For the Quarter Ending September 2025
North America
• In United States, the Hydrolyzed Keratin Price Index rose quarter-over-quarter in Q3 2025, driven by increasing production costs.
• Hydrolyzed Keratin production costs increased due to a 2.6% Producer Price Index rise in August 2025 and strengthening industrial electricity prices.
• The 3% year-over-year Consumer Price Index increase in September 2025 impacted raw material and labor costs for producers.
• Demand outlook was mixed, with strong retail sales (5.42% YoY, Sep 2025) but declining consumer confidence.
• Consumer spending on personal care products strengthened during July and August 2025, supporting Hydrolyzed Keratin demand.
• Natural gas prices were anticipated to rise from September into January, suggesting continued upward pressure on costs.
• Industrial production growth was minimal at 0.1% year-over-year in September 2025, indicating slow manufacturing expansion.
• The Hydrolyzed Keratin Price Index is forecast to face continued upward pressure from rising energy and input costs.
Why did the price of Hydrolyzed Keratin change in September 2025 in North America?
• Rising production costs were influenced by a 2.6% Producer Price Index increase in August 2025 and strengthening industrial electricity prices.
• The 3.0% year-over-year Consumer Price Index increase in September 2025 contributed to higher raw material and labor expenses.
• Strong consumer spending on personal care products in July-August 2025 supported demand, despite declining consumer confidence.
APAC
• In China, the Hydrolyzed Keratin Price Index fell quarter-over-quarter in Q3 2025, influenced by declining producer prices.
• Hydrolyzed Keratin production costs saw moderate declines in Q3 2025, driven by falling natural gas prices.
• Industrial electricity rates in China experienced a slight uptick in 2025, partially offsetting production cost reductions.
• Demand for Hydrolyzed Keratin was supported by a 3% rise in retail sales in September 2025, boosting personal care.
• China's industrial production expanded by 6.5% in September 2025, indicating increased output and demand for inputs.
• However, the Manufacturing Index contracted in September 2025, suggesting reduced industrial activity and impacting demand.
• Deflationary pressures, with Consumer Price Index at -0.3% in September 2025, contributed to a challenging pricing environment.
• Consumer confidence remained low at 89.6 in September 2025, leading to cautious spending on discretionary items.
Why did the price of Hydrolyzed Keratin change in September 2025 in APAC?
• Declining Producer Price Index at -2.3% in September 2025 indicated weakening pricing power for manufactured goods.
• A contracting Manufacturing Index in September 2025 signaled reduced industrial activity and demand.
• Falling natural gas prices in Q3 2025 moderately reduced production costs for Hydrolyzed Keratin.
Europe
• In Germany, the Hydrolyzed Keratin Price Index rose quarter-over-quarter in Q3 2025, driven by persistently high operating costs.
• Production costs faced upward pressure from increased Consumer Price Index of 2.4% in September 2025, despite a Producer Price Index decline of 1.7%.
• Natural gas border prices fluctuated in Q3 2025, with a modest September rise, contributing to elevated energy costs.
• Demand outlook was mixed, with the Manufacturing Index contracting and Industrial Production declining 1% in September 2025.
• Retail sales increased 0.2% in September 2025, supporting demand in personal care and cosmetics sectors.
• Consumer preference for natural beauty products strengthened, and microplastics ban spurred reformulation efforts in Q3 2025.
• Overall chemical production in Germany declined in Q3 2025, with low capacity utilization impacting supply.
• The stable unemployment rate of 6.3% in September 2025 suggested cautious consumer spending on premium personal care items.
Why did the price of Hydrolyzed Keratin change in September 2025 in Europe?
• Persistently high operating costs in the German chemical industry exerted upward pressure on prices.
• Increased consumer price index of 2.4% in September 2025 contributed to higher raw material expenses.
• Despite lower producer prices, energy costs, like natural gas, showed a modest rise in September 2025.
