Dublin, July 29, 2024 (GLOBE NEWSWIRE) -- The "Oleochemical Market, By Product, By Application, By Source, By Sales Channel: By Region - Market Size, Industry Dynamics, Opportunity Analysis and Forecast for 2024-2032" report has been added to ResearchAndMarkets.com's offering.
The Global Oleochemical Market is experiencing robust expansion, valued at US$ 35.06 billion in 2023 and projected to grow at a CAGR of 7.73% from 2024 to 2032, reaching US$ 67.65 billion by 2032.
As the global focus shifts towards sustainable development, oleochemicals are gaining prominence due to their biodegradability and lower carbon footprint. This growing trend is reinforced by advancements in green chemistry and an increasing consumer preference for natural and sustainable products, positioning oleochemicals as crucial elements in the drive towards greener industrial practices.
Regionally, the Asia-Pacific market is a powerhouse in the oleochemicals sector, with a market value of USD 35.06 million in 2023 and an expected growth to USD 67.65 million by 2032, progressing at a CAGR of 7.73%. This region's growth is propelled by increased hygiene awareness and the expansive use of oleochemicals in daily products like cosmetics, detergents, and soaps. The ASEAN countries, particularly Thailand, Vietnam, Indonesia, Malaysia, and the Philippines, are significant contributors to both the production and consumption of oleochemicals.
China and Vietnam are poised to become primary investment destinations within the Asia-Pacific oleochemicals market during the forecast period. The growth in these countries is supported by robust consumer bases in sectors such as pharmaceuticals, personal care, and food & beverages, coupled with favorable governmental policies that boost their manufacturing sectors.
In summary, the global oleochemicals market is on a robust growth trajectory, fueled by the industry's pivot towards sustainability, the versatility of oleochemical applications, and strategic market expansions, particularly in the Asia-Pacific region. As industries continue to seek renewable and eco-friendly solutions, oleochemicals are set to play a pivotal role in meeting the demands of a more environmentally conscious global marketplace.
Segmental Overview
The Oleochemical market is categorized based on Product, Application, Source, and Sales Channel.
In 2023, the oleochemicals market saw the fatty acid segment leading with over 40% market share, driven by robust demand in industries such as cosmetics, food and beverages, personal care, and pharmaceuticals. Rising disposable incomes and substantial spending on food and bakery products in both developed and emerging economies have fueled the growth of the food industry, thereby increasing the use of fatty acids as flavoring agents and preservatives. These acids not only enhance the taste and aroma of food products but also include essential nutrients like omega-3, which are known for their health benefits. Concurrently, the fatty alcohol segment is predicted to register the fastest growth, during the forecast period. Their increasing utilization in the pharmaceutical sector, where they serve as viscosity builders, stabilizing agents, pH modifiers, and solubility enhancers for drugs in nonpolar mediums, underscores their importance.
Oleochemicals, including fatty alcohols (FALs), fatty acid methyl esters (FAMEs), fatty acid ethyl esters (FAEEs), free fatty acids (FFAs), fatty amines, and glycerin, are predominantly used in the soap and detergent industry, which accounts for approximately 37% of the total market. For instance, Apical Group Ltd produces Apisalt soap noodles, which are essential components in various soap and cosmetic products. Meanwhile, the polymers and plastics sectors, which comprise 17% of the market, are seeing increased use of sustainable additives in the production of customized solutions that meet specific technical and performance requirements. Companies like Emery Oleochemicals are leading the way with products like EDENOL and LOXIOL, which enhance the sustainability and performance of plastic compounds and polymers.
The market for plant-based oils, which dominated in 2023, is anticipated to continue leading with a projected CAGR of 7.96% during the forecast period. The demand for these sustainable and renewable oils is growing, replacing petroleum-derived products. Notable increases in the production of oils such as sunflower seed oil, which rose to 20.58 million metric tons in 2023, and soy oil, which escalated to 59.27 million metric tons, reflect a broader shift towards healthier and more sustainable edible oils and fats. This trend is propelled by changes in lifestyle and consumption patterns, along with a rising health consciousness among consumers.
Direct sales channels were predominant in 2023, offering manufacturers control over pricing, marketing, and distribution, and facilitating direct interactions with customers. This model not only helps in building better customer relationships but also potentially offers higher profit margins by bypassing intermediaries. However, the investment in sales teams, logistics, and customer support, along with the time and effort required to manage client relationships, pose significant challenges. Looking ahead, the indirect sales channel is expected to experience the highest growth rate from 2024 to 2032. This method relies on intermediaries like distributors, wholesalers, and retailers to reach a broader customer base, offering lower infrastructure costs compared to direct sales. This shift may help manufacturers overcome the logistical and relational challenges associated with direct sales, providing an effective strategy for expanding market reach and enhancing customer access to oleochemical products.
Competitive Landscape
The Oleochemical market is characterized by a vigorous competitive landscape, with prominent entities like KLK Oleo, Wilmar International, IOI Group, Cargill collectively accounting for approximately 30% of the overall market share. This competitive milieu is fueled by their intensive efforts in research and development as well as strategic partnerships and collaborations, underscoring their commitment to solidifying market presence and diversifying their offerings. The primary competitive factors include pricing, product caliber, and technological innovation. As the Oleochemical industry continues to expand, the competitive fervor among these key players is anticipated to intensify. The impetus for ongoing innovation and alignment with evolving customer preferences and stringent regulations is high. The industry's fluidity anticipates an uptick in novel innovations and strategic growth tactics from these leading corporations, which in turn propels the sector's comprehensive growth and transformation.
Report Insights:
- The global EDA market is projected to grow from US$ 35.06 billion in 2023 to US$ 67.65 billion by 2032, at a CAGR of 7.73%.
- Asia-Pacific led the regional market in 2023 and is expected to maintain its dominance, driven by increased production capacities and industry expansion.
- Key players like KLK Oleo, Wilmar International, and IOI Group dominate the market, focusing on innovation and strategic partnerships.
- The industry's growth is underpinned by a shift towards sustainable and eco-friendly products, meeting the demand of a more environmentally conscious global marketplace.
Key Attributes
| Report Attribute | Details |
| No. of Pages | 344 |
| Forecast Period | 2023-2032 |
| Estimated Market Value (USD) in 2023 | $35.06 Billion |
| Forecasted Market Value (USD) by 2032 | $67.65 Billion |
| Compound Annual Growth Rate | 7.7% |
| Regions Covered | Global |
A selection of companies mentioned in this report includes, but is not limited to:
- Alnor Oil Co, Inc.
- BASF SE
- Cargill Incorporated
- Corbion N.V.
- Eastman Chemical Company
- Evonik Industries
- Evyap Sabun Ya Gliserin San
- Godrej Industries
- IOI Corporation Bhd.
- Kao Chemicals
- Musim Mas
- Nouryon
- Oleon N.V.
- P&G Chemicals
- PTT Global Chemical Public Company Limited
- SABIC
- Sakamoto Yakuhin kogyo Co. Ltd.
- Stepan Company
- Vantage Specialty Chemicals, Inc.
- Wilmar International Ltd.
For more information about this report visit https://www.researchandmarkets.com/r/kubq0b
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