Executive Summary

Demand Builds Momentum on Sustainability Trends

The global appetite for RSPO-certified stearic acid is forecast to jump by 15% in the second half of 2025, driven strongly by the personal care and tyre rubber sectors as sustainability becomes integral to procurement strategies. Stearic acid—a saturated fatty acid sourced largely from palm oil—is widely used as an emulsifier, stabilizer, and processing aid across industries. In the personal care market alone, demand for RSPO-certified stearic acid is expected to climb 22%, fuelled by growing consumer preference for clean beauty, natural ingredients, and eco-friendly skincare formulations. Meanwhile, the tyre rubber industry, which depends on stearic acid to enhance vulcanisation and boost durability, is projected to expand certified usage by 10% over the same period, reflecting global industrial recovery and shifting sustainability standards.

This steep demand plays into a wider growth story across the stearic acid sector. The global industrial stearic acid market, estimated at USD 5.14 billion in 2024, is forecast to reach USD 7.54 billion by 2032, representing a 5.9% CAGR. Rising demand for high-performance materials and bio-based ingredients is sustaining consumption growth, especially in the Asia-Pacific region, which leads output but remains hindered by limited capacity for sustainability-certified grades. The complementary stearates market, valued at USD 2.74 billion in 2024, is likewise tracking upwards at a 4.2% CAGR, supported by widespread applications in plastics, pharmaceuticals, cosmetics, and rubber.

Supply Tightness Raises Stakes Ahead of COP30

While demand is booming, supply of RSPO-certified stearic acid continues to lag. Current Southeast Asian production can currently meet only 64% of projected H2 2025 demand. This imbalance is growing as major buyers—including Unilever, L’Oréal, and Bridgestone—escalate advance contract bookings through Q1 2026. Their proactive moves aim to secure sustainable supply chains and cement their climate-aligned procurement strategies in the run-up to COP30, scheduled for late 2025. However, this strategy could inadvertently tighten availability for general buyers, creating a premium price environment.

Industry insiders warn that companies who postpone negotiations beyond September 2025 could be exposed to higher costs or even supply disruptions. Certified stearic acid commands increasing premiums, especially as RSPO certification serves as a critical benchmark for bio-based sustainability compliance. As environmental regulations evolve and brands intensify commitments to deforestation-free raw materials, demand is likely to remain elevated.

In this landscape, early procurement and forward-looking partnerships with certified suppliers are becoming strategic imperatives. Without timely action, buyers risk being priced out or left scrambling for uncertified alternatives—potentially compromising their sustainability credentials. As RSPO-certified stearic acid emerges as a critical ingredient in sustainable growth pipelines, capacity expansion and long-term investment will play a pivotal role in safeguarding both supply security and environmental integrity.