For the Quarter Ending September 2025
APAC
• In China, the Carrageenan Price Index fell quarter-over-quarter in Q3 2025, influenced by deflationary pressures and a contracting Manufacturing Index.
• The Carrageenan Price Index faced downward pressure from a -2.3% year-on-year decline in PPI in September 2025.
• Carrageenan production costs eased in Q3 2025 due to a significant plunge in industrial electricity prices.
• Domestic demand for food and beverages remained resilient in Q3 2025, supported by dining and leisure consumption.
• Industrial production expanded 6.5% year-on-year in September 2025, indicating increased manufacturing activity.
• Retail sales increased 3.0% year-on-year in September 2025, supporting demand for carrageenan-containing consumer goods.
• Consumer confidence at 89.6 and a 5.2% unemployment rate in September 2025 exerted bearish pressure on discretionary spending.
• The Manufacturing Index was Contracting in September 2025, signaling a slowdown in overall manufacturing activity.
Why did the price of Carrageenan change in September 2025 in APAC?
• Deflationary pressures from a -0.3% year-on-year CPI decrease in September 2025 impacted consumer purchasing power.
• A -2.3% year-on-year PPI decline in September 2025 signaled lower input costs and weak demand for manufactured goods.
• Contracting Manufacturing Index and low consumer confidence at 89.6 in September 2025 dampened overall market sentiment.
North America
• In United States, the Carrageenan Price Index rose quarter-over-quarter in Q3 2025, driven by persistent inflation and robust consumer spending.
• Carrageenan production costs trended upward due to raw material volatility and industrial electricity increases in August 2025.
• Demand outlook remains positive, supported by strong retail sales growth of 5.42% year-over-year in September 2025.
• Consumer confidence declined to 94.2 in September 2025, tempering consumer spending on end products.
• US carrageenan import volumes grew consistently through Q3 2025, global red seaweed supply strengthening.
• Inflationary pressures persisted with CPI increasing 3.0% year-over-year in September 2025, affecting operational expenses.
• The US unemployment rate remained low at 4.3% in September 2025, supporting consumer purchasing power.
• Demand drivers included strengthening consumer preference for clean-label, plant-based, and functional food solutions.
• Industrial production showed very modest growth of 0.1% year-over-year in September 2025, limiting industrial demand.
Why did the price of Carrageenan change in September 2025 in North America?
• Rising input costs, with PPI up 2.6% year-over-year in August 2025, pressured Carrageenan prices.
• Strong consumer spending, retail sales up 5.42% year-over-year in September 2025, boosted demand.
• Persistent inflation, CPI rising 3.0% year-over-year in September 2025, increased operational costs.
Europe
• In Germany, the Carrageenan Price Index fell in Q3 2025, driven by contracting industrial activity and cautious consumer spending.
• Carrageenan demand was bearish from a 1.0% industrial production decline in September 2025 and contracting Manufacturing Index.
• Production costs were cautiously bullish, influenced by a 1.7% Producer Price Index decline year-on-year in September 2025.
• European natural gas prices softened year-on-year in Q3 2025, lowering energy feedstock costs for Carrageenan production.
• Consumer Price Index rose 2.4% year-on-year in September 2025, reducing consumer purchasing power and impacting food demand.
• Germany's overall exports decreased in Q3 2025, dampening Carrageenan demand in export-oriented finished goods.
• Global red seaweed market, a primary feedstock, is projected to expand in 2025, potentially stabilizing raw material supply.
• German food industry market growth was subdued in 2025, while the pharmaceutical sector showed moderate expansion.
• Consumer demand in the German cosmetics industry strengthened in Q3 2025 for sustainable and ethical products.
Why did the price of Carrageenan change in September 2025 in Europe?
• Industrial production declined 1.0% in September 2025, reducing Carrageenan demand.
• Consumer Price Index rose 2.4% in September 2025, leading to cautious consumer spending.
• Producer Price Index decreased 1.7% in September 2025, easing production costs.
