hikes across Southeast Asia leading to cost pressures on manufacturers. Many producers opened June with higher prices due to limited product availability. In addition to this lower domestic production and increased demand from overseas markets such as China, India and the USA resulted in tight local supplies. Exporters were under pressure to meet strong demand from South Asia and the Middle East further straining inventory levels and encouraging higher prices for Fatty Alcohol.
In China the Fatty Alcohol supply situation in early June remained stable. Regular imports from Indonesia and Malaysia helped keep inventories at comfortable levels across major ports and inland hubs. Improved trading conditions following a 90-day truce between the USA and China allowed smooth cross-border operations and stable product inflows. Despite this steady supply many Chinese buyers moved quickly to secure inventory out of concern for possible disruptions once the truce ends.
The broader Asia-Pacific region has been witnessing robust growth in the personal care sector during May 2025 further supporting demand for Fatty Alcohol. Consumers in markets like China, South Korea, Japan and India were increasingly looking for functional skincare products that matched their daily routines and needs. South Korea continued to be a key player in this space with brands such as Tirtir and d’Alba expanding into the US market despite tariff concerns. These brands benefitted from low-cost manufacturing and strong global demand especially through online and social media channels.
Meanwhile in China the personal care market was undergoing rapid changes. Consumers were showing a strong preference for scene-based skincare solutions products designed for specific lifestyles and treatments. This trend was increasing demand for premium skincare items which in turn boosted the need for high-quality Fatty Alcohol used in their formulations. Brands were introducing products for post-laser care, men’s grooming and travel-related skin concerns all of which relied on Fatty Alcohol-based ingredients.
As per ChemAnalyst, the Fatty Alcohol market in Asia is expected to maintain its bullish trend in the coming weeks. With buyers facing strong inquiries due to seasonal restocking and tight supply conditions prices are likely to stay firm in the near term.
