Kraton Corporation will increase global CTO product prices by 10–20% from March 1, 2026, due to rising costs and demand.
Kraton Corporation, a globally recognized manufacturer specializing in high-performance polymers and premium bio-based chemicals sourced from pine wood pulping co-products, has officially announced a significant price revision across its Crude Tall Oil (CTO) refinery product range and related derivatives portfolio. This strategic pricing adjustment reflects evolving market conditions, increased operational costs, and broader supply chain dynamics impacting the global specialty chemicals sector.
The company stated that it will implement a price increase ranging between 10% and 20% on its CTO-based products. These products are widely utilized in various industrial applications, including adhesives, coatings, lubricants, inks, and rubber compounding, making them an essential component in numerous downstream industries. The adjustment will affect customers worldwide, reinforcing Kraton’s position in aligning pricing structures with current economic and production realities.
Crude Tall Oil, a co-product of the kraft pulping process in the paper industry, serves as a vital renewable raw material for the production of bio-based chemicals. As demand for sustainable and environmentally friendly alternatives continues to rise globally, CTO-derived products have gained significant traction. However, this increasing demand has also led to tightening supply conditions and rising feedstock costs, which are contributing factors behind Kraton’s pricing decision.
In addition to raw material cost pressures, the company is navigating challenges related to energy prices, logistics expenses, and regulatory requirements across multiple regions. These factors have collectively influenced the cost structure of CTO refining and derivative manufacturing, prompting Kraton to take this step to maintain operational efficiency and ensure continued supply reliability to its customers.
The announced price increase will come into effect starting March 1, 2026. However, the implementation of these revised prices will remain subject to the specific terms and conditions outlined in existing customer agreements and contractual obligations. This ensures that any previously negotiated pricing arrangements or clauses will be honored where applicable.
Kraton emphasized that this move is part of its broader strategy to sustain long-term value creation while continuing to invest in innovation, sustainability, and product development. By adjusting its pricing, the company aims to support its ongoing efforts in enhancing production capabilities, advancing bio-based solutions, and meeting the growing expectations of customers seeking high-performance, renewable alternatives.
Furthermore, the company continues to focus on strengthening its global supply network and ensuring consistent product availability despite fluctuating market conditions. Kraton’s leadership reiterated its commitment to transparency and collaboration with customers during this transition period, encouraging open communication to address any concerns related to pricing changes.
Overall, this price increase underscores the ongoing shifts within the specialty chemicals industry, particularly in the bio-based segment, where sustainability trends and cost pressures are reshaping market dynamics. Kraton’s decision reflects both the challenges and opportunities within this evolving landscape, as companies strive to balance environmental responsibility with economic viability.
