Oleochemicals Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2027

The global Oleochemicals Market is estimated to witness a rise in revenue from US$ 27,294.7 Mn in 2021 to US$ 39,849.2 Mn by 2027. The market is registering a CAGR of 6.5% during the forecast period 2022-2027. In terms of volume, the market is registering growth at a CAGR of 6.2% over the forecast period. 

Market Snapshot

Oleochemicals are chemical compounds derived industrially from animal oil, vegetable oil, or fats. These chemicals are generally formed by separating the triglyceride structure of oils and fats into glycerol and fatty acids. Glycerol, fatty alcohols, fatty acids among others are some of the commonly used oleochemicals. Oleochemicals have major applications in industries such as food & beverages, healthcare & pharmaceuticals, cosmetics, and textiles among others. 

Market Dynamics

The oleochemicals market is majorly driven by factors such as rising government regulations regarding the use of environmentally friendly products and the rising use of oleochemicals in the pharmaceutical and cosmetic industries. Further, the growing demand for sustainable and biodegradable products also pushes the market growth. With the population increasing exponentially, the demand for personal care and consumer products has also gone up, and this propels the market growth. Moreover, the ever-harsher environmental regulations and the reduction of non-renewable resources have paved the way for oleochemicals to enter the market and replace the conventional petroleum-based products currently being used. Additionally, the rising production of soaps, detergents, and other consumable goods will drive the demand for oleochemicals over the forecast period. Emulsifiers, foam boosters, surfactants, and others that are used for household and industrial cleaning are made from oleochemicals. However, the fluctuating prices of raw materials and inconsistent supply of key feedstock hinder the market growth. 

Report Summary

The study of the global oleochemicals market considers various market determinants, industry value chain analysis, and competitor analysis of the market. The report discusses the analysis of the oleochemicals industry for the period 2017-2027, where the base year is 2021 and the forecast period is 2022-2027. The report provides a detailed analysis of the global oleochemicals market across 14 Chapters and 270 pages. The report includes data presentation across 66 tables and 78 statistical figures. 

The report provides PESTLE analysis, which is a tool to examine the external market environment factors that have an impact on the industry. The PESTLE analysis examines the Political, Economic, Social, Technological, Environmental, and Legal factors in the external environment. Thus, sufficiently examining the threats and weaknesses of the industry. The research report also provides Porter’s five forces analysis wherein bargaining power of buyers and intensity of rivalry is high. 

The subsequent section provides details of the market analysis based on different segments such as product, application, sales channel, and region. The report includes a detailed study of the value chain of the industry. It includes raw material suppliers, manufacturers, distributors, and end-users. The report also covers extensively the key competitors in the market for oleochemicals. 

Key Takeaways from the Global Oleochemicals Market Report

• By Product, the fatty acids segment is estimated to have the highest market share during 2021 and is further expected to continue its dominance over the forecast period. The growth is attributed to the increase in demand from pharmaceutical & personal care product manufacturers to use oleochemicals in the form of fatty acids, for manufacturing soaps and detergents, lubricants, surfactants, varnishes, and pharmaceuticals.
• By Application, the healthcare & pharmaceuticals segment is projected to grow at the fastest CAGR during the forecast period. The growth of the segment is primarily due to the rising number of pharmaceutical manufacturers, which leads to an increased usage of oleochemicals in medicines.
• Direct sales channel holds the highest share in 2021 due to the rise in the number of direct sales channel options in delivery of oleochemicals at end-use facilities on account of its speedy delivery.
• Asia Pacific region is the highest shareholder country in the global oleochemicals market and is further expected to continue its dominance over the forecast period. This is owing to the positive outlook of the pharmaceutical and personal care sectors in countries like India, China, and Indonesia.

Competitive Insight

• FGV Holdings Berhad is Malaysia based global agriculture and agri-commodities company founded in 2007. With operations worldwide, FGV produces oil-palm and rubber plantation products, oleochemicals, and sugar products.
• KLK OLEO, a part of Kuala Lumpur Kepong Berhad, is an oleochemicals producer, which is having a strategically located complex in China, Indonesia, Malaysia, and Europe. The company’s product portfolio ranges from basic oleochemicals products, for instance, glycerine, fatty acids, fatty esters, and fatty alcohols, to specialties, such as methyl ester sulphonate (MES), surfactants, and phytonutrients.
• Pacific Oleochemicals Sdn Bhd is a prominent player in the Oleochemicals manufacturing industry. The company is committed to promoting sustainability in all business processes that include the usage of sustainable palm oil and palm kernel oil in the production of oleochemicals.
• Permata Hijau Group is a fully-integrated Palm Oil Corporation established in 1984 and based in Indonesia.
• Chemrez Technologies Inc. is a manufacturing company of resins, oleochemicals, and specialty products by collaborating with each customer and providing them with effective innovative solutions. Thus, it is enriching the business and delivers growth.

Segmentation Overview

The following are the different segments of the global oleochemicals market.

By Product segment of the Global Oleochemicals Market is sub-segmented into:

• Alkoxylates
• Fatty Acid Methyl Ester
• Fatty Amines
• Glycerol Esters
• Fatty Acids
• Fatty Alcohols
• Glycerine
• Triacetin
• Specialty Esters
• Others

 By Application segment of the Global Oleochemicals Market is sub-segmented into:

• Consumer Goods
• Food & Beverages
• Healthcare & Pharmaceuticals
• Industrial
• Paints & Inks
• Personal Care & Cosmetics
• Polymer & Plastic Additives
• Soap and Detergents
• Textiles
• Others

 By Sales Channel segment of the Global Oleochemicals Market is sub-segmented into:

• Direct
• Indirect

By Region segment of the Global Oleochemicals Market is sub-segmented into:

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Western Europe
    • The UK
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Western Europe
  • Eastern Europe
    • Poland
    • Russia
    • Rest of Eastern Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America