Castor Oil And Its Derivatives Market Analysis APAC, Europe, North America, South America, Middle East and Africa - China, India, Brazil, US, France - Size and Forecast 2024-2028

Castor Oil And Its Derivatives Market Size 2024-2028 

The castor oil and its derivatives market size is forecast to increase by USD 726.6 million, at a CAGR of 4.5% between 2023 and 2028. The market is experiencing significant growth due to the increasing demand in major end-use industries such as coatings, plastics, and biodiesel. Castor oil is a valuable source of biodiesel, making it an essential component in the renewable energy sector. However, the market is subject to fluctuations due to the extreme dependence on climate conditions for castor oil production. Extreme weather conditions can impact the crop yield and, consequently, the price of castor oil. Additionally, the rising awareness of the environmental benefits of using biodiesel and bioplastics derived from castor oil is driving market growth. The market is expected to witness steady growth in the coming years, with a focus on sustainable production methods and innovation in end-use applications.

Market Analysis

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Castor oil, derived from the seeds of Castor beans, is a triglyceride oil rich in ricinoleic acid. It is a nonedible vegetable oil with various applications in industries such as soaps, lubricants, coatings, fertilizers, and biodiesel. The global market for castor oil and its derivatives is driven by the increasing demand for these products in different end-use industries. The extraction of castor oil is typically done through either mechanical pressing or solvent extraction using organic solvents like hexane, heptane, or petroleum ether. Mechanical pressing involves the use of oil expellers, hydraulic pressing, or cold pressing, while solvent extraction employs the Soxhlet method.

The extracted oil undergoes several processes such as neutralization using a neutralizer like phosphoric acid or caustic, degumming, and bleaching to produce the final product. Castor oil derivatives, such as ricinoleic acid, are also in high demand due to their unique properties in various applications. The market for castor oil and its derivatives is expected to grow due to the increasing demand for sustainable and eco-friendly alternatives in various industries.

Market Segmentation

The market 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
  • Sebacic acid
  • Undecylenic acid
  • Castor wax
  • Others
• Geography
  • APAC
    • China
    • India
  • Europe
    • France
  • North America
    • US
  • South America
    • Brazil
  • Middle East and Africa

By Product Insights

The sebacic acid segment is estimated to witness significant growth during the forecast period. Castor beans, native to subtropical dry regions, are the primary source of Ricinoleic acid, a triglyceride ester with hydroxyl group attached to the third carbon atom. This nonedible oil, also known as vegetable oil, is extracted from the beans using various methods such as mechanical pressing, solvent extraction, and hydraulic pressing. The extracted oil undergoes several processes, including neutralization using phosphoric acid or caustic, degumming in a degumming-process-plant, bleaching, and heating in an oil heat exchanger. Ricinoleic acid is further processed to produce soaps, lubricants, coatings, chemical products, and biodiesel. In the production of soaps, the oil stock undergoes hydration in a hydration tank using hot water and mechanical agitator, followed by neutralization and centrifugal separation.

The gums obtained from the process are further dried in a vacuum drier. Lubricants are produced by refining the oil and removing impurities. Coatings are made by reacting the oil with organic solvents such as hexane, heptane, or petroleum ether. Chemical products like polymer materials, hydraulic fluids, and brake fluids are derived from the oil through various chemical reactions. Fertilizers are also produced as a by-product of the castor oil refining process. In the extraction process, the oil is first expelled from the beans using an oil expeller or hydraulic pressing. The crude oil obtained is then refined using solvents such as hexane, heptane, or petroleum ether, followed by neutralization, degumming, bleaching, and deodorization.

The neutralizer is typically a strong acid or base, such as phosphoric acid or caustic, which reacts with the free fatty acids in the oil to produce soap stock. The degumming process removes the gums and impurities from the oil, while bleaching removes color impurities and improves the oil's appearance. The oil is then heated in an oil heat exchanger and passed through a centrifugal separator to remove any remaining water. The oil is then sent to a buffering tank, where it is held at a constant temperature before being shipped to customers.

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The sebacic acid segment was valued at USD 930.80 million in 2018 and showed a gradual increase during the forecast period.

Regional Insights

APAC is estimated to contribute 32% 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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Castor beans, native to subtropical dry regions, are the primary source of Ricinoleic acid, a triglyceride ester with hydroxyl group attached to the 12 position of glycerol. This nonedible oil, obtained from the beans through various methods such as mechanical pressing, solvent extraction using organic solvents like hexane, heptane, or petroleum ether, is transformed into valuable derivatives. Ricinoleic acid is utilized in the production of vegetable oil, which finds applications in soaps, lubricants, coatings, and chemical products. The oil undergoes several processes, including extraction, degumming in a degumming-process-plant, neutralization using phosphoric acid or caustic, and soap stock production. The hydration tank, mechanical agitator, hot water, and hydratable gums are employed in the soap manufacturing process.

Furthermore, castor oil derivatives are used in the production of biodiesel, polymer materials, hydraulic fluids, brake fluids, and fertilizers. The oil is also processed to yield ricin, a toxic protein, which has potential applications in research and medicine. The extraction process involves techniques like cold pressing, hydraulic pressing, Soxhlet extraction, and centrifugal separation, followed by vacuum drying in a vacuum drier.

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.

Market Driver

Increasing demand for castor oil and its derivatives in major end-use industries is the key driver of the market. Castor oil, extracted from castor seeds, serves as a significant commercial feedstock for the production of various industrial chemicals. Its applications span across multiple industries including pharmaceuticals, cosmetics, personal care, surfactants, lubricants, surface coatings, biodiesel, food and beverages, plastics and resins, and greases. The unique properties of castor oil, such as high viscosity, excellent thermal conductivity, high pour point, and density, make it an indispensable ingredient in various industries. In the textile sector, castor oil is used in the production of soaps and cosmetics, while in the pharmaceutical industry, it is employed in the synthesis of nylon fibers, bullet-proof glass, and bone prostheses.

Additionally, castor oil is utilized as an antifreeze for fuels and lubricants in the aviation and space industries. The pharmaceutical industry is the primary consumer of castor oil and its derivatives, owing to their extensive use in medication production. The manufacturing process of castor oil involves several stages including de-gumming, bleaching in a slurry tank using bleaching earth, pressure leaf filtering, polishing filters, deodorization through distillation, fatty acid separation using high vacuum, sparging, agitation steam, and de-aeration in a deodorizer plant. The fatty acids obtained from castor oil are then subjected to various processes such as hydrolysis, esterification, and transesterification to yield different derivatives.

Market Trends

The use of castor oil as source of biodiesel is the upcoming trend in the market. Castor oil, derived from the seeds of the Ricinus communis plant, is a non-edible vegetable oil with significant applications in various industries. Its high productivity and yield make it an ideal choice for producing biodiesel as an alternative to conventional fuels, particularly in response to rising petroleum prices and depleting natural resources. The production process involves de-gumming the oil in a slurry tank, followed by bleaching using a bleacher and bleaching earth. The oil is then filtered through a pressure leaf filter and polishing filters before undergoing distillation. Deodorization is carried out using a deodorizer plant, which includes a vacuum balance tray, vacuum, and agitation steam.

Fatty acids are extracted through high vacuum distillation, and sparging is employed for their separation. Fatty spraying and de-aeration are the final steps in the process to produce pure biodiesel.

Market Challenge

Fluctuations in castor oil prices caused by extreme dependence on climate is a key challenge affecting the market growth. The Castor Oil and Derivatives market face volatility due to price fluctuations of castor seeds, which are primarily sourced from India, the leading producer. Gujarat, within India, is the major contributor to castor seed production. However, extreme weather conditions, such as drought and the unorganized farming sector, have adversely affected crop yield, causing a decline in production. The castor oil plant thrives best in regions with summer rainfall and an optimal temperature range of 68°F to 77°F. The production process involves several stages, including de-gumming, bleaching, distillation, and deodorization. In the de-gumming process, castor oil undergoes heating in a slurry tank with bleaching earth.

The mixture is then filtered using a pressure leaf filter, followed by polishing filters to remove impurities. The distillation process separates fatty acids from the oil using a high vacuum, sparging, agitation steam, and a vacuum balance tray. Fatty spraying and de-aeration are the final steps to produce refined castor oil. The bleaching process employs bleacher to eliminate impurities, while deodorization eliminates unpleasant odors.

Exclusive Customer Landscape

The 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

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.

Adani Wilmar Ltd. - The company offers castor oil and its derivatives that is used for many industrial applications and extensively used in the production of textile chemicals and utilized as a lubricant in dyes.

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

• Alberdingk Boley GmbH
• Ambuja Solvex Pvt. Ltd.
• Apple Food Industries
• Arkema SA
• Girnar Industries
• Globexo India
• Gokul Agri International Ltd.
• Gokul Agro Resources
• HOKOKU Corp.
• Inner Mongolia Weiyu Biotech Co. Ltd.
• ITOH OIL CHEMICALS CO. LTD.
• Jayant Agro Organics Ltd.
• Krishna Antioxidants Pvt. Ltd.
• N.K. Industries Ltd.
• Royal Castor Products Ltd.
• Taj Agro Products Ltd.
• Thai Castor Oil Industries Co. Ltd.
• The Chemical Co.
• Vertellus Holdings LLC

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.

Research Analyst Overview

Castor oil, derived from the seeds of Castor beans, is a vegetable oil rich in ricinoleic acid. This nonedible oil is widely used in various industries, including soaps, lubricants, coatings, chemical products, and biodiesel production. In the chemical industry, castor oil is processed to extract ricinoleic acid, which is further used to produce polymer materials, hydraulic fluids, brake fluids, and fertilizers. The castor oil market is driven by the increasing demand for biodiesel and the growing usage of castor oil derivatives in various industries. The extraction process involves methods like mechanical pressing, solvent extraction, oil expeller, hydraulic pressing, cold pressing, Soxhlet, and the use of organic solvents such as hexane, heptane, and petroleum ether.

Further, the extraction process includes several steps like neutralization using phosphoric acid or caustic, degumming in a degumming-process-plant, bleaching, oil heat exchanger, buffering tank, mechanical agitator, hydration tank, hot water, and hydratable gums. The extracted oil is then refined using a centrifugal separator and vacuum drier. Castor oil derivatives find extensive applications in various industries, including soaps, where it acts as a thickener and emulsifier, and in lubricants, where it improves the performance of hydraulic fluids and brake fluids. The market for castor oil and its derivatives is expected to grow significantly due to the increasing demand for sustainable and eco-friendly products.

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

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across APAC, Europe, North America, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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