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Oleochemicals Market

Oleochemicals Market Analysis By Type (Fatty Acid, Fatty Alcohol, Glycerin), By Application (Pharmaceuticals & Personal Care, Food & Beverages, Soaps & Detergents, Polymers) & Region - Global Forecast 2022 to 2032

Analysis of Oleochemicals market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Oleochemicals Market Outlook (2022-2032)

The global oleochemicals market is predicted to rise at a CAGR of 5.4% during the forecast period (2022-2032). Worldwide oleochemical sales are estimated to reach US$ 48.61 billion by 2032, up from US$ 27.66 billion at the end of 2021.

Fatty acid demand is projected to increase at a higher CAGR of 6.2% over the decade. Fatty acid dominates the market because it is a sustainable and cost-effective way to produce chemicals and fuels from renewable sources.

Over the last few years, oleochemicals have emerged as an ideal substitute for products derived from petroleum due to their low levels of toxicity. Growing environmental concerns have encouraged the growth of oleochemical applications across a range of industrial domains, including food & beverages, personal care & cosmetics, soaps & detergents, polymers, and pharmaceuticals, among others.

Report Attributes

Details

Oleochemicals Market Size (2022)

US$ 28.76 Billion

Projected Market Value (2032)

US$ 48.61 Billion

Oleochemicals Market CAGR (2022-2032)

5.4% CAGR

Europe Market Share (2022)

25.8%

Key Companies Profiled

  • Emery Oleochemicals
  • BASF
  • Wilmar International
  • Du Pont
  • Solvay
  • Musim Mas Group
  • Croda International
  • IOI Group
  • Cargill Inc.

In addition, the biodegradability of oleochemicals has allowed them to gain noteworthy popularity, especially in the food industry where they are widely used as emulsifiers in food products such as cakes, confectionery, bread, and others.

Oleochemical usage in developing countries has been aided by the expansion of the palm oil products market and rising crude oil prices. Current oleochemicals market trends indicate that petrochemical feedstock reliance is gradually decreasing, paving the path for oleochemical uses that replace petroleum-based goods.

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Demand Analysis of Oleochemicals (2017-2021) Vs. Market Outlook (2022-2032)

According to Fact.MR, a market research and competitive intelligence provider, the global oleochemicals market expanded at a CAGR of 4.4% from 2017 to 2021.

Oleochemicals are highly beneficial chemicals that are sourced from plant and animal fats. These chemicals are sourced from natural raw materials such as castor oil, vegetable oil, soybean oil, animal oils & fats, and also from petrochemical feedstock.

Oleochemicals are witnessing increasing popularity as they can be substituted for petroleum-derived products. Rising environmental concerns are driving the adoption of biodegradable chemicals, which is further fueling the growth of the oleochemicals market.

Growing adoption of oleochemicals in various end-use industries, such as surfactants, personal care, and home care is driving their sales significantly. The production of key feedstock for polyurethane production, polyols, is also based on oleochemical routes, thereby providing impetus to the growth in the oleochemicals market.

Oleochemicals are gaining popularity as a result of their use in the production of lubricants. Antioxidant, anticorrosive, anti-stick, anti-squawk, and anti-sludge are only a few of their properties. All of these characteristics contribute to the creation of a high-quality lubricant.

Many organizations involved in the lubricants production industry are increasing their demand for these compounds due to the presence of these features. The worldwide oleochemicals market is being driven by this growth in demand.

One of the most important customers for various lubricants is the textile sector. Lubricants are being used more frequently by companies in this field. The primary motivation for this change is to reduce friction, impairment, and breakdown of cloth-making machinery. As a result, this scenario is indirectly creating new opportunities for the oleochemicals market to flourish.

The primary driver for the oleochemicals market is the food industry. The food sector is being driven by improvements in processed food products, company marketing campaigns, and consumer engagement in growing nations. As a result, the rising deployment of biodegradable materials is expected to fuel the market growth over the coming years.

Consumption of oleochemicals is projected to increase at a CAGR of 5.4% from 2022 to 2032.

Oleochemicals market forecast by Fact.MR

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Why is Global Consumption of Oleochemicals Increasing Rapidly?

“World to Witness Increasing Adoption of Natural Oleochemicals”

Usage of natural raw material-derived products such as oleochemicals has become a popular trend these days because of the strict restrictions aimed at maintaining product quality and reducing health risks. Rising demand for natural oleochemicals is expected to drive the global oleochemicals market throughout the forecast period.

The specialty oleochemical industry is dominated by consumer goods, with demand for scents, household cleansers, conditioners, and gels driving market expansion. Because the usage of oleochemicals in consumer goods has been shown to be less hazardous and to have no negative effects on the human body, and because they are made from natural sources, the market for specialty oleochemicals is likely to increase rapidly over the coming years.

Customers have moved their focus to foods that are healthful and nutritious and come from natural sources. This is one of the primary drivers of the oleochemicals market. The sector is volatile in terms of profiting from the depletion of fossil fuels, which will lead to additional prospects for biodiesel use. As a result of these benefits, demand for these items is expected to rise over the forecast period.

In addition to this, decreasing dependency on petrochemical feedstock and the expanding applications of oleochemicals in replacing petroleum-based products are projected to create opportunistic paths for oleochemical suppliers.

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What Obstacles Do Oleochemical Manufacturers Face?

“Presence of Alternatives & Volatility in Raw Material Prices”

The competition for oleochemicals from other substitutes might be a major threat to market expansion. Environmental concerns related to plantations and land availability are other factors hampering the growth of oleochemicals.

In addition, increasing demand for biodiesel may cause a hike in biodiesel prices and is anticipated to directly affect the overall economics of oleochemical-based products, which might act as a restraining factor for the growth of the oleochemicals market. Market expansion is hampered by the lack of price stability for major oils and fats.

Which Region is a Lucrative Market for Oleochemical Suppliers?

“Rising Demand for Specialty Esters Driving Oleochemicals Market Value in North America”

North America accounts for 33.1% share of the global oleochemicals market. The market is primarily driven by consumer knowledge of the harmful effects of chemical additions in personal care and cosmetic products. Veganism has helped to increase the use of plant-based components in personal care products.

Increasing demand for specialty esters, growing public awareness regarding using environmentally friendly products, and the presence of key manufacturers are the factors expected to drive the market growth over the coming years.

Growing demand for biodegradable products in the food and beverage industry is fueling the demand for oleochemicals globally. In regards to the region, strict regulations in Europe against genetically modified (GM) food products drive the demand for oleochemicals.

Asia Pacific is anticipated to dominate the oleochemicals market in terms of both value and volume. The increase in plantation activities in Indonesia, Malaysia, and the Philippines, to manufacture various cosmetics and personal care products from oleochemicals, is projected to boost the demand for the oleochemicals market in the region.

Country-wise Insights

What’s Allowing Oleochemical Manufacturers to Thrive in the U.S. Market?

“Growing Focus on Sustainable Alternatives in the United States”

The U.S. oleochemicals market is projected to expand at a CAGR of 6% from 2022 to 2032. The expansion of several end-user industries in the United States, including pharmaceuticals and personal services and cosmetics, is expected to support the market growth.

Demand for oleochemicals is being driven by a rise in palm kernel and palm oil production. Palm production is increasing at a rapid rate, and raw material integration is improving. Many production facilities are being planned by industry leaders in the United States.

Oleochemical usage in the chemical sector of the United States is being driven by an increase in emphasis on sustainable alternatives and recyclable products, as well as changes in the U.S legislation, such as the EPA.

How is Demand for Oleochemicals Being Driven in China?

“Rising Government Investments for Bio-based Products”

The market in China is anticipated to rise at a CAGR of 6.2% over the forecast period. The market in China is growing due to rising demand for fatty acid methyl ester, easy availability of feedstock, and increased use of natural chemicals to generate oleochemicals.

The availability of raw materials in China is projected to boost the manufacturing of specialised oleochemicals. Government support for bio-based products, increased need for green chemicals, and rising demand for glycerin are all driving market growth in China.

Category-wise Insights

Which Type of Oleochemicals Has Gained Immense Traction across Region?

“Fatty Acids Highly Preferred Owing to Their Specific Properties

Based on type, the market is classified into fatty acids, fatty alcohol, glycerin, and other types. Fatty acid accounts for 52.1% of the global oleochemicals market. Fatty acid derived from animal fats, plant oils, and vegetable oils are utilized in a variety of industrial, hygiene products, and aesthetic goods, as well as food and beverage applications.

As the number of chronic diseases rises, more emphasis is placed on preventive health practices. The market is primarily driven by consumer awareness and demand for healthy eating and the health advantages of essential fatty acids. One of the contributing factors boosting demand for fatty acids is the growing use of plastics and rubber products around the world.

The market is further fueled by new production technologies and the demand for essential fatty acids in foods, beverages, and pharmaceuticals. Fatty acids are widely utilized to make liquids, cleaners, solvents, resins, and medicines, this factor is projected to drive market growth over the coming years.

Which Application Accounts for Higher Sales of Oleochemicals?

“Rapid Deployment of Oleochemicals with Advanced Technologies in Pharmaceuticals & Personal Care Sector

Pharmaceuticals & personal care applications account for 32.1% share of the global oleochemicals market and remain dominant over food & beverages, soaps & detergents, polymers, and other applications.

Oleochemicals are utilized in a variety of pharmaceuticals, and the increasing need for medicines is driving the demand for oleochemicals in pharmaceutical applications. The COVID-19 pandemic increased demand for oleochemicals in the pharmaceutical business.

The need for oleochemicals in personal care applications is being driven by an increase in demand for eco-friendly organic products and a growing consumer preference for natural and premium personal care. Personal care producers have developed novel technologies to fulfill the increased demand for cosmetics while also adhering to regulatory requirements.

Competitive Landscape

Several companies with robust R&D capabilities are eying business expansion in oleochemicals by introducing novel molecules with wider applications. Top oleochemical companies in the world have transitioned their primary business capabilities towards using plant-based biochemicals for making specialty oleochemicals and polymers. This trend remains lucrative for companies involved in creating downstream potential of oleochemical products.

Many leading firms are concentrating their efforts on research and development to make advancements and enhance their position in the current market competition.

For instance,

  • EMEROX Polyols is a new product innovation from Emery Natural Oleochemicals. End users benefit from its greater efficiency & sustainability and enhanced performance characteristics.
  • In 2020, Emery Oleochemicals confirmed the release of Emery E, a new fatty acid ester product line. These are color-stable, recyclable, and have a minimal smell.

Key Segments Covered in Oleochemicals Industry Research

  • Oleochemicals Market by Type :

    • Fatty Acids
    • Fatty Alcohol
    • Glycerin
    • Other Types
  • Oleochemicals Market by Application :

    • Pharmaceuticals & Personal Care
    • Food & Beverages
    • Soaps & Detergents
    • Polymers
    • Other Applications
  • Oleochemicals Market by Region :

    • North America
    • Europe
    • Asia Pacific
    • Latin America
    • Middle East & Africa

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The global oleochemicals market size was estimated at US$ 27.66 billion in 2021 and is expected to reach US$ 48.61 billion by 2032.

Pharmaceuticals & personal care applications account for 32.1% share of the global oleochemicals market.

Emery Oleochemicals, BASF, Wilmar International, Du Pont, and Solvay are key manufacturers of oleochemicals.

North America accounts for 33.1% share of the global oleochemicals market.

In 2021, the APAC oleochemicals market stood at US$ 8 billion.

The global oleochemicals market is anticipated to expand at a CAGR of 5.4% during the forecast period (2022-2032).

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