The science behind oleochemicals was first used in the making of soaps but now it has wide applications in sectors such as food, cosmetics, pharmaceutical and industrial. Oleochemicals are obtained from natural raw materials such as castor oil, vegetable oil, soybean oil, animal oils & fats, and from petrochemical feedstock. Fatty acids are the main oleochemicals derived from animal & vegetable oils and fats. Also, the biodegradability of oleochemicals has permitted them to achieve notable popularity especially in the food industry where they are broadly used as emulsifiers in food products such as cake, confectionery, bread, and others.
The oleochemicals market is expected to observe an attainable high CAGR during the forecast period, i.e., 2020-2028. The market is segmented by product type, application, and region. Among product types, the fatty acid segment is expected to hold the largest market share during the forecast period followed by fatty alcohols, on account of the high demand for fatty acids from various end-use businesses including soaps & detergents, intermediates, plastics, rubber, paper, lubricants & greases, personal care, textile, food processing, paints & inks, healthcare & pharmaceuticals, and agrochemicals. Soap & detergents are the biggest end-use segment for the fatty acids attributable to the growing textile sector and growing disposable income. The market for glycerin is expected to grow at a considerable rate on account of growing demand as a vital ingredient in various food & beverages, personal care, and detergent products. Increasing demand for high purity natural constituents in the above-mentioned end-use trades, consumer preference for eco-friendly and inexpensive products, and an abundant supply of crude glycerin are projected to drive the segment growth.CLICK TO DOWNLOAD SAMPLE REPORT
With the environmental conventions persistently becoming more stringent and the nonrenewable resources getting exhausted, it has paved the way to the opportunity for the oleochemicals to enter the market and substitute the conventional petroleum-based products being used presently. Also, the growth of palm oil products coupled with surging crude oil prices has fortified the acceptance of oleochemicals in developing nations. Biodegradability of products has become quite a popular tendency these days owing to the strict rules focused on preserving product quality and health risk which encourages the use of natural raw material derived products such as oleochemicals.
Growing implementation of oleochemicals in various end-use sectors, such as surfactants, personal care, and home care is motivating their sales significantly. The production of main feedstock for polyurethane production, polyols, is also built on oleochemical routes, thus providing a push to the growth in the oleochemicals market. Diverse food and beverages use oleochemicals for the maximum part as emulsifiers in bread, cake, cakes, and confectionaries. Customized oils and margarine are prepared by utilizing oleochemicals. Another significant operation of oleochemicals is in the making of nutrition enriched ingredients that are largely utilized as a part of packaged food products. Further, these synthetic potions are additionally used to produce both plain and seasoned frozen yogurts.
The competition of oleochemicals from other substitutes might be a key threat to the oleochemicals market. Environmental distresses related to plantations and land availability are other aspects that might hamper the growth of oleochemicals. Also, the growing demand for biodiesel may cause a hike in biodiesel prices and is estimated to directly affect the overall market of oleochemicals based products, which might act as a restraining factor for the oleochemicals market.
Our in-depth analysis of the oleochemicals market includes the following segments:
Geographically, the oleochemicals market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa region.
North America and Europe are estimated to register reasonable growth in the global oleochemicals market over the forecast period.
Growing preference for natural-based personal care products is the prime factor driving the demand for oleochemicals in these regions.
Stringent regulations in Europe against genetically modified (GM) food products drive the demand of the oleochemicals market.
The Asia-Pacific region is expected to witness the largest share of the global oleochemicals market in the foreseeable forecast period owing to the rapidly increasing consumption of oleochemicals in countries such as China, India, and South Korea for personal care products. The upsurge in plantation undertakings in Indonesia, Malaysia, and the Philippines, to manufacture various cosmetics and personal care products from oleochemicals, is projected to fuel the demand for the oleochemicals market in the region. Furthermore, low production cost, labor cost, and lenient rules in these regions are inspiring manufacturers to multiply their manufacturing units in these regions, which is projected to drive the demand for Oleochemicals.
Furthermore, the demand growth for oleochemical is further attributed to growing anguishes associated with global climate change, unwavering energy, and fluctuating prices of crude oil.
The oleochemicals market is further classified based on region as follows:
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