Global Oleochemicals Market is expected to record a positive CAGR of ~9% during the forecast period (2022-2028): Ken Research

What is the Size of Global Oleochemicals Industry?

Global Oleochemicals market is growing at a CAGR of ~% in 2017-2022 and is expected to reach ~USD 50 Bn by 2028.  The Oleochemicals Market is largely driven by the opportunity to replace conventional petroleum-based products in various sectors along with the easy availability of raw materials required for the production of oleochemicals.

Petroleum is a fossil fuel that when used, poses a risk to the environment. Governments are enforcing stricter regulations for the sparing use of petroleum which can be replaced by oleochemicals. Due to its numerous environmental benefits, biofuel generated from oleochemicals is growing in popularity when compared to petroleum-based diesel fuel as it can be produced from both plant and animal feedstock, making it simple to generate. Oleochemicals have a certain adverse impact on the environment such as VOC and other harmful gaseous emissions, wastewater release, hazardous waste release, etc.

The outbreak of COVID-19 further increased the demand for oleochemicals as they are used in soaps and disinfectants. During the pandemic, the fatty acids market came under pressure due to sluggish demand owing to weak downstream sectors such as industrial lubricants and tires but the fatty alcohols fared better in because the majority of these go into the making of household and personal care products. Due to COVID-19, the demand for oleochemicals was shifted mostly to personal hygiene and the pharmaceutical sector.

Global Oleochemicals Market by product Type

The Global Oleochemicals market is segmented by Product type into Fatty acid, fatty alcohol, Glycerol and Others. The fatty acid product type segment dominated the global Oleochemicals Market in 2022 and is expected to continue being the dominant segment during the forecast period.

Fatty acid category is expected to grow as a result of rising demand for bio-based fatty acids from various end-use industries such as personal care, cosmetics, chemicals, food & beverages, industrial sectors, and others. Additionally, fatty acids are cheaper than their counterparts which is further accelerating the growth of the market.

Global Oleochemicals Market by application

The Global Oleochemicals market is segmented by Application into Solid, Liquid and Solution. The healthcare & pharmaceuticals application segment was the highest contributor to the Global Oleochemicals Market in 2022. Oleochemicals are used as preservatives, thickening agents, and emollients in the pharmaceutical industry. Fatty acid derivatives like Isopropyl myristate are used as a moisturizer in topical medicinal products as well as an emollient or thickening agent in other pharmaceutical applications.

Global Oleochemicals Market by geography

The Global Oleochemicals market is segmented by geography into North America, Europe, Asia- pacific and LAMEA. Asia Pacific accounted for the largest market share in 2022 among all regions within the Global Oleochemicals Market owing to the strong raw material base, and shift in consumer preference to renewable products.

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Asia Pacific Oleochemicals Market is anticipated to grow as green alternatives are being increasingly adopted and raw materials become more readily available. For instance, the biggest producers of palm oil, the primary feedstock for oleochemical production, are Malaysia and Indonesia.

According to the Malaysian Palm Oil Council, Malaysia produced 25.8% of the world's total palm oil. In terms of demand, China is the biggest consumer of fatty acids, taking up some 30% of global output, while the Asia Pacific region consumes about 35% of the world's fatty alcohol production.

Competition Scenario in Global Oleochemicals Market 

The Global Oleochemicals Market is highly competitive with ~250 players which include globally diversified players, regional players as well as a large number of country-niche players. Large global players hold the highest market share ~40% which is followed by the regional players holding ~35% share. Some of the major players in the market include Emery Oleochemicals, BASF SE, Wilmar International, Godrej Industries, Cargill Inc, Kao Corporation, Edenor Technology Sdn Bhd, Oleon NV., IOI Group Berhad, P&G Chemicals, Twin River Technologies Inc., Croda International Plc., and others.

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What is the Expected Future Outlook for the Overall Global Oleochemicals Market Across the globe?

The Global Oleochemicals market was valued at USD ~billion in 2022 and is anticipated to reach USD ~50 billion by the end of 2028, witnessing a CAGR of ~% during the forecast period 2022-2028. The realistic growth scenario represents the most likely scenario as per current market conditions. This scenario assumes that there will be no overall impact on the market due to any potential COVID-19 waves in the future.

The Global Oleochemicals market is driven by the opportunity to replace conventional petroleum-based products in various sectors along with the easy availability of raw materials required for the production of oleochemicals. However, the market is also constantly being influenced by rapid development in technology, product innovation, and diversification in some countries.

With the increasing collaboration and emergence of new products, the Global Oleochemicals market is changing rapidly. For instance, In May 2022, Oleon NV. started the construction of a new production facility in Texas, USA. The new plant will produce esters utilizing our newest technology, compliant with the highest industry standards, and also provide blending services to support Oil & Gas business.

In September 2020, Emery oleochemicals released its EMERY® E general-purpose fatty acid esters product line. These are sustainable alternatives to petrochemical-based materials and can be used in formulations of a wide range of consumer and industrial systems such as bio-diluent, solvent, cleaning and stripping products, cosmetic emollient and dispersant, plastic additives, etc.

Furthermore, In May 2019, the new plant construction of PT Apical Kao Chemical a joint venture of Kao corporation and Apical Group Ltd was completed. With the completion of the new factory, the Kao Group will increase its production capacity, produce competitive oleochemical products, and promote its stable supply, to expand the chemical business.

The Global Oleochemicals Market is forecasted to continue a gradual growth that is witnessed during the forecast period. Key trends driving market expansion include the recyclability of oleochemicals, increasing demand for biodegradable and sustainable products, and the growing demand from the end-user industry such as pharmaceutical, cosmetics, and food industries. The market is highly competitive with ~250 participants concentrating on expansion strategies through product innovations as well as acquisitions and mergers.

For more insights on the market intelligence, refer to below link:-

https://www.kenresearch.com/business-research/global-oleochemicals-market-outlook-2028/

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This release was published on openPR.