MARKET ANALYSIS
The oleochemicals market refers to the global industry involved in producing and distributing chemicals derived from natural oils and facts. These oils and fats are primarily sourced from plants and animals, such as coconut, palm, and soyabean. Oleochemicals are considered a renewable and sustainable alternative to petrochemicals derived from fossil fuels. Oleochemicals are produced through various processes, including hydrolysis, transesterification, and esterification. Oleochemicals are known for their renewable and sustainable nature, as they are derived from organic sources. Producing oleochemicals involves the conversion of triglycerides present in oils and fats into different chemical compounds.
GROWTH DRIVERS AND CHALLENGES
The growing demand for environmentally friendly and bio-based products has expanded the oleochemicals market. The demand for natural and substantial substitutes is growing, driven by increased consumers' awareness of the harmful effects of synthetic chemicals. Increasing demand for sustainable and bio-based products, government regulations and initiatives, a shift toward green chemistry, and growing awareness of health and environmental concerns are the factors that help to drive the oleochemicals market. The versatility of oleochemicals and their ability to be tailored for specific applications have increased their use in various industries. The oleochemicals market is influenced by factors such as the availability of raw materials, price volatility of natural oils, government regulations, and technological advancements in production processes.
Although, the oleochemicals market growth may be hindered by factors such as, technological limitations, sustainability concern, competition from petrochemicals.
REPORT SEGMENTATION AND SCOPE
The "Global oleochemicals market Analysis to 2030" is a specialized and in-depth study with a major focus on the global market trends and growth opportunities. The report aims to provide an overview of the global market with detailed market segmentation by type, end use application, and geography. The global oleochemicals market has been witnessing high growth over the recent past and is expected to continue this trend during the forecast period. The report provides key statistics on the consumption of oleochemicals worldwide along with their demand in major regions and countries. In addition, the report provides the qualitative assessment of various factors affecting the oleochemicals market performance in major regions and countries. The report also includes a comprehensive analysis of the leading players in the oleochemicals market and their key strategic developments. Several analyses on the market dynamics are also included to help identify the key driving factors, market trends, and lucrative opportunities that would, in turn, aid in identifying the major revenue pockets.
Further, ecosystem analysis and Porter’s five forces analysis provide a 360-degree view of the global oleochemicals market, which helps understand the entire supply chain and various factors affecting the market growth.
SEGMENTAL ANALYSIS
The global oleochemicals market is segmented on the basis of type, end use application. Based on type, the oleochemicals market is segmented as, fatty acid, fatty alcohol, methyl ester, glycerol, and others. On the basis of end use application, the market is classified as, pharmaceuticals, personal care and cosmetics, food and beverages, soaps and detergents, polymers, paints and inks, and others.
The fatty acid segment accounted for a significant share of the oleochemicals market based on type. Fatty acids are one of the key products obtained from the hydrolysis or splitting triglycerides found in oils and fats. They are classified based on their carbon chain length. Common fatty acids include lauric, stearic, palmitic, and oleic acids. The fatty acid segment is significant in the oleochemicals market due to its versatile nature and wide range of applications. Fatty acids are widely used as raw materials in producing various oleochemical derivatives such as fatty alcohols, amines, and glycerine.
Based on end-use applications, pharmaceuticals and personal care and cosmetics, they have accounted for a significant share of the oleochemicals market. The market for oleochemicals in personal care and cosmetic applications is driven by increasing demand for environmentally friendly natural products and a growing interest among young people to look after their beauty.
REGIONAL ANALYSIS
The report provides a detailed overview of the global oleochemicals market with respect to five major regions, namely; North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA) and South & Central America. India, Japan, and China together account for most of the market share in Asia Pacific. The region is a main producer and exporter of oleochemical feedstocks and derivatives. Increasing public awareness about the adverse effect of oil and petrochemicals exploitation is one of the main reasons for growth in this market. Moreover, given the recent development and modernization of production facilities for oleochemicals in Asia, offering a very competitive feedstock integration and providing producers with an advantage over their foreign competitors, growth prospects are projected to be high. Furthermore, the market in this region is driven by a high resource base, shifting consumer preference toward renewable products and lower production costs.
INDUSTRY DEVELOPMENTS AND FUTURE OPPORTUNITIES
The growing demand for sustainable and renewable feedstocks and surging demand in personal care and cosmetics are fuelling the growth of the global oleochemicals market. Surfactants derived from oleochemicals are widely used in personal care and household products. Oleochemical-based surfactants offer biodegradability, low toxicity, and improved performance, making them attractive alternatives to petrochemical-based surfactants.
In August 2022, Kuala Lumpur Kepong Berhad Group offered a product called DavosLife E3 which could be used for food and nutrition applications. According to Kuala Lumpur Kepong Berhad, this product has a wide range of clinically proven health benefits for heart health, liver health and brain health.
In July 2022, BASF SE delivered the first Rainforest Alliance certified personal care ingredient based on coconut oil. The company has built a renewable supply chain that will help maximize profits.
IMPACT OF COVID/IMPACT OF GEOPOLITICAL SCENARIO/IMPACT OF RECESSION
Due to the COVID-19 expansion and lockdown in major exporting countries, the oleochemicals market has been experiencing value chain disruption. The demand for oleochemicals has increased due to their use in soap and disinfectants due to the COVID-19 outbreak. The demand for oleochemicals from soap and disinfectant manufacturers has been growing due to the shift of consumer expenditure from cosmetics toward essential products like soaps and disinfectants. India’s demand for oleochemicals will remain stable in 2021 as major home care manufacturers work despite lockdown restrictions imposed to control COVID-19. Manufacturers of home care products are considered to be in the essential category.
COMPETITIVE LANDSCAPE AND KEY COMPANIES
Some of the key players operating in the oleochemicals market include, Emery oleochemicals , Wilmar International, Oleon NV, KLK Oleo, Musim Mas Group, Croda International, IOI Group, Procter & Gamble Co., Twin River Technologies, Chemical Associates Inc, 3F Group, Agarwal Group of Industries, Fairchem Speciality Limited, and Unilever among others.