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Oleochemicals Market - Notable Developments During 2028 | Evyap Oleo, KLK Oleo

02-01-2019 12:51 PM CET | Business, Economy, Finances, Banking & Insurance

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Oleochemicals Market - Notable Developments During 2028 | Evyap

Oleochemicals Market Introduction

Oleochemicals are a type of compounds that are derived from plants and animal oils or fats. Basic oleochemical substances, such as glycerol and fatty acids, can be obtained by splitting the triglycerides structure of oils or fats, followed by the process of the chemical reaction of oleochemical substances, such as fatty acids, by modification of carboxylic acid group.

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One of the biggest advantages of oleochemicals are that oleochemicals do not pose any risk of causing environmental pollution. Oleochemicals are readily biodegradable, which is one of the primary reason why their applications in various end-use industrial sectors are increasing. Players in the oleochemicals market produce nearly 80 varieties of oleochemicals, including fatty acids, glycerol, and fatty alcohol.

Oleochemicals Market – Notable Developments

Key companies in the oleochemicals market include Emery Oleochemicals, Oleon NV, Cargill Inc., Evyap Oleo, KLK Oleo, Croda International, IOI Group, Procter & Gamble Co., Pacific Oleochemicals Sdn Bhd., Chemical Associates Inc., Godrej Industries, Twin River Technologies, Musim Mas Group, Wilmar International, and CREMER.

In April 2018, Emery Oleochemicals Sdn Bhd – a Malaysian oleochemical company – announced the launch of a new line of EMEROX® Polyols. The company declared that these new aromatic-containing polyols are more suitable for pentane blown rigid PIR and PUR foam applications. The company also announced that the bio-based contents in the new line of polyols have been certified with the USDA BioPreferred® Program.
Wilmar International Limited – Asia’s leading agribusiness and leading player in the oleochemicals market – announced its partnership with the National University of Singapore (NUS) to establish a new joint research laboratory for conducting research in the field of food-tech and sustainable biochemicals.

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Oleon NV – leading producer in the oleochemicals market – announced the opening of its new isostearic acid production unit, which is a part of Oleon’s advanced oleochemical solutions. The company aims to produce Isostearic acid and Dimers at the new production unit, which has the production capacity of 14.125 tons per year.

Oleochemicals Market Dynamics

Growing Demand for Oleochemicals in Wide-ranging End-use Industries will Drive Oleochemicals Market Growth

Even though consumers are spurning chemical products, oleochemicals find numerous applications in a wide range of industrial applications. The biodegradability of oleochemicals is one of the important factors why oleochemicals are witnessing tremendous demand across various industrial sectors. Personal care products and soaps & detergents are among the most popular applications of oleochemicals. Apart from these industries, the demand for oleochemicals is also increasing across pharmaceuticals, paints & coatings, food processing, and polymer industries, which is one of the primary drivers of the oleochemicals market.

Trade War between the United States (U.S.) and China is Impacting the Oleochemicals Market

While the oleochemicals market in the Asia-Pacific region continue to take shape, the trade war between the U.S. and China is influencing growth prospects of the global oleochemicals market. While the production capacities of high-quality oleochemicals have been undergoing expansion in the Asia Pacific, the U.S. has levied taxes on fatty acids imported from China. Furthermore, glycerin prices in the U.S. have been witnessing downward pressure because of the tariffs placed on soybean oil by the U.S. against China, which is another factor impacting growth of the oleochemicals market.

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Stringent Regulations against Non-renewable Resources will Create Lucrative Opportunities for Oleochemicals Market Players

While the health-conscious consumers are turning away from chemical products to avoid their negative effects on health, various governmental organizations are also enforcing some rules and regulations to mitigate their impacts on the environment. Non-renewable or non-recyclable resources used in the manufacturing various products can pose harm to the eco-system, and thereby, many governing bodies are banning their use in end-use applications. Implementation of stringent environmental regulations is triggering manufacturers to replace many chemicals with environmentally friendly and biodegradable oleochemicals. This is expected to boost growth of the oleochemicals market in the upcoming years, by creating more opportunities to oleochemicals market players to foray into wide-ranging end-use industries.

About TMR Research

TMR Research is a premier provider of customized market research and consulting services to business entities keen on succeeding in today’s supercharged economic climate. Armed with an experienced, dedicated, and dynamic team of analysts, we are redefining the way our clients’ conduct business by providing them with authoritative and trusted research studies in tune with the latest methodologies and market trends.


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