Stearic Acid Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Stearic Acid Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The stearic acid market is projected to register a CAGR of over 5.25% during the forecast period (2022-2027).

The market was negatively impacted by COVID-19 in 2020. However, the consciousness regarding personal hygiene and clean surrounding has increased in the current situation, which has stimulated the demand for stearic acid-based personal care and household cleaning products, thus enhancing the market demand for stearic acid.

Key Highlights

• Over the short term, the increasing need for personal care products, the rapid growth of the cleaners and detergents industry, are expected to drive the market's growth.
• However, carcinogen effects of Stearic acid when used in high concentrations is expected to hinder the growth of the market studied.
• Advancement in sunflower oil varieties containing high stearic and oleic acids is likely to create opportunities for the market in the coming years.
• The Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period (2022-2027).

Stearic Acid Market TrendsIncreasing Demand from the Personal Care Industry

• Stearic acid is used for the production of stearates, such as sodium stearate, magnesium stearate, or calcium stearate, which is a component of personal care products. It is used in more than 3,200 skincare and hair care products.
• Furthermore, the growing awareness for personal health and hygiene, along with increasing beauty consciousness, is expected to drive the demand for stearic acid.
• In 2020 the value of the global beauty & personal care market amounted to over USD 483 billion. The growth of annual revenue of this global market segment decreased from 3.2 percent in 2019 to (-) 4.2 percent in 2020. However, the market is estimated to have grown at a healthy rate in 2021.
• Therefore, the increasing demand from personal care industry is expected to impact market in the coming years.

Asia-Pacific Region to Dominate the Market

• Asia-Pacific was the leading consumer of cosmetics and personal care products owing to the growing urbanization and increase in the population of the younger generation in countries such as India and other developing nations.
• Stearic acid has a large number of applications in soaps and detergents. It primarily fulfills the role of a thickener and a hardener, which helps the soap bars retain their shape. It is because of stearic acid that soap particles are able to attach to dirt particles, loosening them to be washed away with water.
• The Asia-Pacific market is supported by the leading global giants situated in the region, such as L’Oreal, Procter & Gamble, Unilever, and more.
• With the various research and developments, expansions, and investments in cosmetic products, the market for stearic acid is expected to grow at a significant rate in the region during the forecast period.
• China is one of the major consumers of cosmetics. The revenue of beauty and personal care products on the Chinese market reached a new record high of over USD 56 billion in 2021.
• Japan Beauty and Personal Care Products Market is projected to grow at a CAGR of 3.5% during the forecast period (2022-2027).
• Additionally, stearic acid is used in lubricant additives such as corrosion inhibitors and also can be employed in rubber processing for internal lubrication and adhesion. The automotive industry growth influences the demand for rubber and, in turn, stearic acid.
• As of Q3 2021, China had produced 18.2 million vehicles and produced 16.97 million vehicles in the same period in 2020, therefore registering a growth rate of about 8%, which in turn stimulates the demand for the studied market.
• Therefore, the aforementioned factors are expected to show a significant impact on the market in the coming years.

Stearic Acid Market Competitive Analysis

The stearic acid market is highly fragmented in nature. The major companies (in no particular order) include Pacific Oleochemicals Sdn Bhd, Emery Oleochemicals, Procter & Gamble, Wilmar International Ltd, and Kuala Lumpur Kepong Berhad among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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