The Oleochemicals Market is estimated to be valued at US$ 24.22 Bn in 2023 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Oleochemicals are organic chemicals obtained from plant and animal fats and oils. They include fatty acids, fatty acid methyl esters, glycerol, etc. Oleochemicals are used in a wide range of end use industries including food & beverages, personal care & cosmetics, pharmaceuticals, soaps & detergents among others. They offer advantages like biodegradability, renewable nature and wide availability as compared to petrochemicals.
Market key trends:
The global oleochemicals market growth is driven majorly by rising demand from end-use industries such as personal care & cosmetics, soaps & detergents and food & beverages. The personal care & cosmetics industry has been a major consumer of oleochemicals due to their emollient properties and natural attributes. Glycerin, fatty acids, and esters find wide usage in formulations of skin care products, hair care products and make-up products. Further, increasing consumer preference for natural and bio-based personal care products will propel the demand for oleochemicals in this segment. The rapidly growing demand from end-use industries is expected to accelerate the global oleochemicals market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as setting up of production infrastructure requires large capital investments. Bargaining power of buyers: The bargaining power of buyers is moderate to high as some buyers can switch between oleochemical producers. Bargaining power of suppliers: The bargaining power of suppliers is high since raw materials constitute a major part of the production cost. Threat of new substitutes: Threat of new substitutes is moderate as new greener substitutes may emerge over time. Competitive rivalry: is high due to existence of many regional and international players.
SWOT Analysis
Strengths: Eco-friendly nature of oleochemicals and wide range of applications in industries such as soaps & detergents, food & beverages, pharmaceuticals etc. Weaknesses: Volatility in availability and prices of raw materials. Varying quality and specifications of fatty acids/esters produced from different feedstock. Opportunities: Growing demand for bio-based and sustainable chemicals. Increasing consumption in emerging economies. Threats: Stringent regulations regarding usage of certain chemicals. Fluctuations in crude oil prices affecting production economics.
Key Takeaways
The global Oleochemicals Market Share is expected to witness high growth, exhibiting CAGR of 6.9% over the forecast period, due to increasing preference for environmentally sustainable chemicals. The Asia Pacific region dominated the global market in 2023, accounting for approximately 40% share. China, India, Indonesia, and Malaysia are considered the major markets in the region due to the availability of raw materials and aggressive biofuels targets set by regional governments. Key players operating in the oleochemicals market are Vantage Specialty Chemicals, Inc., Emery Oleochemicals, Evonik Industries AG, Wilmar International Ltd., Corbion N.V, Cargill, Incorporated, and KLK OLEO.
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