Ethanolamine Procurement Intelligence Report 2025-2030

Ethanolamine Supply-Demand Overview

Key demand drivers for ethanolamines include the increasing use of surfactants in cleaning agents, personal care products, and industrial applications, as highlighted in procurement research. Furthermore, it play an important role in agriculture, especially in herbicide and pesticide production, supporting industries focused on agricultural productivity. The growing demand for pharmaceuticals and cosmetics is also contributing to higher ethanolamine consumption, particularly in the formulation of products such as shampoos, soaps, and skincare items, influencing pricing strategies and category management.

According to the ethanolamine procurement report, the Asia-Pacific region, especially China and India, is the largest buyers of ethanolamines. Strong demand is driven by the rapidly growing industrial sectors, including chemicals and agriculture. China, as the largest producer and consumer, plays a central role in shaping global industry pricing trends and negotiation strategies.

On the supply side, expansions in production capacities, particularly in the Asia-Pacific region, are expected to meet the increasing demand. Several manufacturers are investing in new facilities and equipment technologies to boost efficiency and production. However, challenges persist in securing a stable supply of essential feedstocks like ethylene oxide and ammonia, which are crucial for ethanolamine sourcing.

Ethanolamine Cost Structure

According to the ethanolamine procurement report, the cost modeling of production is impacted by several key factors, such as raw materials, energy, catalysts, operational expenses, pricing models, and regulatory compliance. Raw materials make up the largest portion of production costs. The main feedstocks for ethanolamine production are ethylene oxide and ammonia, both of which are sourced from petrochemical processes. Ethylene oxide plays a major role in determining production costs and is significantly influenced by fluctuations in crude oil and natural gas prices, as well as negotiation strategies.

According to the ethanolamine procurement report, energy costs play a significant role in production, as creating ethanolamines involves several energy-intensive stages, such as the oxidation of ethylene-to-ethylene oxide and its subsequent reaction with ammonia. These processes require substantial heat and pressure, making energy expenses a major factor in pricing models. Regions with high energy costs, like Europe and certain parts of North America, typically experience higher pricing strategies.

Ethanolamine Pricing Trends

Ethanolamine prices, like other chemical products, are influenced by fluctuations in raw material costs, energy prices, negotiation strategies and supply-demand dynamics. The main raw materials used in ethanolamine production of ethylene oxide and ammonia are derived from petrochemical processes, which makes ethanolamine prices sensitive to changes in crude oil and natural gas prices, according to the ethanolamine procurement report. Price volatility in these energy sectors directly affects the production costs of both ethylene oxide and ammonia, thereby impacting the overall cost structure of ethanolamine for buyers.

Recently, ethanolamine prices have been rising due to several factors. Increased demand from industries such as agriculture (for herbicides and pesticides), personal care (for surfactants and emulsifiers), and pharmaceuticals has put upward pressure on prices. The agriculture sector's growing need for ethanolamine-based herbicides, particularly in regions like Asia-Pacific and North America, has been a key driver, as noted in the ethanolamine procurement report. Additionally, as the global economy recovers and industrial activity picks up, demand for ethanolamine-based surfactants and cleaning agents has also increased.

Ethanolamine Procurement Best Practices

According to market research for procurement professionals, procurement practices in the ethanolamine industry focus on securing stable supply chains, managing costs, maintaining product quality, and implementing effective pricing strategies. Given the importance of key raw materials, ethylene oxide and ammonia, sourcing strategies prioritize establishing long-term relationships with suppliers to minimize risks related to price volatility and supply shortages.

As per ethanolamine sourcing, both ethylene oxide (derived from ethylene, a petrochemical feedstock) and ammonia (produced through the Haber-Bosch process) are highly sensitive to fluctuations in natural gas and crude oil prices. As a result, procurement teams often enter long-term contracts to lock in favorable pricing trends and ensure a consistent supply.

Another key strategy is diversifying supplier sources to reduce dependence on a single region or supplier. This helps mitigate risks posed by regional supply disruptions, geopolitical issues, or transportation challenges, according to the ethanolamine procurement report.

Key Players in the Ethanolamine Industry

Recent Developments in the Ethanolamine Procurement Report

In September 2024, BASF inaugurated its new plant for alkyl ethanolamines at its Antwerp Verbund site. As per the ethanolamine procurement report, this further increased the company’s global alkyl ethanolamines capacity to 140,000 metric tons per year.