by Oleochemicals are organic chemicals produced from plant or animal fats and oils. They are widely used in manufacturing industry for producing soaps, detergents, lubricants, emulsifiers, and biodiesel. Palm oil, coconut oil and soybean oil are major feedstock used in oleochemical production. Oleochemicals find applications in various end-use industries including food, pharmaceuticals, plastics & polymers, personal care & cosmetics, textiles, paper and pulp. The global oleochemicals market is largely driven by growing demand for sustainable and bio-based products from consumer goods and industrial manufacturing sectors. With increasing consumer preference towards green products, oleochemicals derived from vegetable oils provide alternatives to petroleum-based raw materials.
The global Oleochemicals Market is estimated to be valued at Us$ 24.22 Bn in 2023 and is expected to exhibit a CAGR Of 6.9% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing demand for bio-based products is one of the major drivers propelling the growth of global oleochemicals market. With rising concerns regarding environmental sustainability, manufacturers across industries are focusing on developing bio-based and green alternatives to petroleum derived chemicals. Oleochemicals being plant-based offer sustainable solutions and help industries reduce their dependence on crude oil. Additionally, favorable government policies and regulations supporting bio-economy in major economies is also boosting the market growth. For instance, European Union introduced renewable energy directive setting a minimum target of 10% share of renewable sources in transportation sector for member countries by 2020. Such initiatives aim to promote widespread adoption of biofuels produced from oleochemical feedstock. Rising health awareness among consumers have increased consumption of natural and organic personal care products using oleochemicals as base materials. This acts as another factor positively impacting the market expansion.
Segment Analysis
The global oleochemicals market is dominated by fatty acids, fatty alcohols, and glycerin sub-segments. Fatty acids hold the largest market share of over 35% owing to widespread applications in soaps, detergents, lubricants, surfactants, and others. The growing personal care and home care industries are driving demand for fatty acids.
PEST Analysis
Political: The trade policies and regulations related to import-export of raw materials impact the market. For instance, biodiesel policies support the use of renewable oleochemical feedstocks.
Economic: The market is fueled by growth in end-use industries such as personal care, food and beverages, and polymers and plastics. Lower crude oil prices help reduce raw material costs.
Social: Rising living standards and purchasing power in developing nations are increasing demand for personal grooming and home care products containing oleochemical ingredients.
Technological: New production technologies are allowing lower costs and higher yields. Enzyme catalysis helps obtain specialty chemicals from natural fats and oils.
Key Takeaways
The Global Oleochemicals Market Demand is expected to witness high growth over the forecast period supported by increasing consumption in end-use industries and favorable sustainability trends.
Regional analysis – Asia Pacific dominates the market and is projected to maintain its lead through 2030 owing to the large manufacturing base and growing domestic demand from China, India, and other developing countries.
Key players operating in the oleochemicals market are Vantage Specialty Chemicals, Inc., Emery Oleochemicals, Evonik Industries AG, Wilmar International Ltd., Corbion N.V, Cargill, Incorporated, and KLK OLEO. Key players are focusing on capacity expansions and new product launches to strengthen their market positions.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
