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.
