Distilled Fatty Acids Market Segmentation by Type (Natural, and Synthetic); by Source (Palm Kernel, Coconut, Palm Oil, and Others); and by Application (PVC Stabilizer, Lubricant, Food Additives, Cosmetics, Animal Feed, and Others) – Global Demand Analysis & Opportunity Outlook 2031
Buy Now Report ID: 3941 | Published Date: Jan 21, 2023
The global distilled fatty acids market is estimated to garner a revenue of USD 37,186.7 Million by the end of 2033 by growing at a CAGR of 7.0% over the forecast period, i.e., 2023 - 2033. Further, the market generated a revenue of USD 17,751.6 Million in the year 2022. The growth of the market can be attributed to its growing use in cosmetic as an emulsifier or emulsification. Emollient fatty acids improve skin hydration by retaining the moisture in the skin and lowering evaporation into the environment. Whereas, the emulsification abilities of fatty acids act as a thickening factor for skin care products. Hence they are extensively used in cosmetic products. Additionally, since the cosmetics industry places a greater emphasis on quality, it makes sure that its products are of the finest quality, satisfy the needs of the customer, and have no negative consequences. As a result, the growing emphasis on cosmetic items' quality enhancement is drawing in both male and female customers. Around 70% of South Korean men reported using lotion in 2021. In that year, men used an average of 6 cosmetic and beauty items.
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In addition, the majority of the cosmetic industry use natural substances obtained from plants in the production of their goods owing to its growing preference. Nearly 39% of American consumers believe that organic personal care and cosmetics goods are healthier than conventional personal care and cosmetics products. As a result, about 27% of men and approximately 21% of women in the country would primarily use organic skin care products. Further, growing prevalence of skin cancer is estimated to boost the demand for sunscreen, hence also anticipated to drive the market growth. The majority of skin malignancies are brought on by excessive UV (ultraviolet) light exposure. According to the World Health Organization, over 1.5 million skin cancer cases were diagnosed worldwide in 2020, and over 120 000 fatalities owing to skin cancer were recorded. Additionally, every year, more than 79,000 new cases of skin cancer are found in Canada. Since UV radiation is thought to cause about 70%-90% of skin cancers, the utilization of sunscreen — that filters ultraviolet radiation — is touted as an essential way to prevent skin cancer.
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
7.0% |
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Base Year Market Size (2022) |
USD 17,751.6 Million |
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Forecast Year Market Size (2033) |
USD 37,186.7 Million |
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Regional Scope |
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Growth Drivers
Upsurge in Water Supply
According to the Ministry of Housing and Urban Affairs, the benchmark for urban water delivery in India is 135 liters per capita per day (lpcd). Under the Jal Jeevan Mission, a minimum service delivery standard of 55 lpcd for rural regions was established, which states may raise to a higher standard. Hence, the demand for PVC plastisol is expected to increase. Fatty acids are widely used in the manufacturing of PVC plastisol as they have a strong affinity for vinyl chloride monomer (VCM), which allows for a reduction in polymerization time. Hence, underground irrigation pipes made of PVC are frequently utilized in water distribution systems.
Rise in Construction Activities
The global construction industry must develop about 12,000 structures every day until 2050 to accommodate the estimated 6 billion people who would live in cities (around 9 billion people worldwide).
Growing Automotive Production
Nearly 70 million automobiles were produced globally in 2021. Comparing this number to the prior year, there has been a rise of about 2%. The top three auto and commercial vehicle makers in 2020 were China, Japan, and Germany.
Surge in Import and Export of Distilled Fatty Acids All Around Globe
Fatty acid import shipments in Malaysia were about 3K, with 133 Malaysia Importers purchasing from 141 Suppliers. United States, Sri Lanka, and Netherlands are the top 3 importers of fatty acids, each with approximately 7,490 shipments. Sri Lanka comes in second with about 1,680 shipments, and Netherlands comes in third with about 1,520 shipments.
Rise in Demand for Hygiene and Personal Care Products
Among different categories of cosmetics, skincare and makeup powders have seen the biggest gains in sales (up about 23% from 2020), followed by manicure and pedicure supplies (up about 16%), eye makeup supplies (up about 15%), and then skincare products for beauty (up about 14%).
Challenges
The global distilled fatty acids market is segmented and analyzed for demand and supply by source into palm, coconut, rapeseed, soybean, and others. Out of which, the palm segment is anticipated to hold the largest market revenue of USD 12,271.2 Million by the end of 2033, up from a revenue of USD 5,917.5 Million in the year 2022. The growth of this segment can be attributed to rising demand for palm as the primary raw material for industrial applications given to its availability in abundance. For instance, in Malaysia, oil palm was planted on about 4 million hectares of land in 2021. After Indonesia, Malaysia is the second-largest producer of palm oil in the world. Also, palm oil is chosen over other vegetable oils including soybean, canola, and sunflower since it produces oleochemicals with the largest percentage yield and is similarly effective in this regard. However, soybean segment is anticipated to grow at a highest CAGR of 7.5% over the forecast period.
The global distilled fatty acids market is also segmented and analyzed for demand and supply by application into cosmetics, plastics & polymers, lubricants, paints & coatings, soaps & detergents, and others. Amongst these segments, the soaps & detergents segment is anticipated to generate the largest revenue of USD 13,412.5 Million by the end of 2033, up from a revenue of USD 6,418.8 Million in the year 2022. However, the cosmetics segment is estimated to grow at a highest CAGR of 7.8% over the forecast period, backed by growing people’s concern for skin health. Additionally, a surge in incidence of skin cancer and other skin illnesses, as well as increased knowledge of the damaging effects of UV radiation on skin is also estimated to boost the segment growth. Further, the majority of cosmetic industries are using natural ingredients obtained from plants in the production of their cosmetics products. Hence, it is predicted that this would encourage the use of distilled fatty acids derived from vegetable oils in cosmetics.
Our in-depth analysis of the global distilled fatty acids market includes the following segments:
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By Source |
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By Application |
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The Asia Pacific distilled fatty acids market, amongst the market in all the other regions, is projected to hold the largest market revenue of USD 19,028.6 Million by the end of 2033, up from a revenue of USD 8,833.4 Million in the year 2022. Further, the market in this region is estimated to grow at a highest CAGR of 7.3% over the forecast period, backed by its growing use in sectors such as lubricants, detergents, soaps, paints & coatings, and personal care products, along with surge in government programmes and regulations to entice capital from several multinational businesses. Additionally, Asia-Pacific is the world's greatest producer of items including soap, rubber, and plastics. For instance, Asia was the world's greatest producer of plastic materials in 2019, making up over 50% of all plastic materials produced worldwide. As a result, even this factor is expected to encourage market growth in this region.
Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent industry leaders in the global distilled fatty acids market that are included in our report are KLK OLEO, Wilmar International Ltd., Oleon NV, Lascaray SA, Mateos, S.L., Emery Oleochemicals, Cremer North America, LP, INTERFAT SAU, Cargill, Inc., Vantage Specialty Chemicals, and others.
JEEN International Corporation and BotanicalsPlus, Inc. (collectively, "JEEN") were acquired by Vantage Specialty Chemicals ("Vantage" or the "Company"), further expanding its leadership in personal care.
Cargill, Inc., disclosed plans to construct a new soybean processing plant in Pemiscot County, Missouri, close to Hayti and Caruthersville, to meet the rising domestic and international demand for oilseeds, which is being driven by the food, feed, and fuel industries. With an annual production capacity of 62 million bushels of soybeans, the plant would be the first of its kind for Southeast Missouri.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Smruti Ranjan, Rajrani Baghel
Ans: The major factors driving the growth of the market are upsurge in water supply, rise in construction activities, growing automotive production, and others.
Ans: The market is anticipated to attain a CAGR of 7.0% over the forecast period, i.e., 2023 – 2033.
Ans: High cost of distilled fatty acids, supply chain disruption for raw material, adverse effect on environment of plantation estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are KLK OLEO, Wilmar International Ltd., Oleon NV, and more.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by source, application, and by region.
Ans: The palm segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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