Oleochemicals Market Growth & Trends
The global oleochemicals market size is anticipated to reach USD 34.89 billion by 2028, registering a CAGR of 7.57% over the forecast period, according to a new report by Grand View Research, Inc. The market growth can be attributed to the increasing demand for oleochemical derivatives by major end-use industries, such as food & beverages, pharmaceuticals, personal care & cosmetics, and plastic & polymers. In addition, regulations regarding the use of synthetic products have led to the increased adoption of the product due to its environmental and cost benefits. Fatty acids represent one of the largest applications of oleochemicals as they are used in the pharmaceutical, food, soap, laundry detergents, candles, waxes, lubricants, and paints & coatings industries.
Oleochemicals are derived from fats and oils, they are derived from natural sources, such as plant and animal fats and oils, also fossil fuel sources, such as petrochemicals. Surging crude oil prices have led to a considerable shift toward the use of products derived from vegetable oils, such as palm kernel oil and palm as a primary feedstock for the production. The majority of palm oil is consumed for the production of oleochemicals, owing to the easy availability of raw materials. All these factors are projected to drive the growth of the market.
In addition, fluctuating crude oil prices have led manufacturers to invest in R&D to innovate cheaper and feasible alternatives to petroleum-based feedstock. However, the usage of glycerol as a raw material for biofuel can be viewed as a growth opportunity in the market. Moreover, rising demand from the manufacturers of industrial chemicals, surfactants, cosmetics, and pharmaceuticals is projected to fuel market growth. Manufacturers from Asia Pacific region, mainly, China, acquire the majority share.
Oleochemicals Market Report Highlights
- In 2020, glycol esters emerged as the dominant product segment accounting for over 39% share of the global revenue owing to its wide usage in the major end-use industries, such as food products, surfactants, and detergents soaps
- In terms of revenue, the personal care application segment led the global market in 2020 and is expected to continue its dominance throughout the forecast years
- Rising product usage in cleansing, shaving, hair lotions, and other personal care products is estimated to drive the growth of this application segment
- Asia Pacific was the leading regional market, in terms of revenue, in 2020 and is estimated to expand further at the fastest CAGR from 2021 to 2028
- The market growth in Asia Pacific can be credited to the increasing product demand from the region’s end-use industries
- Growing environmental and health concerns due to the harmful effects of petrochemicals are leading to increasing product adoption, which will boost the market growth