Rising U.S. demand for Korean cosmetics, fueled by retail expansion and social media, is accelerating. The category's lower price points compared with prestige skincare risk pulling down average spending in the cosmetics market as consumers shift toward more affordable options.
Korea's FTC fined Daesang, Sajo CPK, Samyang, and CJ CheilJedang a record 747.6 billion won for fixing starch and starch sugar prices from 2018-2025. The companies must reset prices to pre-collusion levels, which is expected to lower costs for food and manufacturing industries.
Since alpha cyclodextrin is produced by the enzymatic degradation of starch, its price trend also mimics the market trajectory of common starch like corn starch and potato starch closely. During the second half of the year 2023, a mixed market run was witnessed for alpha-cyclodextrin. The alpha-cyclodextrin prices started on a stable note at the beginning of the third quarter in July and exhibited marginal fluctuations throughout the third quarter as the gap between the supply and demand outlooks was largely consistent.
It was by the middle of the final quarter that the price dynamics started changing, and the price curve started declining quickly. The supply chains were heavily disturbed during this time as the Red Sea crisis unfolded, rendering the source inventories overwhelmed. This, coupled with overall dull demands from the downstream food and pharma industries, pushed the alpha-cyclodextrin prices downwards. Overall, fluctuating price trends were witnessed for alpha-cyclodextrin during the second half of the year 2023.
Analyst Insight
According to Procurement Resource, Alpha Cyclodextrin prices are likely to continue fluctuating in a similar manner going forward as well. Since the demands are not expected to pick up anytime soon, the market outlook will take time to improve.
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Alpha-cyclodextrin is a glucose-like polysaccharide obtained through similar enzymatic degradation of starch molecules usually consumed by the food, beverage, healthcare, cosmetics, and chemical industries.
Alpha Cyclodextrin prices fluctuated throughout the period under discussion. In the Asian Alpha Cyclodextrin market, prices showed positive fluctuations in the initial quarter. Fresh downstream demands, in the beginning, helped in market growth, but a decline in upstream costs because of the normalizing freight and energy costs pushed the commodity prices down.
Similarly, in the European Alpha Cyclodextrin market, the prices were observed to be wavering in a narrow range as the resumed and rerouted supply chains facilitated trade, and energy costs also started normalizing. Overall, mixed market sentiments were observed.
Alpha-Cyclodextrin is a white solid compound which is readily soluble in water. It is a hexasaccharide derived from glucose. In α-cyclodextrin, the six glucose subunits are linked together, forming a tapered cylinder. The inner part of this structure is hydrophobic, whereas the exterior is hydrophilic. α-CD has several applications, including medical, healthcare, and food and beverage. It can be easily derived from natural feedstock like starch.
C36H60O30
Food and Beverage, Healthcare (for drug delivery), Absorbents, Stabilizers, Cosmetics
cyclohexakis-(1?4)-a-D-glucopyranosyl, a-CD, Cyclohexaamylose, Cyclohexadextrin, Cyclomaltohexose, a-Cycloamylose, a-Dextrin, a-Cyclodextrin
Wacker Chemie AG, Fengchen Group
CurrencyUS$ (Data can also be provided in local currency)
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Via Enzymatic Degradation: Alpha-Cyclodextrin is manufactured from starch-rich materials such as corn and potatoes. The starch is extracted and liquified by heat treatment. Then cyclodextrin glycosyltransferase (CGTase) is carefully added to the reaction mixture for enzymatic conversion, thereby giving a product mixture from where the desired product is extracted.
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