A rise in demand from the downstream fragrance and flavor sectors has caused Alpha Pinene prices in the US and Asian markets to soar throughout April 2023. The fragrance and flavor industry is a rapidly growing industry, with expanding demand for consumer goods and shifting consumer preferences for new outlooks. Consequently, the Alpha Pinene market is mostly governed according to the demand perspective in the downstream fragrance industries.

Participants in the APAC region attributed the Alpha Pinene market sentiments to be healthy as downstream demand from Perfumery industries increased amidst limited supply. In addition, extracting Alpha Pinene from natural sources is labor-intensive and costly. As a result, rising wages and the requirement for advanced technology in extraction techniques have contributed to the price hike accordingly. In terms of operating rate, domestic productivity has been moderate while the supply from neighboring US and China (exporting countries) has remained slow; this resulted in the limited availability of Alpha Pinene on the Indian shores.

Manufacturers and Retailers of Alpha Pinene saw that demand for the products remained high during the entire month of April. This was due to the rise in Alpha Pinene demand, as it has unique properties and is primarily required in the perfumery industries. The manufacturers were also having trouble sourcing the Alpha Pinene from natural sources. In particular, Industries that had only recently resumed operations after being shut down during the height of the pandemic have had trouble meeting the strong customer demand as the inventories amongst them were still minimal to fulfill the downstream appetite.

As per the ChemAnalyst forecast, the “Alpha Pinene prices are expected to maintain the same pace as in previous months, as demand is likely to be strong. There may be some hurdles in sourcing the Alpha Pinene from natural sources, due to which product supply may be shortened.”