Global Oleochemicals Market Overview, 2024-29
The Global Oleochemicals Market is segmented into By Source (Palm Oil and Palm Kernel Oil, Coconut Oil, Soybean Oil, Rapeseed Oil, Sunflower Oil and Other Oil (Animal Fats, Waste and By-Products, Microbial and Emerging Sources)), By End Users (Personal care and Comestics, Soaps and detergents, Food and feed, Rubber and plastics, Coatings and Resins, Lubricants and Others) and By Types (Fatty acids, Fatty alcohols, Fatty acid derivatives and Fatty acid methyl ester (FAME)).
- Bonafide Research
- 02-09-2024
- Pages : 98
- Figures : 18
- Tables : 24
- Region : Global
- Category : Chemical & Material
- Chemical
The Global Oleochemicals Market is anticipated to cross USD 35 Billion by 2029, increasing from USD 24.99 Billion in 2023 with 6.76% CAGR by 2024-29.
- Historical Period2018-2022
- Base Year2023
- Forecast Period2024-2029
- Market Size (2023) USD 24.99 Billion
- Market Size (2029) USD 35 Billion
- CAGR (2024-2029) 6.76%
- Largest MarketAsia-Pacific
- Fastest Market Asia-Pacific
- Format
Featured Companies
- 1. Basf SE
- 2. IOI Corporation Berhad
- 3. Wilmar International Limited
- 4. Evonik Industries AG
- 5. VVF Group
- 6. Godrej Industries Limited
- 7. P&G Chemicals
- 8. Sinar Mas Oleochemical International
- 9. Emery Oleochemicals (M) Sdn. Bhd
- More...
Oleochemicals Market Analysis
Oleochemicals are chemicals produced by chemical and enzymatic reactions from vegetable oils and animal fats. They are analogous to petrochemicals products. The market is set to experience high growth rate due to increased demand from the food and chemical industries. Increasing preference for sustainable fuels is expected to surge product demand during the forecast period. The COVID-19 pandemic significantly affected every sector’s demand and supply chains. The impact of the viral infection led to the enforcement of various government norms and regulations and prompted them to action. These rules included lockdowns, halt in manufacturing activities, social distancing, and transportation restrictions. Many countries imposed a lockdown and transportation was halted since the spread of coronavirus in late 2019. Due to this, the production of biodiesel was recorded to fall, further impacting the production of glycerin, influencing product usage in oral care, personal care, and food products. A major opportunity for the global oleochemicals industry lies in the increasing demand for sustainable and renewable products across various industries. Oleochemicals, derived from natural fats and oils, offer a viable alternative to petroleum-based chemicals. As consumers become more environmentally conscious, there is a rising preference for products with a reduced carbon footprint. For instance, in the personal care industry, there is a growing demand for natural and organic ingredients. Oleochemicals such as coconut oil and palm oil derivatives are used in the production of soaps, shampoos, and skin care products due to their gentle and eco-friendly properties.determining reliable sources of raw material suppliers and optimizing supply chain efficiency is one of the crucial challenges faced by the market on a global scale. However, the manufacturers have majorly adopted vertical integration to overcome the challenges mentioned above. For instance, IOI Corp Bhd and Kuala Lumpur Kepong Bhd (KLK) are some of the players that have established downstream integration into refineries and production of oleochemicals in Europe and China and upstream integration with the help of their plantations in Indonesia and Malaysia. According to the research report "Global Oleochemical Market Overview, 2029," published by Bonafide Research, the Global oleochemical market was valued at more than USD 24 Billion in 2023. Oleochemicals are projected to experience significant growth by the end of the forecast period. These chemicals are highly employed by various sectors, including personal care, cosmetics, food & beverages, pharmaceuticals, and plastics. These green chemicals are used in hair care and skincare products. The demand for naturally derived cosmetic products has amplified progressively, with significant growth over the past decade. The cosmetics industry depends on oleochemicals to manufacture safe products for its consumers. For instance, Octyl stearate is a palm derivative that is used as an emollient for lipsticks, chapsticks, and eyeshadow, while polyhexanide is a water-based antibacterial chemical and preservative used in multiple makeup products. Oleochemicals are also used in personal care products such as hair care and skin care essentials. Glycerine is derived from vegetable fats and is commonly used in moisturizers due to its excellent moisturizing properties. Similarly, AHCOHOL 1618 is a combination of both natural and synthetic sources but is primarily vegetable-based and hypoallergenic. It is often used as a thickening agent in personal care. Attributed to the high demand for hypoallergenic, non-carcinogenic nature, and chemical-free ingredients from the cosmetics and personal care industry, the market is expected to grow strongly. Moreover, sustainable cosmetics and personal care product manufacturers are driving the use of these products. Additionally, the use of bio-based chemicals in the food industry is another factor driving growth. These chemicals are used in FDA-approved food packaging and as thickening and flow agents. For instance, calcium stearate is used as a food emulsifier and a flow agent in manufacturing candies. The demand for bio-based and sustainable chemicals owing to the concerns regarding the detrimental effects of synthetic chemicals on humans and the environment is one of the factors driving the oleochemicals market growth.
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Download SampleMarket Dynamic
Market Drivers • Increased Focus on Circular Economy:The circular economy concept promotes the continuous use of resources by recycling and reusing materials, reducing waste, and minimizing environmental impact. Oleochemical products are well-suited for this model due to their biodegradability and renewability. Industries are increasingly adopting circular economy principles, leading to higher demand for oleochemicals in applications such as biodegradable plastics and sustainable packaging. This trend supports the growth of the oleochemical market by aligning with global efforts to create more sustainable and efficient resource use. • Government Incentives and Subsidies:Governments around the world are offering incentives and subsidies to promote the use of renewable and sustainable materials. These financial supports can include tax breaks, grants, and subsidies for research and development in green technologies. Oleochemical producers benefit from such incentives, which can lower production costs, enhance profitability, and drive investment in innovative technologies. These supportive policies encourage the adoption of oleochemicals across various industries, accelerating market growth and fostering industry advancements. Market Challenges • Limited Feedstock Availability:Despite the growing demand for oleochemicals, the availability of feedstocks such as palm oil and soybeans can be limited by factors like agricultural constraints, deforestation, and land use changes. This limited availability can lead to supply constraints and increased competition for raw materials, affecting production capacity and costs. Addressing this challenge involves exploring alternative feedstocks, improving agricultural practices, and ensuring sustainable sourcing to secure a stable supply chain for oleochemical production. • Intellectual Property Issues:The oleochemical industry is characterized by significant innovation and technological development. Intellectual property (IP) issues, such as patent disputes and the protection of proprietary technologies, can pose challenges for companies. Ensuring robust IP protection and navigating complex legal landscapes are crucial for safeguarding innovations and maintaining competitive advantage. Companies must invest in legal expertise and IP management to address potential infringements and secure their technological advancements. Market Trends • Rising Popularity of Natural and Organic Products:The increasing consumer preference for natural and organic products is driving demand for oleochemicals in various sectors, including personal care, cosmetics, and food. Consumers are increasingly seeking products with natural ingredients and minimal chemical processing, leading to higher adoption of oleochemicals, which are derived from renewable resources. This trend is supported by growing awareness of the benefits of natural ingredients and regulatory pressures for cleaner, safer products, influencing product development and market growth. • Emergence of Smart and Functional Products:The development of smart and functional products, which incorporate advanced features such as enhanced performance or interactive capabilities, is gaining traction. Oleochemicals are being used in the formulation of these innovative products, such as high-performance coatings, smart textiles, and advanced medical devices. This trend reflects the broader movement towards incorporating advanced functionalities and improved performance in consumer and industrial products, driving demand for specialized oleochemical applications and fostering market innovation.
Oleochemicals Segmentation
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Italy | ||
| Spain | ||
| Russia | ||
| Asia-Pacific | China | |
| Japan | ||
| India | ||
| Australia | ||
| South Korea | ||
| South America | Brazil | |
| Argentina | ||
| Colombia | ||
| MEA | United Arab Emirates | |
| Saudi Arabia | ||
| South Africa |
The leading position of palm oil and palm kernel oil in the global oleochemical market is primarily due to their high versatility and cost-effectiveness as raw materials for various industrial applications. Palm oil and palm kernel oil are derived from the fruit and seeds of the oil palm tree, respectively, and have become essential feedstocks in the oleochemical industry. Their chemical composition, which includes a high concentration of fatty acids, makes them suitable for producing a wide range of oleochemicals, including fatty acids, fatty alcohols, and glycerol. These oleochemicals are crucial for manufacturing personal care products, detergents, and industrial lubricants, among others. The ability of palm oil to replace traditional tallow and other animal fats in these applications has further enhanced its appeal, especially in markets where vegetarian or vegan products are preferred due to dietary restrictions or ethical considerations. Additionally, palm oil’s relatively low production costs compared to other vegetable oils contribute to its competitive pricing in the market. Sustainability has also become a significant factor driving the demand for palm-based oleochemicals. Many manufacturers are increasingly focusing on sourcing certified sustainable palm oil (CSPO) to meet consumer demand for environmentally friendly products. This shift not only supports the growth of the palm oil sector but also aligns with global sustainability goals, making palm oil an attractive option for companies looking to enhance their eco-friendly credentials. The dominance of soaps and detergents in the global oleochemical market is primarily driven by the increasing demand for sustainable and biodegradable cleaning products. Soaps and detergents represent the largest application segment in the oleochemical market, largely due to their essential role in everyday hygiene and cleanliness. As consumers become more health-conscious and environmentally aware, there is a growing preference for products that are derived from natural sources and are biodegradable. Oleochemicals, which are primarily derived from renewable resources such as vegetable oils and animal fats, align perfectly with this trend. They serve as key ingredients in the formulation of soaps and detergents, providing effective cleaning properties while minimizing environmental impact. The surfactant properties of fatty acids and their derivatives make them particularly valuable in these applications, as they enhance the cleaning efficacy of products by reducing surface tension and allowing for better dirt and grease removal. The rise in disposable incomes, especially in developing regions, has led to increased consumption of personal care and household cleaning products. This trend is further supported by the growing awareness of hygiene, particularly in the wake of global health concerns. Regulatory pressures and consumer preferences are pushing manufacturers to adopt greener alternatives to traditional petrochemical-based surfactants, thereby driving the demand for oleochemicals. The ability of oleochemicals to offer both performance and sustainability makes them a preferred choice for manufacturers looking to innovate in the soaps and detergents sector. The leading position of fatty acids in the global oleochemical market is primarily attributed to their wide-ranging applications and growing demand for sustainable and bio-based products. Fatty acids, derived from natural sources such as vegetable oils and animal fats, have become essential components in various industries, including personal care, food, pharmaceuticals, and cleaning products. Their versatility is a significant factor in their market dominance; they serve as key ingredients in the formulation of soaps, detergents, emulsifiers, and surfactants, which are crucial for effective cleaning and product stability. As consumers increasingly seek eco-friendly alternatives to synthetic chemicals, the demand for bio-based fatty acids has surged. This shift is driven by heightened awareness of environmental issues and health concerns associated with petrochemical products, prompting manufacturers to adopt more sustainable practices. The health benefits associated with essential fatty acids have contributed to their popularity in the food and beverage sector, where they are used as emulsifiers and stabilizers. The rise in preventive health measures and the growing trend towards clean-label products have made fatty acids a preferred choice among consumers and manufacturers alike. Innovations in production technologies have also improved the efficiency and sustainability of fatty acid manufacturing, further enhancing their appeal in the market. The increasing use of fatty acids in the production of biodegradable plastics and other sustainable materials is expected to drive future growth. As industries continue to prioritize sustainability, the reliance on fatty acids as a renewable resource positions them favorably in the global oleochemical market, catering to diverse applications while aligning with modern consumer preferences for environmentally responsible products.
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Oleochemicals Market Regional Insights
The Asia-Pacific region is leading the global oleochemical market primarily due to its abundant supply of raw materials, particularly palm oil, and the growing demand for sustainable and eco-friendly products in the region. The Asia-Pacific region, especially countries like Malaysia, Indonesia, and Thailand, is the world's largest producer of palm oil, which is the primary feedstock for oleochemical production. The easy availability of raw materials, coupled with favorable government policies and regulations that encourage the use of bio-based products, has made the Asia-Pacific region an attractive destination for oleochemical manufacturers. Additionally, the region's rapidly growing population, rising disposable incomes, and increasing awareness of the benefits of using natural and sustainable products have fueled the demand for oleochemicals in various applications, such as personal care, cosmetics, soaps, detergents, and food and beverages. The Asia-Pacific region has witnessed significant advancements in oleochemical production technologies, enabling manufacturers to improve efficiency, reduce costs, and develop innovative products that cater to the evolving needs of consumers. For instance, the development of new processing techniques has allowed for the production of higher-quality oleochemicals with improved performance characteristics, making them more competitive with their petrochemical counterparts. Additionally, the increasing adoption of sustainable practices, such as the use of renewable energy sources and the implementation of waste management strategies, has further strengthened the region's position in the global oleochemical market. The combination of abundant raw materials, growing demand for eco-friendly products, favorable government support, and technological advancements has made the Asia-Pacific region a global leader in the oleochemical market, with countries like China, India, Malaysia, and Indonesia expected to continue driving the market's growth in the coming years.
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Key Development
• In May 2024, Corbion signed a partnership agreement with IMCD, a key distribution partner and formulating company of specialty chemicals and ingredients, to include hereby Corbion’s various products for the food & beverage sector in Thailand. • In April 2024, Vantage Specialty Chemicals expands METAUPON* NMT (N-Methyl Taurine) capacity at its Leuna site. This expansion aims to meet consumer demand in the personal care, industrial, and household sectors. • In January 2024, Godrej Industries signed an MoU with the Gujarat government to invest USD 71.8 million over the coming four years to increase the production capacity of oleochemicals. This expansion is to cater the surging product demand in the personal care, pharmaceuticals, and food industries.
Companies Mentioned
- Basf SE
- IOI Corporation Berhad
- Wilmar International Limited
- Evonik Industries AG
- VVF Group
- Godrej Industries Limited
- P&G Chemicals
- Sinar Mas Oleochemical International
- Emery Oleochemicals (M) Sdn. Bhd
- China Wafer Level CSP Co., Ltd.
Table of Contents
- 1. Executive Summary
- 2. Market Dynamics
- 2.1. Market Drivers & Opportunities
- 2.2. Market Restraints & Challenges
- 2.3. Market Trends
- 2.3.1. XXXX
- 2.3.2. XXXX
- 2.3.3. XXXX
- 2.3.4. XXXX
- 2.3.5. XXXX
- 2.4. Covid-19 Effect
- 2.5. Supply chain Analysis
- 2.6. Policy & Regulatory Framework
- 2.7. Industry Experts Views
- 3. Research Methodology
- 3.1. Secondary Research
- 3.2. Primary Data Collection
- 3.3. Market Formation & Validation
- 3.4. Report Writing, Quality Check & Delivery
- 4. Market Structure
- 4.1. Market Considerate
- 4.2. Assumptions
- 4.3. Limitations
- 4.4. Abbreviations
- 4.5. Sources
- 4.6. Definitions
- 5. Economic /Demographic Snapshot
- 6. Global Oleochemicals Market Outlook
- 6.1. Market Size By Value
- 6.2. Market Share By Region
- 6.3. Market Size and Forecast, By Geography
- 6.4. Market Size and Forecast, By Source
- 6.5. Market Size and Forecast, By End Users
- 6.6. Market Size and Forecast, By Types
- 7. North America Oleochemicals Market Outlook
- 7.1. Market Size By Value
- 7.2. Market Share By Country
- 7.3. Market Size and Forecast, By Source
- 7.4. Market Size and Forecast, By End Users
- 7.5. Market Size and Forecast, By Types
- 8. Europe Oleochemicals Market Outlook
- 8.1. Market Size By Value
- 8.2. Market Share By Country
- 8.3. Market Size and Forecast, By Source
- 8.4. Market Size and Forecast, By End Users
- 8.5. Market Size and Forecast, By Types
- 9. Asia-Pacific Oleochemicals Market Outlook
- 9.1. Market Size By Value
- 9.2. Market Share By Country
- 9.3. Market Size and Forecast, By Source
- 9.4. Market Size and Forecast, By End Users
- 9.5. Market Size and Forecast, By Types
- 10. South America Oleochemicals Market Outlook
- 10.1. Market Size By Value
- 10.2. Market Share By Country
- 10.3. Market Size and Forecast, By Source
- 10.4. Market Size and Forecast, By End Users
- 10.5. Market Size and Forecast, By Types
- 11. Middle East & Africa Oleochemicals Market Outlook
- 11.1. Market Size By Value
- 11.2. Market Share By Country
- 11.3. Market Size and Forecast, By Source
- 11.4. Market Size and Forecast, By End Users
- 11.5. Market Size and Forecast, By Types
- 12. Competitive Landscape
- 12.1. Competitive Dashboard
- 12.2. Business Strategies Adopted by Key Players
- 12.3. Key Players Market Share Insights and Analysis, 2022
- 12.4. Key Players Market Positioning Matrix
- 12.5. Porter's Five Forces
- 12.6. Company Profile
- 12.6.1. Wilmar International Limited
- 12.6.1.1. Company Snapshot
- 12.6.1.2. Company Overview
- 12.6.1.3. Financial Highlights
- 12.6.1.4. Geographic Insights
- 12.6.1.5. Business Segment & Performance
- 12.6.1.6. Product Portfolio
- 12.6.1.7. Key Executives
- 12.6.1.8. Strategic Moves & Developments
- 12.6.2. BASF SE
- 12.6.3. Emery Oleochemicals (M) Sdn. Bhd
- 12.6.4. IOI Corporation Berhad
- 12.6.5. Oleon NV
- 12.6.6. Kuala Lumpur Kepong Berhad
- 12.6.7. Musim Mas Group
- 12.6.8. Twin Rivers Technologies
- 12.6.9. Evonik Industries AG
- 12.6.10. PTT Global Chemical
- 13. Strategic Recommendations
- 14. Annexure
- 14.1. FAQ`s
- 14.2. Notes
- 14.3. Related Reports
- 15. Disclaimer
Table 2: Influencing Factors for Oleochemicals Market, 2023
Table 3: Top 10 Counties Economic Snapshot 2022
Table 4: Economic Snapshot of Other Prominent Countries 2022
Table 5: Average Exchange Rates for Converting Foreign Currencies into U.S. Dollars
Table 6: Global Oleochemicals Market Size and Forecast, By Geography (2018 to 2029F) (In USD Billion)
Table 7: Global Oleochemicals Market Size and Forecast, By Source (2018 to 2029F) (In USD Billion)
Table 8: Global Oleochemicals Market Size and Forecast, By End Users (2018 to 2029F) (In USD Billion)
Table 9: Global Oleochemicals Market Size and Forecast, By Types (2018 to 2029F) (In USD Billion)
Table 10: North America Oleochemicals Market Size and Forecast, By Source (2018 to 2029F) (In USD Billion)
Table 11: North America Oleochemicals Market Size and Forecast, By End Users (2018 to 2029F) (In USD Billion)
Table 12: North America Oleochemicals Market Size and Forecast, By Types (2018 to 2029F) (In USD Billion)
Table 13: Europe Oleochemicals Market Size and Forecast, By Source (2018 to 2029F) (In USD Billion)
Table 14: Europe Oleochemicals Market Size and Forecast, By End Users (2018 to 2029F) (In USD Billion)
Table 15: Europe Oleochemicals Market Size and Forecast, By Types (2018 to 2029F) (In USD Billion)
Table 16: Asia-Pacific Oleochemicals Market Size and Forecast, By Source (2018 to 2029F) (In USD Billion)
Table 17: Asia-Pacific Oleochemicals Market Size and Forecast, By End Users (2018 to 2029F) (In USD Billion)
Table 18: Asia-Pacific Oleochemicals Market Size and Forecast, By Types (2018 to 2029F) (In USD Billion)
Table 19: South America Oleochemicals Market Size and Forecast, By Source (2018 to 2029F) (In USD Billion)
Table 20: South America Oleochemicals Market Size and Forecast, By End Users (2018 to 2029F) (In USD Billion)
Table 21: South America Oleochemicals Market Size and Forecast, By Types (2018 to 2029F) (In USD Billion)
Table 22: Middle East & Africa Oleochemicals Market Size and Forecast, By Source (2018 to 2029F) (In USD Billion)
Table 23: Middle East & Africa Oleochemicals Market Size and Forecast, By End Users (2018 to 2029F) (In USD Billion)
Table 24: Middle East & Africa Oleochemicals Market Size and Forecast, By Types (2018 to 2029F) (In USD Billion)
Figure 2: Market attractiveness Index, By Region 2029
Figure 3: Market attractiveness Index, By Segment 2029
Figure 4: Global Oleochemicals Market Size By Value (2018, 2023 & 2029F) (in USD Billion)
Figure 5: Global Oleochemicals Market Share By Region (2023)
Figure 6: North America Oleochemicals Market Size By Value (2018, 2023 & 2029F) (in USD Billion)
Figure 7: North America Oleochemicals Market Share By Country (2023)
Figure 8: Europe Oleochemicals Market Size By Value (2018, 2023 & 2029F) (in USD Billion)
Figure 9: Europe Oleochemicals Market Share By Country (2023)
Figure 10: Asia-Pacific Oleochemicals Market Size By Value (2018, 2023 & 2029F) (in USD Billion)
Figure 11: Asia-Pacific Oleochemicals Market Share By Country (2023)
Figure 12: South America Oleochemicals Market Size By Value (2018, 2023 & 2029F) (in USD Billion)
Figure 13: South America Oleochemicals Market Share By Country (2023)
Figure 14: Middle East & Africa Oleochemicals Market Size By Value (2018, 2023 & 2029F) (in USD Billion)
Figure 15: Middle East & Africa Oleochemicals Market Share By Country (2023)
Figure 16: Competitive Dashboard of top 5 players, 2023
Figure 17: Market Share insights of key players, 2023
Figure 18: Porter's Five Forces of Global Oleochemicals Market
Oleochemicals Market Research FAQs
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