Oleochemicals Industry Overview
The global oleochemicals market size is anticipated to reach USD 34.89 billion by 2028, registering a CAGR of 7.57% over the forecast period, according to a new report by Grand View Research, Inc. The market growth can be attributed to the increasing demand for oleochemical derivatives by major end-use industries, such as food & beverages, pharmaceuticals, personal care & cosmetics, and plastic & polymers. In addition, regulations regarding the use of synthetic products have led to the increased adoption of the product due to its environmental and cost benefits. Fatty acids represent one of the largest applications of oleochemicals as they are used in the pharmaceutical, food, soap, laundry detergents, candles, waxes, lubricants, and paints & coatings industries.
Oleochemicals Market Segmentation
Grand View Research has segmented the global oleochemicals market on the basis of product, application, and region:
Based on the Product Insights, the market is segmented into Specialty Esters, Fatty Acid Methyl Ester, Glycerol Esters, Alkoxylates, Fatty Amines, Others.
- Specialty esters accounted for the largest volume share of over 33% in 2020 owing to the wide usage of these products in the production of rubber and cosmetics and as a lubricant in pharmaceutical applications. The maximum demand for fatty alcohols in the production of detergents and surfactants and thus inherits several growth prospects.
- Fatty alcohols are being used in pharmaceuticals and cosmetics owing to their specific properties, such as emollients. The most commonly used product, Cetyl (C16) alcohol, is important in shaving creams, lipsticks, and hair lotions.
- Moreover, fatty alcohols provide the starting point for the chemicals used as emulsion stabilizers, defoamers, metalworking lubricants, inks, perfumes, corrosion inhibitors, fire retardants, and others.
- The consumption of synthetic products, such as Diethylene Glycol (DEG) and propylene glycol, is expected to decrease, which is further expected to promote biodiesel production and boost the demand for glycerol.
- The market value of glycerin is dependent upon its purity, which makes it more appealing to potential buyers. Increasing demand from the various end-use sectors and derivative (downstream) manufacturing is projected to boost the demand for refined glycerin over the forecast period.
Based on the Application Insights, the market is segmented into Personal Care & Cosmetics, Consumer Goods, Food & Beverages, Textiles, Paints & Inks, Industrial, Healthcare & Pharmaceuticals, Polymer & Plastic Additives, Others.
- The industrial application segment accounted for the largest revenue share of 21.8% in 2020. However, the personal care & cosmetics segment is estimated to account for the highest revenue share by 2028 growing at the fastest CAGR over the forecast years.
- This growth can be credited to the shift in the consumer demand for eco-friendly and natural products. To cater to the rising demand for cosmetics and to meet the regulatory frameworks, personal care manufacturers have come up with upgraded and innovative technologies.
- Growing the end-user industries, such as pharmaceuticals and personal care, in the U.S. is also anticipated to enhance the overall product demand. Glycerol derivatives are estimated to have high demand on account of numerous applications across various end-use industries including food & beverages and pharmaceuticals.
- The growing market for organic personal care products makes use of bio-based raw materials or oleochemicals. Growing demand for natural and organic haircare, skincare, and other cosmetic products is anticipated to fuel the segment growth in the near future.
Oleochemicals Regional Outlook
- North America
- Europe
- Asia Pacific
- Central & South America
- Middle East & Africa (MEA)
Key Companies Profile & Market Share Insights
The market is consolidated with a few major players occupying a higher market share. Companies have been extensively involved in R&D and are working towards the production of bio-based lubricants using oleochemicals, such as soybean oil as raw material. For instance, Cargill has developed electrical insulation fluid through soybean oil.
Some prominent players in the global oleochemicals market include
- Cargill, Inc.
- SABIC
- Kuala Lumpur Kepong Berhad
- BASF SE
- Oleon N.V.
- IOI Group Berhad
- Wilmar International
- Kao Corp.
Order a free sample PDF of the Oleochemicals Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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