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The oleochemicals market is estimated to grow at a CAGR of 5.86% between 2022 and 2027. The size of the market is forecast to increase by USD 9.43 billion. The growth of the market depends on several factors, including the growth of packaged food and beverage industry, growing demand for soaps and detergents, and government initiatives regarding the use of oleochemicals.
This report extensively covers market segmentation by product (fatty acids, fatty alcohol, glycerol, fatty amines, and others), application (soaps and detergents, polymers, personal care and pharmaceuticals, lubricants and greases, and others), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growth of packaged food and beverage industry is notably driving the market growth, although factors such as fluctuating raw material prices may impede the market growth. Our researchers analyzed the data with 2022 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.
Key Oleochemicals Market Driver
The growth of packaged food and beverage industry is notably driving the market growth. Packaged foods include baked food, baby foods, biscuits, cakes, ice cream, fruit snacks, yogurts, gum, confectionaries, frozen food, dairy products, energy/cereal bars, and breakfast cereals. In developing countries, the sales of packaged food items have increased significantly. This rise is primarily driven by increasing income levels and an inclination toward urban lifestyles. Innovation in the packaged food industry, such as self-cooling and self-heating packaging, is increasing the shelf life of products.
Oleochemicals are primarily used in various food and beverage products as emulsifiers and preservatives in bread, cake, pastries, and confectioneries. In addition, these additives are also used in the production of food additives, which have a major application in packaged food products. In the dairy industry, oleochemicals are used in the production of both plain and flavored ice cream. The increasing demand for oleochemicals, particularly in the packaged food industry, is expected to drive the growth of the market during the forecast period.
Significant Oleochemicals Market Trend
Growing demand for biosurfactants is the primary trend in the market. Biosurfactants are amphiphilic compounds produced using microorganisms or discharged extracellularly. These compounds are used to reduce the surface tension between two liquid surfaces or a liquid and a solid surface. Biosurfactants are becoming popular in segments, including the pharmaceutical, biomedical, cosmetic, and food industries. Many pharmaceutical-grade biosurfactants consist of FAME, fatty acids, and fatty alcohols. The biosurfactant market is developing, and intensive research is ongoing.
Several governments across the globe are making efforts to popularize environment-friendly surfactants. This is because chemically synthesized surfactants are non-biodegradable and have harmful effects. Government regulations mandate manufacturers to use eco-friendly raw materials in their production processes. Thus, the increasing trend of using biosurfactants for various applications is expected to positively influence the growth of the market during the forecast period.
Major Oleochemicals Market Challenge
Fluctuating raw material prices are the major challenge impeding market growth. Vegetable oils and animal fats are the primary raw materials used in the manufacturing process of oleochemicals. The same raw materials are used in the manufacturing of biofuels. However, there are supply chain challenges related to the use of vegetable oils and animal fats as biofuels. These challenges are hindering the growth of the oleochemicals market. Animal fats are used as raw materials, primarily in the North American and European oleochemical markets. One of the major challenges in using animal fat is that the supply is inelastic. Our analysis shows that animal fat accounts for 50% of the raw material requirements in the European oleochemicals market. However, its availability in the region is limited by the Bovine Spongiform Encephalopathy (BSE) legislation. The indirect dependency of oleochemicals manufacturers on these regulatory policies, along with an inelastic supply of raw materials, is expected to pose a challenge to oleochemicals players in these countries.
Key Oleochemicals Market Customer Landscape
The 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 growth strategies.
Global Oleochemicals Market Customer Landscape
Vendors 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.
Wilmar International Ltd. - The company offers oleochemicals which is used for applications related to personal care, agrochemicals, and lubricants. Under this segment, the company is involved in offering the manufacturing of personal care products such as bar soaps, shampoos, conditioners, antiperspirant, deodorant sticks, hand sanitizers, face washes, skin moisturizers, massage oils, shower gels, creams, and lotions.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the fatty acids segment will be significant during the forecast period. Fatty acids are one of the basic oleochemicals. Animal fats and vegetable fats are rich sources of fatty acids. Fatty acids are popularly used as inactive ingredients in pharmaceuticals, such as lipid formulation, fat emulsion, and liposomes. Vendors in the market are undertaking product launches, M&A, and manufacturing capacity expansions. Such initiatives are expected to drive the demand for fatty acids and, in turn, the growth of the market during the forecast period.
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The fatty acids segment was valued at USD 12.50 billion in 2017 and continued to grow until 2021. Major vendors such as BASF SE, Cargill Inc., and Procter and Gamble Co. offer a broad range of short-chain, medium-chain, and long-chain fatty acids. For instance, in October 2018, Cargill Inc. announced the launch of Latitude, a plant-based fish oil alternative that provides long-chain Omega-3 fatty acids for aquafeed. Such product launches are expected to drive the demand for fatty acids and, in turn, the growth of the market during the forecast period.
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APAC is estimated to contribute 67% 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.
The cosmetics industry is one of the primary drivers for the growth of the oleochemicals market in APAC. The consumers in the region are willing to spend more on premium skincare products. Therefore, the growth of the cosmetics industry in the region is expected to drive the growth of the market in the region during the forecast period.
The pharmaceutical industry in APAC is growing due to high R&D investments by international pharmaceutical firms and rising government expenditure. Regional healthcare expenditure is projected to grow by 7% annually to USD 2.4 trillion by 2022, owing to vast commercial opportunities for biopharma, medical device, and healthcare companies in the region. The growing pharmaceutical industry in the region will supplement the growth of the market in the region during the forecast period.
In 2020, the growth of the regional market was moderately impacted by the outbreak of COVID-19. The outbreak led to disruptions in the production of oleochemicals. However, new beauty trends have emerged during the pandemic, which included at-home beauty care, which surged demand for personal care products. These factors are attributed to an increase in the demand for personal products, which, in turn, are expected to fuel the growth of the regional market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Oleochemicals Market Scope
Report Coverage |
Details |
Page number |
189 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.86% |
Market growth 2023-2027 |
USD 9.43 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.4 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 67% |
Key countries |
US, China, India, France, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
BASF SE, Berg Schmidt GmbH and Co. KG, Cabot Corp., Cargill Inc., Croda International Plc, Ecogreen Oleochemicals PTE Ltd., Emery Oleochemicals Group, Evonik Industries AG, Evyap Soap Oil Glycerin San. and Tic. Inc., Fairchem Organics Ltd., Godrej Industries Ltd., IOI Corp. Berhad, Kao Corp., KLK Oleo, Oleon NV, Saudi Basic Industries Corp., The Procter and Gamble Co., VVF Group, Wilmar International Ltd., and Akzo Nobel NV |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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