by The global 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 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Key Takeaways
The global Oleochemicals Market Share is expected to witness high growth, exhibiting CAGR of 6.9% over the forecast period 2023 to 2030, due to increasing demand from personal care and household applications. The market size is projected to reach US$ 24.22 Bn by 2023.
From a regional perspective, Asia Pacific dominated the global oleochemicals
market in 2022 with over 40% share. Abundant availability of vegetable oil feedstock and rapid growth in end-use industries fuel demand in the region. Southeast Asian countries especially Indonesia, Malaysia and Thailand are positioned as key producers.
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. The companies are engaged in new product launches, capacity expansions and mergers & acquisitions to gain competitive advantage and cater to growing oleochemicals needs globally.
Market Overview
Oleochemicals Market are chemicals derived from plant and animal fats and oils. They include fatty acids, fatty acid methyl esters, fatty alcohols, glycerol and others. Fatty acids are primarily utilized in manufacturing soaps, detergents and personal care products while fatty alcohols find application in manufacturing lubricants, plasticizers and surfactants. Oleochemicals offer several advantages over petrochemicals such as biodegradability, renewability and compatibility with skin. Growing awareness about environmental protection is increasing the demand for bio-based and green chemicals which is significantly driving the growth of the oleochemicals market globally.
Market key trends
Advances in green chemistry and bio-refining technology have increased the production of oleochemicals from alternative raw materials such as microalgae, used cooking oil and other non-food biomass. Compared to conventional vegetable and animal fats, these new feedstocks help reduce competition with the food industry for agricultural land and resources. Emerging economies in Asia Pacific and Latin America are witnessing rapid industrialization which has boosted the demand for oleochemical based formulations from various end-use industries such as personal care, food and beverages, and pharmaceuticals. Additionally, stringent environmental regulations regarding the use of petroleum-derived chemicals are further propelling market growth.
Porter’s Analysis
Threat of new entrants: High capital investments required for oleochemicals production poses entry barriers for new companies. Bargaining power of buyers: Large buyers like food industry and personal care product manufacturers have significant bargaining power due to their high demand. Bargaining power of suppliers: Major raw materials used in oleochemicals are vegetable oils and fats whose prices are impacted by seasonality and availability leading to suppliers having moderate bargaining power. Threat of new substitutes: New bio-based and synthetic substitutes pose moderate threat due to sustainability and performance benefits. Competitive rivalry: Presence of large multinational companies has led to intense competitive rivalry over market share and new product development.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile
