Castor Oil Derivatives Market Expected to Reach $2.1 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Castor Oil Derivatives Market," The castor oil derivatives market was valued at $1.3 billion in 2021, and is estimated to reach $2.1 billion by 2031, growing at a CAGR of 4.8% from 2022 to 2031.

Castor oil is also featured as multifunctional chemical ricinus oil, obtained from the castor seeds. The castor oil derivatives products include, sebacic acid, dehydrated castor oil, hydrogenated castor oil, ricinoleic acid, and others. The demand for castor oil derivatives has surged due to excellent properties, such as it acts as a lubricating, laxative, emulsifying, coating agent in the pharmaceutical and personal care & beauty care industries. It has several applications in various end-use industries, including in manufacturing, automotive, electrical, and pharmaceuticals, cosmetics, textiles, and others.

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 in the market.

However, there are some standards set by Food and Drug Administration (FDA) on the use of castor oil derivatives. Habitual consumption of castor oil may cause allergic effect, and overdose of castor oil derivative may cause nausea, headache, and chills. For instance, according to an article published by Healthline Media, the habitual use of castor oil derivatives may cause allergic reaction in some people. Thus, advice from medical practitioner must be taken before using the castor oil derivatives. These factors are restraining the growth of the castor oil derivatives market.

Castor oils and their derivatives such as 12-Hydroxystearic acid and hydrogenated castor oil, are preferred for the manufacture of greases and lubricants in racing engines, jet diesel, aircraft engines, and others. This is due to the multi-functional properties of castor oil derivatives, such as it is environment-friendly, low-temperature viscosity, and give better lubrication than synthetic and other vegetable oils. These factors together are projected to create remunerative opportunities for the expansion of the castor oil derivatives market in the future.

The castor oil derivatives market is segmented on the basis of product type, end-use industry, and region. By product, the market is segregated into sebacic acid, dehydrated castor oil, hydrogenated castor oil, ricinoleic acid, and others. The sebacic acid segment dominated the global market, in terms of revenue in 2021 with 32% share in the global market. 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.

By end-use industry, the market is fragmented into pharmaceuticals, personal care and beauty care, lubricants, paints and varnishes, and others. The personal care and beauty care segment dominated the global market, in terms of revenue in 2021 with 34% share in the global market. Factors such as rise in population, urbanization, improvement in the standard of living, changing lifestyles, and increased focus in the personal care & beauty care industry have surged the demand for castor oil derivatives where hydrogenated castor oil in cosmetics is used as an emulsifier, surfactant, and fragrance ingredient. This is expected to increase the demand for castor oil derivatives in the cosmetic industry.

Region-wise, the castor oil derivatives market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific castor oil derivatives market is projected to grow at the highest CAGR during the forecast period, in 2021, with 39% major share in the global market. The pharmaceutical industry accounts for one of the fastest-growing sectors in Japan owing to rise in R&D activities, advancements of technology in medicine, rise in manufacturing plants, and others. The castor oil derivatives are used widely in the pharmaceutical sector for formulation of various drugs, edible capsules, creams, and lubricating agents in lens manufacturing. This is anticipated to increase the sales of castor oil derivatives in the growing pharmaceuticals sector; thus, creating lucrative opportunities for the market.

Key players operating in the global castor oil derivatives market 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.

Key findings of the study

• The hydrogenated castor oil segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.3% from 2022 to 2031.
• The lubricants end-use industry segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.3% from 2022 to 2031.
• Asia-Pacific garnered the highest share of 39% in 2021, in terms of revenue, growing at a CAGR of 5.5%.

COVID-19 Analysis:

Countries in Asia-Pacific and Middle East region are leading supplier of castor oil across the globe. Amid the COVID-19 pandemic, the production rate of castor oil derivatives decreased remarkable due to strict government guidelines on boarder, norms and regulation on import and export trade. Furthermore, the castor seed production decreased during 2020 due to the imposition of strict lockdown. For instance, according to a report published by VANAKALAM (KHARIF) in December 2021, castor seed production decreased to 17.76 lakh tonnes in 2020-2021 from 18.42lakh tonnes in 2019-2020. This temporarily hampered the demand and supply chain for castor oil derivatives. In addition, the decreasing income of customers has led contraction in the demand for castor oil, castor seed, and other vegetable oils production during the COVID-19 period. In the first quarter of 2021, the market for castor oil derivatives experienced increase in demand for castor oil derivatives chemicals globally as compared to that in 2020.