Castor Oil Derivatives Market Research, 2031
The global castor oil derivatives market was valued at $1.3 billion in 2021, and is projected to reach $2.1 billion by 2031, growing at a CAGR of 4.8% from 2022 to 2031.
Castor oil derivatives are multi-featured chemical that are predominantly employed in the formulation of paints, lubricants, coatings, cosmetics products, and others. Castor oil derivatives carry significant benefit over vegetable oils, owing to presence of fatty acid structure, cotton, coconut, soy, and others. Castor oil derivatives possess natural, non-toxic, renewable, and versatile physio-chemical properties, due to which, they are extensively used in the various end-use industries, including automotive, electrical, paint and coatings, aviation, and others.
The proliferating growth in major end-use industries, such as pharmaceutical, lubricants, cosmetics, automotive, and others has spurred the growth of the castor oil derivatives market. The growing demand for biodegradable and sustainable products is expected to significantly reduce the dependency on petrochemical-based oil derivatives. This factor is driving the market growth. In addition, the market is also driven by the regulatory support from government and rise in prices on alternative renewable chemicals.
High manufacturing cost, rise in prices of raw materials, uncertainty in climatic conditions, lack of working capital, lack of skilled labor for extraction method, and availability of various substitute to the castor oil derivatives have hampered the market growth. In addition, government norms and regulation on extraction method are expected to affect the market growth. These factors together are expected to hamper the growth of the castor oil derivatives market in upcoming years.
Factors such as rise in population, increase in disposable income, improvement in standard of living, and growing pharmaceutical industry have surged the demand for castor oil derivatives. For instance, according to an article published by India Brand Equity Foundation in March 2022, the India pharmaceutical market increased at 17.7% annually, up from 13.7% in July 2020. The pharmaceutical grade castor oil derivatives act as emulsifying, lubricating agent and coating agent, mainly used in the formulation of drug containing edible oil and capsules. In addition, USP grade castor oil is used as an emollient for pharmaceutical creams and lotions, ointments, and other products. These factors are predicted to contribute to the global market growth and are anticipated to offer new opportunities in the global castor oil derivatives market.
The global castor oil derivatives market analysis is done on the basis of product type, end-use industry, and region. Depending upon product type, it is divided into sebacic acid, dehydrated castor oil, hydrogenated castor oil, ricinoleic acid, and others. On the basis of end-use industry, it is classified into pharmaceuticals, personal care & beauty care, lubricants, paints & varnishes, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The major companies profiled in this report include, NK Industries, Hokoku Corporation, Kanak castor Products, Girnar Industries, Jayan Agro Organics Ltd., Gokul Agri International, Vertellus, Xingtai Lantian Fine Chemicals Ltd., Kokura Gosei Kogyo Ltd., ITOH Oil Chemical Ltd., Adani Wilmar, Krishna Antioxidants Pvt. Ltd., Thai Castor Oil Industries Ltd., Thai Castor Oil Industries Ltd., Arvalli Castor Derivatives Pvt. Ltd., and Sebacic India Pvt. Ltd.
The Asia-Pacific castor oil derivatives market size is projected to grow at the highest CAGR of 5.5%, with 39% major share in the global market. This is attributed to the fact that India is largest producer of castor seed in the Asia-Pacific region. For instance, according to an article published by BusinessLine, in February 2022, India’s castor seed production is estimated at 17.95 lakh tonnes (lt) during the current 2021-22 season, against 17.89 lakh tonnes in 2020-21. This is anticipated to increase the potential sales of castor oil derivatives in the Asia-Pacific region. Furthermore, China is the largest importer of castor oil and castor oil derivatives from India. The country has good presence of automotive and manufacturing sectors where castor oil derivatives are used as a lubricating agent in the auto components.
In 2021, the sebacic acid segment was the largest revenue generator, and is anticipated to grow at a CAGR of 5.0% during the forecast period. Rise in transportation and logistics activities has surged the global need for refined crude oil and other petroleum products to increase their refining capacities of crude oil, where castor oil derivatives-based sebacic acid is used extensively as a lubricant in reactors, hot pipes, and gas streams to maintain flow efficiency of the oil. In addition, sebacic aid possess anti-corrosion and lubricating property, owing to which it is widely used in the coolant (anti-freeze) fluids for aircraft, truck engines, automotive, and others.
By end-use industry, the personal care and beauty care segment dominated the global market in 2021, and is anticipated to grow at a CAGR of 5.0% during forecast period. FMCG companies are coming out with a variety of personal care and skin care products in different price ranges, and consumption patterns of cosmetics among teenagers went up substantially between 2005 and 2015 because of increasing awareness and desire to look good. According to an article published by India Brand Equity Foundation in December 2017, beauty, and cosmetics are the grooming market in India and are expected to reach $20 billion by 2025 from $6.5 billion in 2017. The castor oil derivatives-based products are extensively used in the personal care and beauty care sector in the form of lotions, ointments, creams, foundations, and others. These factors drives the market growth; thus, creating remunerative opportunities during the forecast period.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the castor oil derivatives market analysis from 2021 to 2031 to identify the prevailing castor oil derivatives market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the castor oil derivatives market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global castor oil derivatives market trends, key players, market segments, application areas, and market growth strategies.
Castor Oil Derivatives Market Report Highlights
| Aspects | Details |
 By Product Type |
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 By End-use Industry |
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 By Region |
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 Key Market Players | ITOH Oil Chemical Ltd., Sebacic India Pvt. Ltd., Vertellus, NK Industries Ltd, Arvali Castor Derivatives Pvt. Ltd., Jayan Agro Organics Ltd., Krishna Antioxidant Pvt. Ltd., Girnar Industries, Xingtai Lantian Fine Chemicals Ltd., Gokul Agri International, Kokura Gosei Kogyo Ltd., Thai Castor Oil Industries Ltd., Kanak Castor Products, Hokoku Corporation, Adani Wilmar |
Analyst Review
The global castor oil derivatives market is expected to exhibit high growth potential. Castor oil derivatives are a good source of lubricating, laxatives, and stiffening agents; owing to which, they are extensively used in the pharmaceutical industry, cosmetics, textile, automotive, and other end-use sectors.
In addition, castor oil derivatives have excellent thermal insulating and stability properties and are used predominantly in electrical components, engines, auto components, and other electrical devices, which surge the demand for castor oil derivatives in the electrical industry. Furthermore, the coating material and non-toxic property of castor oil derivatives enable consumers to use them in the form of capsules, lotions, creams, ointments, and other pharmaceutical and skin care products. Sustained economic growth and the development of the cosmetic and pharmaceutical sector have surged the popularity of castor oil derivatives.
The cosmetics and personal care sector is one of the emerging sector across the globe. The derivatives of castor oil, such as zinc ricinolate, castor wax, ricinoleic acid, undecylenic acid, castor oil ester, and others are extensively used in the formulation of various hair care, skin care, and body care products. The growing demand from cosmetics and personal care industry has increased the potential sales of castor oil derivatives is the key market trend.
The personal care and beauty care is the leading application of castor oil derivatives market.
Asia-Pacific is the largest regional market for castor oil derivatives.
The global castor oil derivatives market was valued at $1.3 billion in 2021, and is projected to reach $2.1 billion by 2031, growing at a CAGR of 4.8% from 2021 to 2031
NK Industries, Hokoku Corporation, Kanak castor Products, Girnar Industries, Jayan Agro Organics Ltd., Gokul Agri International, and Vertellus are the top companies to hold the market share in castor oil derivatives
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