For the Quarter Ending June 2025
North America
• In July 2025, the Phenoxyethanol Price Index in North America declined slightly, following a similar trend seen in APAC.
• Spot Price movement in the U.S. mirrored global weakness due to subdued buying interest from personal care and skincare formulators.
• Price Forecast for August 2025 suggests continued softness as suppliers face pressure from oversupplied inventories and limited restocking by downstream buyers.
• Production Cost Trend remained relatively steady, but downstream purchasing slowed amid reduced momentum in cosmetics production and general destocking behavior.
• Demand Outlook turned cautious, with offtake volumes slipping as formulators optimized existing stocks rather than issuing fresh orders.
• Why did the price of Phenoxyethanol change in July 2025? Lower procurement activity, weak export orders, and the absence of cost-push pressure contributed to the regional price correction.
• Inventory levels across the U.S. were reported as moderately high, leading to slower turnaround of stock and extended lead times.
• Suppliers in the U.S. offered competitive quotes to maintain market share, especially as offshore alternatives from Asia were available at more attractive rates.
• The personal care sector, typically a key driver, saw lower-than-expected seasonal production output, keeping demand muted.
• Traders in the region adopted a wait-and-watch approach, expecting further declines before placing bulk orders for Q3 replenishment.
Europe
• In July 2025, the Phenoxyethanol Price Index in Europe (Germany) exhibited a slight downward trend, consistent with declining sentiment across global personal care intermediates.
• Spot Price activity in Germany remained under pressure due to elevated inventories and minimal restocking by cosmetic ingredient blenders and manufacturers.
• Price Forecast for August 2025 indicates extended bearishness unless stronger downstream demand materializes before Q3 end.
• Production Cost Trend stayed stable in Germany, with no significant input cost volatility; however, overall market weakness continued to cap any upward movement.
• Demand Outlook remained tepid, especially from mid-sized European personal care and pharmaceutical formulators, which relied more on existing inventory than on fresh procurement.
• Why did the price of Phenoxyethanol change in July 2025? The price declined due to weak local consumption, high stockpiles across distributors, and lackluster export orders within the EU bloc.
• Downstream players in Germany followed cautious procurement patterns, influenced by sluggish finished product sales and ongoing macroeconomic uncertainties.
• Import competition from Asia intensified, with several German buyers opting for lower-cost offers from Korean and Chinese exporters.
• Suppliers trimmed offers to prevent additional inventory build-up ahead of expected low summer demand.
• Limited forward bookings from the pharma segment added further drag to the regional demand dynamics for Phenoxyethanol.
APAC
• The Price Index for Phenoxyethanol in India (APAC) reversed its previous upward trend and declined in July 2025, after registering consecutive gains from April through June.
• Spot Price for Phenoxyethanol Ex-Mumbai fell from USD 2218/MT in June to a lower level in July, reflecting a clear softening in market sentiment.
• Why did the price of Phenoxyethanol change in July 2025? The price decrease was primarily due to weaker input cost support, softer downstream procurement, and increased domestic supply. Feedstock prices, particularly Phenol, showed easing momentum in July, reducing production costs.
• Production Cost Trend showed signs of stabilization, with both Phenol and Ethylene Oxide costs leveling off. This offered producers more margin flexibility, which translated to moderated selling prices in the domestic market.
• Demand Outlook was relatively neutral. Despite steady offtake from personal care and cosmetics sectors, a visible slowdown in new orders and bulk procurement restrained upward price traction.
• Domestic manufacturing remained active, but inventory buildup among key producers allowed for more competitive pricing to liquidate stocks.
• Export momentum also waned slightly, with subdued international inquiries from Africa and Southeast Asia compared to the robust demand seen in Q2.
• Import cost pressures also eased slightly as the Indian Rupee stabilized against the US Dollar, providing cost relief for feedstock imports and reducing overall raw material inflation.
• Looking ahead, the price forecast for August 2025 points to stable-to-soft movement, with little indication of strong upward momentum unless export orders revive or feedstock costs spike.
For the Quarter Ending March 2025
North America
Throughout Q1 2025, Phenoxyethanol prices in the U.S. experienced fluctuating movement, reflecting a mix of demand changes, supply conditions, and external economic factors. January started with a rise in prices, supported by strong demand from the cosmetics and personal care sectors. Supply conditions were tight, compounded by logistical challenges, particularly in key import channels. Increased freight rates and supply chain disruptions created higher import costs, leading buyers to adopt proactive procurement strategies, which provided upward momentum for prices.
In February, the price trend continued to show fluctuation as supply conditions tightened further, driven by rising production costs and disruptions in the global supply chain. The implementation of a 10% tariff on Chinese imports added to procurement challenges, especially given the U.S. market’s reliance on Asian suppliers. While freight rates showed signs of easing, continued supply shortages and a growing demand from downstream sectors, including cosmetics and pharmaceuticals, contributed to a more complex pricing environment. As a result, the market remained under upward pressure due to these factors.
March saw another shift, with prices fluctuating as conditions in the market began to stabilize. Increased inventories and reduced freight costs helped improve supply availability, alleviating some of the earlier price pressures. At the same time, declining industrial activity and reduced consumer spending dampened demand, leading to more cautious purchasing behavior from buyers. This combination of factors contributed to a slight price correction, as the market responded to changing demand and supply conditions.
Throughout Q1 2025, the U.S. Phenoxyethanol market experienced fluctuating prices, driven by a combination of strong demand, supply-side constraints, rising production costs, and external factors such as tariffs and logistics disruptions. Despite brief periods of price pressure, a shift in supply and demand dynamics led to ongoing fluctuations throughout the quarter.
Asia Pacific
In January 2025, the Indian Phenoxyethanol market saw a modest price increase of 0.12%, driven by stable demand from the pharmaceutical and personal care industries. A decline in inflation supported steady consumption, while higher import costs from China, particularly influenced by the ongoing festival season, added upward pressure on prices. Additionally, rising freight costs, exacerbated by congestion at Mumbai Port, further contributed to the steady price growth observed throughout the month. India's manufacturing sector showed strong growth, with the Manufacturing PMI reaching 57.7, fueling demand for raw materials like Phenoxyethanol.
In February 2025, Phenoxyethanol prices in India increased by 0.55%, driven by sustained demand from key sectors and higher import costs. The depreciation of the Indian Rupee against the US Dollar compounded rising procurement expenses. Although industrial activity remained stable, the decline in India’s PMI to 56.3 indicated a slight slowdown in manufacturing, impacting supply and contributing to upward price pressure. Despite easing inflation, the combination of steady demand, constrained supply, and rising import costs kept prices elevated.
However, in March 2025, the market saw a significant drop in prices by -1.64%, driven by a combination of high supply levels and weakened demand. Improved domestic production and reduced import costs, coupled with a stronger Rupee, helped lower production expenses. This, combined with reduced consumption from key end-use sectors, led to inventory accumulation, prompting suppliers to cut prices to clear excess stock. The market shift resulted in downward price pressure throughout the month.
Europe
The Phenoxyethanol market in Germany showed fluctuating price behavior throughout Q1 2025, driven by shifting demand patterns, changing import costs, and broader macroeconomic factors. In January, prices saw an upward trend as demand from the personal care and pharmaceutical sectors remained robust. Anticipation of potential supply disruptions during the Lunar New Year led to increased procurement by German buyers, particularly from manufacturers of cosmetics and healthcare products. This proactive inventory management provided support to prices, although stable supply conditions prevented any sharp rises.
In February, prices started to fluctuate as supply conditions eased slightly and demand from downstream industries softened. A reduction in purchasing activity from key sectors, such as personal care and pharmaceuticals, contributed to bearish market sentiment. The depreciation of the euro added to import-related costs, but lower freight rates from key suppliers provided some relief. This combination of softer demand and improved logistics led to a more cautious procurement strategy, as buyers focused on inventory adjustments rather than bulk purchases.
March marked another period of price fluctuations, with a shift toward a firmer market tone. Continued demand from the cosmetics sector, alongside stronger healthcare sector performance, underpinned market stability. However, rising raw material costs and import pressures, due to both the depreciation of the euro and slightly higher freight rates, kept the market on edge. While some logistical challenges eased, the overall cost environment remained elevated, sustaining upward pricing pressure and contributing to a firmer market outlook by the end of the quarter.
Throughout Q1 2025, the German Phenoxyethanol market experienced fluctuating prices, influenced by varying demand from the personal care and pharmaceutical sectors, changes in raw material costs, and shifting logistics conditions. Despite periods of volatility, steady demand and supply chain dynamics helped maintain a balanced market throughout the quarter.
FAQ’s
1. Why did the price of Phenoxyethanol decline in Europe (Germany) in July 2025?
The decline was driven by oversupplied conditions, weak procurement from cosmetic and pharmaceutical formulators, and limited summer-season restocking, especially as many buyers continued to rely on existing inventory.
2. What factors contributed to the bearish Phenoxyethanol trend in North America (US) in July 2025?
In North America, prices remained under pressure due to high inventories, slower consumption from personal care end-users, and intensified competition from imports, particularly from APAC suppliers offering more competitive terms.
3. Is the Phenoxyethanol demand outlook improving in the APAC region?
The demand outlook in APAC, particularly in China and South Korea, showed only a marginal uptick. Despite slight increases in local production activity, downstream restocking remained restrained due to market uncertainty and volatile raw material availability.
4. What is the price forecast for Phenoxyethanol in August 2025 across key markets?
Prices in Europe and North America are forecast to remain soft through August unless there is a sudden improvement in demand from personal care and pharmaceutical sectors. Any rebound would likely be modest and dependent on seasonal procurement trends.
5. How are global supply chain dynamics affecting Phenoxyethanol prices in Q3 2025?
With consistent production output in Asia and slow-moving inventories in Western markets, the global Phenoxyethanol supply remains abundant. This is contributing to continued price pressure, particularly in Europe and North America, where consumption lags behind pre-pandemic levels.
