May 21, 2024
Oleochemicals

Oleochemicals Market is Estimated to Witness High Growth Owing to Rising Demand for Bio-Based and Green Products

Oleochemicals are organic chemicals derived from either animal fats or vegetable oils (edible or non-edible). They are commonly used in lubricants, detergents, food additives, and personal care products among others. Oleochemicals are biodegradable, renewable, non-toxic and sustainable, making them an eco-friendly alternative to petrochemicals. The increasing demand for bio-based and green products from end-use industries such as soaps & detergents, food & beverages, and personal care is driving the growth of the oleochemicals market.

The Global oleochemicals Market is estimated to be valued at US$ 27.91 Bn in 2024 and is expected to exhibit a CAGR of 9.0% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the oleochemicals are Change Healthcare (Now part of Optum, UnitedHealth Group), Cognizant, McKesson Corporation, Cerner Corporation, OptumInsight (UnitedHealth Group), TriZetto (A Cognizant Company), NTT DATA Corporation, MultiPlan, Athenahealth (Now part of Veritas Capital), Allscripts Healthcare Solutions, Experian Health, eClinicalWorks, Inovalon, Mphasis, Wipro.

Some of the key opportunities in the oleochemicals market include growing demand from emerging economies, use of green technologies in production, and development of new applications. Rising Focus on sustainability and increased government support for bio-based chemicals in countries around the world is also boosting the overall market.

Globally, the Asia Pacific region dominates the oleochemicals market and is expected to continue its lead position over the forecast period as well. This is attributed to factors such as growing population, improving living standards, rapid industrialization and rising demand from end-use industries in emerging economies such as China and India. Europe and North America are other major markets globally.

Market drivers

The main driver for the growth of the Oleochemicals Market Growth is the rising demand for bio-based and green products from end-use industries such as soaps & detergents, food & beverages, and personal care. Stringent regulations regarding the use of petrochemical-derived products along with growing consumer preference for sustainable products are encouraging companies to develop bio-based alternatives using oleochemicals. This is expected to support market growth over the forecast period.

PEST Analysis

Political: The oleochemicals industry is regulated by environmental protection agencies to reduce pollution and ensure safe disposal of waste. New regulations can increase production costs.

Economic: Changes in global trade policies and crude oil prices impact raw material costs. Increased industrial and consumer spending boost demand for end use industries like cosmetics and detergents.

Social: Growing health and wellness trends drive demand for eco-friendly and natural ingredients in personal care and food products. Consumers prefer sustainable palm oil and other natural raw materials.

Technological: Advance extraction processes optimize output from renewable resources. New applications in bioplastics and biodegradable lubricants open growth avenues.

Asia Pacific accounts for the largest share of the global market value owing to the abundance of raw material sources and a strong base of oleochemical producers in Indonesia, Malaysia and India. China is a major consumer and the largest palm oil importer. North America and Europe are substantial markets and see steady demand growth from various end-use industries.

The fastest growing regional market for oleochemicals is expected to be Africa over the forecast period. Countries like Nigeria and Kenya are developing palm oil cultivation to boost local production of oleochemicals and reduce import dependence. Domestic consumption is rising across sectors in tune with economic growth and population expansion across African nations. Support from governments and international organizations aid technology transfer and skills development to strengthen the regional oleochemicals value chain.

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