Certified Global Research Member
Key Questions Answered
- Global Market Outlook
- In-depth analysis of global and regional trends
- Analyze and identify the major players in the market, their market share, key developments, etc.
- To understand the capability of the major players based on products offered, financials, and strategies.
- Identify disrupting products, companies, and trends.
- To identify opportunities in the market.
- Analyze the key challenges in the market.
- Analyze the regional penetration of players, products, and services in the market.
- Comparison of major players’ financial performance.
- Evaluate strategies adopted by major players.
- Recommendations
Why Choose Market Research Future?
- Vigorous research methodologies for specific market.
- Knowledge partners across the globe
- Large network of partner consultants.
- Ever-increasing/ Escalating data base with quarterly monitoring of various markets
- Trusted by fortune 500 companies/startups/ universities/organizations
- Large database of 5000+ markets reports.
- Effective and prompt pre- and post-sales support.
The oleo chemicals market has been experiencing several key trends in recent years. Oleo chemicals, which are derived from natural sources such as plant and animal fats, are versatile compounds used in various industries including cosmetics, pharmaceuticals, food, and agriculture. One significant trend in the market is the increasing demand for sustainable and eco-friendly products. As consumers become more conscious of environmental issues, there is a growing preference for oleo chemicals derived from renewable sources rather than petrochemical-based alternatives. This shift towards sustainability has led to the development of innovative processes for producing oleo chemicals from bio-based feedstocks, such as palm oil, coconut oil, and soybean oil.
Another important trend in the oleo chemicals market is the rising popularity of green chemistry. Green chemistry focuses on the design and development of chemical products and processes that minimize the use and generation of hazardous substances. In the oleo chemicals industry, this has translated into the adoption of cleaner production methods and the development of greener alternatives to conventional chemical processes. For example, enzymatic catalysis and hydrogenation technologies are being increasingly used to produce oleo chemicals with higher purity and lower environmental impact.
Additionally, there is a growing demand for oleo chemicals in the personal care and cosmetics industry. Oleo chemicals such as fatty acids, fatty alcohols, and glycerin are widely used in the formulation of soaps, detergents, lotions, and other personal care products. With the increasing consumer focus on health and wellness, there is a rising demand for natural and organic ingredients in cosmetics and personal care products. This has created opportunities for oleo chemical manufacturers to develop new formulations and expand their product offerings to meet the evolving needs of consumers.
Furthermore, due to its green image, constant growth of raw material, minor toxicity and better dermatological compatibility is anticipated to drive the market.
Furthermore, the oleo chemicals market is witnessing consolidation and strategic partnerships among key players. As the industry becomes more competitive, companies are seeking to strengthen their market position through mergers, acquisitions, and collaborations. By combining resources and expertise, companies can enhance their product portfolios, expand their global presence, and achieve economies of scale. This trend towards consolidation is expected to continue as companies strive to remain competitive in the dynamic oleo chemicals market.
Moreover, technological advancements are driving innovation and product development in the oleo chemicals industry. Advances in biotechnology, process engineering, and catalysis are enabling manufacturers to produce oleo chemicals more efficiently and cost-effectively. For example, the development of novel catalysts and reaction conditions has led to improvements in yield and selectivity, reducing production costs and enhancing product quality. Additionally, the use of advanced analytics and machine learning techniques is enabling companies to optimize their manufacturing processes and improve product performance.
Oleo Chemicals Market Highlights:
Global Oleo Chemical Market Overview
Oleo Chemicals Market Size was valued at USD 23.25 billion in 2023. The Oleo Chemicals Market industry is projected to grow from USD 25.22 Billion in 2024 to USD 47.13 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.80% during the forecast period (2024 - 2032). Oleochemicals are organic compounds derived from natural vegetable oils, animal fats, rendered fats, lard, and fish. In recent times, the demand for the oleochemicals that are derived from the fatty acids, glycerine, and methyl esters are gaining momentum. The key factors like green chemicals, environmentally friendly, bio-degradable, and significant others have propelled the overall growth of the Oleo Chemicals industry. Also, the increasing price of petrochemicals is presenting lucrative opportunities for the overall growth of the Oleochemicals industry. 
The manufacturers are involved in the production of bio-surfactants, bio-lubricants, and bio-polymers in the place of petrochemicals and thereby presenting favorable conditions for the growth of the oleochemicals industry. The changing attitude of the consumers towards organic products in cosmetics, baby care products, and food additives are further propelling the overall growth of the oleochemicals industry.
Emery Oleochemicals introduced its new LOXIOL metal filament products for additive manufacturing at Formnext 2022. Mery Oleochemicals of Düsseldorf, Germany, introduced its innovative LOXIOL metal filament products for additive manufacturing at Formnext 2022. The LOXIOL metal filament products increase the company's options in the AM market for Fused Filament Fabrication (FFF), which is a Material Extrusion (MEX) technique.
COVID 19 Analysis:
The COVID19 had significantly brought in challenges for the growth of the Oleochemicals industry. The government regulations and norms in restricting the logistics and other business processes have reduced the production of basic chemicals, feedstocks, and other crucial activities. Such factors have directly affected the Oleochemicals market growth. Similarly, the declining industrial operations in the manufacturing hubs also affected the growth of the oleochemicals industry. For instance, China had reduced over 14% of its manufacturing activities due to the pandemic. Also, the key end-user industries of oleochemicals have reduced their operations and production rates. Such factors have significantly affected the growth of the oleochemicals industry.
Market dynamics
Market drivers
The increasing market value of glycerine in recent times, because of its purity and the potential users who are completely reliant on the purity of the glycerine is boosting the overall growth of the oleochemicals industry.
The increasing demand for personal care products, emulsions, and the inclination towards organic products and cosmetics are considered as the major drivers of Oleochemicals market growth. Moreover, the customer awareness towards the product and the necessity to acquire approval from health and safety regulatory bodies are further propelling the overall growth of the oleochemicals market growth.
Market opportunities
The environmental regulations imposed on the manufacturers towards the usage of non-renewable resources had paved the way for the growth of the oleochemicals industry. The increasing price of conventional petroleum-based products is further propelling the overall growth of the oleochemicals industry in recent times.
The specialty esters are growing in demand across several end-user industries because of the intensive utilization in cosmetics, rubber, and pharmaceutical applications. The increasing demand for cosmetics in recent times, owing to the increasing influence from social media and higher disposable income are presenting lucrative opportunities for the overall growth of the Oleochemicals industry during the forecast period.
Market restraints
Glycerin is considered the major oleochemicals that are used in soap making and detergent making. However, the pre-treatment processes involved in manufacturing processes are likely to emit Volatile organic compounds, and the stringent regulations imposed in some countries are expected to restrict the overall growth of the oleochemical industry.
The increasing competition in the major end-user industries and the marketing strategies are also considered as the major restraints of oleochemicals market growth.
Market challenges
The raw materials costs are continuously varied according to availability and production. Moreover, some of the countries don’t possess sufficient raw materials required for the production of Oleochemicals. Such factors are considered as the major challenge for the overall growth of the Oleo Chemicals industry
The high competition from the petrochemical-based chemicals and the increasing utilization of the petrochemical products due to the attitude of the manufacturers are considered as the major challenge for oleochemicals market growth.
Cumulative growth analysis
The market value of Oleochemicals was at USD 20.97 billion in the year 2021 and it is expected to surpass the market value of over USD 34.90 billion by the year 2028 while registering a CAGR of 7.5% during the forecast period. The primary application of Oleochemicals is to make soaps and personal care products. Over 55% of the Oleo Chemicals are used in the manufacturing of soaps and detergents. On the other hand, they are used in producing lubricants, solvents, and bioplastics as well. These bioplastics are derived from vegetable fats and oils, recycled food waste and therefore they are highly preferred in plastic-free countries as well. The potential advantages of the bioplastics such as negative environmental impacts and lesser greenhouse gases are released. Such factors are impacting the oleochemicals market growth.
The specialty esters are intensively used in personal care and cosmetics, which come under oleochemicals. The increasing demand for personal care and cosmetics across the developed countries is propelling the overall growth of the oleochemicals industry. The manufacturers are gaining awareness regarding the negative environmental impacts and cost-effectiveness of the oleochemicals and thereby intensively utilizing them in their applications. Moreover, several manufacturers present in the Asia-pacific region are showcasing the highest growth rate for oleochemicals as the raw materials are available abundantly and they are developing new applications as well.
Value chain analysis:
The oleochemicals are primarily used in pharmaceutical and personal care products. Since both these industries are showcasing higher demand due to emergencies they are significantly impacting the oleochemicals market growth. Other than these applications, they are used in the manufacturing of soaps, detergents, cosmetics, the food industry, and medicines. Also, several parts of the Asia-pacific region possess raw materials abundantly and thereby promoting the overall growth of the oleochemicals industry. The manufacturers are also looking for green chemicals which don’t emit greenhouse gases and don’t impact environmental stability in any measure. Such factors are presenting lucrative opportunities for oleochemicals market growth.
Petrochemicals are conventionally utilized for cosmetic manufacturing; however, the costs included in producing petrochemicals are higher. Therefore the manufacturers are inclined towards eco-friendly products.
Segment overview:
Based on Type:
- Fatty acid
- Fatty alcohol
- Glycerin
- Others
Based on Forms:
- Liquid
- Solid
- Flakes
- Pellets
- Beads
- Others
Based on Applications:
- Pharmaceutical & personal care
- Food & Beverages
- Soaps & Detergents
- Polymers
- Others
Based on Feedstock:
- Palm
- Soy
- Rapeseed
- Sunflower
- Tallow
- Palm Kennel
- Coconut
- Others
The Global Oleochemicals Market Share by Application, (2016) (%):
Regional analysis:
The Asia-pacific region is expected to have the highest market share during the forecast period, as they possess a huge amount of raw materials and potential manufacturers that constantly developing new applications for the oleochemicals. There are several Oleo chemical industries built across the region and due to their establishment and experience, they have provided a tiff in the competition with the US and Europe. Some of the leading market players like Henkel, Unilever, Petrofina were involved in promoting the oleochemicals industry. The Asia-pacific region had already registered 40% revenue in the Oleochemicals industry.
On the other hand, North America is experiencing significant growth due to the increasing awareness created by the government towards the usage of chemical additives in personal care and cosmetics. Moreover, a huge population across the region are preferring vegan products in recent times. Such factors are presenting lucrative opportunities for oleochemicals market growth.
Moreover, the regulations imposed across North America regarding the usage of harsh chemicals in personal care and cosmetics have propelled the overall growth of the oleochemicals industry. For instance, usage of methylene chloride, Bithionol, and significant chemicals are banned from being used in personal care products. Similarly, a huge customer base is driven towards veganism and prefers completely plant-based products. Such factors have propelled the overall growth of the oleochemicals industry across North America.
Competitive landscape:
- Cargill, Inc.
- SABIC
- Kuala Lumpur Kepong Berhad
- BASF SE
- Oleon N.V.
- IOI Group Berhad
- Wilmar International
- Kao Corp.
Recent developments:
In June 2023, Wilmar International announced the expansion of its oleochemicals production capacity in Singapore. The expansion is expected to be completed in 2024 and will increase the company's oleochemicals production capacity by 50%.
In August 2023, BASF announced the launch of a new line of sustainable oleochemicals. The new line is made from renewable feedstocks and is designed to meet the growing demand for sustainable products.
Segmentation Table
Based on Type
- Fatty acid
- Fatty alcohol
- Glycerin
- Others
Based on Forms
- Liquid
- Solid
- Flakes
- Pellets
- Beads
- Others
Based on Applications
- Pharmaceutical & personal care
- Food & Beverages
- Soaps & Detergents
- Polymers
- Others
Based on Feedstock
- Palm
- Soy
- Rapeseed
- Sunflower
- Tallow
- Palm Kennel
- Coconut
- Others
Leading companies partner with us for data-driven Insights
Kindly complete the form below to receive a free sample of this Report
Tailored for You
- Dedicated Research on any specifics segment or region.
- Focused Research on specific players in the market.
- Custom Report based only on your requirements.
- Flexibility to add or subtract any chapter in the study.
- Historic data from 2014 and forecasts outlook till 2040.
- Flexibility of providing data/insights in formats (PDF, PPT, Excel).
- Provide cross segmentation in applicable scenario/markets.
