Oleochemical Market Size, Share, Trends, Growth 2028

Oleochemical Market Overview     

The global Oleochemical market accounted for USD 24.07 Billion in 2020 and is expected to reach USD 35 Billion by 2028, growing at a CAGR of around 4.7% between 2021 and 2028.

Oleochemicals are used primarily within the care industry for the manufacturing of varied lotions, creams, and so on. Oleochemicals are replacing many petroleum-based products as their properties help build a product that is best for the environment and which may be manufactured from renewable raw materials. Rising consumption of sustainable, renewable, and bio-based chemicals in care & cosmetics, pharmaceuticals, food & beverages, and other industries is expected to drive the product demand over the forecast period.

Also, the high costs of petrochemical products and shifting preference for eco-friendly products will improve the product demand further. The consumption of oleochemicals within the sort of fatty acids, used for the assembly of soaps & detergents, surfactants, lubricants, varnishes, and pharmaceuticals, is also predictable to propel the market growth over the approaching years.

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COVID-19 Impact Analysis  

COVID-19 has impacted businesses across the globe. The imposed lockdown and spread of the contagious virus have slowed down the operations in various industries including chemical, metallurgy, Industrial, Mechanical, and many more. Measures such as restriction and lockdown across the globe, have been explicit and unprecedented.

It has further disrupted supply chains, delayed projects in Industrial, and created labor shortages in the plants.  The energy industry across the globe is delayed due to the ongoing project due to the slowdown of manufacturing. These factors are likely to hamper the growth of the market in 2020.

Growth Factors

Growing preference for biodegradable products alongside the necessity for reducing the consumption of petrochemicals is probably going to elevate the expansion of the oleochemicals market within the years ahead,” says the author of this study. aside from this, a plethora of applications in care products, soaps & detergents, food & beverages, and pharmaceuticals will further impel the oleochemicals market scope over the following years. Tough competition from petroleum-based chemicals, however, is projected to prove a key hurdle within the growth of the oleochemicals market soon.

Nevertheless, ample use of the merchandise witnessed in various industries within the sort of biosurfactants, lubricants, and biopolymers as substitutes for petroleum products will create new growth avenues for the oleochemicals market within a span of the next few years, thereby normalizing the impact of hindrances on the oleochemicals market.

Oleochemicals include short, medium, and long chained fatty alcohols, fatty acids, and glycerin together with other types of chemicals derived from plants and animal fats. Oleochemicals are used primarily in personal care, soaps & detergents, surfactants, and food additives among others. In pharmaceutical applications, oleochemicals are primarily utilized to manufacture a variety of pharmaceuticals and personal care products such as cleansing lotions, skin creams, deodorants, body lotions, medicated cosmetics, bath oils, depilatories, shampoos, hair products, and perfumed products among others.

Growing biodegradable products demand on account of decreasing dependency on petrochemicals is expected to remain a major factor driving growth over the next eight years. Furthermore, increasing demand for bio-based products from various end-use industries such as soaps & detergents, pharmaceuticals, and personal care is expected to fuel the market growth in coming years. However, the high competition from the petroleum based chemicals is the key challenge witnessed in the global market. Moreover, various novel applications of oleochemicals such as biosurfactants, biopolymers, and lubricants are emerging as an alternative of petroleum based products creating new growth opportunities in the oleochemicals market.

Oleochemical Market Report Scope:  

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Application Segment Analysis Preview  

The personal care & cosmetics segment is estimated to account for the very best revenue share by 2028 growing at the fastest CAGR over the forecast years. This growth is often credited to the shift in the consumer demand for eco-friendly and natural products. To cater to the rising demand for cosmetics and to satisfy the regulatory frameworks, care manufacturers have come up with upgraded and innovative technologies.

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Product Segment Analysis Preview  

Fatty alcohols are getting used in pharmaceuticals and cosmetics due to their specific properties, like emollients. The foremost commonly used product, Cetyl alcohol, is vital in shaving creams, lipsticks, and hair lotions. Cetyl and stearyl alcohol bring similar properties, which are mainly utilized in dermatologic bases, bath preparations, and antihistamine creams, among others. Moreover, fatty alcohols provide the start line for the chemicals used as emulsion stabilizers, defoamers, metalworking lubricants, inks, perfumes, corrosion inhibitors, and fire retardants, among others.

Oleochemical Market Regional Analysis Preview

Regionally, Asia Pacific has been leading the worldwide oleochemicals market and is expected to continue in the dominant position in the years to come. High production & usage of the product in the region is the main factor behind the dominance of the Asia Pacific oleochemicals market. Also, the availability of raw materials at ease and government policies favoring the use of bio-based materials is an alternative significant factor that is supporting the growth of the oleochemicals market in the region. Growing environmental concerns in the countries such as China and India are forecast to favor the expansion of oleochemicals market in the near future.

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Asia Pacific was the leading regional segment in the oleochemicals market in 2016. In addition, the region is also the leading producer of oleochemicals. The growth in the region is mainly attributed by the presences of a large number of manufacturers in the region. China, Japan, and India are the key countries with a huge demand for oleochemicals. Oleochemicals market in Europe is expected to witness significant growth in the forecast period owing to growing importance for biodiesel as an alternative to petroleum-based fuels. Volatile petroleum prices and favorable guidelines are expected to drive the biodiesel demand, which in turn is expected to positively impact the European oleochemicals market in future.

Key Market Players & Competitive Landscape

The major players that are comprised in  Oleochemical market are

• BASF SE
• PTT Global Chemical Public Company Limited
• Evonik Industries
• Alnor Oil Co, Inc
• Eastman Chemical Company
• Cargill Incorporated
• Godrej Industries
• Isosciences LLC
• P&G Chemicals
• Arizona Chemical Company LLC
• Emery Oleochemicals Group
• Myriant

The global  Oleochemical Market is segmented as follows:

By Application

• Personal Care & Pharmaceutical
• Food & Beverages
• Soaps & Detergents
• Polymers
• Others

By Product

• Fatty acid
• Fatty alcohol
• Glycerin
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa