Worldwide increasing demand for biodegradable products and sustainable solutions are influencing the demand in the global oleochemicals market. Oleochemicals is defined as a chemical compound derived from natural sources such as plants and animal fats. It is readily available in the world and mainly used in the formulation and production of industrial, personal care, and household products, which include surface cleaners, softeners, fabric cleaners, dishwashing, automotive cleaners, industrial cleaners, degreasers, and hygiene products. These products offer significant diversification opportunity for chemical companies as they are effective and high-quality substitutes for petroleum-based products. Oleochemicals also act as an intermediary in rubber, pharmaceutical, plastic, paint and lubricant industries. The changing industrial structure of plastics, rubber and surface active agent industries coupled with transformation in the mode of development are fueling the fatty acids market.
IndustryARC’s analyst has estimated the global oleochemicals market to have had a value of $26.57 billion in 2018. And, as per the oleochemicals market analysis conducted by the report, the market demand is projected to grow at a CAGR of 4.9% during the forecast period (2019-2025).
Oleochemicals Market Outlook:
Various basic oleochemical substances such as fatty acids, fatty acid methyl esters, fatty alcohols, fatty amines, and glycerols are formed through chemical and enzymatic reactions. Intermediate chemical substances are also obtained from these chemicals namely alcohol ethoxylates, alcohol sulfates, alcohol ether sulfates, glycerols, and monoacylglycerols. Fatty acids are the major application of oleochemicals that have a noticeable demand from pharmaceutical, food and beverage industries, soap and laundry detergent, waxes, lubricant, candles, and paints and coatings. Surfactants, dispersing agents, wetting agents, emulsifying agents, solvents, and adjuvants are some of the vital inert ingredients produced by using these oleochemicals. Surfactants preparation is one of the prominent end use application of oleochemicals which is utilized in the making of detergents and household cleaning products as well.
Oleochemicals Market Segment Analysis:
Soaps and detergents application is dominating among diverse applications; it is estimated to grow with a CAGR of 4.8% during the forecast period 2019-2025. Massive developments associated with the largest plantations of oil palms in Southeast Asia marked the boom of the oleochemical industry. Southeast Asian countries such as Malaysia, Indonesia, and Thailand are spurring the oleochemical industry in the Asia-Pacific region. In Malaysia, there were 19 oleochemical plants with an annual processing capacity of 2.67 million tonnes in 2017. Its utilization rate increased to 94.9% from 85.2% compared to the previous year. In 2017, more palm based oleochemical products are exported from Malaysia to China and the U.S. due to the increasing demand from these countries, out of which fatty acids were majorly exported that is 0.99 million tonnes which holds a share of 35.1% among other types. Asia-Pacific is depicted by the analyst of the report as the largest oleochemicals producing region which holds a major share of about 41% in the global oleochemicals market size as of the year 2018.