News Release: July 30, 2025
Phenethyl Benzoate Price, Production, Latest News and Developments in 2025
The global Phenethyl benzoate market has been experiencing dynamic changes in 2025, driven by production shifts, increasing demand from the fragrance and personal care industry, and regulatory adjustments impacting trade flows. According to the latest Phenethyl benzoate price trend and production News, market participants are closely watching key indicators such as raw material costs, plant capacity utilization, and global supply chain shifts. As 2025 progresses, several critical developments are influencing the Phenethyl benzoate price news, including fluctuations in the aromatic chemicals sector, environmental norms, and geopolitical trade policies.
Phenethyl Benzoate Price Trend in Past Five Years and Factors Impacting Price Movements (2019–2024)
Between 2019 and 2024, Phenethyl benzoate price trend has shown fluctuations ranging from $2,750/MT to a peak of $4,200/MT, largely driven by the volatility in benzoyl chloride and phenethyl alcohol prices, which are the major raw materials.
In 2019, prices were relatively stable around $2,800/MT due to steady demand and balanced production. However, in early 2020, the COVID-19 pandemic disrupted global supply chains, pushing prices slightly down to $2,650/MT due to reduced demand and logistical hurdles.
By the second half of 2021, the industry experienced a sharp rebound as manufacturers resumed operations and demand surged from cosmetic and personal care segments. Consequently, Phenethyl benzoate price rose significantly to $3,600/MT in Q3 2021. This was supported by higher downstream usage in premium fragrances and specialty skincare formulations.
In 2022, prices saw upward movement again, peaking at $4,000/MT by Q4, owing to global shipping constraints, increased energy prices, and raw material scarcity. Southeast Asian producers were operating at reduced capacity, pushing European and North American buyers to rely on costlier imports.
The year 2023 witnessed some stabilization as new production facilities became operational in China and India. Phenethyl benzoate price news reported a moderate decline to $3,500/MT as raw material availability improved and new suppliers entered the market. However, regulatory interventions regarding environmental emissions in China in late 2023 curtailed output again, supporting prices.
By the end of 2024, prices hovered around $3,800/MT, with seasonal demand from fragrance manufacturers in Europe and North America contributing to the uptick. Raw material prices continued to play a pivotal role, especially phenethyl alcohol, which faced inconsistent supply due to petrochemical feedstock limitations.
Phenethyl Benzoate Price Trend Quarterly Update in $/MT (2025 Estimate)
Here is the projected quarterly Phenethyl benzoate price trend in 2025:
- Q1 2025: $3,850/MT
- Q2 2025: $3,780/MT
- Q3 2025: $3,900/MT
- Q4 2025 (forecast): $4,050/MT
These fluctuations reflect a combination of rising shipping costs, modest recovery in global demand, and localized supply constraints in Asian markets.
Global Phenethyl Benzoate Import-Export Business Overview
The Phenethyl benzoate global trade landscape is marked by a significant volume of imports from Asia-Pacific countries, especially China, India, and South Korea, which together account for over 60% of the global Phenethyl benzoate sales volume.
China continues to be a major production hub, leveraging its access to raw materials and lower production costs. However, stricter environmental policies and plant closures in Guangdong and Jiangsu provinces in early 2025 have slightly decreased export volumes, prompting buyers in the EU and US to diversify sourcing. Chinese exports in Q1 and Q2 2025 saw a 7% drop year-on-year, reflecting production constraints.
India, on the other hand, has seen a surge in Phenethyl benzoate production, with the commissioning of new mid-scale plants in Gujarat and Maharashtra. Indian exporters have captured some of the lost market share from Chinese producers, especially in the Middle East and Africa. The export volume from India grew by 12% in the first half of 2025, driven by competitive pricing and consistent quality supply.
South Korea and Japan remain niche producers, catering to high-purity requirements from pharmaceutical and premium cosmetics industries. Their export volumes are comparatively lower, but their products command a premium price, generally trading 5–8% higher than bulk producers.
In Europe, local production remains limited, and most countries rely on imports. Germany, France, and the UK are major consumers, primarily for high-end fragrance applications. In 2025, EU regulations for allergen control and purity standards affected the import preference toward certified and REACH-compliant manufacturers, boosting demand from Japan and South Korea.
The United States remains a key importer, especially for use in fine fragrances and hair care products. The first half of 2025 showed an uptick in demand with 5.5% growth in Phenethyl benzoate sales volume across California and Texas-based manufacturers. However, import costs increased due to port congestion and rising freight charges.
Latin America and Africa are emerging markets with growing demand, primarily in personal care and industrial cleaners. Brazil, South Africa, and Egypt showed an import volume rise of over 10% in the first two quarters of 2025.
Looking at the Phenethyl benzoate Price Trend, the import-export market is greatly impacted by logistical costs, currency fluctuations, and regional trade agreements. For instance, the ASEAN Free Trade Agreement has facilitated lower tariffs on Indian and Chinese exports to Southeast Asian countries, boosting intra-regional trade.
Another significant trend shaping the Phenethyl benzoate trade is the rise of e-commerce-driven B2B chemical platforms, allowing small- and mid-sized buyers from Latin America and Eastern Europe to directly procure from Asian exporters. This has reduced the reliance on intermediaries and made pricing more transparent, influencing global Phenethyl benzoate price news on a more real-time basis.
In terms of Phenethyl benzoate production, the outlook for 2025 indicates a gradual increase in global capacity as newer facilities in Vietnam and Malaysia aim to go operational by Q4. These expansions are expected to enhance supply availability and potentially ease pricing pressure in early 2026.
However, trade tensions between the US and China could impact the availability and cost of raw materials and finished products, especially if additional tariffs are imposed. Also, environmental sustainability regulations in the EU are influencing buyer preferences toward suppliers with green certifications, which may shift future trade flows toward more compliant countries like Japan and Germany.
In conclusion, the Phenethyl benzoate industry is witnessing complex trade dynamics, where production, policy, and transportation costs are key influencers. As more regions work toward self-sufficiency in specialty chemicals, international trade volumes may face a shift toward regionalization, though Asia will continue to lead in production capacity for the foreseeable future.
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Phenethyl Benzoate Production Trends by Geography
The global production of phenethyl benzoate is concentrated in several major chemical-producing countries, with significant contributions from Asia-Pacific, North America, and Europe. Each region contributes uniquely to the overall supply chain, depending on the availability of raw materials, industrial infrastructure, environmental policies, and cost-effectiveness of production.
Asia-Pacific
Asia-Pacific dominates global phenethyl benzoate production, with China and India being the most prominent contributors. China benefits from its large-scale petrochemical infrastructure and access to inexpensive raw materials like phenethyl alcohol and benzoic acid, which are precursors in the production process. Several manufacturers in provinces like Jiangsu and Zhejiang have vertically integrated operations, helping reduce production costs and supporting large export volumes.
India is rapidly expanding its production capacity to serve both domestic and international markets. With the chemical manufacturing sector receiving strong government backing under the “Make in India” initiative, companies are investing in scalable production units for specialty esters such as phenethyl benzoate. Gujarat and Maharashtra have emerged as central hubs due to their established chemical zones, logistics networks, and availability of skilled labor.
Japan and South Korea, though smaller in total output, produce high-purity phenethyl benzoate targeted at niche applications in premium personal care products and pharmaceuticals. These countries focus on stringent quality control and environmentally compliant manufacturing practices.
North America
In North America, the United States is a key producer of phenethyl benzoate, though the scale is considerably smaller compared to Asia. U.S. manufacturers cater mainly to local demand from the cosmetics and fragrance industry. Production facilities are located in chemical clusters in states like Texas and Louisiana, benefiting from proximity to raw material suppliers and advanced production technologies.
U.S. producers also focus on innovation and eco-friendly production methods, which align with rising consumer preferences for sustainable ingredients. However, high labor costs and stringent environmental regulations limit the competitiveness of U.S.-based production in the global export market.
Europe
Europe holds a respectable share in phenethyl benzoate production, especially in countries like Germany, France, and the Netherlands. The region is driven by demand from luxury fragrance houses and skincare brands, which source high-purity compounds with strict safety and allergen standards. European production focuses more on quality than quantity and is shaped by regulatory compliance under REACH guidelines.
Production costs in Europe are higher due to energy prices and environmental policies, leading to a preference for importing from Asia for large-scale applications. However, European manufacturers retain a stronghold in high-end and pharmaceutical-grade phenethyl benzoate markets.
Middle East and Africa
Phenethyl benzoate production in the Middle East and Africa is relatively limited. However, several nations in the Gulf Cooperation Council (GCC) are exploring specialty chemicals manufacturing as part of diversification efforts. Some pilot-scale units in the UAE and Saudi Arabia have been set up, mostly to serve local downstream markets in cosmetics and personal care.
In Africa, South Africa shows some potential for chemical production, but phenethyl benzoate manufacturing remains minimal. Most demand is met through imports from India and China.
Latin America
Latin America does not have a significant base for phenethyl benzoate production. Brazil and Mexico have limited capabilities in chemical manufacturing and mostly rely on imports. However, the growing demand for personal care products in this region is prompting companies to consider local production units. While still in early planning stages, this trend could eventually create a modest footprint for phenethyl benzoate production in Latin America.
In summary, the global production trends of phenethyl benzoate are highly skewed toward Asia-Pacific due to cost advantages, production scale, and raw material availability. While North America and Europe contribute through specialty manufacturing, other regions are still emerging players. Future trends suggest continued growth in Asia, with new facilities being planned in Southeast Asia and possible capacity expansions in India.
Phenethyl Benzoate Market Segmentation
Key Market Segments:
- By Application
- By End-use Industry
- By Purity Level
- By Distribution Channel
- By Geography
Explanation of Leading Segments
1. By Application
Phenethyl benzoate finds application primarily in personal care products, fragrances, and industrial cleaning agents. Among these, personal care remains the largest application segment. It is widely used as an emollient and fragrance fixative in lotions, creams, deodorants, and sunscreens. Its pleasant odor and skin compatibility make it a preferred choice for cosmetic formulations.
Fragrance application follows closely, as phenethyl benzoate offers excellent stability and a sweet floral note. It acts as a solvent for essential oils and enhances the longevity of scents. Premium perfume brands prefer this compound for its dual role as a carrier and active aromatic agent.
In industrial cleaning, phenethyl benzoate acts as a solvent for hydrophobic compounds. It is used in specialty degreasers and solvent blends. While this segment is smaller, it has shown steady growth, especially in sectors requiring biodegradable solvents.
2. By End-use Industry
The cosmetics and personal care industry is the most dominant end-user of phenethyl benzoate. The rising global demand for moisturizers, anti-aging creams, and sun care products is significantly driving this segment. Asia-Pacific and North America lead the consumption here due to high consumer awareness and spending on personal grooming.
The fragrance industry is another key end-user. Both mass-market and high-end perfume manufacturers use phenethyl benzoate for its stability and aromatic properties. It is also used in fabric softeners and air fresheners in home care products.
Pharmaceutical companies represent a niche but high-value segment, using phenethyl benzoate in topical drug formulations for its solvent and carrier capabilities. This segment demands high-purity grades, usually sourced from Japan, the U.S., and Europe.
3. By Purity Level
The market is divided into technical grade and cosmetic/pharmaceutical grade phenethyl benzoate. Technical grade is commonly used in industrial applications where purity requirements are less stringent. This variant is largely produced in China and India at lower costs.
Cosmetic and pharmaceutical grades require higher purity and tighter controls on contaminants. These are mainly sourced from North America, Japan, and the EU. The demand for high-purity grades is growing, especially with the global focus on clean beauty and regulatory safety.
4. By Distribution Channel
Distribution channels include direct sales, distributors, and online B2B platforms. Direct sales dominate in regions with established manufacturer–buyer relationships, especially in North America and Europe.
Distributors play a vital role in emerging markets like Africa and Latin America, where smaller buyers rely on localized supply chains. Recently, online B2B platforms have started gaining traction, offering global access to suppliers and real-time price updates. These platforms are particularly useful for SMEs sourcing from Asian manufacturers.
5. By Geography
Geographically, the Asia-Pacific region leads both in consumption and production. Rapid urbanization, rising disposable incomes, and a booming cosmetics market in China, India, and South Korea drive this demand. Europe follows closely, driven by the luxury fragrance segment.
North America remains an important market, especially in skincare and pharmaceutical uses. Latin America and Africa are emerging markets, with growing consumer awareness and expanding retail infrastructure. These regions are expected to contribute significantly to global demand in the coming years.