Oleochemicals Market Size, Share, Growth Analysis, By Type(Fatty Acids, Fatty Alcohols), By Application(Food & Beverages, Chemicals) - Industry Forecast 2024-2031

Oleochemicals Market size was valued at USD 33.1 billion in 2019 and is poised to grow from USD 35.43 billion in 2023 to USD 54.43 billion by 2031, growing at a CAGR of 6.3% in the forecast period (2024-2031).

To complete diverse research and development tasks, market leaders are taking strategic actions including partnerships and collaborations. They are able to offer cutting-edge products and keep their place in the oleochemicals industry thanks to these activities. A good example of this is the collaboration between Genomatica and Covestro. Both businesses want to achieve market growth that is sustainable through this cooperation. The competitive environment for the worldwide oleochemicals market is somewhat fragmented as a result of the existence of numerous companies in it. 'BASF SE', 'Procter & Gamble Chemicals', 'Wilmar International Ltd.', 'IOI Oleochemicals', 'Emery Oleochemicals Group', 'Kuala Lumpur Kepong Berhad', 'Godrej Industries Limited', 'Cargill, Inc.', 'Kao Chemicals', 'Vantage Specialty Chemicals', 'Musim Mas Group', 'Akzo Nobel N.V.', 'Oleon NV', 'Oleo-Fats, Inc.', 'PTT Chemical Public Company Limited', 'Eastman Chemical Company', 'Evonik Industries AG', 'Sasol Limited', 'Ecogreen Oleochemicals', 'SABIC'

Numerous industries, including those in food and beverage, medicines, personal care, cosmetics, polymer and plastics, and others heavily rely on these compounds. Both skincare and hair care products contain these environmentally friendly ingredients. The market is anticipated to expand rapidly due to the increased demand for hypoallergenic and chemical-free components from the cosmetics and personal care industry. Another aspect promoting expansion is their application in the food business. Oleochemicals are employed as flow and thickening agents as well as in food packaging that has received FDA approval. For instance, calcium stearate is employed in the production of sweets as a flow agent and food emulsifier.

Increase in demand from end-use industries: The end-use industries for oleochemicals include food and beverage, pharmaceuticals, and personal care. 

In 2022, Asia Pacific accounted for USD 17 billion in 2022 and held the biggest market share for oleochemicals because of the region's high output of raw materials. The regional market is anticipated to grow as green alternatives are more adopted and raw materials become more readily available. For instance, the biggest producers of palm oil—the primary feedstock for oleochemical production—are Malaysia and Indonesia. Malaysia produced 25.8% of the world's total palm oil, according to the Malaysian Palm Oil Council (MPOC).North America is rapidly expanding and the market is primarily driven by consumers' growing knowledge of the negative consequences of chemical compounds in personal care and cosmetic products. Due to the increased need for biofuels, Europe is expected to grow significantly. The market growth is anticipated to be facilitated by rising consumer knowledge of the sustainability of biodiesel and the number of manufacturers of cosmetics and personal care products. Due to the region's improved economic and social climate, significant growth is predicted. Leading palm oil producers are Guatemala, Ecuador, and Colombia. The local market is likely to be driven by these factors. Due to a large number of surfactant and soap-making enterprises, the markets in Middle East & Africa is projected to experience significant expansion.