Oleochemicals Market Trends

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

• Risk of VOC Exposure During Glycerin Processing – There is a higher risk of exposure to voltaic organic compounds in the production of processing of glycerin. This VOC vapor can trigger several health issues such as anxiety, damage to the central nervous system, along with the damage to kidney and liver. Hence, this factor is estimated to hinder market growth in the projected time frame.
• Existence of Other Substitutes
• Fluctuation in Raw Materials Prices