Oleochemicals Market Analysis by Product Type (Fatty Alcohols, Fatty Acid, Glycerol, and Others); and by Application (Pharmaceutical & Personal Care, Food & Beverages, Soaps & Detergents, Polymers, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 2736 | Published Date: Apr 13, 2023
The global oleochemicals market size is estimated to reach ~USD 67 Billion by the end of 2035 by growing at a CAGR of ~6% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of oleochemicals was ~USD 34 Billion. The growth of the market can be attributed to the dynamic expansion in various end-use industries comprising textile, pharmaceuticals, food processing, and so on, coupled with the surging demand for chemical-free natural and organic cosmetics, and personal care products across the globe. For instance, from around USD 32 billion in 2021, the worldwide revenue for natural cosmetics and personal care is predicted to rise to around USD 60 billion by the year 2030. Since oleochemicals are derived from natural sources such as plant and animal fats. Therefore, they have been highly utilized in the production of organic and natural beauty products.
In addition to these, factors that are believed to fuel the market growth of oleochemicals include the surging preference for sustainable packaging among consumers throughout the world. Based on a survey figure conducted in 2020, more than 65% of the United States participants stated spending extra money on a product having sustainable packaging. In addition to this, the associated properties of oleochemicals are also estimated to spur the growth of the market as these green chemicals are highly safe, renewable, natural, and biodegradable in nature. Moreover, the easy availability of raw materials of oleochemicals is also anticipated to drive the growth of the global oleochemicals market in the coming years.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~6% |
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Base Year Market Size (2022) |
~ USD 34 Billion |
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Forecast Year Market Size (2035) |
~ USD 67 Billion |
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Regional Scope |
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Growth Drivers
Growing Demand for Biopolymers - Biopolymers are polymers derived from organic compounds that are either chemically generated from biological materials or completely synthesized by living organisms. The biopolymers have been proven to be biocompatible and biodegradable, which makes them highly advantageous for a variety of applications, including edible films, emulsions, packaging materials, and medical implants including organs, tissue scaffolds, wound healing, and dressing materials in the pharmaceutical industries. Therefore, such wider use of biopolymers in the varied arrays has increased the demand for biopolymers, which is further estimated to spur the growth of the oleochemicals market in the projected time frame. For instance, in 2020, approximately 39.5 million metric tons of biopolymers were produced throughout the world.
Rising Usage of Food Additives - Diverse food and beverages use oleochemicals for the maximum part as emulsifiers, food thickeners, or food additives in numerous food items comprising bread, cakes, and confectioneries. Customized oils and margarine are prepared by utilizing oleochemicals. Another significant operation of oleochemicals is in the making of nutrition-enriched food additives that are largely utilized as a part of packaged food products. For instance, food thickeners and stabilizers were the most commonly used food additives in 2020 throughout the world, accounting for approximately USD 9 billion in revenue. Thus, the rising use of food additives is also estimated to drive market growth in the coming years.
Worldwide Increasing Use and Production of Rubber – Rubber is produced by extracting a milky liquid sap, known as latex, from some specific types of trees. Currently, rubber is highly utilized in the production of several products such as shoe soles, tires and tubes, engine seals, rubber hoses, and so on. Oleochemicals in the form of fatty acids are widely utilized to improve the process of extracting rubber. Thus the surging demand and production of rubber are estimated to fuel market growth over the forecast period. For instance, global rubber production had surged to around 26 million metric tons by 2020.
Expanding Production of Detergents – For instance, the amount of detergents manufactured in Russia has continuously increased, reaching a record of over 2.7 million metric tons in 2021.
An Upsurge in Chemical Industry - For instance, the chemical industry garnered approximately USD 5 trillion in revenue in 2021 throughout the world.
Challenges
The global oleochemicals market is segmented and analyzed for demand and supply by product type into fatty alcohols, fatty acid, glycerol, and others. Out of these four types of segments, the fatty acid segment is estimated to gain the largest market share of about ~48% in the year 2035. The growth of the segment can be attributed to the increasing usage of bio-based fatty acid in the production of various personal care and organic cosmetics products such as creams, soaps, lotions, and others, followed by the surging demand for fatty acid in various end-use industries such as pharmaceuticals, food and beverage, cosmetics, and so on. For instance, in 2021, the global revenue from the natural and organic cosmetics sector was estimated to be approximately USD 12 billion. In addition to this, fatty acid acts as a vital basic material in the manufacturing of several secondary compounds comprising biocides, toiletry, softeners, elastomers, bio-wax, and so on for various industries. This, as a factor, is also anticipated to propel the segment growth in the coming years.
The global oleochemicals market is also segmented and analyzed for demand and supply by application into pharmaceutical & personal care, food & beverages, soaps & detergents, polymers, and others. Amongst these segments, the food & beverages segment is expected to garner a significant share of around ~38% in the year 2035. The growth of the segment can be attributed to the escalating use of bio-based stabilizers, thickeners, and other types of food additives in the food and beverage industry. On the other hand, the pharmaceutical & personal care segment is projected to witness a massive CAGR during the forecast period, on the back of the rising deployment of oleochemicals in the production of numerous kinds of pharmaceutical drugs and personal care products, coupled with the massively rising demand for pharmaceutical drugs, and bio-based personal care products throughout the world.
Our in-depth analysis of the global oleochemicals market includes the following segments:
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By Product Type |
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By Application |
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The market share of oleochemicals in Asia Pacific, amongst the market in all the other regions, is projected to be the largest with a share of about ~41% by the end of 2035. The growth of the market can be attributed majorly to the increasing production of oleochemicals along with their derivatives, coupled with the high availability of raw materials to derive oleochemicals in the region. For instance, Malaysia and Indonesia were the biggest manufacturers of palm oil in 2020, which serves as the main feedstock for the production of oleochemicals. Out of that, Malaysia exported approximately 33% and produced around 26% of the world's total palm oil. Further, the upsurge in plantation undertakings in countries such as Indonesia, Malaysia, and the Philippines, to manufacture various cosmetics and personal care products from oleochemicals, is also projected to fuel the demand for the oleochemicals market in the region over the forecast period. In addition to this, low production costs, labor costs, and lenient rules in these nations are inspiring manufacturers to multiply their manufacturing units in these regions, which is also projected to drive the growth of the oleochemicals market further throughout the forecast period in the APAC region.
The North American oleochemicals market is estimated to be the second largest, registering a share of about ~24% by the end of 2035. The growth of the market can be attributed majorly to the growing preference for natural-based personal care and cosmetic products, along with the surge in the strict regulation by the government to practice sustainability. For instance, in 2023, the revenue of the natural cosmetics sector in the United States is expected to increase to around USD 2 billion. Moreover, the rising demand for bio-lubricants, along with the surging demand for biopolymers is also estimated to skyrocket the growth of the oleochemicals in the region over the projected time frame.
Further, the market in Europe, amongst the market in all the other regions, is projected to hold a notable ratio of the share of about ~20% by the end of 2035. The growth of the market can be attributed majorly to the surging practice of sustainability, on the back of the expanding awareness in people regarding pollution, climate change, and several other environmental issues. In addition to this, the surging shift towards biodiesel to replace conventional petroleum-based fuel is also estimated to drive the market growth further throughout the forecast period in the region.
Emery Oleochemicals has launched EMERY E general-purpose fatty acid esters product range. These fatty acid esters can be used in the manufacturing of a variety of consumer and industrial systems since they have excellent color stability, and minimal odor, and are environmentally friendly alternatives to petrochemical-based materials.
Croda International Plc has decided to acquire Solus Biotech, a pioneer in high-end, biotechnology-derived beauty actives, from Solus Advanced Materials. Croda's Beauty Actives portfolio is estimated to be considerably strengthened as a result of this acquisition.
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: Growing demand for biopolymers, rising usage of food additives, and worldwide increasing use and production of rubber are the major factors driving the market growth.
Ans: The market size of oleochemicals is anticipated to attain a CAGR of ~6% over the forecast period, i.e., 2023 – 2035.
Ans: Risk of VOC exposure during glycerin processing, existence of other substitutes, and fluctuation in raw materials prices are 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 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Cargill, Incorporated, Vantage Specialty Chemicals, BASF SE, DuPont de Nemours, Inc., Oleon NV, Solvay SA, Croda International Plc, and others.
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 product type, application, and by region.
Ans: The fatty acid segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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