Hydroquinone prices witnessed a sharp decline in July 2025, driven by regulatory recalls in the U.S. and Europe targeting skin lightening products containing hydroquinone. The fallout led to a significant drop in cosmetic-sector demand, triggering global oversupply and discounted sell-offs. Although prices stabilized in August, the trajectory remains subdued. Seasonal maintenance shutdowns and rising phenol costs have added upward pressure on hydroquinone production costs, while logistical bottlenecks in Japan continue to disrupt supply chains. Despite stable demand in pharmaceutical and industrial sectors, the hydroquinone market remains in a cautious recovery phase.
