For the Quarter Ending September 2025
APAC
• In China, the Tallow Fatty Acid Price Index fell by 0.99% quarter-over-quarter, reflecting supply surplus pressures
• The average Tallow Fatty Acid price for the quarter was approximately USD 1498.33/MT, based on FOB Shanghai transactions
• Tallow Fatty Acid Production Cost Trend moderated as cheaper tallow reduced breakevens, supporting narrower seller margins
• Tallow Fatty Acid Spot Price volatility increased amid export redirections, influencing domestic availability and Price Index
• Tallow Fatty Acid Demand Outlook mixed; personal care steady but industrial procurement remained subdued and cautious
• Tallow Fatty Acid Price Forecast indicates modest recovery tempered by export constraints and downstream ordering
• High domestic inventories pressured margins, while stronger outbound shipments tightened supply and influenced Price Index
• Freight volatility and redirected tallow flows elevated landed costs, constraining arbitrage and shaping near-term positioning decisions
Why did the price of Tallow Fatty Acid change in September 2025 in APAC?
• Reduced global slaughter rates, redirected exports tightened supply, increasing landed procurement costs across APAC markets
• Weaker downstream industrial buying and inventory destocking depressed demand, pressuring domestic Tallow Fatty Acid pricing
• Freight volatility and imports from Americas lowered landed costs, enabling importers to undercut domestic offers
Europe
• In Europe, the Tallow Fatty Acid Price Index displayed a mixed trend throughout Q3 2025, firming in mid-quarters amid steady feedstock costs before softening in September due to reduced industrial activity.
• Tallow Fatty Acid Spot Price rose in July and August, driven by firm consumption in personal care and cleaning formulations across Western Europe.
• By September, Spot Price eased slightly as inventories replenished, and seasonal soap demand tapered following the summer production peak.
• Tallow Fatty Acid Production Cost Trend remained relatively stable, with balanced tallow feedstock prices and slight moderation in energy and logistics costs across the EU.
• Tallow Fatty Acid Price Forecast indicates continued mixed movement into Q4 2025—stable consumption from personal care and oleochemicals may offset mild softening in industrial lubricant and feed additive sectors.
• Tallow Fatty Acid Demand Outlook remains steady, underpinned by robust usage in personal care, cleaning, and chemical intermediate applications, though some softness was noted in rubber processing and industrial greases.
• Strong domestic production in key hubs like the Netherlands and Germany ensured balanced supply, keeping the Price Index within a narrow range.
• Falling freight rates and steady operating margins further stabilized producer economics and prevented large price fluctuations.
Why did the price of Tallow Fatty Acid change in September 2025 in Europe?
• In September 2025, the Tallow Fatty Acid Price Index decreased slightly, as downstream soap and oleochemical producers reduced purchases following strong restocking earlier in the quarter.
• Feedstock prices remained stable, indicating the price correction stemmed mainly from seasonal demand moderation.
• With the Production Cost Trend unchanged, the mild decline reflected temporary demand softness rather than cost-side pressure.
North America
• In North America, the Tallow Fatty Acid Price Index recorded a mixed trajectory through Q3 2025, firming during July and August before easing modestly by September.
• Tallow Fatty Acid Spot Price strengthened mid-quarter as stable demand from the soap and detergent industry and limited product availability lifted market sentiment.
• By late September, Spot Price softened slightly as market participants reported improved production levels and normalized distributor inventories.
• Tallow Fatty Acid Production Cost Trend remained stable, supported by consistent rendered tallow availability and lower logistics costs amid steady fuel prices.
• Tallow Fatty Acid Price Forecast suggests continued mixed behavior heading into Q4 2025—firm consumption in the cleaning and oleochemical sectors could support prices, while mild easing is expected in industrial lubricant demand.
• Tallow Fatty Acid Demand Outlook remains positive, driven by household and personal care products, though demand from industrial applications showed a seasonal decline.
• Adequate domestic supply and steady import inflows from Latin America maintained equilibrium, preventing major Price Index volatility.
• Freight normalization and favorable energy costs provided stability to producers, aiding margin protection across the quarter.
Why did the price of Tallow Fatty Acid change in September 2025 in North America?
• In September 2025, the Tallow Fatty Acid Price Index fell slightly, as downstream producers moderated procurement after summer production peaks.
• High stock availability and stable feedstock prices contributed to mild downward adjustments in Spot Prices.
• The steady Production Cost Trend confirmed that the decline was demand-driven rather than cost-related.
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.
