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Oleochemicals Market-Segmented By Product (Glycerol Esters, Fatty Acid Methyl Ester), By Application (Industrial, Personal Care & Cosmetics, Paints & Inks) Size, Share, Trends and Growth Analysis Report-and Region-(North America, Europe,Asia Pacific, Latin America, Middle east and Africa) – Industry Forecast |(2023-2028)

Published: March, 2023
ID: 11835
Pages: 180
Formats: report pdf report excel report power bi report ppt

Oleochemicals Market Size (2023-2028):

The Oleochemicals market size was registered at USD 20.48 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 9.12% from 2023-2028

Oleochemicals are defined as chemical compounds derived from natural sources such as vegetable and animal fats. It is available worldwide and is primarily used in the formulation and production of industrial, personal care, and household products, including surface cleaners, fabric softeners, fabric cleaners, dishwashers and automotive cleaners, industrial cleaners, degreasers, and hygiene products.

Oleochemicals Market Trends:

The market growth can be attributed to the growing demand for oleochemicals by major end-use industries such as food and beverage, pharmaceuticals, personal care, and cosmetics, as well as plastics and polymers. In addition, regulations on the use of synthetic products have led to greater adoption of the product due to its environmental and economic benefits. Oleochemicals are derived from fats and oils, they are derived from natural sources, such as vegetable and animal fats and oils, as well as from fossil fuel sources, such as petrochemicals. The rise in crude oil prices has led to a considerable shift toward the use of products derived from vegetable oils, such as palm kernel oil and palm oil as the main raw material for production. Most of palm oil is consumed for the production of oleochemicals, due to the easy availability of raw materials.

The growing demand for biodiesel, along with the rapid growth of the rapidly evolving consumer goods (FMCG) sector, are the key factors driving the growth of the market. In addition, the increasing adoption of oleochemicals by manufacturers of chemicals for the production of biosurfactants, lubricants, and biopolymers, as sustainable alternatives to petrochemicals, is also acting as a major growth factor. In addition, consumers increasingly prefer natural ingredients in cosmetics, baby care products, soaps, and food additives. Another factor contributing to the growth of the market is the rapid industrialization in the world. Oleochemicals are used as softening, polishing, and vulcanizing agents for rubber products and in the production of industrial lubricants, hydraulic fluids, and base oils. Other factors, including improved research and development (R&D) to utilize metabolic engineering strategies for the production of oleochemicals using renewable and sustainable raw materials, are expected to further drive the market. Growing global demand for biodegradable products and sustainable solutions is influencing demand in the global market for oleochemicals

Oleochemicals Market Drivers:

In addition, the high costs of petrochemicals and the changing preference for green products will further stimulate demand for the products. The consumption of oleochemicals in the form of fatty acids, used for the production of soaps and detergents, surfactants, lubricants, varnishes, and pharmaceuticals, is also expected to drive market growth in the coming years. The rapid growth in the production of palm oil and seed oil is a major driver of the growth of the oleochemicals market. Reliable, efficient, and profitable oleochemical plants are ready to meet growing demands. There is an increase in the adoption of bio-based lubricants that replace synthetic and traditional lubricants to improve vehicle efficiency. This has bolstered the size of the oleochemicals market in many ways. Recent advances in these chemicals are leading to new applications in polymers and bio-surfactants in addition to soaps and detergents. The growth factors of the market are strong demand from consumer markets, easy availability of raw materials, and a growing prominence for green chemicals. The main driver of the oleochemicals market is the food industry. Advances in processed foods, corporate marketing strategies, and consumer awareness in emerging economies are boosting the food industry globally and hence the increased demand for biodegradable products is expected to influence the growth of the products market. Oleochemicals during the forecast period. Another factor driving the market for oleochemicals is the growing demand for oleochemicals from natural raw materials.

Oleochemicals Market Restraints:

The increased demand for biodiesel can lead to higher prices for biodiesel and is expected to directly affect the overall economy of oleochemical products, which could be a limiting factor for the oleochemicals market.

Opportunities in the Oleochemicals Market:

These products offer an important diversification opportunity for chemical companies as they are effective and high-quality substitutes for petroleum products. With increasingly stringent environmental regulations and the depletion of non-renewable resources, it paved the way for the opportunity for oleochemicals to enter the market and replace conventional petroleum products currently in use. Fluctuating crude oil prices have prompted manufacturers to invest in R&D to innovate cheaper and more viable alternatives to petroleum-based raw materials. However, the use of glycerol as a feedstock for biofuels can be seen as a growth opportunity in the market. Decreasing dependence on petrochemical raw materials and expanding applications of oleochemicals to replace petroleum products are expected to create opportunities for the oleochemicals market. The opportunities for the oleochemicals market lie in their increasing use in cosmetics and personal care products, pharmaceuticals, soaps and detergents, food and beverages, and polymers, among others.

Challenges in the Oleochemicals Market:

The competition of oleochemistry with other substitutes could pose a major threat to the oleochemistry market. Environmental issues related to plantations and land availability are other aspects that could challenge the growth of oleochemicals. In addition, the growing demand for biodiesel may cause biodiesel prices to increase and it is estimated that it will directly affect the general market for oleochemicals, which could be a difficult factor for the market for oleochemicals.

OLEOCHEMICALS MARKET REPORT COVERAGE:

REPORT METRIC

DETAILS

Market Size Available

2022-2028

Base Year

2022

Forecast Period

2022-2028

CAGR

9.12%

Segments Covered

  • By Product
  • By Application
  • By Region 

Various Analyses Covered

Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities

Regions Covered

  • North America: United States, Mexico, Canada
  • Europe: United Kingdom, Germany, Italy, France
  • Asia Pacific: Australia, Canada, China
  • Latin America: Argentina, Brazil, Chile
  • The Middle East and Africa: Egypt, Iran, Iraq, Israel

 

Market Leaders Profiled

  • Cargill, Inc
  • SABIC
  • Kuala Lumpur Kepong Berhad
  • BASF SE
  • Oleon N.V
  • IOI Group Berhad
  • Wilmar International
  • Kao Corp

Market Segmentation:

Oleochemicals Market-By Product:

  • Glycerol Esters
  • Fatty Acid Methyl Ester

Specialty esters accounted for the highest volume ratio of over 33% in 2020 due to the heavy use of these products in rubber and cosmetic production and as a lubricant in pharmaceutical applications. Thus, the peak demand for fatty alcohols in the production of detergents and surfactants inherits several growth prospects. Fatty alcohols are used in pharmaceutical and cosmetic products due to their specific properties, such as emollients. The most widely used product, cetyl alcohol (C16), is important in shaving creams, lipsticks, and hair lotions. Cetyl and stearyl alcohols (C18) offer similar properties, which are mainly used in dermatological bases, bath preparations (bath oils, lotions, and salts), and antihistamine creams, among others. In addition, fatty alcohols are the starting point for chemicals used as emulsion stabilizers, defoamers, metalworking lubricants, inks, fragrances, corrosion inhibitors, flame retardants, etc.

Oleochemicals Market-By Application:

  • Industrial

  • Personal Care & Cosmetics

  • Paints & Inks

The industrial segment is leading with prominent shares of the oleochemicals market. This growth can be attributed to changing consumer demand for natural and organic products. To meet the growing demand for cosmetics and comply with regulatory frameworks, manufacturers of personal care products have developed improved and innovative technologies. The growth of end-user industries, such as pharmaceuticals and personal care, in the United States is also expected to improve overall product demand. Glycerol derivatives are believed to be in high demand due to numerous applications in various end-use industries including food, beverage and pharmaceuticals.

Oleochemicals Market Regional Analysis:

The Oleochemicals Market Report includes the segmentation of Regions:

  • North America 

  • Europe 

  • Asia Pacific

  • Latin America 

  • Middle East & Africa 

Asia-Pacific accounted for the largest revenue share of over 40% in 2020 due to increased demand for sustainable plastics in various end-user industries, which in turn boosted demand for raw materials. . , such as fatty acids and other organic products. Polymers based on.

Indonesia and Malaysia are the main producers of oleochemicals. Asia-Pacific, in addition to being the largest consumer, is also the largest producer of oleochemicals and accounts for more than half of world production. This large part is attributed to the rapid expansion of end-use industries and the easy availability of raw materials.

Manufacturers' preference for natural chemicals for oleochemical production is expected to drive demand for the products during the forecast period. North America is expected to show significant growth from 2021- 2027.

Impact of COVID-19 on the Oleochemicals Market:

Oleochemicals market shares were degraded when the pandemic started. In 2020, all activities were completely halted due to strict lockdown restrictions imposed by governments in their respective countries. The oleochemicals market shares started to rise in the mid 2022 at a higher rate. The market shares to have continuous flow during the forecast period 2021- 2027.

Oleochemicals Market Key Players:

  • Cargill, Inc.
  • SABIC
  • Kuala Lumpur Kepong Berhad
  • BASF SE
  • Oleon N.V.
  • IOI Group Berhad
  • Wilmar International
  • Kao Corp.

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