Asia Market Update
By: Anay Chaube, Sales Director, Asia Pacific
The Asia Marketplace continues to see significant shifts in fundamentals compared to a year ago.
On the supply side, the higher cost of lauric oil feedstocks is flowing to the downstream oleochemicals. Additionally, the increased demand for certified palm and palm kernel derived products is adding to the downstream costs as global CPGs rally to deliver on their publicly announced targets for sustainable products.
On the demand side, while the impacts of COVID-19 continue to periodically rise and ebb, the overall marketplace seems to be getting back on its feet, spurred by growing consumer spending. Countries in Asia have reported record e-commerce sales across certain segments of personal care, food, and pharma. This complements the COVID-19 driven growth in demand in the cleaning products space.
The growth in e-commerce among consumers, the recovery of industrial demand, and the continued pressure to reduce delivery times and rebuild diminished inventories is exacerbating the tightness in vessel and container spaces, which continues to have no clear end in sight.
P&G Chemicals is stepping up and responding to this ambiguous environment on multiple fronts:
• On the supply chain, we have updated our order-to-shipment lead time to help our customers better manage their needs against this new reality.
• At the same time, we have built additional flexibility in our logistics by providing options to have shipments pull out from different ports in Malaysia and Singapore, should the need arise.
• On the product side, we have introduced tailored products for the pharmaceutical (SuperolTM K+ Glycerin) and personal care industry (SilkyPure 1618 alcohol) to respond to specific consumer needs.
Feel free to connect with your Account Executive to learn more about P&G Chemicals work to insulate your supply chain from a dynamic marketplace.