Oleochemicals Market Size, Share & Trends Analysis Report By Product (Specialty Esters, Fatty Amines), By Application (Personal Care & Cosmetics, Consumer Goods), By Region, And Segment Forecasts, 2024 - 2030

Oleochemicals Market Size, Share & Trends Analysis Report By Product (Specialty Esters, Fatty Amines), By Application (Personal Care & Cosmetics, Consumer Goods), By Region, And Segment Forecasts, 2024 - 2030

Oleochemicals Market Growth & Trends

The global oleochemicals market size is anticipated to reach USD 39.43 billion by 2030 and is projected to grow at a CAGR of 7.0% from 2024 to 2030, according to a new report by Grand View Research, Inc. The demand for oleochemicals is projected to be driven by the growing utilization of these products in various end-use industries like industrial, personal care & cosmetics, textiles, pharmaceuticals, and food processing, among others.

Growing concerns regarding the impact of petrochemicals on the environment have prompted the use of bio-based and sustainable chemicals. The industry is shifting its focus towards the development of biodegradable products and base chemicals using bio-based raw materials to reduce carbon footprint and the dependency on petrochemicals.

The presence of regulations from agencies such as REACH regarding the environmental risks related to petrochemical-based products is expected to support this trend. Oleochemicals are biodegradable in nature and have the same applications as petrochemicals. Considering the factors mentioned above, oleochemicals have been gaining prominence in polymers, surfactants, and lubricants production as a substitute for petrochemicals.

On the other hand, the growth of the biodiesel industry due to the volatility in raw material prices has a direct impact on the production of various oleochemicals, especially glycerol esters. The global oleochemicals industry is oversupplied and, therefore, manufacturers get fewer returns. In addition, the refining of oleochemicals is a cost-intensive process, which further affects the profit margins of the manufacturers involved in this business.

Oleochemicals Market Report Highlights

• Fatty Acid Methyl Ester is expected to witness the fastest CAGR of 8.7% over the forecast period. FAME is used for the production of biodiesel and detergents and is superior to conventional fossil fuel in terms of its sulfur content, carbon emission, and biodegradability. In addition, the direct transformation of extracted microbial lipids into fatty acid methyl ester can reduce the cost of biodiesel production. FAME is also used as an alternative to motor fuel since it is characterized by properties similar to those of biodiesel. Thus, the growth of fatty acid methyl ester is directly dependent on the demand for biodiesel.
• Personal care & cosmetics end use is expected to witness the fastest CAGR of 7.8% over the coming years. The growing demand for organic and anti-aging products to maintain a youthful appearance is driving the demand for personal care products, which, in turn, is expected to trigger the demand for oleochemicals derivatives in personal care & cosmetics application segment.
• Asia Pacific is expected to witness the fastest growth of 7.7% over the forecast period owing to rapid technological advancements, the presence of large pharmaceutical and food & beverages industries, changing consumer preferences & trends, and the global market presence of some of the key manufacturing companies. Companies such as Kuala Lumpur Kepong (Malaysia), Wilmar (Indonesia), Musim Mas (Indonesia), Kao Corporation (Japan), and China Sanjiang Fine Chemicals (China) are likely to set up new fatty alcohol plants in Asia in the forthcoming years, further driving the market growth in the region.
• The key players in the U.S. market include Vantage Specialty Chemicals, Emery Chemicals, Evonik Industries, and Kao Chemicals. These companies dominate the global market with a substantial presence throughout the value chain.
• In April 2023, KLK Oleo completed the acquisition of Temix Oleo. The company’s acquisition is aligned with its strategy to diversify its product portfolio and increase its market share across regions.

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