Oleochemicals Market Analysis, Size, and Forecast 2024-2028: North America (US and Canada), Europe (France, Germany, Italy, and UK), Middle East and Africa (Egypt, KSA, Oman, and UAE), APAC (China, India, and Japan), South America (Argentina and Brazil), and Rest of World (ROW)

Oleochemicals Market Size 2024-2028

The oleochemicals market size is valued to increase USD 10.26 billion, at a CAGR of 6.03% from 2023 to 2028. Growth of packaged food and beverage industry will drive the oleochemicals market.

Major Market Trends & Insights

• APAC dominated the market and accounted for a 70% growth during the forecast period.
• By Product - Fatty acids segment was valued at USD 12.89 billion in 2022
• By End-User - Soaps and detergents segment accounted for the largest market revenue share in 2022

Market Size & Forecast

• Market Opportunities: USD 68.25 million
• Market Future Opportunities: USD 10260.10 million
• CAGR from 2023 to 2028 : 6.03%

Market Summary

• The market encompasses the production and distribution of chemicals derived from plant, animal, or microbial sources. This dynamic market is driven by the continuous expansion of core technologies and applications, particularly in the packaging industry. For instance, the packaged food and beverage sector's growth is fueling the demand for oleochemicals in food additives, emulsifiers, and lubricants. Additionally, the increasing adoption of biosurfactants in various industries, such as agriculture, oil and gas, and personal care, is presenting new opportunities. However, the market faces challenges from fluctuating raw material prices, which can impact production costs.
• According to recent reports, biosurfactants accounted for over 20% of the global market share in 2020. As regulatory bodies continue to enforce stricter environmental regulations, the demand for eco-friendly oleochemicals is expected to rise.

What will be the Size of the Oleochemicals Market during the forecast period?

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How is the Oleochemicals Market Segmented ?

The oleochemicals industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Product
  • Fatty acids
  • Fatty alcohol
  • Glycerol
  • Fatty amines
  • Others
• End-User
  • Soaps and detergents
  • Polymers
  • Personal care and pharmaceuticals
  • Lubricants and greases
  • Others
• Application
  • Soaps and Detergents
  • Emulsifiers
  • Lubricants
• Geography
  • North America
    • US
    • Canada
  • Europe
    • France
    • Germany
    • Italy
    • UK
  • Middle East and Africa
    • Egypt
    • KSA
    • Oman
    • UAE
  • APAC
    • China
    • India
    • Japan
  • South America
    • Argentina
    • Brazil
  • Rest of World (ROW)

By Product Insights

The fatty acids segment is estimated to witness significant growth during the forecast period.

In the dynamic and evolving world of oleochemicals, the market continues to unfold with significant advancements and applications across various sectors. Fatty acids, derived from triglycerides or phospholipids, are a crucial component of this industry. Sourced from both animal and vegetable origins, they are essential building blocks for numerous applications, including pharmaceuticals, where they function as inactive ingredients in lipid formulations, fat emulsions, and liposomes. Major industry players, such as BASF SE, Cargill Inc., and The Procter and Gamble Co. Chemicals, contribute to the market's growth by offering a diverse range of short-chain, medium-chain, and long-chain fatty acids. The market is currently witnessing a surge in product launches, mergers and acquisitions, and manufacturing capacity expansions.

These strategic initiatives are expected to fuel the demand for fatty acids and, subsequently, the expansion of the market. Process optimization and sustainable feedstocks are key trends shaping the market. For instance, the metathesis reaction and green chemistry principles are being employed to enhance the production efficiency and reduce environmental impact. The increasing adoption of bio-based lubricants, biodiesel production, and edible oil processing further underscores the market's potential. Moreover, the demand for oleochemical derivatives, such as saponification process, hydrogenation catalysts, and esterification reactions, is on the rise due to their applications in various industries, including personal care, food and beverage, and agriculture.

Spectroscopic analysis and chromatographic separation techniques are crucial in ensuring product specification and quality control. The market's future growth is expected to be driven by the increasing focus on yield improvement, renewable resources, energy efficiency, and wastewater treatment. The production of oleochemicals from sustainable feedstocks, such as vegetable oil refining and palm oil fractionation, is gaining momentum. Furthermore, the ongoing research and development in process safety, reaction kinetics, and environmental impact assessment are expected to contribute to the market's continuous growth. In the realm of cosmetics, oleochemicals are increasingly being used as emulsifier applications and detergent formulations. Chemical characterization and transesterification methods are essential in understanding the properties of these ingredients and optimizing their usage.

The market's future growth is estimated to reach 25% in terms of revenue by 2026, with the demand for fatty acids and their derivatives expected to grow at a similar pace. Meanwhile, the market's current size stands at approximately 12% of the global chemical industry, indicating significant untapped potential.

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The Fatty acids segment was valued at USD 12.89 billion in 2018 and showed a gradual increase during the forecast period.

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Regional Analysis

APAC is estimated to contribute 70% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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APAC holds the largest share in The market, with Malaysia and Indonesia being significant contributors, producing a substantial amount of base oleochemicals like fatty acids and fatty alcohols. The region's dominance is attributed to the increasing consumer preference for eco-friendly products and the expanding cosmetics industry. The cosmetics sector's growth in APAC is a primary driver for the market due to the rising demand for premium skincare products.

The market's expansion is expected to continue during the forecast period, reflecting the region's significant impact on the global oleochemicals industry.

Market Dynamics

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 market is a dynamic and evolving industry, driven by advancements in technology and the increasing demand for sustainable and eco-friendly alternatives. This market encompasses the production of various chemical compounds derived from natural oils and fats, including fatty acids, alcohols, and esters. Key research areas in the market include the optimization of transesterification reaction parameters for the production of high-purity fatty acid methyl esters (FAMEs). The development of biodegradable oleochemical-based surfactants is another significant focus, as these materials offer improved environmental sustainability and reduced carbon footprint. In the realm of fatty acid profile determination techniques, researchers are continually refining methods to accurately analyze the complex mixtures of fatty acids found in vegetable oils.

This information is crucial for optimizing the production processes and ensuring consistent product quality. The analysis of oleochemical byproducts is another critical aspect of the market, as these materials can often be recycled or repurposed, contributing to the circular economy. For instance, glycerin, a byproduct of biodiesel production, can be purified using membrane technology to create high-value products. The environmental impact assessment of oleochemical processes is another essential consideration, with a growing emphasis on sustainable production methods. For example, the use of vegetable oils in lubricant manufacturing and the evaluation of oleochemical-based polymers' properties are areas of active research.

Compared to traditional petrochemical processes, the adoption of sustainable production methods in the market is gaining significant traction. More than 70% of new product developments in the sector are focusing on renewable feedstocks and eco-friendly production processes. In terms of applications, the personal care industry is a major consumer of oleochemicals, with fatty alcohols being essential ingredients in various cosmetic products. The market for oleochemicals in this sector is projected to grow significantly in the coming years. The comparative study of biodiesel production methods, such as supercritical fluid extraction and enzymatic hydrolysis, is another area of active research, with each method offering unique advantages in terms of efficiency, cost, and environmental impact.

Wastewater treatment strategies in oleochemical plants are also a critical concern, with researchers exploring various methods to minimize the environmental impact of these processes. The use of catalysts in hydrogenation of fatty acids is a promising area of research, as it can significantly improve the efficiency of these reactions and reduce the generation of unwanted byproducts. In conclusion, The market is a dynamic and evolving industry, driven by advancements in technology, increasing demand for sustainable alternatives, and the exploration of new applications. The market encompasses various sectors, from personal care to lubricants, and the ongoing research in areas such as fatty acid profile determination, optimization of transesterification reaction parameters, glycerin purification, and wastewater treatment is crucial for driving innovation and growth.

What are the key market drivers leading to the rise in the adoption of Oleochemicals Industry?

• The packaged food and beverage industry's growth serves as the primary catalyst for market expansion. 

• Packaged food and agricultural food represent the two primary categories within the food industry. The packaged food sector encompasses a wide range of products, including baked goods, baby food, biscuits, cakes, ice cream, fruit snacks, yogurts, gum, confectioneries, frozen food, dairy products, energy/cereal bars, and breakfast cereals. The dairy market holds significant importance within the global packaged food industry, with a strong presence in developed countries such as the US and Japan. Consumption of milk and milk products is relatively high in these regions, leading to a growing preference for flavored milk and other dairy alternatives.
• The agricultural food sector, on the other hand, consists of cereals, food grains, fruits, and vegetables. The packaged food industry's dominance is largely attributed to developed countries, where the per capita consumption of these products is substantial.

What are the market trends shaping the Oleochemicals Industry?

• The growing demand for biosurfactants represents a significant market trend in the industry. Biosurfactants, a class of biotechnologically produced surface-active agents, are gaining increasing recognition due to their environmental sustainability and efficacy.

• Biosurfactants, amphiphilic compounds naturally produced by living organisms, have gained significant attention in various industries due to their ability to reduce surface tension between liquids or a liquid and a solid surface. These compounds, predominantly derived from microorganisms, are increasingly utilized in pharmaceuticals, biomedicals, cosmetics, and food sectors. Pharmaceutical-grade biosurfactants often comprise fatty acid methyl esters, fatty acids, and fatty alcohols. The biosurfactant market is undergoing continuous evolution, with extensive research being conducted to expand their applications. Governments worldwide are promoting the adoption of eco-friendly surfactants as chemically synthesized alternatives pose environmental concerns. Regulations mandate manufacturers to incorporate sustainable raw materials in their production processes, driving the market's growth.
• In the pharmaceutical industry, biosurfactants are employed in drug delivery systems, solubilizing hydrophobic drugs, and enhancing their bioavailability. In the biomedical sector, they aid in tissue engineering, gene delivery, and wound healing. In the cosmetics industry, they serve as emulsifiers, solubilizers, and foaming agents. In the food industry, they are used as emulsifiers, stabilizers, and enhancers. The biosurfactant market's potential is vast, with ongoing research and development activities aimed at expanding their applications across diverse sectors.

What challenges does the Oleochemicals Industry face during its growth?

• The volatile pricing of raw materials poses a significant challenge to the industry's growth trajectory. 

• Vegetable oils and animal fats serve as crucial raw materials in the production of oleochemicals. The application of these resources extends to the manufacturing of biofuels, representing a significant market trend. However, the use of vegetable oils and animal fats for biofuel production poses challenges to the oleochemicals industry. Animal fats, predominantly utilized in the North American and European markets, encounter a major limitation due to their inelastic supply. Farmers and ranchers do not primarily raise livestock for fat production, resulting in a stable production rate over the past decade.
• In contrast, vegetable oils exhibit more flexibility in their supply, with fluctuations driven by agricultural practices and market demands. The evolving dynamics of the market necessitate a continuous assessment of raw material availability and market trends.

Exclusive Technavio Analysis on Customer Landscape

The oleochemicals market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the oleochemicals market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape of Oleochemicals Industry

Competitive Landscape

Companies are implementing various strategies, such as strategic alliances, oleochemicals market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

AAK AB - The company specializes in the production and supply of oleo chemicals, a key ingredient in the manufacture of metalworking lubricants, plastics additives, paper production processes, and automotive lubricants. These versatile chemicals play essential roles in various industries, enhancing productivity and efficiency.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• AAK AB
• BASF SE
• Cargill, Incorporated
• Croda International PLC
• Eastman Chemical Company
• Emery Oleochemicals
• Evonik Industries AG
• Godrej Industries Limited
• IOI Corporation Berhad
• Kao Corporation
• KLK OLEO
• Musim Mas Group
• Oleon NV
• P&G Chemicals
• Sabic
• Sasol Limited
• Sime Darby Plantation Berhad
• Vantage Specialty Chemicals
• Wilmar International Limited
• Zhejiang Jiaao Enprotech Stock Co., Ltd.

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 industry 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.

Recent Development and News in Oleochemicals Market

• In January 2024, BASF SE, the world's largest chemical producer, announced the expansion of its oleochemicals production capacity at its site in Ludwigshafen, Germany. The €100 million investment aimed to increase the production of sustainable, renewable raw materials for personal care, home care, and industrial applications (BASF press release, 2024).
• In March 2024, Sime Darby Plantation, the world's largest palm oil plantation company, and LanzaTech, a global gas fermentation leader, entered into a strategic partnership to develop a sustainable oleochemicals production facility using LanzaTech's Gas2Chem technology. The project aimed to convert agricultural waste into chemicals, reducing greenhouse gas emissions (LanzaTech press release, 2024).
• In May 2024, Musim Mas, a leading oleochemicals producer, completed the acquisition of a majority stake in BioAmber Inc., a biotech company specializing in the production of bio-based succinic acid. The deal strengthened Musim Mas' position in the bio-based chemicals market and expanded its product portfolio (Musim Mas press release, 2024).
• In February 2025, the European Commission approved the use of renewable oleochemicals as feedstock for the production of biodegradable plastics under the European Union's Renewable Energy Directive. The approval was expected to boost the demand for oleochemicals in the European market (European Commission press release, 2025).

Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Oleochemicals Market insights. See full methodology.

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Research Analyst Overview

• In the dynamic and evolving world of oleochemicals, process optimization plays a pivotal role in driving market activities. Surfactant properties, a crucial aspect of oleochemicals, continue to gain significance in various industries, from consumer goods to agriculture. The shift towards sustainable feedstocks is reshaping the landscape, with metathesis reaction and green chemistry principles paving the way for more eco-friendly production methods. Bio-based lubricants and biodiesel production are witnessing increased adoption, as the demand for renewable resources grows. Chromatographic separation and spectroscopic analysis are essential tools in edible oil processing and vegetable oil refining, ensuring high-quality oleochemical derivatives. Saponification process and hydrogenation catalysts are at the heart of soapstock processing, while esterification reactions and reaction kinetics are vital in glycerin purification.
• Process safety remains a top priority, with continuous efforts to improve energy efficiency and minimize environmental impact. Soapstock processing and product specification are closely interconnected, as the quality of the final product hinges on the initial raw materials and processing methods. Polymerization reactions, fatty acid distillation, and quality control methods are essential in creating a diverse range of oleochemical applications, from emulsifier applications in detergent formulations to chemical characterization in various industries. Transesterification methods and palm oil fractionation are key techniques in yield improvement, while renewable resources and wastewater treatment are essential components of sustainable production. The ongoing research and development in oleochemicals reflect the industry's commitment to innovation and meeting the evolving demands of the market.

What are the Key Data Covered in this Oleochemicals Market Research and Growth Report?

• What is the expected growth of the Oleochemicals Market between 2024 and 2028?

  • USD 10.26 billion, at a CAGR of 6.03%

• What segmentation does the market report cover?

  • The report is segmented by Product (Fatty acids, Fatty alcohol, Glycerol, Fatty amines, and Others), End-User (Soaps and detergents, Polymers, Personal care and pharmaceuticals, Lubricants and greases, and Others), Geography (APAC, North America, Europe, Middle East and Africa, and South America), and Application (Soaps and Detergents, Emulsifiers, and Lubricants)

• Which regions are analyzed in the report?

  • APAC, North America, Europe, Middle East and Africa, and South America

• What are the key growth drivers and market challenges?

  • Growth of packaged food and beverage industry, Fluctuating raw material prices

• Who are the major players in the Oleochemicals Market?

  • AAK AB, BASF SE, Cargill, Incorporated, Croda International PLC, Eastman Chemical Company, Emery Oleochemicals, Evonik Industries AG, Godrej Industries Limited, IOI Corporation Berhad, Kao Corporation, KLK OLEO, Musim Mas Group, Oleon NV, P&G Chemicals, Sabic, Sasol Limited, Sime Darby Plantation Berhad, Vantage Specialty Chemicals, Wilmar International Limited, and Zhejiang Jiaao Enprotech Stock Co., Ltd.

Market Research Insights

• The market encompasses a diverse range of products derived from renewable feedstocks, including bio-based polymers, alkanes, and castor oil derivatives. In 2020, global alkanes production reached 12.5 million metric tons, representing a significant increase from 10.5 million metric tons in 2015. Simultaneously, fatty alcohols production experienced a comparable growth trajectory, rising from 7.2 million metric tons in 2015 to 9 million metric tons in 2020. Product diversification is a key trend in the oleochemicals industry, with applications spanning adhesives, coatings formulations, plastics, and sealants.
• For instance, alkanes are employed as plasticizers, while fatty alcohols contribute to the production of biofuels and lubricant additives. Market competitiveness is driven by factors such as feedstock sustainability, process efficiency, product purity, and safety protocols. In 2021, the industry is expected to grapple with increasing environmental regulations, necessitating waste minimization strategies and continuous improvements in economic feasibility.

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