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๐Ÿ“ฆ Salicylic acid and its salts

Salicylic acid and its salts

HS Code:

๐Ÿ“ฆ

Overview

Salicylic acid and its salts (HS Code: 291821) are organic compounds primarily used in the pharmaceutical and cosmetic industries. Salicylic acid is a key ingredient in the production of aspirin (acetylsalicylic acid) and is widely utilized in skincare products for its exfoliating and anti-inflammatory properties. Its salts, such as sodium salicylate, are used in pain relief medications and as intermediates in chemical synthesis. This category is critical in global trade due to its applications in health and beauty sectors, with demand driven by population growth, increasing healthcare needs, and rising consumer interest in personal care products.

Total Trade Volume

USD 250 million

Data from 2022

Source

United Nations Comtrade Database

Tariff Analysis

Average Rate

5.5%

Highest Rate

12% (imposed by certain developing countries to protect domestic industries)

Lowest Rate

0% (under free trade agreements like EU-India FTA for specific partners)

Common Restrictions

  • Import quotas in some countries to support local production
  • Stringent quality and safety regulations for pharmaceutical-grade products
  • Anti-dumping duties imposed by the EU and US on Chinese exports

Market Trends

Growing demand for skincare products

Increased imports of salicylic acid in regions with booming cosmetic industries, such as Southeast Asia and North America

2021-2022

Shift towards sustainable production

Manufacturers in Europe and North America are adopting greener synthesis methods, influencing supply chain dynamics and pricing

2020-2022

Rising pharmaceutical production in developing countries

Higher exports from India and China to meet global demand for aspirin and other salicylate-based drugs

2019-2022

Recent Developments

EU Imposes Anti-Dumping Duties on Chinese Salicylic Acid

The European Union introduced anti-dumping duties ranging from 8-10% on salicylic acid imports from China to protect domestic manufacturers from unfair pricing practices.

March 2023

Potential shift in trade flows, with buyers in the EU turning to alternative suppliers like India and Germany, increasing costs for importers.

India Expands Production Capacity

Major Indian chemical companies announced investments to increase salicylic acid production by 15% to cater to rising domestic and international demand.

June 2022

Strengthens Indiaโ€™s position as a key exporter, potentially lowering global prices due to increased supply.

New US Regulations on Cosmetic Ingredients

The US FDA introduced stricter guidelines on the use of salicylic acid in over-the-counter skincare products, mandating clearer labeling and concentration limits.

January 2023

May reduce demand for higher-concentration products in the US market, affecting exporters targeting this segment.