The global oleochemicals market was valued at $29.9 billion in 2022, and is projected to reach $55.2 billion by 2032, growing at a CAGR of 6.5% from 2023 to 2032.
Oleochemicals are chemical compounds derived naturally from plant & animal oils and are used as feedstock or additives in a variety of industries. They are an alternative to petrochemicals, which are derived from petroleum. They are utilized in numerous industries, including personal care, cosmetics, pharmaceuticals & nutraceuticals, coatings, adhesives, food, elastomers & sealants, as well as domestic and industrial cleaning. As demand for oleochemicals rises, oilseed production is anticipated to increase. As crude oil prices rose in the late 1970s, manufacturers switched from petrochemical to oleochemical products, as plant-based saturated fatty oils derived from palm oil are significantly cheaper. Since then, palm oil has been utilized extensively in the production of laundry detergents and hygiene products, such as toothpaste, shower balm, soap bars, and shampoo.
Rise in demand for biodiesel and the rapid expansion of the fast-moving consumer goods industry are the primary growth drivers for the market. Growing global demand for biodegradable and sustainable solutions influences the global oleochemicals market. Moreover, the increasing use of oleochemicals by major manufacturers to produce bio-lubricants, bio-surfactants, and biopolymers as eco-friendly alternatives to petrochemicals is a significant growth driver. In addition, baby care products, soaps, cosmetics, and food ingredients that contain organic ingredients are acquiring popularity and driving the market growth. Other factors, such as increased R&D into metabolic engineering strategies for producing oleochemicals from sustainable and renewable feedstocks are anticipated to further drive the market. However, the production of certain feedstocks for oleochemicals, such as palm oil, has been associated with concerns related to deforestation and environmental impact. The industry must address sustainability issues and work toward responsible sourcing to mitigate these concerns.
Shift Toward Bio-based Raw Materials
Oleochemicals are derived from natural fats and oils, which are primarily sourced from plants and animals. The use of bio-based raw materials, such as vegetable oils, aligns with the global push for sustainability. Consumers and industries are increasingly concerned about the environmental impact of traditional petrochemical-based products, leading to a preference for renewable and eco-friendly alternatives such as oleochemicals. Bio-based oleochemicals have a lower carbon footprint compared to traditional petrochemical-based products. The production processes for bio-based materials often generate fewer greenhouse gas emissions, contributing to overall environmental sustainability. The growing awareness among consumers about environmental issues has led to an increased preference for products derived from bio-based and renewable sources. Oleochemicals meet this demand and align with the broader trend of eco-conscious consumerism.
Governments worldwide are implementing policies and regulations that support the use of bio-based raw materials. Incentives, subsidies, and mandates promote the adoption of oleochemicals and contribute to the overall growth of the bio-based economy. Furthermore, the concept of a bioeconomy, where biological resources are sustainably utilized to produce goods and energy, is gaining traction. Oleochemicals play a crucial role in the bioeconomy by providing bio-based alternatives in various industrial applications. The shift toward bio-based raw materials is a key driver not only for the oleochemicals market but also for the broader movement toward a more sustainable and circular economy. As the demand for bio-based alternatives continues to grow, the oleochemicals market is well-positioned to play a pivotal role in meeting these sustainability goals.
For the purpose of analysis, the oleochemicals market is segmented into type, application, and region. The report provides details about various types of global oleochemicals available in the market such as fatty acids, fatty alcohol, glycerol, and others. The applications covered in the study include pharmaceutical, personal care & cosmetics, food & beverages, soap & detergents, polymers, and others. In addition, the analysis presented in this section elaborates the attractiveness of each region, including North America, Europe, Asia-Pacific, and LAMEA to identify the lucrative market areas for investment.
The report further covers the strategies adopted by the key players to sustain the competitive environment and increase their market share. In addition, the report covers profiles of the key industry participants in the global oleochemicals market that Emery Oleochemicals, Wilmar International, Oleon NV, KLK Oleo, Musim Mas Group, Croda International, IOI Group, Procter & Gamble Co., Twin River Technologies, and Kao Corporation.
Oleochemicals are chemical compounds derived naturally from plant & animal oils and are used as feedstock or additives in a variety of industries. They are an alternative to petrochemicals, which are derived from petroleum. They are utilized in numerous industries, including personal care, cosmetics, pharmaceuticals & nutraceuticals, coatings, adhesives, food, elastomers & sealants, as well as domestic and industrial cleaning. As demand for oleochemicals rises, oilseed production is anticipated to increase. As crude oil prices rose in the late 1970s, manufacturers switched from petrochemical to oleochemical products, as plant-based saturated fatty oils derived from palm oil are significantly cheaper. Since then, palm oil has been utilized extensively in the production of laundry detergents and hygiene products, such as toothpaste, shower balm, soap bars, and shampoo.
Rise in demand for biodiesel and the rapid expansion of the fast-moving consumer goods industry are the primary growth drivers for the market. Growing global demand for biodegradable and sustainable solutions influences the global oleochemicals market. Moreover, the increasing use of oleochemicals by major manufacturers to produce bio-lubricants, bio-surfactants, and biopolymers as eco-friendly alternatives to petrochemicals is a significant growth driver. In addition, baby care products, soaps, cosmetics, and food ingredients that contain organic ingredients are acquiring popularity and driving the market growth. Other factors, such as increased R&D into metabolic engineering strategies for producing oleochemicals from sustainable and renewable feedstocks are anticipated to further drive the market. However, the production of certain feedstocks for oleochemicals, such as palm oil, has been associated with concerns related to deforestation and environmental impact. The industry must address sustainability issues and work toward responsible sourcing to mitigate these concerns.
Shift Toward Bio-based Raw Materials
Oleochemicals are derived from natural fats and oils, which are primarily sourced from plants and animals. The use of bio-based raw materials, such as vegetable oils, aligns with the global push for sustainability. Consumers and industries are increasingly concerned about the environmental impact of traditional petrochemical-based products, leading to a preference for renewable and eco-friendly alternatives such as oleochemicals. Bio-based oleochemicals have a lower carbon footprint compared to traditional petrochemical-based products. The production processes for bio-based materials often generate fewer greenhouse gas emissions, contributing to overall environmental sustainability. The growing awareness among consumers about environmental issues has led to an increased preference for products derived from bio-based and renewable sources. Oleochemicals meet this demand and align with the broader trend of eco-conscious consumerism.
Governments worldwide are implementing policies and regulations that support the use of bio-based raw materials. Incentives, subsidies, and mandates promote the adoption of oleochemicals and contribute to the overall growth of the bio-based economy. Furthermore, the concept of a bioeconomy, where biological resources are sustainably utilized to produce goods and energy, is gaining traction. Oleochemicals play a crucial role in the bioeconomy by providing bio-based alternatives in various industrial applications. The shift toward bio-based raw materials is a key driver not only for the oleochemicals market but also for the broader movement toward a more sustainable and circular economy. As the demand for bio-based alternatives continues to grow, the oleochemicals market is well-positioned to play a pivotal role in meeting these sustainability goals.
For the purpose of analysis, the oleochemicals market is segmented into type, application, and region. The report provides details about various types of global oleochemicals available in the market such as fatty acids, fatty alcohol, glycerol, and others. The applications covered in the study include pharmaceutical, personal care & cosmetics, food & beverages, soap & detergents, polymers, and others. In addition, the analysis presented in this section elaborates the attractiveness of each region, including North America, Europe, Asia-Pacific, and LAMEA to identify the lucrative market areas for investment.
The report further covers the strategies adopted by the key players to sustain the competitive environment and increase their market share. In addition, the report covers profiles of the key industry participants in the global oleochemicals market that Emery Oleochemicals, Wilmar International, Oleon NV, KLK Oleo, Musim Mas Group, Croda International, IOI Group, Procter & Gamble Co., Twin River Technologies, and Kao Corporation.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the oleochemicals market analysis from 2022 to 2032 to identify the prevailing oleochemicals market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the oleochemicals market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global oleochemicals market trends, key players, market segments, application areas, and market growth strategies.
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- Investment Opportunities
- Go To Market Strategy
- Regulatory Guidelines
- Additional company profiles with specific to client's interest
- Additional country or region analysis- market size and forecast
- Average Selling Price Analysis/Price Point Analysis
- Criss-cross segment analysis- market size and forecast
- Expanded list for Company Profiles
- Historic market data
- Import Export Analysis/Data
- Key player details (including location, contact details, supplier/vendor network etc. in excel format)
- List of customers/consumers/raw material suppliers- value chain analysis
- Market share analysis of players at global/region/country level
- SWOT Analysis
- Volume Market Size and Forecast
Key Market Segments
By Type
- Fatty Acid
- Fatty Alcohol
- Type
- Ethoxylate
- Others
- Glycerol
- Others
By Application
- Pharmaceuticals
- Personal Care and Cosmetics
- Food and Beverages
- Soap and Detergents
- Polymers
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- Thailand
- Vietnam
- Philippines
- Indonesia
- Malaysia
- Singapore
- Japan
- South Korea
- India
- China
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Argentina
- South Africa
- Rest of LAMEA
- Emery Oleochemicals
- Wilmar International Ltd
- Croda International plc
- Evonik Industries AG
- Twin Rivers Technologies, Inc.
- Musim Mas
- Procter & Gamble
- Cargill Incorporated.
- Oleon NV
- IOI Oleochemical
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: OLEOCHEMICALS MARKET, BY TYPE
CHAPTER 5: OLEOCHEMICALS MARKET, BY APPLICATION
CHAPTER 6: OLEOCHEMICALS MARKET, BY REGION
CHAPTER 7: COMPETITIVE LANDSCAPE
CHAPTER 8: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to a new report titled, “Oleochemicals Market by Type and Application: Global Opportunity Analysis and Industry Forecast, 2020–2030,” 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.Oleochemical is a chemical compound derived from bio-based resources such as plant oils and animal fats that provide long-term and high-performance alternatives to many petrochemical-based products. Manufacturers are switching from petrochemicals to oleochemicals, as crude oil prices is on rise and plant-based sources are less expensive. Oleochemicals are widely preferred in several applications as they are biodegradable, environment-friendly, and less toxic. Basic oleochemicals such as fatty acid, glycerol, and fatty alcohol, are the chemical industry's building blocks.
Increase in demand for biodegradable products coupled with sustainable solutions and government regulations regarding the use of environmentally friendly products increase the demand for oleochemicals in the global market. Further, various novel applications of oleochemicals such as biopolymers, biosurfactants, and biolubricants have emerged as replacement for petroleum-based products, thus giving potential prospects in the global market. However, volatile prices of raw material restrain the growth of the global market.
The outbreak of COVID-19 increased the demand for products such as soap and sanitizers. This consequently increased the demand for oleochemicals. The panic buying of foods and consumer goods due to lockdown increased the demand for oleochemicals, as these are used in soaps & detergents and food & beverage applications.
Fatty acid is the leading oleochemicals type segment, owing to its high demand in pharmaceutical & food industries, soap & detergent, candle, waxes, lubricant, and paints & coatings. Further, industries related to fatty acids such as plastics, rubber, and surface active agent industries are speeding up their industrial structure and transformation in the mode of development boost the demand for fatty acid.
Soap & detergent was the leading application segment in 2020, and is anticipated to continue its lead during the forecast period. Oleochemicals are the basis for the manufacturing of different types of soaps, and there is an increase in demand of oleochemicals in modern synthetic detergent and soap manufacturing. These are basically used to manufacture soap bars, synthetic organic detergent, and inorganic alkaline detergent.
Asia-Pacific dominated the oleochemical market, owing to the recent developments and modernization in oleochemicals manufacturing plants in Asia that offers excellent raw material integration and gives producers competitive advantage above overseas competitors. The growth of oleochemicals market in this region is further driven by the escalating consumer preference for renewable products and low manufacturing costs.
The key companies profiled in the oleochemical market include 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.
Key Findings Of The Study
The oleochemical market share is be analyzed for significant regions and countries
- 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
- In 2020, Asia-Pacific dominated the global market, with more than 578% share, in terms of revenue
- In 2020, China dominated the Asia-Pacific oleochemicals market, with more than 433% share, in terms of revenue
- By type, Fatty alcohol segment is estimated to grow at a highest CAGR of 86% from 2021 to 2030 in terms of revenue
- Personal care and cosmetics application segment is estimated to grow at a highest CAGR of 86%, in terms of revenue
- The oleochemical market size is provided in terms of kilotons and $million
- Impact Of Covid-19 On The Global Oleochemicals Market
- The COVID-19 pandemic has triggered huge demand and supply gap in every industry The impact of the viral infection has caused the implementation of several government rules and laws
- A halt in manufacturing activities, social distancing, and transportation restrictions were implemented by various government. The chemical sector operations were temporarily halted, including the manufacturing of numerous basic chemicals, feedstock chemicals, and other chemicals The virus outbreak in Wuhan has a significant impact on China, the world's largest manufacturer and user of oleochemicals
- The production of China's industrial businesses fell by 14% in the first two months of 2020, according to data issued by the National Bureau of Statistics of China in 2020. The chemical industry was one of the highest hit, with a 21% drop in output and a 66% drop in profit. In addition, growing constraints and challenges with logistics, shortage of staff and labor resources, and lack of personal protective equipment all had a substantial impact on the production process However, increased demand for pharmaceutical industry, owing to COVID-19 pandemic will boost the demand for oleochemicals
Companies Mentioned
- Emery Oleochemicals
- Wilmar International Ltd
- Croda International plc
- Evonik Industries AG
- Twin Rivers Technologies, Inc.
- Musim Mas
- Procter & Gamble
- Cargill Incorporated.
- Oleon NV
- IOI Oleochemical
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 410 |
| Published | December 2023 |
| Forecast Period | 2022 - 2032 |
| Estimated Market Value ( USD | $ 29.9 billion |
| Forecasted Market Value ( USD | $ 55.2 billion |
| Compound Annual Growth Rate | 6.3% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
