The Oleochemicals Market is estimated to be valued at US$ 24.22 Bn in 2023 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Oleochemicals are chemicals derived from plant-based oils through processes such as transesterification and hydrolysis. Key oleochemical products include fatty acids, fatty acid esters, fatty alcohols, glycerol, and others. They find wide application in industries such as pharmaceuticals, soaps & detergents, food & beverages, and personal care & cosmetics. Oleochemicals are commonly used as emulsifiers, thickeners, stabilizers, and solvents in various end-use applications owing to their environment-friendly nature.
Rising consumer preferences towards natural & sustainable products is driving the demand for plant-based and bio-based chemicals across industries. This is fueling the adoption of oleochemicals in personal care & cosmetic products such as lotions, creams, soaps, and detergents. Additionally, growth in consumer spending on personal care products in developing regions is also augmenting the oleochemicals market growth. Furthermore, stringent regulations regarding the usage of synthetic chemicals is encouraging manufacturers to shift towards eco-friendly oleochemical alternatives. However, price volatility of raw materials such as palm oil and soybean oil remains a key challenge.
The oleochemicals market is dominating by fatty acid segment. Fatty acid segment accounted for largest market share in 2022 owing to increasing demand for fatty acids in personal care, pharmaceutical and detergent industries. Fatty acids are key components in manufacturing soaps, detergents, lubricants, greases, coatings, and plastics. Stearic acid is widely used saturated fatty acid which finds myriad applications in manufacturing process of candles, lubricants, cosmetics, and greases among others. Emergence of stearic acid as a popular ingredient in personal care products has significantly contributed towards the growth of fatty acids segment.
Political: The governments across regions are supporting biodiesel programs to reduce dependence on fossil fuels which is positively impacting the oleochemicals market. However, volatile crude oil prices pose uncertainty.
Economic: Rise in disposable incomes and growing spending on personal care and household products in developing nations is driving the demand. However, emergence of alternatives can hamper market growth.
Social: Increasing health awareness is fueling demand for plant-based and herbal cosmetic products using oleochemicals as key ingredients. Rapid urbanization is also influencing lifestyle changes.
Technological: Advancements in oleochemical production technologies have improved yields and enabled development of customized grades as per application requirements. New extraction processes aid reducing production costs.
The global Oleochemicals Market Share is expected to witness high growth, exhibiting CAGR of 6.9% over the forecast period, due to increasing usage in industries like personal care, food and beverages, and pharmaceuticals.
The Asia Pacific dominated the oleochemicals market and is expected to continue its dominance during the forecast period. Growing personal care sector in India and China along with increasing consumption of processed food in the region is driving the demand.
Key players operating in the oleochemicals market are Vantage Specialty Chemicals, Inc., Emery Oleochemicals, Evonik Industries AG, Wilmar International Ltd., Corbion N.V, Cargill, Incorporated, and KLK OLEO. Wilmar International Ltd. is one of the leading players owing to its large production facilities and presence across 25 countries. Emery Oleochemicals offers wide range of customized oleochemical solutions for applications in personal care, coatings, lubricants, food and feed sectors.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it