Global Oleochemicals Market to Grow at 6.2% CAGR Through 2024: Autumn Market Research
Autumn new market research report “Global Oleochemicals Market: 2018 - 2024” estimates that the global oleochemicals market will reach $35.7 billion by 2024, growing at a CAGR of 6.2% over the forecast period (2019-2024). The market is driven by advantages offered by oleochemicals over petrochemicals such as their production through renewable resources and higher biodegradability, unlike latter which is obtained from polluting, non-renewable and exhaustible petroleum, especially as lubricants, polymers, and surfactants.
Oleochemicals are chemical compounds that are derived from the hydrolysis or methylation of fats and oils of both plants and animals. Vegetable oils and animal oils and fats such as soybeans, palm kernels, cotton seeds, copra, groundnuts, sunflower seeds, rapeseeds, linseeds, castor beans, tallow and other animals, fish oils, and lard are used as the raw materials to produce oleochemicals.
Oleochemicals are considered organic, green, safe, renewable and biodegradable, which is driving their usage as a constituent in various commercial products. At present, oleochemicals are used in the production process of several products such as personal care and pharmaceuticals products, lubricants and greases, soaps and detergents, surface coatings and polymers, and biofuels.
- In January 2019, Shell announced that the company would be shutting down its synthetic fatty alcohol unit at Stanlow in the UK following a fire in its higher olefins plant last year.
- In September 2015, Archer Daniels Midland Company and Wilmar International Limited announced that they have come to an agreement whereby Olenex, their partnership to market oils and fats in Europe, will become a full-function joint venture with its own assets. The joint venture is expected to not only meet customer demand for a single, integrated supplier for oils and fats products, but will also support Archer Daniels Midland Company’s strategic goal of strengthening its European oils business for food products.
Asia-Pacific, the Dominant Regional Market
Asia-Pacific region accounted for the dominant share of about 60% of the global oleochemicals market value in 2018. It is also expected to be the fastest growing market over the forecast period due to easy availability of raw material particularly in economies of Malaysia, Indonesia, and China. The intermediates produced using oleochemicals are utilized across a wide range of end-use industries in the region.
The raw materials used in the production of oleochemicals in the developed economies are primarily skewed towards soya, corn, sunflower, rapeseed, tallow, and lard. However, animal fats are used as the primary raw material in the production of oleochemicals in the European region. In developing economies, especially in Asia, vendors are primarily dependent upon the tropical oils as a primary source of raw materials.
Soaps and Detergents to Account for Majority of Market Demand for Oleochemicals
Until the 1990s, oleochemicals were primarily used in food applications, with only a fraction of overall production used for non-food applications. However, since the 1990s, their applications have been expanded to other non-food and technical applications.
Soaps and detergents segment accounted for the highest usage of oleochemicals in 2018, accounting for about 43% share of the oleochemicals market size, in terms of volume. Oleochemicals are widely used in soap and detergents with various industrial and domestic applications as well as in specialty surfactants. Palm kernel oil is primarily used in the production of detergents.
Global Oleochemicals Market - Key Players
AkzoNobel, Archer Daniels Midland Co., Eastman Chemical Co., Evonik Industries AG, Kao Corp., Kuala Lumpur Kepong Berhad, LANXESS AG, and Arkema Group are some of the prominent market players included in this report.
Global Oleochemicals Market – Segmentation
By product types: Fatty Acids, Fatty Alcohols, Glycerol, Fatty Amines, and Fatty Methyl Esters.
Applications in various end-use industries: Personal Care and Pharmaceuticals, Lubricants and Greases, Soaps and Detergents, Intermediates, Polymers, Food and Beverages, and Others.
By regions: North America, Europe, Asia-Pacific, South America, and ROW.
Intended Audience for Oleochemicals Industry Report
- Oleochemicals manufacturers
- Potential investors
- Oleochemical distributors and traders
- Regional and Global Associations
- Raw material suppliers
- Government and research institutions
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Global Oleochemicals Market | Autumn Market Research
Autumn Market Research estimates that the Global Oleochemicals Market will reach $35.7 billion by 2024, growing at a CAGR of 6.2% over the forecast.