Oleochemicals Market Expected to Reach $55.2 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Oleochemicals Market," The oleochemicals market was valued at $29.9 billion in 2022, and is estimated to reach $55.2 billion by 2032, growing at a CAGR of 6.5% from 2023 to 2032.

Oleochemicals are chemicals derived from natural fats and oils, which are primarily of plant or animal origin. These chemicals are an important class of compounds used in various industries for their versatility and environmentally friendly properties. Oleochemicals are obtained through the chemical transformation of triglycerides, which are the main components of fats and oils.

Common sources of oleochemicals include vegetable oils (such as palm oil, soybean oil, and sunflower oil) and animal fats. The process of obtaining oleochemicals involves hydrolysis or saponification of triglycerides, followed by various chemical reactions such as esterification, hydrogenation, and fractionation. Fatty acids are the building blocks of many oleochemicals. Fatty acids can be saturated or unsaturated, and they are used in the production of soaps, detergents, lubricants, and various other products.

Consumer preferences have changed, with a greater focus on products that are natural, sustainable, and free from harmful chemicals. Oleochemicals find applications in various consumer goods, including personal care products, detergents, and food items, meeting the demand for natural and safe ingredients. Furthermore, governments across the globe have implemented regulations and policies to promote the use of bio-based and renewable resources. Supportive policies, incentives, and regulations encourage industries to adopt oleochemicals, fostering market growth. Oleochemicals have versatile applications across industries such as cosmetics, pharmaceuticals, food & beverages, and soaps & detergents. The broad range of applications makes oleochemicals a valuable and in-demand raw material.

Moreover, in certain cases, oleochemicals are cost-competitive with traditional petrochemical-based products. The economics of production and market dynamics play a key role in the adoption of oleochemicals by industries looking for cost-effective and sustainable alternatives. The combination of these factors creates a favorable environment for the oleochemicals market to thrive, with increasing demand from various industries seeking sustainable and bio-based solutions.

The rise in demand for specialty esters in end-use industries such as personal care and cosmetics is anticipated to fuel the growth of the oleochemicals market during the forecast period. Oleochemicals are employed in the cosmetics industry to create consumer-safe products. Polyhexanide is a preservative and antibacterial chemical found in numerous cosmetics. Octyl stearate, a palm-derived emollient, is used in cosmetics and eyeshadow. Natural cosmetic ingredients are good for the user and more effective. As consumer awareness of the environmental and cost benefits of oleochemicals has increased, so has the production of sustainable, bio-based chemicals.

To meet consumer demands, manufacturers turn to oleochemicals as a renewable, sustainable alternative in the chemical sourcing industry. Bio-based chemical manufacturing is essential in markets that place a premium on functionality, and as the global population rises, the demand for sustainable sources increases. As the demand for environmentally favorable products increases and the price of oil rises, oleochemical demand is expected to increase. A surge in demand for bio-based plastics is likely to stimulate market expansion. Oleochemicals are an accessible, low-cost alternative to industrial compounds and fuels. These environmental and economic benefits are increasing the global demand for oleochemicals.

The oleochemicals market is segmented on the basis of type, application, and region. On the basis of type, the market is classified into fatty acid, fatty alcohol, glycerol, and others. On the basis of application, it is categorized into pharmaceutical, personal care & cosmetics, food & beverages, soap & detergents, polymers, and others. North America, Europe, Asia-Pacific, and LAMEA are the major regions analyzed in this report.

On the basis of type, the oleochemicals market is categorized into fatty acid, fatty alcohol, glycerol, and others. Fatty alcohol is projected to be the fastest-growing segment and fatty acid has garnered the highest share in the oleochemicals market as fatty acids have a wide range of applications in the production of oleochemical derivatives. They are used to manufacture products such as fatty alcohols, glycerol, fatty amines, and esters, which find applications in industries such as personal care, detergents, pharmaceuticals, and more. Fatty acids are commonly used in the production of ingredients for personal care and cosmetic products, such as soaps, shampoos, creams, and lotions. The increasing demand for natural and sustainable ingredients in personal care items has driven the growth of fatty acids in this sector.

On the basis of application, the oleochemicals market is categorized into pharmaceutical, personal care & cosmetics, food & beverages, soap & detergents, polymers, and others. Personal care & cosmetics is projected to be the fastest-growing segment during the forecast period whereas soap & detergents has garnered the highest share in the oleochemicals market. The personal care industry's growing interest in oleochemicals is attributed to several factors that align with the industry's evolving priorities and consumer preferences. Moreover, there is a rising consumer demand for natural and sustainable products in the personal care sector. Oleochemicals, derived from renewable resources such as plant oils, align with this trend. Consumers are increasingly seeking products that are eco-friendly and have minimal environmental impact.

Asia-Pacific garnered the largest share of 54.5%. Asia-Pacific is rich in natural resources, including palm oil, coconut oil, and other plant-based oils. These oils serve as abundant and cost-effective raw materials to produce oleochemicals. Many countries in the region have a strong agricultural base, allowing for the cultivation of oilseed crops and other plants used in oleochemical production. This ensures a stable and diverse supply of raw materials.

The key players profiled in the oleochemicals market are Emery Oleochemicals, Wilmar International, Croda International, Evonik Industries AG, Oleon NV, Cargill Incorporated, Musim Mas Group, IOI Group, Procter & Gamble and Twin River Technologies. The other players in the oleochemicals market include Evyap Oleo, Godrej Industries, CREMER, and Pacific Oleochemicals Sdn Bhd.

Key Findings Of The Study

• The market size is provided in terms of revenue and volume.
• On the basis of type, the fatty alcohol segment is expected to grow at a CAGR of 7%, in terms of revenue, during the forecast period.
• Depending on application, the personal care and cosmetics segment is expected to grow at a high CAGR, in terms of revenue, during the forecast period.
• Region wise, Asia-Pacific garnered a major share in 2022 in terms of revenue.