MAGNESIUM STEARATE MARKET Challenges and Opportunities

One of the key challenges faced by the magnesium stearate market is the volatility in raw material prices. Magnesium stearate is primarily manufactured using magnesium oxide and stearic acid as key raw materials. The prices of these raw materials are dependent on crude oil and natural gas prices. Over the past few years, prices of crude oil and natural gas have witnessed significant fluctuations owing to uncertain geopolitical conditions and supply demands dynamics. Any increase in crude oil and natural gas prices translates to an immediate increase in prices of magnesium oxide and stearic acid. Since magnesium stearate manufacturers have little control over raw material prices, their operating margins and profitability come under pressure during times of rising input costs.

Magnesium Stearate Market Opportunity: Innovation of New Grades of Magnesium Stearate

The magnesium stearate market has witnessed significant opportunity from innovation of new grades of the product customized for specific end-use applications. Currently, manufacturers offer generic grades of magnesium stearate suitable for multitude of applications across different industries such as pharmaceuticals, plastics, and rubber. However, with rising competition each industry demands value added products with precise functionality. Innovation of specialized grades of magnesium stearate with properties like controlled dispersibility, reduced misting tendencies and improved lubrication can help players target new customers and applications. Customized grades can help achieve higher processing efficiency and product quality for clients. This will enhance brand loyalty and open new revenue streams.