Oleochemicals market has been witnessing strong growth over the last few years on account of increasing demand for sustainable and biodegradable chemicals. Industries are shifting from petrochemical to oleochemicals due to its cheaper cost and eco friendly nature. This factor has been driving the market over the last few years and the trend is expected to continue over the forecast period. Ease availability of raw materials at cheaper cost in countries including Malaysia and Indonesia is expected to drive oleochemicals market in this region. In addition, increasing oleochemicals demand in personal care and cosmetic industry is anticipated to be the key driving factor for the market over the next six years. Growing major end-use industries including soaps & detergents, personal care and cosmetics is likely to fuel the demand for oleochemicals in near future. Oleochemicals are also used as a raw material in manufacturing polymers including polyurethane, polyester and polyamides. Increasing demand for these polymers is anticipated to complement the oleochemicals market growth over the forecast period. Stringent government regulations such as Turkish REACH-like which is enacted globally have negatively affected the petrochemicals market over the last few years. Oleochemicals is likely to replace petrochemicals in many industrial applications, which is anticipated to fuel the market growth over the foreseeable period. Bio-lubricants and bio-polymers which use oleochemicals as a raw material are substituting the traditional petrochemicals owing to the bio-degradable nature of oleochemicals. This shift in focus toward use of oleochemicals is expected to open new opportunities for the market over the forecast period. However, increasing prices of feedstock may hamper the market growth over the forecast period.
Oleochemicals are derived from plants and animal fats. Fatty acids are the largest product segment holding maximum share of oleochemicals market followed by fatty alcohols. Owing to increasing demand from soaps and detergent industry, demand for fatty acids is anticipated to witness growth at good pace over the forecast period. In addition, fatty alcohols are likely to fuel the market growth over the next six years on account of increasing application scope in pharmaceuticals, personal care, cosmetics and detergents.
Soaps & detergents was the largest application segment for oleochemicals market followed by personal care and cosmetics industry. Foods & beverages industry is witnessed to be the fastest growing application segment over the last few years on account of rising glycerol demand. Increasing consumer awareness towards usage of bio-based products in food & beverages is the key driving factor expected to drive the oleochemicals market over the forecast period. Moreover, polymer and chemical industries are anticipated to witness high growth over the next six years owing to shift in focus toward bio-based chemicals.
Asia Pacific was the largest market for oleochemicals over the past few years in terms of production and consumption. Captive consumption of oleochemicals and availability of raw materials including palm oil and palm kernel oil is the key factor driving the oleochemicals market in this region. Europe is another major oleochemicals market followed by North America. Malaysia and Indonesia are the leading raw material producers of oleochemicals across the world.
Oleochemicals companies have huge scope to collaborate with chemical industries to gain competitive advantage over their competitors. Additionally, major players have been collaborating with technology provider and suppliers to set up manufacturing facilities in high demand regions. Improving R&D activities is anticipated to diversify the application scope of oleochemicals, which in turn likely to open new opportunities for the market players. Some Indian companies have succeeded in taking such initiatives in agrochemicals industry. Key players in oleochemicals market include AkzoNobel Inc., BASF SE, Cargill Inc., Evonik Industries, Godrej Industries and P&G Chemicals.
Research Support Specialist, USA