Tall Oil Fatty Acid Market Report 2026

The tall oil fatty acid market size has grown strongly in recent years. It will grow from $1.17 billion in 2025 to $1.26 billion in 2026 at a compound annual growth rate (CAGR) of 7.8%. The growth in the historic period can be attributed to expansion of kraft pulp production, growth of soap and detergent manufacturing, increasing use of fatty acids in coatings, rising demand for bio-based lubricants, availability of crude tall oil feedstock.

The tall oil fatty acid market size is expected to see strong growth in the next few years. It will grow to $1.67 billion in 2030 at a compound annual growth rate (CAGR) of 7.4%. The growth in the forecast period can be attributed to increasing demand for renewable chemicals, rising adoption of bio-based plastic additives, expansion of sustainable fuel additives, growing investments in green chemistry, increasing focus on fossil-free raw materials. Major trends in the forecast period include increasing use of bio-based fatty acids, rising demand in lubricant formulations, growing application in coatings and resins, expansion of renewable chemical feedstocks, enhanced focus on green additives.

The rising demand for tall oil-based biofuel is expected to drive the growth of the tall oil fatty acid market in the coming years. Tall oil, a byproduct of the pulp and paper industry, is widely used in producing biofuels. These biofuels are incorporated into products such as pharmaceuticals, paints and coatings, lubricants, soaps, detergents, and additives, contributing to reduced greenhouse gas emissions and promoting the reuse of materials. For instance, in September 2024, the International Energy Agency (IEA), a France-based autonomous intergovernmental organization, projected that demand for tall oil would reach 900 kb/d in 2024, up from 2.1 mb/d the previous year, bringing total demand close to 103 mb/d, with an additional increase of 950 kb/d anticipated in 2025, although growth remains modest. Therefore, the growing adoption of tall oil-based biofuels is expected to support the expansion of the tall oil fatty acid market.

Technological advancements are significantly influencing the tall oil fatty acid market. Leading companies in the tall oil fatty acid sector are concentrating on developing innovative technological solutions. For example, in June 2024, Tech UK, a trade association representing the UK technology sector, reported that the UK is home to 171 unicorns and boasts a market valuation of $1.1 trillion, establishing it as the premier tech ecosystem in Europe. In 2023, UK tech startups attracted $21.3 billion in funding, with the majority of investments focused in Greater London, followed by the East of England and the South-East.

In March 2024, Henkel Adhesive Technologies, a Germany-based adhesives, sealants, and coatings company, entered a strategic multi-year supply agreement with Kraton Corporation. This partnership aims to enhance Henkel’s sustainable adhesive and packaging solutions by integrating Kraton’s high-performance bio-based tackifiers derived from tall oil fatty acids, supporting reduced carbon footprint and improved material performance. Kraton Corporation is a US-based supplier of bio-based polymers and resins for adhesives, packaging, automotive, and consumer goods applications worldwide.

Major companies operating in the tall oil fatty acid market are Forchem Oy, Harima Chemicals Group Inc., Georgia-Pacific LLC, Eastman Chemical Company, Lascaray S.A., Chemical Associates Inc., Pine Chemical Group Oy, Pasand Speciality Chemicals Limited, DIC Corporation, Allnex Belgium SA, BASF SE, Reichhold LLC, Sinopec Baling Company Limited, Eternal Materials Co. Ltd., Ingevity Corporation, Arizona Chemical Ltd., Ataman Kimya AS, Foreverest Resources Ltd., G.C. Rutteman & Co. B.V., Kraton Corporation.

North America was the largest region in the tall oil fatty acid market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the tall oil fatty acid market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the tall oil fatty acid market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The tall oil fatty acid market consists of sales of stearic acid and maleic acid. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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