by The global crude tall oil market is witnessing growth trends through increased use of bio-based chemicals. Crude tall oil is a byproduct of the kraft pulping process used to make paper. It is a sustainable and eco-friendlysubstitute for petroleum-derived products owing to its chemical structure and properties similar to vegetable and seed oils. Crude tall oil finds wide applications as additives for rubber, concrete processing, drilling fluids, metalworking fluids, and specialty products. It is used as a raw material in the manufacturing of resins, adhesives, plasticizers, and green binders.
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.
Crude Tall Oil derivatives are gaining prominence due to growing environmental concerns and implementation of stringent regulations regarding the use of petroleum-based products. Factors such as increasing industrial operations, infrastructure development, and automotive production are fuelling Crude Tall Oil Market Demand worldwide.
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 industries such as rubber, concrete, lubricants, oilfield, and others is pushing the growth of the Crude Tall Oil market. Crude Tall Oil is widely used in tire and rubber products owing to its hardening and reinforcing properties.
Major players are expanding their global footprint by increasing production capacities and making strategic investments and acquisitions. For instance, Ingevity Corporation is focusing on developing bio-based solutions and added over 15000 tons of annual manufacturing capacity at its plants in Georgia and Arkansas in 2020.
Market key trends
One of the key trends gaining traction in the Crude Tall Oil market is the increasing consumption of bio-based and renewable chemicals. There is a rising preference for green and sustainable solutions across various sectors due to stringent environmental norms and regulations. Crude Tall Oil is derived from a by-product of the paper industry’s pulping process, making it a fully renewable raw material. Leading companies are investing heavily in R&D to utilize Crude Tall Oil for developing 100% bio-based products, helping reduce dependence on petrochemicals. This will likely propel the demand for Crude Tall Oil in the coming years.
Porter’s Analysis
Threat of new entrants: Crude Tall Oil industry has moderate entry barriers like high capital requirement for new production facilities.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and undifferentiated nature of Crude Tall Oil.
Bargaining power of suppliers: Forest and paper industries being major suppliers of Crude Tall Oil have significant bargaining power over pricing.
Threat of new substitutes: New green substitutes from industrial hemp and other renewable sources pose threat to Crude Tall Oil market.
Competitive rivalry: Industry dominated by few players leads to high competition.
Geographical Regions
North America accounts for around 45% of global Crude Tall Oil market value led by U.S. and Canada. Europe follows North America with over 30% share due to large pulp and paper industries in Finland, Sweden and Baltic countries.
Asia Pacific is the fastest growing region for Crude Tall Oil market driven by increasing consumption from construction and paint industries mainly in China and India along with developing countries.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
