Germany Oleochemical Market Overview, 2029

Germany's oleochemical industry is a vital segment of the chemical sector, focusing on the production and processing of oleochemicals derived from natural fats and oils. This industry plays a significant role in various applications, including personal care, food, pharmaceuticals, and industrial products. With a strong emphasis on sustainability, German manufacturers are increasingly adopting eco-friendly practices and bio-based feedstocks, aligning with global trends toward green chemistry. Oleochemicals in Germany are organic compounds derived from tropical and animal oil, such as soybean, sunflower, palm, tallow, lard, and fish. Oleochemicals include forming essential oleochemical substances like fatty acids, fatty alcohols, glycerine, methyl esters, and others. Intermediate chemical substances produced from the crucial oleochemical substances include alcohol ethoxylates, alcohol sulfates, alcohol ether sulfates, quaternary ammonium salts, monoacylglycerols, diacylglycerols, structured triacylglycerols, sugar esters, and other oleochemical products. IOI Chemical’s German branch is among the leading European suppliers of oleochemical specialties. With more than 300 employees at its headquarters in Hamburg and its two production sites in Witten and Wittenberge, IOI Oleo GmbH produces and sells a broad range of oleochemical products for a large number of industrial applications. In addition to active ingredients and excipients for the pharmaceutical industry, emollients, emulsifiers, texturizers and a wide variety of multifunctional ingredients for the cosmetic industry, IOI Oleo GmbH offers special esters and additives for products in the food segment. Processing aids and lubricants for technical applications as well as basic oleochemicals (e.g. polyunsaturated fatty acids) round off our portfolio. The demand for oleochemicals in consumer markets such as FMCG, pulp and paper, and paints and coatings has increased as government regulations have become stricter and favored the environment and biodegradable chemicals. The application of oleochemicals in soaps has increased as consumer awareness of safer products that are healthier for the skin is growing. Consumers now do not prefer synthetic chemicals as they have realized their side effects. According to the research report "Germany Oleochemical Market Overview, 2029," published by Bonafide Research, the Germany oleochemical market is anticipated to grow at more than 4 % CAGR from 2024 to 2029. Germany is one of the leading the market growth of oleochemicals in the European market due to imported feedstocks but later developed by German manufacturers such as BASF and Emery Oleochemicals. The use of oleochemicals derived from coconut oil has grown in European countries due to health attributes and lack of trans-fatty acids, making it ideal for usage in consumer products and driving regional market growth. In Germany, the increasing demand for greener, more cost-effective products, minimal processing, cheaper feedstock, and new product avenues are driving the commercialization of green chemicals. Growing consumer awareness of renewable oleochemicals and increasing environmental concerns drive the market. According to current trends, the cost hikes in petrochemicals spurred the growth of green chemicals. Green chemicals include chemicals produced from bio-based feedstocks. The German market for green chemistry is about to outpace the general chemical market during the forecast period. The demand for oleochemicals derivatives is growing at a steady pace owing to an increase in the consumption of personal care, pharmaceutical, and food products. The demand for personal care products is witnessing growth due to an increase in disposable income, product innovation, and high market penetration. Oleochemicals are widely used in FMCG products such as soaps, toothpaste, and moisturizing lotions. The demand for these products is increasing as companies in the personal care industry are focusing on maximizing the visibility of the products to potential customers through online promotional activities, sweepstakes, and other initiatives in the developed regions. In Germany, rising crude oil costs and stricter environmental controls incentivize manufacturers to use green chemicals to counterbalance the capital investment required to change current equipment and install new facilities. Such factors are anticipated to create lucrative market opportunities.

The largest sector of the oleochemical market in Germany is rapeseed oil. The reason for this is that the production is of the highest volume and has the most suitable properties for a wide array of applications included biofuels, personal care products, and food ingredients. Huge production volume and versatility are supported by very strong local supply, considering that Germany is one of the biggest rapeseed producers in Europe. Palm oil and palm kernel oil present the growth segment due to rising demand for its sustainable alternatives in food and non-food uses. Increasing consumer preference for eco-friendly products and cost-effectiveness of the oil further drive the growth of the segment. The coconut oil, though popular in health and beauty applications, forms a smaller segment due to its limited local production and higher costs compared with rapeseed and palm oils. Soybean Oil is used in food processing and is on the rise but has competition from better-known oils such as rapeseed and palm. Sunflower oil has very little flavor and a high smoke point, so it could work well as an all-purpose frying and general cooking oil, but it is still the least common of these oleochemicals compared to rapeseed oil. Animal Fats is traditional feedstocks of oleochemicals ethical and sustainability concerns. Waste and By-Products is circular economy approach market share still very low. Microbial and Newer Sources like algae-based oils, gain interest in potential sustainability but so far not widely adopted because of technological and production challenges. Food and Feed have dominated the German oleochemical market, since consumers are seeking out natural and sustainable food ingredients and feed additives. Fatty chemicals from renewable sources, such as vegetable oils and animal fats, become more favored due to their biodegradability and they are also considered safe for use in such a huge array of food applications. There is an increased consumer consciousness towards health and sustainability, while consumers who are health and sustainability minded continue to be the dominating segment. Contributing the most to this growth is a rise in the Personal Care and Cosmetics segment, which indicates a move toward natural and organic products. Consequently, demand for ingredients of renewable origin, such as fatty acids and glycerin, increases due to the perception that they are a safer and more environmentally friendly alternative to their synthetic equivalent. This trend has been supporting the growth of the personal care segment in the oleochemical market. The soaps and detergents segment further benefits from the demand for globally environmental-friendly cleaning products, as oleochemicals continue to be important in formulations, presenting features of excellent cleaning and biodegradability. Rubber and Plastics Oleochemicals are used as additives to enhance performance and sustainability in rubber and plastics. Coatings and Resins also have the property of good adhesion and excellent film formation, so they are applied to eco-friendly enamels and coatings. Oleochemical-based lubricants are becoming more popular due to the growing demand for sustainable manufacturing from industries, which drives the segment for lubricants derived from renewable sources. Fatty acids represent the leading segment in oleochemicals in Germany and are well represented. Their application would be basic in industries ranging from personal care, food, and detergents. Since they are derived from naturally occurring oils and fats, it is the most desired product in the market because of its biodegradability and renewability properties. They find a multitude of diversified uses as emulsifying agents, surfactants, and thickeners, making them one of the most versatile and indispensable ingredients in a variety of formulations. Fatty Acid Methyl Ester is the growing segment in the marketplace at the fastest pace, due to the increasing demand of biofuels as a sustainable alternative to mineral fuels. Biodiesel is produced by transesterification of fatty acids, and the major use of FAME is made for biodiesel the major use of a renewable source, which is cleaner vis-à-vis diesel. This particular market is expected to increase due to this immense urgency for greener sources of energy and stringent emission regulations. Although not the bigger segment, the Fatty Alcohols are a major one, which largely due to their practice in the production of surfactants, emulsifiers, and personal care products. They derive most of the source from the hydrogenation of fatty acids. They are valued for their biodegradability and mildness, making them applicable in cosmetics and household products. While their growth is stable, the figure is overshadowed due to rapid expansion of FAME in the context of sustainable energy. Another important segment is the Fatty Acid Derivatives, which comprise a huge range of products from soaps, lubricants, and pharmaceuticals. These derivatives are important for a whole variety of industries on functional grounds, such as increased performance and providing a facility with no or minimum environmental impact.

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Manmayi Raval

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Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Oleochemical market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation

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By Source • Palm Oil and Palm Kernel Oil • Coconut Oil • Soybean Oil • Rapeseed Oil • Sunflower Oil • 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 • Others By Types • Fatty acids • Fatty alcohols • Fatty acid derivatives • Fatty acid methyl ester (FAME) The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Oleochemical industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry. Keywords: Oleochemical, Palm Oil and Palm Kernel Oil, Coconut Oil, Soybean Oil, Rapeseed Oil, Sunflower Oil, Animal Fats, Waste and By-Products, Microbial and Emerging Sources, personal care and comestics, soaps and detergents, food and feed, Rubber and plastics, Coatings and Resins, Lubricants, Fatty acids, Fatty alcohols, Fatty acid derivatives, Fatty acid methyl ester (FAME)