The Succinic Acid price trend witnessed drop in the North American region towards the end of the first quarter of 2025. The U.S. cosmetics sector experienced a bearish market, which led to decreased demand for ingredients like Succinic Acid used in personal care products. At the same time, steady production coupled with a drop in feedstock Benzene costs, weakened cost support for Succinic Acid. The imposition of significant U.S. tariffs on Chinese imports, including a 20% tariff on goods like Succinic Acid, further strained the market. The market is anticipated to improve in Q2 due to rising feedstock prices and increased shipping activities in the second quarter of 2025.

The U.S. cosmetics sector faced a bearish market in March 2025 with declining demand for mass beauty products from major brands like Ulta Beauty and Coty. The drop in social media influence led to a 28% decrease in earned media value in Q1 2025 compared to the previous year. This downturn, driven by reduced marketing budgets and weaker content, negatively impacted the demand for ingredients like Succinic Acid used in personal care products. Brands responded by focusing on lower-priced options and smaller packages to appeal to cost-conscious consumers.

At the same time, the Succinic Acid production rates were steady in key international manufacturer and exporter China. Concurrently, the decline in feedstock Benzene costs, driven by reduced consumption for ethylbenzene production to make styrene along with the drop in crude oil prices was driven by the rise in concerns about oversupply after OPEC+'s announcement to begin unwinding production cuts in April 2025, negatively impacted the cost support on the production costs of Succinic Acid. The supply rates were stable to the North American market. Meanwhile, the U.S. administration imposed significant tariffs on Chinese imports in March 2025, including a 20% duty on a broad range of goods, effectively raising the total tariff to 54% when combined with existing measures.  This escalation in trade tensions impacted the import of chemicals, such as Succinic Acid, from China to the U.S.

Despite challenges, the Succinic Acid market is likely to improve during the second quarter of the year. The rising feedstock prices might raise production costs. In addition, increased shipping activity during the summer due to more favorable trade conditions might elevate the freight costs, which may also contribute to higher prices for Succinic Acid in the coming weeks.

However, the new U.S. tariffs announced in April 2025 are likely to raise production and import costs in the food sector, which could lead to reduced demand for specialty ingredients like Succinic Acid.