The global Oleochemicals market size is expected to be worth around US$ 35.89 billion by 2030, according to a new report by Vision Research Reports.
The global Oleochemicals market size was valued at US$ 19.50 billion in 2020 and is anticipated to grow at a CAGR of 7.57% during forecast period 2021 to 2030.
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The market growth can be attributed to the increasing demand for oleochemical derivatives by major end-use industries, such as food & beverages, pharmaceuticals, personal care & cosmetics, and plastic & polymers. In addition, regulations regarding the use of synthetic products have led to the increased adoption of the product due to its environmental and cost benefits. Fatty acids represent one of the largest applications of oleochemicals as they are used in the pharmaceutical, food, soap, laundry detergents, candles, waxes, lubricants, and paints & coatings industries.
Oleochemicals are derived from fats and oils, they are derived from natural sources, such as plant and animal fats and oils, also fossil fuel sources, such as petrochemicals. Surging crude oil prices have led to a considerable shift toward the use of products derived from vegetable oils, such as palm kernel oil and palm as a primary feedstock for the production. The majority of palm oil is consumed for the production of oleochemicals, owing to the easy availability of raw materials. All these factors are projected to drive the growth of the market.
In addition, fluctuating crude oil prices have led manufacturers to invest in R&D to innovate cheaper and feasible alternatives to petroleum-based feedstock. However, the usage of glycerol as a raw material for biofuel can be viewed as a growth opportunity in the market. Moreover, rising demand from the manufacturers of industrial chemicals, surfactants, cosmetics, and pharmaceuticals is projected to fuel market growth. Manufacturers from Asia Pacific region, mainly, China, acquire the majority share.
Specialty esters accounted for the largest volume share of over 33% in 2020 owing to the wide usage of these products in the production of rubber and cosmetics and as a lubricant in pharmaceutical applications. The maximum demand for fatty alcohols in the production of detergents and surfactants and thus inherits several growth prospects.
Fatty alcohols are being used in pharmaceuticals and cosmetics owing to their specific properties, such as emollients. The most commonly used product, Cetyl (C16) alcohol, is important in shaving creams, lipsticks, and hair lotions. Cetyl and stearyl (C18) alcohol bring similar properties, which are mainly used in dermatologic bases, bath preparations (bath oils, lotions, salts), antihistamine creams, and others. Moreover, fatty alcohols provide the starting point for the chemicals used as emulsion stabilizers, defoamers, metalworking lubricants, inks, perfumes, corrosion inhibitors, fire retardants, and others.
The consumption of synthetic products, such as Diethylene Glycol (DEG) and propylene glycol, is expected to decrease, which is further expected to promote biodiesel production and boost the demand for glycerol. Owing to the increasing use of crude glycerin in biodiesel production, companies are investing to find various alternative methods for the purification of crude glycerin. The market value of glycerin is dependent upon its purity, which makes it more appealing to potential buyers. Increasing demand from the various end-use sectors and derivative (downstream) manufacturing is projected to boost the demand for refined glycerin over the forecast period.
The industrial application segment accounted for the largest revenue share of 21.8% in 2020. However, the personal care & cosmetics segment is estimated to account for the highest revenue share by 2028 growing at the fastest CAGR over the forecast years. This growth can be credited to the shift in the consumer demand for eco-friendly and natural products. To cater to the rising demand for cosmetics and to meet the regulatory frameworks, personal care manufacturers have come up with upgraded and innovative technologies.
Growing the end-user industries, such as pharmaceuticals and personal care, in the U.S. is also anticipated to enhance the overall product demand. Glycerol derivatives are estimated to have high demand on account of numerous applications across various end-use industries including food & beverages and pharmaceuticals. The rapidly expanding cleaning products industry is expected to enhance the product demand as it includes surfactants and wetting agents, which can be produced from oleochemical sources. Companies, such as Procter and Gamble, a manufacturer of cleaning products in Europe, majorly use imported oleochemicals from Malaysia and Indonesia.
The growing market for organic personal care products makes use of bio-based raw materials or oleochemicals. Growing demand for natural and organic haircare, skincare, and other cosmetic products is anticipated to fuel the segment growth in the near future. Approval from human health & safety regulatory bodies, such as the USDA and FDA, for the utilization of organic products in several personal care products, has also led to industry growth. Plastic is another major application segment. Stearic acid (C16-C18) with a low concentration of unsaturated fatty acids is mainly used in the production of plastics.
Asia Pacific accounted for the largest revenue share of over 40% in 2020 due to the increased demand for sustainable plastics in various end-user industries, which, in turn, has driven the demand for raw materials, such as fatty acids and other bio-based polymers.
Indonesia and Malaysia are the major producers of base products for oleochemicals. Asia Pacific along with being the largest consumer is also the largest producer of oleochemicals and accounts for over half of the global production. This large share is attributed to the rapid expansion of the end-use industries and the easy availability of feedstock.
Manufacturers’ preference for natural chemicals for the production of oleochemicals is expected to bolster the product demand over the forecast period. North America is projected to register significant growth from 2021 to 2028. Expansion of various end-user industries, such as pharmaceuticals and personal care & cosmetics, in the U.S. is anticipated to support the growth of the regional market.
- Cargill, Inc.
- Kuala Lumpur Kepong Berhad
- BASF SE
- Oleon N.V.
- IOI Group Berhad
- Wilmar International
- Kao Corp.
- Product Outlook
- Specialty Esters
- Fatty Acid Methyl Ester
- Glycerol Esters
- Fatty Amines
- Application Outlook
- Personal Care & Cosmetics
- Consumer Goods
- Food & Beverages
- Paints & Inks
- Healthcare & Pharmaceuticals
- Polymer & Plastic Additives
- Regional Outlook
- North America
- The Netherlands
- Asia Pacific
- South Korea
- Central & South America
- Middle East & Africa
- South Africa
- Saudi Arabia
- North America
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