Oleochemicals Market

The oleochemicals market was valued at $25.6 billion in 2020 to reach $55.3 billion by 2030, and is anticipated to grow at a CAGR of 7.5% from 2021 to 2030.

The outbreak of COVID-19 shifted the demand for oleochemicals from automotive and plastics to personal hygiene and pharmaceutical sectors.

Oleochemical is produced primarily from natural raw materials such as plant or animal fat. Activated carbon is frequently used to purify, decolorize, and deodorize fatty acids and their derivatives. Oleochemical are biodegradable and have little toxicity, making them environmentally friendly. Scientists and people alike consider these items to be natural, green, organic, safe, renewable, and biodegradable. These products are viewed as natural, green, organic, safe, renewable, and biodegradable by the scientists and consumers.

Surge in demand for green chemicals, high demand from end-use industries, and easy availability of raw materials are the key factors driving the demand for oleochemicals Furthermore, environmental regulations are becoming increasingly stringent and non-renewable resources are depleting, thus allowing oleochemicals to enter the market and replace the currently used petroleum-based products. In addition, manufactures are replacing chemical products with biobased ecofriendly products to meet the demand for biobased products. This is expected to reduce pollution and save time and cost. 

Oleochemicals are used in the production of food packaging approved by FDA as well as food contact surface sanitizers. In the food & beverage industry, triple pressed stearic acid is utilized as a mold-release agent. Increase in use of oleochemicals in the food industry coupled with expansion of the food industry in developing countries are expected to create growth opportunity for the oleochemicals market. Furthermore, oleochemicals are used in the production of household and industrial cleaning products such as surfactants, cleansing agents, emulsifiers, foam boosters, and degreasers. Increase in disposable income coupled with rise in population in India and China are expected to create lucrative opportunity for the Asia-Pacific oleochemicals market.

The report emphasizes on the major types of oleochemicals such as fatty acid, fatty alcohol, glycerol, and others. The fatty alcohol is further bifurcated into ethoxylate and others. The applications covered in the study include pharmaceuticals, personal care & cosmetics, food & beverages, soap & detergents, polymers, and others. Region wise, the oleochemicals market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. In addition, the study highlights various factors that impact the growth of the global market, such as key drivers, restraints, growth opportunities, and the role of different key players. It presents the quantitative data, in terms of both revenue and volume, which are obtained from the secondary sources, such as company publications, Factiva, Hoovers, and OneSource. The oleochemicals market share is analyzed for significant regions and countries.

The key players profiled in the oleochemicals market are Emery Oleochemicals, Wilmar International, Oleon NV, KLK Oleo, Musim Mas Group, Croda International, IOI Group, Procter & Gamble Co., Twin River Technologies, and Chemical Associates Inc. The other players in the oleochemicals market include Evyap Oleo, Godrej Industries, Cargill Inc., CREMER, and Pacific Oleochemicals Sdn Bhd.

Oleochemicals market, by Type

The fatty acids segment is expected to grow at a 7.2% rate of CAGR in terms of revenue during the forecast period while fatty alcohol segment is projected to be fastest growing segment growing at 8.6% CAGR. Increased demand for bio-based fatty acids from end-use industry, including pharmaceuticals, personal care, cosmetics, food & beverages, chemicals, and others is anticipated to drive the segment’s growth while increasing demand from pharmaceutical and cosmetics industry is driving the demand for fatty alcohol. Fatty alcohols are being used in pharmaceuticals and cosmetics owing to their specific properties, such as emollients.

Oleochemicals Market, By Application

The pharmaceutical segment accounted for the largest share i.e., 20.7% and personal care and cosmetics segment is the fastest growing segment, growing around 8.6% CAGR during the forecast period, in terms of revenue. Oleochemicals is used in many pharmaceuticals drugs and ever increasing demand for pharmaceuticals drugs across the globe is driving the demand for oleochemical in pharmaceutical application. In addition, COVID-19 pandemic further boosted demand for oleochemical in pharmaceutical industry. Increased demand for eco-friendly natural products and increasing focus among youth towards personal beauty is driving the demand for oleochemicals in personal care and cosmetics application.

Oleochemicals Market, By Region

Asia-Pacific contributed the 57.8% market share in 2020 and is projected to grow at CAGR of 7.1% during the forecast period in terms of revenue. Europe is the fastest growing region, growing at around 8.5% CAGR during the forecast period in terms of revenue.  Asia-Pacific dominates the global oleochemicals market, in terms of both value ad volume. Moreover, it is expected to witness the highest growth rate from 2021 to 2030, owing to recent developments and modernization in oleochemicals manufacturing plants in Asia that offers excellent raw material integration and gives producers competitive advantage above overseas competitors. Moreover, the market in the region is driven by presence of strong raw material base, shift in consumer preference for renewable products, and low manufacturing costs.

 Key Benefits For Stakeholders

• This report provides an extensive analysis of the current and emerging market trends and dynamics of the oleochemicals market.
• The oleochemicals market trend analysis for all the regions is conducted by constructing estimations for key segments between 2021 and 2030 to identify the prevailing opportunities.
• The report assists to understand the strategies adopted by the leading companies in the industry.
• The oleochemicals market size will be provided in terms of kilotons and $million.
• This study evaluates competitive landscape of the oleochemicals industry to understand the market scenario globally.
• Extensive analysis is conducted by key player positioning and monitoring the top competitors within the oleochemicals market.

Impact Of Covid-19 On The Global Oleochemicals Market

• The oleochemicals market witnessed value chain disruption owing to spread of COVID-19 and lockdown in major manufacturing countries. The outbreak of COVID-19 further increased the demand for oleochemicals, as they are used in products such as soap and disinfectants. As the consumer spending has shifted from cosmetics to essentials products such as soap and disinfectants, it increased the demand for oleochemicals from soap and disinfectant manufacturers. 
• For instance, Wilmar expanded its production capacity of fatty amines. The aim of this expansion is to maintain supply for manufacturing disinfectants and COVID-19. However, the prices of raw materials have been changing, owing to spread of COVID-19 in the major raw material and oleochemical manufacturing countries such as Malaysia and Indonesia. Malaysia was under lockdown on two weeks from June 1, which decreased the output of palm oil because of workforce shortage. The scenario is expected to remain as they have extended the lockdown for two more weeks, i.e., till June 28.
• India’s demand for oleochemicals is expected to remain stable in 2021 as major home care manufacturers are working despite lockdown restrictions imposed to control the COVID-19. As the home care manufacturers are considered under essential category. 
• Furthermore, Indonesia is witnessing noteworthy exports of palm oil-based oleochemical products such as soap noodles owing to the COVID-19 pandemic. In addition, basic hygiene product components such as fatty acids are witnessing increased demand.

 Oleochemicals Market Report Highlights