Global Oleochemicals Market Report 2022: Sector to Reach $50 Billion by 2028 at a 9% CAGR

DUBLIN, Feb. 27, 2023 /PRNewswire/ -- The "Global Oleochemicals Market Size, Segments, Outlook, and Revenue Forecast 2022-2028 by Product Type, Application, and Region" report has been added to  ResearchAndMarkets.com's offering.

Oleochemicals are chemicals made from natural fats and oils of plants and animals. It is obtained by splitting fatty acids and glycerol from the triglyceride structure of fats and oils. Oils and fats are subjected to a methylation or hydrolysis process to yield various types of oleochemical compounds.

According to this analysis, the Global Oleochemicals Market is expected to record a positive CAGR of ~9% during the forecast period (2022-2028) and is expected to reach approximately US$ 50 billion by 2028.

The opportunity to replace conventional petroleum-based products in various sectors along with the easy availability of raw materials required for the production of oleochemicals is positively impacting the market.

Petroleum is a fossil fuel that when used poses a risk to the environment. Governments are enforcing stricter regulations for the sparing use of petroleum which can be replaced by oleochemicals.

Due to its numerous environmental benefits, biofuel generated from oleochemicals is growing in popularity when compared to petroleum-based diesel fuel as it can be produced from both plant and animal feedstock, making it simple to generate. All of these factors are thus contributing to the growth of the oleochemicals market.

The emission of volatile organic compounds is a major challenge faced by the oleochemicals market. Further, wastewater and hazardous waste produced from the oleochemical production process are anticipated to hinder the seamless growth of the market.

Oleochemicals have a certain adverse impact on the environment such as VOC and other harmful gaseous emissions, wastewater release, hazardous waste release, etc. Volatile organic compounds are produced during the pretreatment of poor-quality glycerin solutions or in vacuum generation systems.

Also, Air emissions from fatty acids production mainly include fugitive emissions of volatile organic compounds. Volatile organic compounds can cause odor emissions due to the presence of low molecular weight decomposition products. These factors create a barrier to the growth of the Global Oleochemical Market.

The Oleochemical Market witnessed disruption in the value chain owing to COVID-19 and the lockdown in major countries. The outbreak of COVID-19 further increased the demand for oleochemicals as they are used in soaps and disinfectants. During the pandemic, the fatty acids market came under pressure due to sluggish demand owing to weak downstream sectors such as industrial lubricants and tires but the fatty alcohols fared better in because the majority of these go into the making of household and personal care products. Due to COVID-19, the demand for oleochemicals was shifted mostly to personal hygiene and the pharmaceutical sector.

Scope of the Report

The Oleochemicals Market is segmented by product type and application. In addition, the report also covers market size and forecasts for the four major regions' Oleochemicals Market. The revenue used to size and forecast the market for each segment is US$ billion.

By Product Type

• Fatty acid
• fatty alcohol
• Glycerol
• Others

By Application

• Healthcare & Pharmaceuticals
• Household Care
• Personal care & Cosmetics
• Food & Beverages
• Polymer & Plastic Additives
• Industrial
• Others

By Geography

• North America (USA, Canada, and Mexico)
• Europe (Germany, UK, France, Spain, and Italy)
• Asia Pacific (China, Japan, South Korea, India, Indonesia, and Australia)
• LAMEA (Latin America, Middle East, and Africa)

Key Players

• Emery Oleochemicals
• BASF SE
• Wilmar International
• Godrej Industries
• Cargill Inc
• Kao Corporation
• Edenor Technology Sdn Bhd
• Oleon NV
• IOI Group Berhad
• P&G Chemicals
• Twin River Technologies Inc
• Croda International plc

Key Trends by Market Segment

• By Product Type: The fatty acid product type segment dominated the global Oleochemicals Market in 2021 and is expected to continue being the dominant segment during the forecast period
• Fatty acid category is expected to grow as a result of rising demand for bio-based fatty acids from various end-use industries such as personal care, cosmetics, chemicals, food & beverages, industrial sectors, and others. Additionally, fatty acids are cheaper than their counterparts which is further accelerating the growth of the market
• By Application: The healthcare & pharmaceuticals application segment was the highest contributor to the Global Oleochemicals Market in 2021.
• Oleochemicals are used as preservatives, thickening agents, and emollients in the pharmaceutical industry. Fatty acid derivatives like Isopropyl myristate are used as a moisturizer in topical medicinal products as well as an emollient or thickening agent in other pharmaceutical applications.
• Glycerin-99.7% is used in the manufacturing of cough syrups and oral care products acting as a humectant. Products like sanitizers, soaps, and cleaning and disinfectant products used in healthcare facilities require fatty acid and fatty alcohol. Owing to the huge demand for oleochemicals, the healthcare and pharmaceutical segment is anticipated to augment the growth of the market.
• By Geography: Asia Pacific accounted for the largest market share in 2021 among all regions within the Global Oleochemicals Market owing to the strong raw material base, and shift in consumer preference to renewable products.
• Asia Pacific Oleochemicals Market is anticipated to grow as green alternatives are being increasingly adopted and raw materials become more readily available. For instance, the biggest producers of palm oil, the primary feedstock for oleochemical production, are Malaysia and Indonesia.
• According to the Malaysian Palm Oil Council, Malaysia produced 25.8% of the world's total palm oil. In terms of demand, China is the biggest consumer of fatty acids, taking up some 30% of global output, while the Asia Pacific region consumes about 35% of the world's fatty alcohol production.

Recent Developments Related to Major and Emerging Companies

• In May 2022, Oleon NV. started the construction of a new production facility in Texas, USA. The new plant will produce esters utilizing our newest technology, compliant with the highest industry standards, and also provide blending services to support Oil & Gas business
• In September 2020, Emery oleochemicals released its EMERY E general-purpose fatty acid esters product line. These are sustainable alternatives to petrochemical-based materials and can be used in formulations of a wide range of consumer and industrial systems such as bio-diluent, solvent, cleaning and stripping products, cosmetic emollient and dispersant, plastic additives, etc

Conclusion

The Global Oleochemicals Market is forecasted to continue a gradual growth that is witnessed during the forecast period. Key trends driving market expansion include the recyclability of oleochemicals, increasing demand for biodegradable and sustainable products, and the growing demand from the end-user industry such as pharmaceutical, cosmetics, and food industries. The market is highly competitive with ~250 participants concentrating on expansion strategies through product innovations as well as acquisitions and mergers.

Key Topics Covered in the Report

• Snapshot of the Global Oleochemicals Market
• Industry Value Chain and Ecosystem Analysis
• Market size and Segmentation of the Global Oleochemicals Market
• Historic Growth of the Overall Global Oleochemicals Market and Segments
• Competition Scenario of the Market and Key Developments of Competitors
• Porter's 5 Forces Analysis of the Global Oleochemicals Market
• Overview, Product Offerings, and SWOT Analysis of Key Competitors
• COVID-19 Impact on the Overall Global Oleochemicals Market
• Future Market Forecast and Growth Rates of the Total Global Oleochemicals Market and by Segments
• Market Size of Product Type/Application Segments with Historical CAGR and Future Forecasts
• Analysis of the Oleochemicals Market in Major Regions
• Major Production/Consumption Hubs in the Major Regions
• Major Country-wise Historic and Future Market Growth Rates of the Total Market and Segments
• Overview of Notable Emerging Competitor Companies within Each Major Country

Major Players Mentioned in the report

• Emery Oleochemicals
• BASF SE
• Wilmar International
• Godrej Industries
• Cargill Inc
• Kao Corporation
• Edenor Technology
• Oleon NV
• IOI Group Berhad
• P&G Chemicals
• Twin River Technologies Inc
• Croda International plc
• Matrix Life Science
• VVF L.L.C
• 3F Industries Limited
• Vance Bioenergy
• EGC Reliant, Inc

For more information about this report visit https://www.researchandmarkets.com/r/hvdxbz

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