According to Fortune Business Insights™, the global oleochemicals market size was valued at USD 37.88 billion in 2023 and is projected to grow from USD 40.37 billion in 2024 to USD 65.38 billion by 2032, exhibiting a CAGR of 6.3% during the forecast period. Asia Pacific dominated the oleochemicals market with a market share of 48.86% in 2023. Increasing demand for oleochemicals from the food and chemical industries is expected to increase market growth. Demand for biofuels keeping in mind environmental and health concerns is set to drive market growth. Rising demand from several end-use industries is expected to boost market development and offer lucrative opportunities for market growth. Fortune Business Insights™ shares this information in its report titled “Oleochemicals Market, 2024-2032.”
Oleochemicals are chemicals produced by chemical and enzymatic reactions from vegetable oils and animal fats. They are analogous to petrochemicals products. The market is set to experience high growth rate due to increased demand from the food and chemical industries. Increasing preference for sustainable fuels is expected to surge product demand during the forecast period.
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List of Key Players Profiled in the Report
Cargill Inc. (U.S.)
Kuala Lumpur Kepong Berhad (Malaysia)
BASF SE (Germany)
Oleon N.V. (Belgium)
IOI Group Berhad (Malaysia)
Wilmar International (Singapore)
Kao Chemicals (Japan)
Twin Rivers Technologies (U.S.)
Croda Industrial Chemicals (U.K.)
Evonik Industries (Germany)
Emery Oleochemicals (Malaysia)
Godrej Industries (India)
Segments
Fatty Acid to Lead Due to Easy Availability of Raw Materials
On the basis of type, the market is divided into fatty acids, fatty alcohols, methyl esters, and glycerin. Fatty acid is anticipated to have the dominant part due to easy availability of raw materials and growing demand for organic personal care products. Fatty acids are an important part as they serve as a raw material to produce several downstream derivatives, including elastomers, toiletry, biocides, softeners, and wax.
Food & Beverages Segment to Lead Due to Wide Adoption of Various Additives and Stabilizers
On the basis of application, the market is divided into food & beverages, chemicals, animal feed, and others. Food & beverages segment is anticipated to have the dominant part due to increasing adoption of bio-based thickeners, stabilizers, and other food additives in the food industry. The chemical segment is expected to be growing at the fastest CAGR due to high demand for sustainable alternatives for petroleum-derived chemicals.
Report Coverage
The report provides a detailed analysis of the top segments and the latest trends in the market. It comprehensively discusses the driving and restraining factors and the impact of COVID-19 on the market. Additionally, it examines the regional developments and the strategies undertaken by the market's key players.
Drivers and Restraints
Increasing Demand from Various End-use Industries to Drive Market Expansion
Rising demand from various end-user industries is anticipated to drive the oleochemicals market growth. These chemicals are highly employed by various sectors, including personal care, cosmetics, food & beverages, pharmaceuticals, and plastics. They are used in skincare and haircare products. They are used due to their high demand for hypoallergenic and chemical-free ingredients, which is expected to propel market development. Lower cost and sustainability of raw materials used are set to boost market growth. Increasing demand for biofuels is expected to push market growth.
However, VOC production at the time of pre-treatment of glycerin is expected to hinder the market growth.
Regional Insights
Asia Pacific to Lead Market Share Due to Growing Awareness Regarding Harmful Effects of Fossil Fuels
Asia Pacific is anticipated to head the oleochemicals market share due to growing awareness amongst people regarding the harmful effects of the exploitation of fossil fuels and petrochemical resources. The majority demand in the region is backed by ASEAN countries and China. The region is a major producer and exporter of oleochemical feedstock and its derivatives.
North America is expected to have considerable growth due to stringent regulations regarding practicing sustainability and the growing demand for plant-based products.
Information Source: https://www.fortunebusinessinsights.com/oleochemicals-market-106250
Competitive Landscape
Upgrading of Product Portfolio by Key Market Players to Set Market Progression
Key players of market are BASF, Evonik, Emery Oleochemicals, Twin River Technologies, Cargill Inc., and Croda Industrial Chemicals. They have been updating and elevating their product portfolios for enhancing their market share. In December 2021, Cargil Inc. decided to remove iTFAs from its entire global edible oil portfolio. The purpose of the new edible oil range is to support food manufacturers to produce healthier products for consumers.
Key Industry Development
August 2022 - The Kuala Lumpur Kepong Berhad Group offered a product named DavosLife E3, which can be used in food and nutrition applications. According to Kuala Lumpur Kepong Berhad, the product has wide-reaching, clinically proven health benefits for heart health, liver health, and brain health.
July 2022 BASF SE offered the first rainforest alliance-certified personal care ingredients based on coconut oil. The company established a renewable supply chain, which will help the company maximize its revenue.