Castor oil and derivatives market has been growing at a good pace over the past few years on account of growing demand for bio-degradable products. Increasing environmental concerns is the key factor expected to boost the market over the foreseeable period. Stringent regulation from government boards including EPA and PNGRB to limit the usage of traditional petrochemicals resulted in shift in focus towards castor oil and its derivatives. This shift in focus is likely to create an opportunity for the market players. Volatile price of petrochemical is the other key factor which is expected to surge the demand for bio-degradable products over the foreseeable period. Bio-degradable products demand is presume to drive castor oil and derivatives market growth over the next six years. Global castor oil market is also expected to witness strong growth on account of increasing demand from automotive sector across the globe. Increasing application scope of castor oil and derivatives in major end-use industries including pharmaceuticals, cosmetics & personal care and plastics & resins is expected to fuel the market growth over the forecast period. However, increasing prices of raw materials including castor seeds coupled with low prices of other renewable chemicals is anticipated to impact the market negatively over the forecast period.
Sebabic acid is the major product segment of castor oil & derivatives followed by caster wax and dehydrated castor oil. Sebabic acid has found large number of applications in major industries, which is expected to drive the market over the forecast period. Castor oil & derivatives market is expected to witness strong growth over the next six years owing to increasing application scope of caster wax in cosmetics and personal care products.
Cosmetics and health care industry was the largest application segment for castor oil & derivatives market over the last decade, and the trend is expected to continue over the forecast period. Increasing R&D activities in health care to broaden the application of bio-based products in this segment is the key factor expected to drive castor oil & derivatives market over the next six years. Surface coating is anticipated to witness strong growth over the forecast period owing to increasing demand from construction sector across the globe.
Asia pacific was the largest market for castor oil and its derivatives over the last decade in terms of production and exports. India is the largest producer of castor oil followed by China. Increasing demand from end use industries including personal care, pharmaceuticals and lubricants is anticipated to surge the market growth over the next six years in this region. North America was the largest consumers of castor oil and its derivatives owing to increasing demand for bio degradable products in cosmetics and pharmaceuticals. Europe castor oil market is expected to witness significant growth over the foreseeable period owing to increasing bio diesel demand coupled with stringent regulations from EPA to reduce the usage of traditional petrochemicals.
Increasing R&D activities by key market players is expected to enhance application scope and end-use specific product development for plastics & rubber, paints, lubricants, food, and textile industries over the forecast period. Some key players in castor oil & derivatives market include Thai Castor Oil Industries Co. Ltd., Castor Chemical Co. Ltd., Adani Group, Kanak Castor Products Pvt. Ltd. and Liaoyang Huaxing Chemical Ltd. Co among others.
Research Support Specialist, USA