In the first half of 2025, geraniol prices in China saw a gradual upward shift, influenced by tightening raw material supply—particularly lemongrass, which experienced a notable shortage in the domestic market. This supply pressure, especially from key regions like Yulin, created ripple effects across the citronellol and geraniol value chains, as both compounds are often co-produced. Although merchant activity was slow in early months, rising demand from the personal care and fragrance sectors supported a steady recovery by mid-year.
Globally, the trend was somewhat aligned. Major exporters in Southeast Asia also faced limited lemongrass output due to weather-related disruptions, tightening global supply. Meanwhile, European and North American buyers began restocking inventories, anticipating stronger demand in the second half. As a result, international market prices for geraniol saw moderate increases, with trade flows adjusting to meet regional imbalances.