For the Quarter Ending June 2025
APAC
• The APAC Tallow Fatty Acid Price Index fell 2% in Q2 2025 from Q1, at the quarterly average of USD 1480/MT, FOB Shanghai, due to sustained weakness in personal care demand as well as sustained oversupply in regional markets.
• Tallow Fatty Acid Demand Outlook was weak across the quarter, particularly in China, where soaps, personal care, and lubricant consumption was slow due to low consumer sentiment and conservative spending habits.
• The personal care industry in China, South Korea, and Hong Kong experienced lower retail sales, less travel retail business, and a transition toward niche, premium offerings, minimizing dependence on bulk-grade fatty acids.
• Domestic production in China remained high, driven by steady slaughter rates and abundant feedstock availability, while the Tallow Fatty Acid Production Cost Trend eased slightly due to cheaper raw material tallow and stable freight rates.
• Competitive imports from the U.S. and Brazil at low prices further pressured local suppliers, while export volumes to key markets like India, Indonesia, and the U.S. stayed low due to trade disputes and logistical hurdles.
• Traders and downstream buyers showed risk-averse procurement strategies, leading to inventory build-up and downward pricing pressure across manufacturing hubs.
• The market remained oversupplied through Q2, with domestic and imported stocks accumulating as producers kept output high, anticipating a recovery in seasonal demand that failed to materialize.
• Why did the price change in July 2025? A price increase is expected due to improved downstream offtake and inventory normalization after prolonged destocking.
• The Tallow Fatty Acid Price Forecast for July 2025 suggests further decline or soft stability at lower levels, as bearish sentiment persists amid slow recovery in consumer-facing industries.
North America
• The Tallow Fatty Acid Price Index in North America showed a mixed trend in Q2 2025, shaped by steady downstream demand and tight feedstock availability; the average Tallow Fatty Acid Price during the quarter held within a moderate range compared to Q1, with mild intra-quarter fluctuations.
• The Tallow Fatty Acid Demand Outlook remained strong across diverse applications including soaps, detergents, personal care, lubricants, rubber, plastics, and animal feed, all of which supported a stable market base.
• Soaps and industrial detergents continued to anchor bulk consumption, while personal care and cosmetics drove additional demand owing to consumer preference for natural, conditioning ingredients.
• Steady growth in lubricant applications and stable feed demand in the livestock sector helped cushion any drop in other segments, maintaining balance in overall consumption.
• The Tallow Fatty Acid Production Cost Trend was influenced by tight tallow supply due to a 2% drop in U.S. beef production and slower fed cattle slaughter rates, which raised input costs.
• Feedstock availability was also challenged by rising competition from the North American biodiesel sector, where biomass-based diesel production is increasing demand for tallow.
• Despite these pressures, operational continuity remained strong, with producers navigating modest energy cost fluctuations and logistics without major disruption.
• Why did the price change in July 2025? A decrease is expected due to easing procurement activity and stabilization after Q2’s tight raw material conditions.
• The Tallow Fatty Acid Price Forecast for July 2025 suggests moderate softening as buyers delay orders, despite firm end-use demand, while producers manage stock and gradually pass on cost adjustments.
Europe
• The Tallow Fatty Acid Price Index in Europe exhibited a mixed yet stable trend in Q2 2025, with the average Tallow Fatty Acid Price assessed at moderate levels compared to Q1, supported by steady domestic consumption and minimal volatility in upstream costs.
• The Tallow Fatty Acid Demand Outlook remained strong, anchored by consistent offtake in soaps and detergents, which accounted for over 22% of global TFA use, ensuring foundational stability in the market.
• The personal care and cosmetics sector maintained steady procurement due to sustained demand for biodegradable, emollient-rich ingredients across European skincare and grooming formulations.
• Rising biofuel interest, particularly for biodiesel and SAF, added underlying demand support, although periodic competition from UCO and changes in blending mandates introduced intermittent fluctuations during the quarter.
• Industrial consumption in lubricants, plastics, rubber, and cleaners remained stable, with resilient manufacturing activity in the region supporting balanced demand throughout Q2.
• The Tallow Fatty Acid Production Cost Trend was generally steady, backed by sufficient feedstock availability from a mature European livestock rendering sector and minimal energy cost fluctuations.
• Efficient production networks and regulated logistics allowed suppliers to manage supply-demand variations without triggering sharp price movements or supply shortages.
• The region’s balanced import-export dynamics ensured that global pressures from Asia-Pacific or plant-based alternatives did not significantly affect local pricing equilibrium.
• Why did the price change in July 2025? A slight upward pressure is expected due to firm biofuel demand and gradual increases in raw material costs.
• The Tallow Fatty Acid Price Forecast for July 2025 indicates continued stability with potential mild gains, supported by robust demand in cleaning, personal care, and renewable fuels, alongside stable production fundamentals.
For the Quarter Ending March 2025
North America
In Q1 2025, the pricing of Tallow Fatty Acids in the North American region, particularly the USA faced considerable declines. This downturn was primarily driven by decreasing raw material prices, alongside ongoing economic uncertainties that affected consumer demand for personal care items.
The month of January started with a bearish trend influenced by high stock levels and diminished demand, putting downward pressure on Tallow Fatty Acid prices. Furthermore, the steady demand from the personal care sector sent mixed signals regarding potential price stabilization. However, in February, prices dropped further due to hesitant buying patterns stemming from inflationary concerns and waning consumer confidence, which squeezed profit margins for the producers.
March persisted with this negative trend, as a more pronounced decline occurred due to oversupply issues and weak demand in the cosmetics industry, compounded by the impact of tariff increases. Overall, the Tallow Fatty Acid market faced ongoing pricing difficulties marked by high inventory levels, decreased consumer spending, and cautious market sentiment, indicating a challenging environment for manufacturers and suppliers as they navigate the upcoming quarter.
APAC
The quarterly price trend for Tallow Fatty Acid in the APAC region, particularly China, showed a dramatic evolution during Q1 2025. Prices initially declined in January due to weak demand driven by sluggish consumer spending in the personal care sector and economic uncertainty. Brands faced increased competition, leading to lower prices as sellers aimed to clear excess inventory.
In February, the market remained challenged, with prices continuing to fall as oversupply, coupled with declining feedstock costs, exacerbated the situation. Buyer sentiment was cautious, focusing on immediate needs rather than bulk orders, which further depressed prices. Despite some resilience in the luxury segment, overall demand for Tallow Fatty Acid was subdued.
However, March marked a positive shift where prices increased by 3.3%. Factors such as limited supply chains and heightened trading activities contributed to this upward trend. Significant e-commerce growth and stable demand from major global brands revitalized the market. As brands like Nivea reported a 7.4% growth in sales, the personal care industry's robust demand for Tallow Fatty Acid in premium formulations underscored an optimistic outlook for the upcoming quarter.
In a nutshell, Q1 2025 saw initial price declines in Tallow Fatty Acid, followed by stabilization and growth in March, driven by solid demand from the personal care sector and improved market sentiment.
Europe
The tallow fatty acid market in the European region, particularly Germany exhibited a downward trend throughout the first quarter of 2025, largely influenced by an overabundance of supply and weak demand conditions. January commenced with prices facing downward pressure, triggered by a notable decrease in raw material prices. By the end of January, the Tallow Fatty Acid market revealed signs of volatility, exacerbated by economic uncertainties, even though there were some areas of marginal growth in the personal care sector.
In February, prices continued to fall as suppliers grappled with an oversupply situation, resulting in cautious purchasing behaviors prevalent among buyers. Many market participants preferred short-term restocking rather than committing to bulk orders due to ongoing economic volatility and trade tensions that were affecting consumer sentiment.
March saw prices decline further, mirroring the prevailing uncertainty in the market. Tariffs and geopolitical tensions placed additional downward pressure on tallow fatty acid demand, with major retailers adjusting their forecasts downward amid falling consumer confidence. Overall, Q1 2025 underscored considerable challenges for the fatty acid sector in Germany, driven by external economic influences and shifting consumer behaviors.
For the Quarter Ending December 2024
North America
Tallow fatty acid prices in the USA exhibited remarkable stability throughout Q4 2024, a trend directly reflecting the consistent performance of the North American personal care sector. October's steady demand, supported by moderate retail sales growth, maintained stable pricing. This stability continued into November, despite strong Black Friday e-commerce sales, as rising raw material costs and supply disruptions necessitated strategic pricing and inventory management within the personal care industry. The countervailing pressures of increased demand and rising input costs effectively neutralized each other, preventing price fluctuations.
December witnessed robust growth in the US personal care sector, particularly within e-commerce. While sales of high-ticket items surged due to a combination of competitive discounts and inflation-driven price sensitivity, the price of tallow fatty acid remained unchanged. This suggests that personal care manufacturers effectively absorbed the increased demand through existing inventory and strategic pricing strategies. In essence, despite heightened demand, manufacturers managed to avoid passing on increased costs to consumers or experiencing significant price pressure on raw materials.
The overall stability of tallow fatty acid prices throughout Q4 2024 underscored the resilience of the North American personal care sector. Consistent sector performance, even amidst challenges such as supply disruptions and rising input costs, translated into stable demand for tallow fatty acid, preventing significant price volatility. The shift towards e-commerce, while significantly boosting sales, did not disrupt this stability, thanks to the effective inventory management and strategic pricing employed by manufacturers.
APAC
In Q4 2024, the Tallow Fatty Acid market in the APAC region, particularly China experienced a sustained price increase driven by a confluence of factors. Post-Golden Week holiday demand in October, coupled with depleted inventories, created a supply-demand imbalance, pushing prices higher. The personal care sector's growth further fueled this upward trend.
November witnessed continued price escalation due to robust export demand from India and the US, fueled by their respective festive seasons. Steady domestic demand from China's personal care sector also contributed. December brought further price increases as supply constraints intensified. Production bottlenecks and severe port congestion led to shipment delays and higher transportation costs, exacerbating the situation despite moderate personal care sector demand.
In essence, Q4 2024 presented a bullish market characterized by strong demand (both domestic and export) and significant supply-side limitations. Market participants faced considerable challenges managing supply chain disruptions, fluctuating demand, and increased transportation costs resulting from port congestion. The interplay of these factors created a volatile market environment throughout the quarter.
Europe
The price of tallow fatty acid in Europe exhibited a steady trend in October, which remained consistent throughout November and December, resulting in a less pronounced overall quarterly change than initially projected.
In October, moderate demand from the personal care sector drove minimal fluctuations in prices for tallow fatty acid. However, in November mixed dynamics emerged. While increased festive shopping boosted retail activity in the personal care sector, rising manufacturing costs of the raw materials counteracted this positive effect by raising production costs for personal care manufacturers. This supply-side pressure likely limited the price increase of tallow fatty acid compared to October.
Demand remained moderate in December, consistent with the overall sluggishness of the European personal care sector. While niche segments and Black Friday promotions provided some sales growth, the overall year-on-year retail sales growth was minimal.
The European personal care sector's performance impacted tallow fatty acid prices. Steady demand translated to stable prices. Conversely, challenges within the personal care sector, such as increased input costs and economic uncertainty constrain demand and, consequently, moderate price changes for tallow fatty acid. The subdued growth in the European personal care market during Q4 2024 indicated a less significant overall price change for tallow fatty acid than initially anticipated.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American market, particularly in the USA experienced mixed pricing trend for Tallow Fatty Acid. The consistent inquiry levels from the personal care sector provided a foundation for a relatively stable market. This sector's demand helped to offset some of the fluctuations caused by other factors.
The approach of the holiday season led to a natural decline in purchasing activity as manufacturers scaled back operations. This seasonal reduction created fluctuations in pricing as suppliers adjusted their strategies to manage inventory and cash flow. Despite reduced purchasing efforts, the availability of sufficient tallow supply helped to stabilize prices in certain segments. Suppliers were able to fulfil existing contracts without significant disruptions, preventing more pronounced price increases.
The mixed pricing trends for Tallow Fatty Acid in Europe during Q3 2024 were primarily driven by a combination of stable demand from the personal care sector and seasonal fluctuations in purchasing. The availability of sufficient tallow fatty acid supply helped to prevent more significant price increases. However, cost pressures from raw materials created challenges for some manufacturers, leading to adjustments in their pricing strategies.
APAC
In Q3 2024, the APAC region experienced a downward trend in Tallow Fatty Acid pricing, with China notably witnessing the most significant price changes. Several key factors influenced this market shift. Reduced demand from the personal care sector played a pivotal role, leading to an oversupply of Tallow Fatty Acid and subsequently pressuring prices downwards. The impact of Typhoon Gaemi disrupted supply chains, causing delays in production and export schedules. Moreover, manufacturing firms operating at limited capacities during holidays resulted in a slowdown in production, contributing to a slight tightening of supply. Disruptions like plant shutdowns also added strain to the market. In China specifically, the market exhibited a consistent decrease in prices throughout the quarter. The overall trends pointed towards a negative sentiment, with seasonality and market correlations aligning with the decreasing price environment. Compared to the same quarter last year, prices were notably lower. The quarter-on-quarter comparison recorded a significant decrease of 3%, with prices showing a decline of 1% between the first and second half of the quarter. The quarter-ending price stood at USD 1370/MT of Tallow Fatty Acid FOB Shanghai in China, reflecting the prevailing downward pricing trend.
Europe
In Q3 2024, the Europe Tallow Fatty Acid market experienced a mixed pricing trend influenced by several key factors. While there was steady demand from certain sectors, such as personal care, overall inquiries varied significantly. Some end-users scaled back purchases due to economic uncertainties and seasonal changes, creating a dynamic market environment. Although there was sufficient availability of tallow fatty acid, regional supply chain disruptions, including logistical challenges and production slowdowns, created inconsistencies in supply. This contributed to localized price variations as some manufacturers faced difficulties in sourcing adequate raw materials. The competitive dynamics among manufacturers further contributed to the mixed pricing trend. While some companies raised prices in response to cost pressures, others aimed to attract customers by keeping prices stable, resulting in varied pricing across different regions and product grades. The mixed pricing trends for Tallow Fatty Acid in Europe during Q3 2024 reflected a complex interplay of fluctuating demand, supply constraints, and upstream cost pressures.
FAQs
Why did the Tallow Fatty Acid Price change in July 2025?
Prices changed due to shifting demand and inventory dynamics across key regions—rising in APAC, softening in North America, and holding firm in Europe.
What is the Tallow Fatty Acid Demand Outlook for July 2025?
Demand remains strong in Europe and North America but weak in APAC due to slow recovery in the personal care and cleaning sectors.
How is the Tallow Fatty Acid Production Cost Trend impacting prices?
Costs are stable in Europe and APAC, but North America is facing higher production costs due to tight tallow supply and biofuel competition.
What is the Tallow Fatty Acid Price Forecast for July 2025?
The forecast suggests soft stability in APAC, moderate decline in North America, and slight upward pressure in Europe driven by sustained downstream demand.
