Customer Oleochemicals Industry Report by Regional Category Spend, Price Analysis, Key Demand, Price Indicators, and Best Buying Practices

The global oleochemicals market reached a volume of about 3.76 MMT in 2021. The industry is projected to grow at a CAGR of around 4.5% in the forecast period of 2022-2027 to reach a volume of 4.91 MMT by 2027.

The oleochemicals industry report comprehensively analyses the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. Numerous petroleum-based commodities are being replaced by oleochemicals since their properties support building a product that is safer for the ecosystem and these can be produced from renewable raw materials. The key demand indicator in the industry report is the highest category spender by region — Asia Pacific.

Industry Definition and Segmentation

Oleochemicals are natural compounds obtained from the hydrolysis process of pure vegetable oil, such as soybean, sunflower, corn; and animal fats like extracted fats, tallow, lard, and fish. At present, fatty acids, glycerine, methyl esters, and fatty alcohols are the most prevalent kinds of oleochemicals accessible in the market. In addition, they are minimally poisonous in nature, are recyclable, eco-friendly, and are increasingly substituting conventionally utilised petrochemicals. Furthermore, oleochemicals are predominantly applied in the manufacturing of biodiesel, bioplastics, and green solvents, though acting as a mediator in the pharmaceutical, rubber, paint, and lubricant industries. The global oleochemicals industry report comprises segments based on type (fatty acids, fatty alcohols, methyl esters, and glycerine), application (food and beverages, chemicals, animal feed, and others), and regions (Europe, North America, Asia Pacific, Latin America, and the Middle East and Africa).

The Asia Pacific Region is Driving the Growth of the Industry

Owing to the high production of oleochemicals in the Asia Pacific region it holds the major share in the market. The rising adoption of green substitutes together with the easy accessibility of raw materials is anticipated to increase the market in the region. For example, Indonesia and Malaysia are the major palm oil manufacturing countries, that are believed to be the most critical feedstock materials for oleochemical fabrication.

The high-level growth of the oleochemicals industry is since these chemicals are extensively used in several industries including food and beverages, pharmaceuticals, personal care, cosmetics, polymer, and plastics, among others. Credited to the increased demand for hypoallergic and chemical-free components from the cosmetics and personal care industry the market is likely to expand greatly. Furthermore, their rising utilisation in the food industry is also propelling the market more. Oleochemicals are applied in FDA-approved food packaging and as gelling and flow agents. Additionally, the increasing fear over the harmful consequences of chemicals on humans and the environment is one of the major factors for the growth of the market.

During the pre-treatment of poor quality glyceric solutions and the vacuum generator equipment, volatile organic compounds (VOC) can be emitted which may probably hamper the growth of the oleochemicals industry.

Best Procurement Practices

The global oleochemicals industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by oleochemicals producing and utilising regions across the globe, such as contract terms, engagement models, and buyer and supplier negotiation levers, among others.

Category Management Studies

Oleochemicals are manufactured through chemical processes like water-based hydrolysis, alcohol-based alcoholysis, and hydrogenation, amongst many others. They comprise a very less number of carcinogens, which makes them a safer and better alternative as compared to other synthetic chemical substitutes. Some of the oleochemicals that are usually used are palm oil, coconut oil, and soy.

Sustainability of Raw Materials and Lower Cost is Further Driving the Market

Oleochemicals are developed from vegetable and animal feedstock. For instance, waste vegetable oil is a renewable, organic, low-cost, and less poisonous source of raw material for production. In addition, they are an excellent alternative to petroleum-based chemicals. These chemicals derived from trans-esterification, epoxidation, and sulfonation of discarded vegetable oils are utilised to produce surface-active agents with large usage of petroleum. Besides, natural raw materials have substantial benefits as compared to petroleum feedstock. For example, palm oil is a considerable raw material that is less in cost, has greater competence, and output.

The major zones in the industry are North America, Europe, Latin America, the Asia Pacific, and the Middle East, and Africa.

Key Industry Players Mentioned in the Oleochemicals Industry Report

• BASF SE
• Wilmar International Ltd
• Kuala Lumpur Kepong Berhad
• IOI Corporation Berhad
• Kao Corporation
• Ecogreen Oleochemicals Pte. Ltd

Market Landscape

The fatty acid segment based on type is constituting the larger share in the global market. This is primarily because of the high demand for bio-based fatty acids from the end-user sectors, such as personal care, cosmetics, chemicals, food and beverages, pharmaceuticals, and others. In addition to this, the food and beverage sector in the end-use segment created the maximum revenue in 2020 and is projected to grow further in the years to come. The rising acceptance of bio-based thickeners, stabilisers, and other food additives in the food industry is likely to propel the development of the market segment.

Key Initiatives by Companies

• In September 2020, there was an announcement made by Emery Oleochemicals that they are introducing their fatty acid ester product line with the brand name Emery E. These new fatty acid-based product lines would present good colour firmness, biodegradability, and less colour.
• In May 2019, there was a collaboration between Kao Corporation and Apical Group Ltd., to complete PT Apical Kao Chemicals, a new plant construction. This new plant provided support in the effort to increase the production capability and helped in the stability of the supply.