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The oleochemicals market size is forecast to increase by USD 10.26 billion, at a CAGR of 6.03% between 2023 and 2028. Market expansion hinges on various factors, notably the burgeoning packaged food and beverage sector, escalating demand for soaps and detergents, and governmental endeavors promoting the utilization. With the packaged food and beverage industry witnessing robust growth globally, there's a concurrent increase in the demand, which serve as essential ingredients in various products. Additionally, the increasing consumer awareness regarding the benefits of eco-friendly ingredients drives the adoption of oleochemicals in soaps and detergents. Furthermore, government initiatives aimed at promoting sustainability and reducing environmental impact further propel the market forward. As the market continues to evolve, driven by these multifaceted factors, stakeholders are poised to capitalize on the opportunities presented by the growing demand for sustainable and versatile chemical solutions across diverse industrial sectors.
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In the realm of oleochemicals, the personal care and cosmetics business stands out as a prominent user, leveraging the benefits of plant & animal oils and fats. Through primary interviews with key stakeholders like raw material suppliers and wholesalers, insights are gained into the vast potential of bio-based fatty acids derived from fats and oils. This sector also intersects with soap & detergents manufacturing, where ethoxylate plays a crucial role. Additionally, the integration of polymers and petrochemicals further diversifies the market, enabling the production of fatty acid methyl esters and other derivatives like diacylglycerol (DAG), monoacylglycerol (MAG), quaternary ammonium salts, and alcohol ether sulphates.
The market share growth of the fatty acids segment will be significant during the forecast period. Fatty acids are one of the basic oleochemicals. Animal fats and vegetable fats are rich sources of fatty acids. Fatty acids are popularly used as inactive ingredients in pharmaceuticals, such as lipid formulation, fat emulsion, and liposomes. Vendors in the market are undertaking product launches, M&A, and manufacturing capacity expansions. Such initiatives are expected to drive the demand for fatty acids and, in turn, the growth of the market during the forecast period.
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The fatty acids segment was valued at USD 12.89 billion in 2018. Major vendors such as BASF SE, Cargill Inc., and Procter and Gamble Co. offer a broad range of short-chain, medium-chain, and long-chain fatty acids. For instance, in October 2018, Cargill Inc. announced the launch of Latitude, a plant-based fish oil alternative that provides long-chain Omega-3 fatty acids for aquafeed. Such product launches are expected to drive the demand for fatty acids and, in turn, the growth of the market during the forecast period.
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APAC is estimated to contribute 70% to the growth of the global market during the forecast period. Technavioâs analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The cosmetics industry is one of the primary drivers for the growth of the market in APAC. The consumers in the region are willing to spend more on premium skincare products. Therefore, the growth of the cosmetics industry in the region is expected to drive the growth of the market in the region during the forecast period.
Further, the pharmaceutical industry in APAC is growing due to high R&D investments by international pharmaceutical firms and rising government expenditure. Regional healthcare expenditure is grew by 7% annually to USD 2.4 trillion by 2022, owing to vast commercial opportunities for biopharma, medical device, and healthcare companies in the region. The growing pharmaceutical industry in the region will supplement the growth of the market in the region during the forecast period.
The market thrives on a diverse range of applications spanning personal care & cosmetics, soap & detergents, and more. Its foundation lies in the utilization of fats and oils, both plant & animal, for the production of bio-based fatty acids, fatty acid methyl esters, and other derivatives. The market landscape depends on the Fossil fuel sources, Chemical reactions, Enzymatic reactions, Crude oil prices, Petrochemicals products, Sustainable fuels, Viral infection, Transportation restrictions, Biodiesel, Bio-based products, Coconut oil. Raw material integration from petrochemicals to ethoxylate ensures a robust supply chain, supported by partnerships with raw material suppliers and wholesalers. Primary interviews with industry stakeholders further enrich the understanding of market dynamics, including the production of diacylglycerol (DAG) and monoacylglycerol (MAG), as well as the synthesis of quaternary ammonium salts and alcohol ether sulphates. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growth of packaged food and beverage industry is notably driving the market growth. Packaged foods include baked food, baby foods, biscuits, cakes, ice cream, fruit snacks, yogurts, gum, confectionaries, frozen food, dairy products, energy/cereal bars, and breakfast cereals. In developing countries, the sales of packaged food items have increased significantly. This rise is primarily driven by increasing income levels and an inclination toward urban lifestyles. Innovations in the packaged food industry, personal care products and self-cooling and self-heating packaging, is increasing the shelf life of products.
Further, oleochemicals are primarily used in various food and beverage products as emulsifiers and preservatives in bread, cake, pastries, and confectioneries. In addition, these additives are also used in the production of food additives, which have a major application in packaged food products. In the dairy industry, oleochemicals are used in the production of both plain and flavored ice cream. The increasing demand for oleochemicals, particularly in the packaged food industry, is expected to drive the growth of the market during the forecast period.
Growing demand for biosurfactants is the primary trend in the market. Biosurfactants are amphiphilic compounds produced using microorganisms or discharged extracellularly. These compounds are used to reduce the surface tension between two liquid surfaces or a liquid and a solid surface. Biosurfactants are becoming popular in segments, including the pharmaceutical, biomedical, cosmetic, and food industries. Many pharmaceutical-grade biosurfactants consist of FAME, fatty acids, and fatty alcohol. The biosurfactant market is developing, and intensive research is ongoing.
Furthermore, several governments across the globe are making efforts to popularize environment-friendly surfactants. This is because chemically synthesized surfactants are non-biodegradable and have harmful effects. Government regulations mandate manufacturers to use eco-friendly raw materials in their production processes. Thus, the increasing trend of using biosurfactants for various applications is expected to positively influence the growth of the market during the forecast period.
Fluctuating raw material prices are the major challenge impeding market growth. Vegetable oils and animal fats are the primary raw materials used in the manufacturing process of oleochemicals. The same raw materials are used in the manufacturing of biofuels. However, there are supply chain challenges related to the use of vegetable oils and animal fats as biofuels. These challenges are hindering the growth of the market. Animal fats are used as raw materials, primarily in the North American and European oleochemical markets.
Further, one of the major challenges in using animal fat is that the supply is inelastic. Our analysis shows that animal fat accounts for 50% of the raw material requirements in the European oleochemicals market. However, its availability in the region is limited by the Bovine Spongiform Encephalopathy (BSE) legislation. The indirect dependency of oleochemicals manufacturers on these regulatory policies, along with an inelastic supply of raw materials, is expected to pose a challenge to market players in these countries. Hence, such factors are hindering the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovatorâs stage to the laggardâs stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market forecast report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Wilmar International Ltd. - The company offers oleochemicals which is used for applications related to personal care, agrochemicals, and lubricants. They are involved in offering the manufacturing of personal care products such as bar soaps, shampoos, conditioners, antiperspirant, deodorant sticks, hand sanitizers, face washes, skin moisturizers, massage oils, shower gels, creams, and lotions.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market experiences significant growth driven by factors such as pricing dynamics and the rising demand for sustainable and biodegradable products. Key components like activated carbon, emollients, sugar esters, and alcohol ethoxylates find extensive use across various industries including amines, chemicals, personal and beauty care, and food processing. The industry's focus on sustainability fuels the adoption of vegetable oil and essential oils as alternatives to petroleum-based ingredients, contributing to food security and reducing reliance on non-renewable resources like palm oil and palm kernel oil. Collaboration between refiners, farmers, structured triacylglycerol (TAG), and plantation firms ensures a steady supply of crude palm oil and crude palm kernel oil for the production of oleochemicals, supporting the industry's growth and sustainability goals.
Furthermore, the market experiences significant growth driven by factors such as pricing dynamics and the rising demand for sustainable and biodegradable products. Key components like activated carbon, emollients, sugar esters, and alcohol sulphates find extensive use across various industries, including chemicals, personal care, and food processing. The market landscape depends on the Digestibility, Energy source, Antimicrobial activity, Plant-based products, Climate change, Animal feed, Cattle, Global oleochemicals market, Renewable sources, Oleochemistry, Glycerides, Soybean oil, Rapeseed oil, Fatty esters, Surfactant, Soap-making enterprises, Polymer and plastics, Food packaging, Waste vegetable oils, Petrochemical-based products. The industry's focus on sustainability fuels the adoption of vegetable oil and essential oils as alternatives to petroleum-based ingredients, contributing to food security and reducing reliance on non-renewable resources like palm oil and palm kernel oil. Collaboration between refiners, farmers, and plantation firms ensures a steady supply of crude palm oil and crude palm kernel oil for the production of oleochemicals, supporting the industry's growth and sustainability goals.
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Market Scope |
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Report Coverage |
Details |
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Page number |
195 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.03% |
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Market growth 2024-2028 |
USD 10.26 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.59 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 70% |
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Key countries |
US, China, France, India, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Akzo Nobel NV, BASF SE, Berg Schmidt GmbH and Co. KG, Cabot Corp., Cargill Inc., Croda International Plc, Ecogreen Oleochemicals PTE Ltd., Emery Oleochemicals Group, Evonik Industries AG, Evyap Soap Oil Glycerin San. and Tic. Inc., Fairchem Organics Ltd., Godrej Industries Ltd., IOI Corp. Berhad, Kao Corp., KLK Oleo, Oleon NV, Saudi Basic Industries Corp., The Procter and Gamble Co., VVF Ltd., and Wilmar International Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our market 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 Product
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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