India Alpha Olefin Sulphonate (AOS) market observations in November 2025 were uncertain with small upturns as a result of robust application demand from the premium/sustainable detergent & personal care products manufactured by the downstream industries. Supply was stable, as shipments were made without delays, resulting in consistent costs in the CIF pricing. When Tata Chemicals invested INR 910 crore at the end of November 2025 to increase their production, this investment increases the availability of AOS as a raw material for soap and detergent manufacturers. Rapid growth in urban washing machine penetration has spurred an increase in liquid detergent demand, which has led to India becoming a major global producer of laundry detergents by volume, with 55% of the total value of detergent sales now coming from value-added liquid formulations with added features like antibacterial soap & moisturizers, as well as herbal additives.
Due to solid downstream demand for premium detergent products the price of AOS increased only slightly during November 2025. Because of stable and consistent supply levels, landed costs remained constant at CFR levels throughout the month. Domestic costs of AOS remained consistent, as no shipment delays from any manufacturer contributed to fluctuations in AOS prices over the course of November 2025.
The significant increase in India's demand for AOS in November 2025 has been supported by ongoing strong procurement trends in the FMCG (Fast Moving Consumer Goods) and household cleaning industries. Liquid detergents were the main driver for growth, particularly in urban locations and southern India where rising consumer adoption of washing machines as well as preferences towards using cold water for washing clothes stimulated the demand. India is one of the countries that is driving the global market for household detergents and SLS along with China and Japan being amongst the largest growing regions of Asia-Pacific for the liquid detergent market, consumer behaviours changed towards more premium and eco-friendly products with a significant portion of value-added AOS formulations being manufactured as antibacterial and herbal soaps. At Trade India (B2B platform) buy offer for 5,000 KG of AOS (Liquid 40%) was made from Daman on November 27, 2025. A steady supply was maintained with all consignment deliveries being transported by cargo ships through congestion-free ports, primarily due to the high volume of imports that are sourced from the United States (US) and Singapore which ensure reliability of supply despite the slight cost pressures associated with lower-priced grades being sourced from overseas. The INR 910 crore (INR) investment was made by Tata Chemicals for the expansion of soap, detergent and raw materials manufacturing providing further local support for AOS manufacturing by decreasing the dependency on imported materials while increasing the local strength for formulation manufacturing.
As per ChemAnalyst India’s Alpha Olefin Sulphonate (AOS) demand may remain strong round December 2025, driven mainly by increasing demand for high-quality liquid detergent products and the push toward sustainability. As a large chemical producer, Tata could offer some degree of market stability to the India AOS market with a planned increase of its production capacity through a proactive sourcing strategy through its purchase offer. However, it is possible that increased demand for AOS caused by environmental degradation, government intervention, etc., could create price pressure on downstream users of AOS.
