The global oleochemicals market size was valued at USD 33.10 billion in 2021. The market is projected to grow from USD 35.43 billion in 2022 to USD 54.43 billion by 2030, exhibiting a CAGR of 6.3% during the forecast period.

Oleochemicals Market Overview:

The global COVID-19 pandemic has been unprecedented and shocking. Demand for oleochemicals is lower than expected in all regions compared to what it was before the pandemic. Based on our research, the global market was 3.0% smaller in 2020 than it was in 2019.

Oleochemicals are chemicals that are made when vegetable oils and animal fats react with chemicals and enzymes. They are like products made from petrochemicals. The demand from the food and chemical industries will lead to a high growth rate in the market. During the forecast period, product demand is likely to go up because more people want to use fuels that are good for the environment.

Market Dynamics:

Latest Trends:

Market growth chances come from the growing demand for biofuels.

Several groups and government departments have paid close attention to the fuel industry. Most of the fuel we use comes from fossil fuels, which have always been bad for the environment and our health. According to the research done by Our World in Data, fossil fuels like coal, gas, and oil were used to make 135,807 terawatt-hours of energy in 2019. Global pollution and the depletion of fossil fuels have caused serious environmental problems, such as global warming, the depletion of the ozone layer, and pollution.

Because of this, people are moving toward green and sustainable options like biofuels. Oils and fats that come from natural sources are transesterified to make biodiesel. In 2018, the biofuels industry in the United States made 2.6 billion gallons of biofuels. As more sustainable alternatives to petrochemicals are used in food, drinks, and animal feed, and as technology keeps getting better, this is expected to be a growth opportunity.

Driving Factors:

Market growth will be driven by rising demand from several end-use industries

By the end of the forecast period, oleochemicals are expected to have grown a lot. Many industries, like personal care, cosmetics, food and drinks, pharmaceuticals, and plastics, use these chemicals a lot. These green chemicals are used in products for your hair and skin. Because the cosmetics and personal care industries want more hypoallergenic and chemical-free ingredients, the market is likely to grow quickly. Also, companies that make sustainable cosmetics and personal care products are pushing people to use these products.

Another thing that is helping growth is the use of bio-based chemicals in the food industry. These chemicals are used as thickeners and flow agents in food packaging that is OK with the FDA. For example, calcium stearate is used in candy making as a food emulsifier and a flow agent. The oleochemicals market is also growing because of the demand for bio-based and sustainable chemicals. This is because people are worried about how synthetic chemicals might hurt people and the environment.

Less expensive raw materials that can be used for a long time will help the market grow.

Oleochemicals are made from the waste products of plants and animals. Waste vegetable oil is a raw material that can be used again and again, is sustainable, cheap, and low in toxicity. They are a great replacement for chemicals made from oil. Waste vegetable oils are used to make these chemicals through trans-esterification, epoxidation, and sulfonation. These chemicals are then used to make surface-active agents (biosurfactants) that have many uses in the petroleum industry.

Also, compared to petroleum feedstock, these raw materials have many advantages because they are made from living things that are very efficient and productive. For example, palm oil is a very important raw material because it is cheap, useful, and productive. So, these things should cause the demand for these chemicals to go up during the forecast period.

Restraining Factors:

When glycerin is pre-treated, VOCs may be made. This could slow the growth of the market.

Oleochemicals like fatty acids, fatty alcohol, and glycerin are used in everything from food to beauty products. During the process of making glycerin, however, Voltaic Organic Compounds (VOC) are released into the air and water, which is bad for the environment and people's health. VOC can hurt organs in the body, like the throat, eyes, and nose. VOC vapours can also make you sick, hurt your liver and kidneys, and damage your central nervous system in a way that can't be fixed. So, all of these things should slow down the growth of the market.

Segmentation Analysis:

By Type Analysis:

The market is split into fatty acids, fatty alcohols, methyl esters, and glycerin based on what they are.

The fatty acids part of the market is the biggest because raw materials are easy to get and the need for organic personal care products is growing all over the world. Because they are amphipathic, fatty acids can also be used as surfactants, which are used in detergents and soaps. Fatty acid is a key raw material for making a wide range of products, such as elastomers, toiletries, biocides, softeners, and wax, which are used in many different industries. This is likely to make the segment grow.

Glycerin is used to make and store extracts of plants like rosemary and lavender, which are then used as a flavouring agent in many different products. The glycerin market is growing because it is being used more and more in food and industry. Fatty alcohols and methyl esters are expected to grow a lot because the chemical and detergents industries are using more of them.

By Application Analysis:

Based on how it is used, the market is divided into food and drinks, chemicals, animal feed, and others.

In 2021, the largest share of the oleochemicals market came from the food and beverages segment. The growth of this segment is likely to be driven by the growing use of thickeners, stabilisers, and other food additives made from bio-based materials in the food industry. Due to the high demand for green alternatives to chemicals made from oil, the chemicals sector is expected to grow at the fastest CAGR.

Oleochemicals are also used to make products that are good for animals to eat. They help with processing, making food easier to digest, giving animals an easy-to-digest source of energy, and stopping bacteria from growing. This is likely to make the market grow faster.

Regional Insights:

In 2021, the market was worth the most in Asia-Pacific, at USD 16 billion, followed by North America and Europe. China and the ASEAN countries make up most of the Asia-Pacific market share. The area makes and ships out a lot of oleochemical feedstock and products made from it. This includes glycerin, specialty esters, fatty acid methyl esters, alkyl ethoxylates, glycerol esters alkoxylates, fatty alcohols, and fatty acid methyl esters. People are becoming more aware of the bad effects of using fossil fuels and petrochemical resources, which is one of the main things driving the growth of the market.

By the end of the forecast period, North America is expected to have grown a lot. This is because of strict rules about being sustainable and the growing demand for products made from plants. The market in the U.S. is also expected to be driven by the growing market for chemicals in the country.

Sustainability has been practised in European countries like Germany, Italy, France, and the U.K. for the last ten years because consumers are becoming more aware of climate change, pollution, and other environmental problems. One of the main things that drives the regional market is the growing focus on the efficient use of bio-based resources, such as agricultural and animal-based products and waste.

Due to the large number of cattle in Latin America, the animal feed market is growing at a moderate rate. Countries in the area, like Brazil and Argentina, want to improve how they feed their animals. These chemicals fight germs, help with processing and digestion, and make animal feed better.

Due to the fast growth of the cosmetics and personal care industry, the Middle East and Africa are likely to see a lot of growth.

Scope Analysis

Recent Development:

• 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.
• April 2022 - Oleon N.V. begins construction of a new plant in Baytown, Texas. The company has invested US$50 million. The purpose of the investment is to build international expansion.
• September 2020 – Emery Oleochemicals announced the launch of a product line of fatty acid esters under the brand name Emery E. These fatty esters offer good color stability, biodegradability and low odor.
• May 2019 - A new plant by PT Apical Kao Chemicals, a joint venture between Kao Corporation and Apical Group Ltd., a producer of fatty acids, has been completed. The joint venture has facilitated an increase in production capacity and a stable supply of containment chemicals.

Market Segmentation

By Type:

• Fatty Acids
• Fatty Alcohols
• Methyl Esters
• Glycerin
• Others

By Application:

• Food & Beverages
• Chemicals
• Animal Feed
• Others

By Companies:

• Cargill Inc. (U.S.)
• Kuala Lumpur Kepong Berhad (Malaysia)
• BASF SE (Germany)
• Oleon N.V. (Belgium)
• IOI Group Berhad (Malaysia)
• Wilmar International (Singapore)
• Kao Chemicals (Japan)
• Twin Rivers Technologies (U.S.)
• Croda Industrial Chemicals (U.K.)
• Evonik Industries (Germany)
• Emery Oleochemicals (Malaysia)
• Godrej Industries (India)
• Others