For the Quarter Ending March 2025
North America
In Q1 2025, the polysorbate market in the USA experienced a mixed price trend, shaped by fluctuations in sorbitol feedstock costs, industry demand, and global trade dynamics. January saw a price decline as sorbitol costs decreased, which lowered production expenses for polysorbate manufacturers.
The lower production costs, combined with a deceleration in the pharmaceutical sector’s growth and moderate demand from the food and beverage industries, led to price stabilization in early January. By February, however, rising sorbitol (feedstock) prices and increased demand from the booming cosmetics and pharmaceutical sectors exerted upward pressure on polysorbate prices.
The expansion of the pharmaceutical industry, particularly in contract manufacturing and the increasing demand for emulsifiers in drug formulations, contributed to this trend. The cosmetics industry’s shift toward organic and natural products also bolstered demand. March continued the upward momentum, with prices continuing to rise as sorbitol costs stabilized, while the food and beverage sector maintained steady demand for polysorbates in emulsifying and stabilizing formulations.
APAC
In Q1 2025, the polysorbate market in the APAC region, particularly in India, experienced a mixed price trend driven by sorbitol feedstock costs, demand from key sectors, and global trade dynamics. In January, prices declined as sorbitol prices fell, easing production costs for manufacturers, though demand in the pharmaceutical sector slowed. However, by February, rising sorbitol costs and increased demand from the expanding pharmaceuticals and cosmetics sectors led to price increases, with CFR Kandla quotations rising 4.7%. March saw continued upward pressure on prices due to stable sorbitol prices and rising demand in the food and beverage sector, where polysorbates are crucial for emulsification. Despite disruptions in global trade and geopolitical tensions, India maintained steady production levels, relying on imports from China. Overall, the market experienced moderate price fluctuations, with steady demand from food, pharmaceutical, and cosmetics industries driving prices higher towards the end of the quarter. The market outlook remains cautiously optimistic, supported by strong sector growth and stable demand.
Europe
In Q1 2025, the polysorbate market in Europe saw a mixed price trend, driven by higher sorbitol (feedstock) prices, robust demand from key sectors, and external trade factors. Early in the quarter, prices initially decreased as sorbitol costs fell, leading to a reduction in production expenses for manufacturers. This created a window of opportunity for price stabilization in January. However, the pharmaceutical sector saw slower-than-expected growth, and demand from the food and beverage industry remained moderate, leading to a stabilization in prices during the month. By March, polysorbate prices began to rise again as sorbitol prices held steady, while demand from the food and beverage sector remained strong. Polysorbates play a crucial role in emulsifying and stabilizing food products, contributing to the growth of this sector. The ongoing demand from the pharmaceutical and cosmetics industries further supported the upward trend. Despite global trade challenges, including geopolitical uncertainties and supply chain disruptions, Europe managed to maintain steady production levels, with imports helping to stabilize the supply chain. The demand for polysorbates in key sectors, such as food, pharmaceuticals, and cosmetics, remained solid, indicating a strong market for the product.
For the Quarter Ending December 2024
North America
In Q4 2024, polysorbate prices in North America experienced significant fluctuations due to a mix of demand and supply-side factors. At the start of the quarter, prices saw an increase, driven by strong demand in the pharmaceutical and food sectors, as well as higher feedstock costs, particularly for sorbitol. Additionally, supply chain disruptions, including shipping delays and logistical bottlenecks, led to higher transportation costs, further driving up prices.
However, as the quarter progressed, a downward shift in polysorbate prices occurred, primarily due to slower-than-expected growth in the pharmaceutical sector. The North American pharmaceutical market faced challenges, including a decrease in demand for polysorbates used in certain drug formulations, reducing the upward pressure on prices. Moreover, lower production costs, supported by favourable international raw material prices and currency fluctuations, contributed to easing the price increases seen earlier in the quarter.
Although demand from the food and beverage sectors remained steady, it was insufficient to offset the reduction in pharmaceutical consumption. As a result, polysorbate prices declined by the end of Q4 2024 in North America.
APAC
In Q4 2024, the price trend for polysorbates in the APAC region saw considerable fluctuations, influenced by a mix of demand and supply-side factors. Early in the quarter, particularly in October, polysorbate prices experienced an uptick, driven by increased demand during the festive season in several APAC countries and rising feedstock costs, particularly sorbitol. Supply chain disruptions, such as container shortages and shipping delays, compounded by higher logistical costs, further pressured prices upwards across the region.
However, towards the end of Q4 2024, a negative trend began to emerge, with polysorbate prices softening due to weaker-than-expected growth in key markets such as India and China. In particular, the pharmaceutical sector in the APAC region faced slower-than-anticipated growth, with reduced demand for polysorbates used in drug formulations. This decline in pharmaceutical demand contributed to a decrease in overall price pressures. Additionally, favourable international raw material prices, combined with currency fluctuations and lower production costs, further alleviated the upward pressure on polysorbate prices.
While demand in the food and beverage sectors remained relatively steady across the region, it was not enough to offset the decline in pharmaceutical consumption, leading to an overall decrease in polysorbate prices by the close of Q4 2024 in the APAC region.
Europe
In Q4 2024, the price trend for polysorbates in Europe experienced mixed market dynamics, influenced by both demand and supply-side factors. Early in the quarter, prices saw an increase, largely driven by higher demand in the pharmaceutical and food sectors, as well as rising feedstock costs, particularly sorbitol. Supply chain challenges, including shipping delays and rising logistical costs, further contributed to the upward pressure on polysorbate prices in Europe.
However, towards the end of the quarter, a negative price trend began to emerge, largely due to softer-than-expected growth in the European pharmaceutical market. The demand for polysorbates used in drug formulations weakened, leading to a reduction in price pressures. In addition, favorable raw material prices internationally, along with a favorable currency exchange rate, helped lower production costs, easing the upward pressure on polysorbate prices.
While the food and beverage sectors maintained steady demand for polysorbates, this was not sufficient to offset the decline in pharmaceutical consumption, resulting in an overall decrease in polysorbate prices in Europe by the end of Q4 2024.
For the Quarter Ending September 2024
North America
The third quarter of 2024 witnessed an incline in the prices of Polysorbate in the North American market owing to the increased production cost. As a major importer, the U.S. had felt the direct effects of price hikes from key producing nations. Supply chain bottlenecks, such as drought-related disruptions affecting the Panama Canal, reduced vessel traffic, container shortages, and longer lead times, further constrained capacity and raised transportation costs.
The market faced additional strain due to high demand during an early shipping peak season, concerns over potential U.S. port labor disputes, and elevated input and import costs pushed Polysorbate prices upward, creating a challenging environment for both importers and consumers in the pain relief medication market.
Although global price increases in key exporting regions put pressure on the U.S. Polysorbate market, modest production increases gradually revitalized supply chains. Despite rising prices, market sentiment remained positive, with continued order volumes signaling resilience to cost pressures, although intermediaries faced margin pressures due to higher input costs.
APAC
In Q3 2024, the Polysorbate market in the APAC region experienced a downward trend in prices, influenced by various factors. The market witnessed decreasing prices primarily due to a combination of high supply levels, low demand, and fluctuating production costs. The availability of cheaper alternatives and subdued demand from key industries contributed to the negative price trajectory. Additionally, disruptions in supply chains and uncertainties in global trade further impacted market dynamics, leading to a bearish sentiment. Specifically in India, the market reflected the broader regional trend with significant price changes. The correlation between price changes and seasonality was evident, with a notable decrease compared to the same quarter last year. The quarter-on-quarter change recorded a slight decline, indicating a consistent downward trend. The first half of the quarter saw prices slightly higher than the second half, showcasing a gradual decrease. Throughout the quarter, manufacturers were able to maintain the balance as the demand range of the commodity did not surpass the inventories impacting the final prices of Polysorbate in the domestic market.
Europe
European market witnessed a mixed market dynamics throughout the third quarter of 2024 as the prices dipped till the mid of the quarter and rebounded towards the end of the quarter. The European Polysorbate market experienced a notable price decline due to various global and domestic factors. As a major producer and exporter, France benefited from reduced production costs, allowing manufacturers to offer more competitive prices. This shift alleviated the previous upward pressure on global prices, which had been driven by higher export costs. Anticipating improved conditions in importing countries, buyers delayed purchases, leading to reduced demand. Simultaneously, companies began offloading inventories to minimize storage costs and avoid risks associated with product degradation. The increased supply further pushed prices down as sellers opted to destock at lower rates. Additionally, the Euro's appreciation against the US dollars contributed to market stability. Despite stable raw material costs, particularly for Corn, market sentiment remained subdued, with prices remaining low throughout the week, reflecting cautious behavior among market participants.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the Polysorbate market in North America saw a significant drop in prices, influenced by several key factors. A major driver of this price reduction was the heightened demand from the frozen food and pharmaceutical industries, which ironically led to production difficulties due to the rising costs of Sorbitol, an essential feedstock. The situation has been further worsened by severe weather, especially hurricanes, which have disrupted petroleum markets and impacted crude oil production and refining operations.
Manufacturers faced the challenge of maintaining profitability amid increasing production costs. Furthermore, disruptions in transportation and logistical networks worsened the situation, causing delays and higher shipping expenses. The global rise in polysorbate demand, especially from pharmaceutical and other industrial uses, added to market pressures, resulting in a scarcity that ultimately pushed prices down to restore market balance.
Researchers have determined that, upon evaluating domestic supply the United States currently falls short in available supply and, in some instances, domestic reclamation capacity needed to achieve company goals.
APAC
In Q2 2024, the Polysorbate market in the APAC region experienced a notable downturn in prices, with several key factors contributing to this trend. The primary reason for the price decline was the increased demand from the frozen food and pharmaceutical sectors, which paradoxically resulted in production challenges due to the rising costs of Sorbitol, a crucial feedstock. Manufacturers grappled with the dual pressures of maintaining profitability amidst escalating production expenses. Additionally, disruptions in transportation and logistical networks further exacerbated the situation, leading to delays and higher shipping costs. The global surge in polysorbate demand, particularly from pharmaceutical and other industrial applications, intensified market pressures, resulting in a scarcity that naturally drove prices downward to achieve market equilibrium.
Focusing on India, the country witnessed the most significant price fluctuations within the APAC region. Seasonal factors such as the intense heatwave led to increased demand from the cold beverage and dairy sectors, further straining the supply chain. The overall pricing trend in India reflected a consistent decreasing sentiment, with a marked percentage drop compared to the previous quarter.
The price comparison between the first and second half of the quarter showed a 2% decrease, underscoring the downward trajectory. Overall, the pricing environment in Q2 2024 has been largely negative, driven by a confluence of escalating raw material costs, logistical disruptions, and heightened demand pressures.
Europe
In Q2 2024, the European Polysorbate market experienced a notable price decline due to several factors. The increased demand from the frozen food and pharmaceutical sectors significantly contributed to this trend, ironically causing production challenges due to the rising costs of Sorbitol, a key feedstock. Manufacturers struggled to maintain profitability as production expenses climbed. Additionally, transportation and logistical disruptions exacerbated the issue, leading to delays and increased shipping costs. The global surge in polysorbate demand, particularly from pharmaceutical and industrial applications, intensified market pressures, creating a scarcity that ultimately drove prices down to achieve market equilibrium.
Manufacturing in Europe's industrial heartland weakened further in July, confirming the worst fears of EU leaders worried about the direction of the bloc's economy. However, the hope that European industry would swiftly recover faded, even as the eurozone economy as a whole returned to growth. Focusing on Germany, which experienced the most substantial price fluctuations, the overall trend for benzene remained consistently negative. Seasonal factors also contributed, as the typically lower industrial activity during this time further intensified the price decline.
