Global Oleochemicals Market: Demand Analysis
According to IndustryARC’s market analysis, the global oleochemicals market had a value of about $26,579 million in the year 2018, with the demand estimated to increment at a positive CAGR of around 4.9% during the forecast period of 2019 to 2025. The report is titled “Oleochemicals Market: By Type, By Form, By Raw Material, By Refining Methods, By Post Production Processes, By Derivatives, By Application Areas, By End-User Industry, By Geography – Forecast (2018-2023).”
Oleochemical substances are chemical compounds that are derived from animal and plants triglycerides. Basic oleochemicals are fatty acids, fatty alcohols, methyl esters, and glycerin. Oleochemicals can be obtained from a nonrenewable source of petroleum. Hence, also known as petrochemicals. Oleochemicals find its application in various sectors including industrial, pharmaceutical, and personal care. Earlier, methyl esters were used for the production of fatty alcohols. Later with the expansion of the biodiesel market in Europe, methyl esters become the fastest growing oleochemicals. Biodiesel consists of long alkyl (methyl, ethyl or propyl) esters made by chemically reacting lipids such as vegetable, soybean oil an animal fat with an alcohol producing fatty acids esters used in the automotive industry.
Hustle among Global Oleochemicals Market Companies
Godrej Industries (Chemicals) is one of the oldest businesses of the Godrej Group. Godrej chemicals are growing with high pace with increased revenue in Q3FY18 by 21% versus the prior year. The Procter & Gamble (P&G) company net sales increased to $17.4 Billion on the second quarter year of 2019 with the prior year. The company also reported that the organic sales increment by four percent and core earning sales per share increased 5% to $1.25. Oleon is the leader of the European oleochemistry market with a joint capability of over 500,000 metric tons of renewable goods. They have successfully developed a wide range of biodegradable, renewable and non-toxic products using animal fats and vegetable oils. Emery Natural Oleochemicals’ new product innovation, named as EMEROX Polyols, provides increased efficiencies and sustainability with improved performance properties to the end users. It also acts as an effective raw material in the manufacturing process of polyurethane products which is a significant material used in the automobile and construction industry to make foams. Some other prominent market players identified by the analyst in the oleochemicals market are SABIC, BASF SE, Cargill, Inc., Akzo Nobel N.V., TerraVia Holdings, Inc. and Wilmar International Ltd.
Oleochemicals in Daily Life
The analyst of the IndustryARC business intelligence report concluded that in oleochemicals market (fatty acid, fatty alcohols, and glycerin), soaps and detergent industry is the leading sector to generate the highest demand, which will be growing at a CAGR of 4.8% during the forecast period of 2019 to 2025.
The fatty acid is used as a vulcanizing additive in dry rubber compounding process as well as it is used as a dispersing agent for carbon black and conferring plasticity to the rubber. It is also used in personal care products including shaving bars to give firmness, and as an ingredient in cream and lotions. Fatty acid derivatives such as amine soaps, calcium, and magnesium salts with 0.5 to 50% quantity are used for cosmetic, toiletry, and softener. Additionally, it is used in biocides, food processing, paints & coatings. All these factors are anticipated to stroke growth of the global oleochemicals market.
Methyl ester current applications are manufacturing of fatty alcohols, biodiesel, and cosmetic products. Potential future application of oleochemicals in the food industry is for the production of sucrose polyester and in industrial products for the production of monoacylglycerols, a lubricant and emulsifier for cutting oils, grinding or polishing. Fatty alcohol mostly finds its application in detergents, fabric softener, flavor and fragrance, auxiliaries for the processing of textiles and leather.
Fatty Amine is an organic compound with nitrogen. More than 75% of fatty amine is used as a fabric softener and rest are used in certain applications such as a rubber molding release agent. Glycerin founds numerous applications in industries due to its attributes such as pharmaceuticals, food preparation, plastics and resin, cosmetics and tobacco.
Oleochemicals Market Trends and Drivers
Worldwide increasing demand for biodegradable products and sustainable solutions are influencing greater demand in the global oleochemicals market. The continued push to replace petrochemical-based solutions; new uses, and applications based on green chemicals are driving the growth of oleochemicals market size. The European Union aims of developing environmentally friendly fuels with the effort to support the local farming industry and rural employment gives high pace for the production of biodiesel with increased demand and attractive business strategy.
There is an increase in the adoption of bio-based lubricants which are replacing synthetic and traditional lubricants in order to improve the efficiency of vehicles. Recent advancements in these chemicals lead to new applications in polymers and bio-surfactants in addition to soaps and detergents. Rapid growth in the production of palm oil and kernel oil is one of the major factors of oleochemicals market growth. Rapid urbanization and female employment are increasing the demand for cosmetics and personal care products. Reliable, efficient, and cost-effective oleochemicals plants are poised to cater to incrementing demands. Easy availability of feedstock and rapid expansion in industries owing to market growth. This has strengthened the oleochemicals market size by many folds. Due to high use and huge demand for oleochemicals, market players are looking at robust strategies and growing their industrial base and offices overseas with different innovation to move the company graph upward.
Oleochemicals Market Regional Analysis
Asia Pacific Region owned the major oleochemicals market share of around 41% in 2018 and is estimated to grow further due to high demand from the South East Asian region. This growth is gaining traction due to rapidly growing personal care, food and beverage, and biochemical manufacturing in the emerging economies of China and India. Government support with tax benefits especially for biodiesel in this region with massive population is expected to be a boon for promoting biodegradable chemicals production.
Oleochemicals are the chemicals which are extracted from plants and animal fats or oils. Growing demand for biodegradable products is making a positive impact on the adoption rate of these chemicals. They have a wide range of applications in soaps and detergents, industrial, household and personal care product industries. The APAC region grabs the major market share for oleochemicals market. Soaps and Detergent is one of the prominent end-use application in the market. Key players are adopting various strategies for continued positive growth in the oleochemicals market.
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