During 2024, Betaine prices in Europe closely followed trends in the upstream market, primarily driven by supply and demand dynamics for sugar beet molasses. The year began on relatively stable ground, with low feedstock prices due to an oversupply from previous seasons and reduced demand in some industries. This upstream stability kept Betaine prices steady during the early months.
However, by midyear, conditions shifted. Reduced feedstock supplies mainly caused by lower cultivation areas and unpredictable weather in key growing regions such as Germany led to tighter availability. This shortage contributed to increased feedstock prices, which in turn raised the production costs for Betaine.
As feedstock prices rose in the second half of the year, Betaine prices followed an upward trend. The combination of constrained feedstock supply and growing demand from various industries exerted upward pressure on Betaine pricing. By year-end, the Betaine market adjusted to the reduced feedstock supply, with prices fluctuating to reflect the increased volatility in the upstream market.