Specialty Oleochemicals Market Size, Share, Growth Analysis, By Product(Specialty Esters, Fatty Acid Methyl Esters), By Application(Personal Care & Cosmetics, Consumer Goods) - Industry Forecast 2024-2031

Global Specialty Oleochemicals Market size was valued at USD 9.43 billion in 2022 and is poised to grow from USD 10.01 billion in 2023 to USD 16.13 billion by 2031, growing at a CAGR of 6.15% in the forecast period (2024-2031). 

Specialty oleochemicals are chemical compounds which serve as the substitutes for petroleum-based products and derive from renewable plant-based sources. The oleo chemicals are known to be replaced by natural products such as lubricants, cosmetics, biodegradable polymers and bio-surfactants among others. The refined products of fat chemicals include specialty esters, fatty acid methyl esters, glycerol esters, alkoxylates, fatty amines, and others.

Specialty ester is ester used for manufacturing of a variety of products-medical, automotives, architectural, personal care, laundering among others. These are used in different purposes for example; in personal care and cosmetics, consumer goods, food processing, textiles, pigments and ink, industrial, health and pharmaceuticals, polymer and plastics additives, and others like in food and beverages, personal care and cosmetics.

The rising demands of the consumer for beauty and cosmetics products are partly responsible for the rapid growth of specialty oleochemicals. Through beauty and cosmetic products come ingredients, textures, and packaging to name a few. Oleochemicals are regarded as safe compounds in cosmetic and beauty products because the latter are made from natural sources.

The consumer’s demand for healthy and organic products will kindle the application of oleochemicals in hair care and beauty products. For instance, in April 2023, according to the International Trade Administration, a US based government agency, cosmetics and beauty products sales in China grew up 10% from 2020, reaching $88 billion in 2021. Thus, the rising consumer appetite for beauty and cosmetics products happens to be the driving force of the market for specialty oleochemicals. 

The specialty oleochemicals market is expected to achieve considerable gains as the stretching of the pharmaceutical sector will push the growth. The pharmaceutical sector uses specialty oleochemicals as the base for various excipients, emulsifiers, and other pharmaceutical compounds. For instance, in July 2022, according to the American Journal for Health-System Pharmacy, a US-based biweekly peer-reviewed medical journal covering all aspects of drug therapy and pharmacy practice specific to hospitals, overall, the spending on drugs in the United States increased by 7.7% from 2020 to $576.9 billion in 2021. Furthermore, it forecasts that there will be an increase of 4.0% to 6.0% in the total expenditure on prescription drugs in 2022 as compared to 2021. The increase will be 7.0% to 9.0% in clinics and hospitals while that of 2021 will be 3.0% to 5.0%. Therefore, the pharma market is the driver behind the growth of the specialty oleochemicals sector.