June 17, 2024
Crude Tall Oil Market

Crude Tall Oil Market is growing as a sustainable bio-product alternative trend in bio-refineries

Crude Tall Oil is a by-product of the papermaking process that is obtained from pine trees. It is used as a raw material for specialty chemicals and coatings production due to its favourable properties such as natural renewability, biodegradability, and multifunctionality. Crude tall oil is derived from the acid-based chemical extraction of resin and fatty (pitch) acids from pine tree stump wood used primarily for paper production. The global crude tall oil market offers various advantages such as its low production cost, minimal environmental impact and sustainable extraction process from a waste product of the papermaking industry.

The Global Crude Tall Oil Market is estimated to be valued at US$ 1.93 Billion in 2024 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 to 2031.

Key Takeaways
Key players operating in the crude tall oil market are Citec Group Oy Ab, Ingevity Corporation, Georgia-Pacific Chemicals, Forchem Oyj, Kraton Corporation.
The growing demand from various end-use industries such as construction, oilfield chemicals, rubber industry, soaps & detergents and others is expected to drive the growth of the Global Crude Tall Oil Market Demand during the forecast period.
Many leading crude tall oil manufacturers are focusing on expanding their production facilities as well as global footprint to cater to the rising demand, especially in the Asia Pacific region.

Market Key Trends
One of the key trends gaining major traction in the crude tall oil market is the increasing use of crude tall oil as a sustainable bio-product alternative. With the rising awareness regarding environmental protection, there is growing prominence of bio-based and renewable materials over conventional fossil fuel-based products across various industries. Crude tall oil perfectly fits the criteria of being a sustainable and renewable bio-product obtained from a forestry waste material. Manufacturers are increasingly promoting the natural and eco-friendly credentials of crude tall oil to substitute conventional petrochemical derivatives. This growing popularity as a viable bio-alternative is expected to be a major driver for crude tall oil market over the coming years.

Porter’s Analysis

Threat of new entrants: Low economies of scale in production and high costs of raw materials make entry difficult.

Bargaining power of buyers: Few buyers worldwide for crude tall oil means they can negotiate lower prices and demand high quality standards.

Bargaining power of suppliers: Forest product companies that produce crude tall oil have significant control over supply.

Threat of new substitutes: New green substitutes like bio-based solvents pose a threat but crude tall oil still has advantages in price and performance.

Competitive rivalry: Intense competition amongst existing producers keeps prices down and encourages quality, efficiency and innovation.

Geographical Regions
The North American region accounts for the largest share of the crude tall oil market, valued at around US$ 700 million in 2024 due to high production of crude tall oil as a byproduct of the Kraft pulping process used widely in paper manufacturing.

The Asia Pacific region is expected to witness the fastest growth during the forecast period, projected to increase at a CAGR of over 5%, driven by rising demand from the construction industry and growing awareness about green bio-based chemicals. Countries like China and India are investing heavily in infrastructure development which will boost consumption of crude tall oil in various applications.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it