Oleochemicals Market Trends
Growth Drivers
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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.
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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.
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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.
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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.
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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
Oleochemicals Market: Key Insights
The oleochemicals market is expected to observe an attainable high CAGR during the forecast period, i.e., 2020-2028. The market is segmented by product type, application, and region. Among product types, the fatty acid segment is expected to hold the largest market share during the forecast period followed by fatty alcohols, on account of the high demand for fatty acids from various end-use businesses including soaps & detergents, intermediates, plastics, rubber, paper, lubricants & greases, personal care, textile, food processing, paints & inks, healthcare & pharmaceuticals, and agrochemicals. Soap & detergents are the biggest end-use segment for the fatty acids attributable to the growing textile sector and growing disposable income. The market for glycerin is expected to grow at a considerable rate on account of growing demand as a vital ingredient in various food & beverages, personal care, and detergent products. Increasing demand for high purity natural constituents in the above-mentioned end-use trades, consumer preference for eco-friendly and inexpensive products, and an abundant supply of crude glycerin are projected to drive the segment growth.CLICK TO DOWNLOAD SAMPLE REPORT
Growth Drivers
Strong demand for bio-degradable products
With the environmental conventions persistently becoming more stringent and the nonrenewable resources getting exhausted, it has paved the way to the opportunity for the oleochemicals to enter the market and substitute the conventional petroleum-based products being used presently. Also, the growth of palm oil products coupled with surging crude oil prices has fortified the acceptance of oleochemicals in developing nations. Biodegradability of products has become quite a popular tendency these days owing to the strict rules focused on preserving product quality and health risk which encourages the use of natural raw material derived products such as oleochemicals.
Wide range of applications in various industries
Growing implementation of oleochemicals in various end-use sectors, such as surfactants, personal care, and home care is motivating their sales significantly. The production of main feedstock for polyurethane production, polyols, is also built on oleochemical routes, thus providing a push to the growth in the oleochemicals market. Diverse food and beverages use oleochemicals for the maximum part as emulsifiers in bread, cake, cakes, and confectionaries. Customized oils and margarine are prepared by utilizing oleochemicals. Another significant operation of oleochemicals is in the making of nutrition enriched ingredients that are largely utilized as a part of packaged food products. Further, these synthetic potions are additionally used to produce both plain and seasoned frozen yogurts.
Restraints
The competition of oleochemicals from other substitutes might be a key threat to the oleochemicals market. Environmental distresses related to plantations and land availability are other aspects that might hamper the growth of oleochemicals. Also, the growing demand for biodiesel may cause a hike in biodiesel prices and is estimated to directly affect the overall market of oleochemicals based products, which might act as a restraining factor for the oleochemicals market.
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
6.5% |
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Base Year Market Size (2024) |
USD 38.64 billion |
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Forecast Year Market Size (2037) |
USD 86.3 billion |
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Regional Scope |
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