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The fatty alcohols market size is projected to increase by USD 611.9 million at a CAGR of 2.15% between 2023 and 2028, with China holding the largest market share and projecting annual revenue of USD 810.87 million. The market growth is driven by the demand for industrial and institutional cleaners, rising health awareness, and rapid industrialization, particularly in developing nations. Fatty alcohols are used in surfactants for cleaner production. However, the unstable supply of animal fat, a primary raw material, poses a significant challenge.
The market is witnessing dynamic shifts catalyzed by diverse factors, including the Coronavirus crisis and the growing demand for sustainable and biodegradable cosmetic products. As rising disposable income drives consumer preferences towards eco-friendly options, disruptions in supply chains have incentivized a transition from petroleum-based products to bio-based alternatives. Industries such as personal care, pharmaceuticals, and detergents are embracing oleochemicals sourced from renewable resources like palm oil, rapeseed oil, and tallow to meet the rising demand for eco-friendly ingredients. The market thrives on applications across industrial & domestic settings, offering a sustainable solution in various sectors, including agriculture, paper & pulp, and surfactant-based industries.
The personal care industry is experiencing dynamic shifts driven by factors such as supply chain disruptions and the growing demand for bio-based products across various sectors, including personal care and pharmaceutical industries. Key ingredients like tallow, palm oil, and rapeseed oil are extensively used in the production of soaps, detergents, and lubricants for industrial and domestic application. The home and personal care industry heavily relies on ethoxylates, Crude Palm Kernel Oil (CPKO), and renewable resources-based products such as PK oil and Sodium Laureth Sulfate (SLS). With factories and supply networks ensuring global production and timely delivery schedules, the market witnesses a steady supply of personal care chemicals and cosmetics products. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of market analysis and report, drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing demand for industrial and institutional cleaners is a key factor driving the market growth. A significant driver of the market is the increasing demand for industrial and institutional cleaners, particularly in developing countries where health and hygiene awareness is on the rise. These cleaners use surfactants as raw materials, and as the market for industrial and institutional cleaners grows, it is expected to boost the surfactants market, which, in turn, will drive the market. This growth is propelled by factors like heightened health consciousness and rapid industrialization in developing nations.
People's increasing health concerns necessitate cleanliness in workplaces and public spaces, making it a key driver for the industrial and institutional cleaners market. Maintaining clean surroundings is crucial for individual health and well-being. As the demand for industrial and institutional cleaners continues to rise, so does the need in cleaning applications, contributing to the growth of the market in the market forecast period.
The growing demand for biosurfactants is an emerging trend shaping market growth. These compounds can reduce the surface tension between two liquid surfaces or a liquid and a solid surface. Biosurfactants are gaining importance in the pharmaceutical, biomedical, cosmetic, and food industries, to name a few. Many pharmaceutical-grade surfactants consist of fatty alcohols and ethers that are biosurfactants. The biosurfactant market is developing, and intensive research is ongoing. Governments of various countries are making efforts to widen the use of environment-friendly surfactants as chemically synthesized surfactants are non-biodegradable and have harmful effects. Governmental regulations mandate manufacturers to use eco-friendly raw materials in their production process. The increasing trend of using biosurfactants for various applications is, thus, expected to positively influence the growth of the market during the forecast period.
The fluctuating raw material prices of fatty alcohols is a significant challenge hindering market growth. The production process of fatty alcohols requires two primary types of raw materials, i.e., vegetable oils and animal fats. Animal fat is used as a major feedstock to produce fatty alcohols in the North American and European markets. The supply of animal fat is unsteady, which is a major challenge for the global fatty alcohols market. Ranchers and farmers do not raise farm animals primarily for their fat, and the year-over-year growth in the breeding of farm animals has been moderate for the past ten years. Large-scale processing of fatty alcohols requires sufficient quantities of feedstock, and therefore it is difficult to maintain a continuous supply of fatty alcohols. The prices of feedstock are rising in the market. The harsh climatic conditions can also affect feedstock production. The difficulty in the availability of feedstock is likely to pose a challenge to the growth of the global fatty alcohols market during the forecast period. The prices of animal fats and vegetable oil have shown an increasing trend owing to the rising demand for biofuels over the past decade. The increase in the prices of these raw materials is expected to hinder the growth of the market in focus during the forecast period.
The availability of animal fat in Europe has been negatively affected by bovine spongiform encephalopathy (BSE) and animal by-products regulation, which restricts the quantity of animal fat available for use. The variation in the tax incentives and credit policies in both the US and European markets is expected to affect the prices of both animal fat and vegetable oil in these regions. The indirect dependency of fatty alcohol manufacturers on these regulatory policies, coupled with the unsteady supply of raw materials, will pose a challenge to the growth of the global fatty alcohols market during the forecast period.
The coronavirus crisis, there's a growing emphasis on sustainable and biodegradable cosmetic products in the personal care industry, reflecting consumers' increasing awareness and demand for environmentally friendly options. Additionally, rising disposable income is influencing preferences towards high-quality products, further stimulating market growth. However, the industry is facing challenges such as supply chain disruptions and reliance on petroleum-based products, prompting a shift towards biobased alternatives like biobased oleochemicals. These innovative solutions cater to the demand for eco-friendly ingredients in cosmetics, soaps, and detergents, emphasizing the importance of renewable resources and amphipathic nature in product formulations. As manufacturers adapt to these trends, the market is poised for significant market growth and trends, driven by advancements in oleochemicals and sustainable practices.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as Market forecasting, historical data from 2018 to 2022 for the following segments
The pure and midcut segment was valued at USD 2.11 billion in 2018. The market for midcut characterized by medium-length carbon chains, experiences high demand in various industries such as surfactants, industrial lubricants, and plasticizers. The increasing consumer preference for sustainable products, coupled with the expansion of the personal care and cosmetics industry, and growing applications in the chemical and pharmaceutical sectors, have all contributed to the market's favorable conditions. Additionally, as industrial activities resumed after the pandemic, the demand for fatty alcohols has rebounded, presenting promising opportunities for producers and suppliers in the market. Due to this surge in demand, the market in focus is expected to witness significant growth during the forecast period.
APAC Holds a Prominent Position in the Market
APAC is estimated to contribute 39% to the growth of the global market during the forecast period. In 2022, APAC played a significant role in the market, and it's expected to continue dominating. The demand in the region is driven by their use of cleaning products like detergents. China and India, with their large populations, are key contributors to the detergent market growth and forecasting in APAC.
The region's rapid economic growth and government regulations to reduce environmental impact are increasing the demand for fatty alcohol, especially in China and India. APAC, a major producer and consumer, is set to maintain its market position, boosted by the growing personal care and cosmetics industry.
The market is fragmented in nature. Some significant players include AVRIL SCA, BASF SE, CREMER OLEO GmbH and Co. KG, Croda International Plc, Eastman Chemical Co.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
AVRIL SCA, BASF SE, CREMER OLEO GmbH and Co. KG, Croda International Plc, Eastman Chemical Co., Ecogreen Oleochemicals PTE Ltd., Evonik Industries AG, Godrej and Boyce Manufacturing Co. Ltd., Jarchem Industries Inc., Kao Corp., Kuala Lumpur Kepong Berhad, Musim Mas Group, Sasol Ltd., Saudi Basic Industries Corp., Shell plc, Sime Darby Plantation Berhad, The Procter and Gamble Co., Timur OleoChemicals Malaysia Sdn. Bhd., VVF LLC, and Wilmar International Ltd.
The applications of the market in the pharmaceutical industry and cosmetics products, the market is witnessing a surge in bio-based fatty alcohol products, especially in the vibrant Asia-Pacific region. Fatty alcohols, known for their amphipathic nature, play a crucial role in the production of nonionic surfactants, essential for soap formulations and organic surface-active products. These versatile compounds find utility in washing machines and organic soaps (including toilet/bathing soaps), and contribute significantly to the fast-moving consumer goods (FMCG) market. Synthetic detergent intermediates derived from fatty alcohols have a profound impact on the beauty and personal care market, with applications in shampoos contributing to the growth of the personal hygiene market. The market's connection to traditional Chinese medicine, the involvement of the National Investment Promotion and Facilitation Agency (Invest India), and the evolving landscape of fatty acid methyl esters further underscore its dynamic nature in catering to diverse industries.
Raw material prices, particularly for natural fats, oils, and waxes, influence the detergent industry and the production of modern detergents with high molecular weight alcohols. The International Trade Centre facilitates trade in soap and organic surface-active products, meeting the needs of washing, care, and cleaning agent manufacturers across major economies. Additionally, the market sees growth in therapeutic medicines and active pharmaceutical ingredients, particularly in regions like the Indian hair care market and other end-user industries.
Fatty Alcohols Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.15% |
Market growth 2024-2028 |
USD 611.9 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
2.05 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 39% |
Key countries |
China, US, Germany, France, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AVRIL SCA, BASF SE, CREMER OLEO GmbH and Co. KG, Croda International Plc, Eastman Chemical Co., Ecogreen Oleochemicals PTE Ltd., Evonik Industries AG, Godrej and Boyce Manufacturing Co. Ltd., Jarchem Industries Inc., Kao Corp., Kuala Lumpur Kepong Berhad, Musim Mas Group, Sasol Ltd., Saudi Basic Industries Corp., Shell plc, Sime Darby Plantation Berhad, The Procter and Gamble Co., Timur OleoChemicals Malaysia Sdn. Bhd., VVF LLC, and Wilmar International Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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