In early 2025, Benzaldehyde prices saw an upward trend in the Asia-Pacific region. The demand for Benzaldehyde surged in India during February 2025, particularly in the beauty and pharmaceutical sectors, due to its role in fragrances and drug formulations. The beauty sector is expected to continue growing in Q2 2025, while the pharmaceutical sector may experience a dip because of seasonal changes. Decrease in production costs and more active supply chains are likely to stabilize the market.

Benzaldehyde has become increasingly popular in India’s beauty sector, as a fragrance ingredient and flavoring agent in cosmetics. The demand for premium fragrances containing Benzaldehyde has risen sharply in India’s beauty market. Retailer Nykaa has reported growth in its premium product lines, contributing to bullish trend. The beauty markets in Southeast Asia and the broader Asia-Pacific region are also expanding, with projections showing significant growth by 2025, raising the demand for Benzaldehyde in cosmetics in the APAC region.

The use of chemicals like Benzaldehyde in drug formulations has grown in India’s pharmaceutical sector. This increase is supported by the expansion of India’s Contract, Research, Development, and Manufacturing Services (CRDMO) sector because of cost advantages and quicker project timelines. India’s pharmaceutical exports are expected to more than double by 2030. However, the country is now working to reduce its reliance on importing raw materials from China for its pharmaceutical industry.

Despite this shift, China continues to play a central role in Benzaldehyde production and remains a key supplier for India. The country still depends heavily on China for its imports, with anticipations that imports will exceed USD 100 billion, surpassing the record in 2023-24. However, concerns over geopolitical tensions and U.S. tariffs on Chinese-built vessels have raised some uncertainty into the market.

As we move into the second quarter of 2025, the demand for Benzaldehyde in the beauty and pharmaceutical sectors could follow different trends. The beauty sector, in India and Southeast Asia, is expected to keep growing because of the rising popularity of premium fragrances. Concurrently, demand might decrease from pharmaceutical industries due to seasonal changes and reduction in the need for several medications. However, the long-term outlook for Benzaldehyde remains positive, driven by the growth of the Contract Research and Manufacturing Services (CRMS) sector and the increasing demand for high-quality fragrances in the beauty market.

On the supply side, decrease in energy costs during the summer and decline in feedstock Toluene prices would negatively impact the operating and production costs. The inventory levels are likely to rise as supply chain activity and trade conditions would improve in the summer. Overall, the market outlook looks stable, and cost reductions would balance out the slower demand in the pharmaceutical sector.