Fatty Alcohol Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR (2024 - 2029) | 4.06 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Fatty Alcohol Market Analysis
The Fatty Alcohol Market size is estimated at 3.96 Million tons in 2024, and is expected to reach 4.84 Million tons by 2029, growing at a CAGR of 4.06% during the forecast period (2024-2029).
The market was negatively impacted due to COVID-19. Several countries went into lockdown to curb the spread of the pandemic. The shutdown of numerous companies and factories disrupted supply networks worldwide and harmed global production, delivery schedules, and product sales. Currently, the fatty alcohol market has recovered from the impacts of the COVID-19 pandemic and is growing at a significant rate.
- Over the medium term, the growing demand from the pharmaceutical industry and the increasing usage of fatty alcohol in personal care and cosmetics products are expected to be the major driving factors for the market.
- On the flip side, high volatility in raw material prices is likely to pose as a restraint for the market.
- The growing demand for bio-based fatty alcohol products is likely to act as an opportunity for the market in the coming years.
- The Asia-Pacific region accounts for the highest market share, and the region is likely to continue its dominance in the market during the forecast period.
Fatty Alcohol Market Trends
Surfactants Application to Dominate the Market
- Fatty alcohols are mainly used in the production of detergents and surfactants. Due to their amphipathic nature, fatty alcohols behave as nonionic surfactants.
- Fatty alcohol is primary alcohol from C6 to C22, usually straight-chain, which is the type used by the detergent industry. Modern detergents were initially based on surfactants made from fatty alcohol raw materials. These include natural fats, oils, and waxes, and more recently, high molecular weight alcohols have been produced synthetically from various hydrocarbon sources.
- A substantial majority of fatty alcohols worldwide are converted into surfactants or surface active agents, the basic materials used to produce laundry detergent, dishwashing detergent, and other household cleaning products.
- According to the International Trade Centre, Germany stands out as the largest exporter of soap and organic surface-active products, witnessing a substantial increase in export value from USD 11.82 billion in 2019 to USD 14.54 billion in 2022. This growth signifies a growing demand for these products in international markets, translating to increased demand for fatty acids as key components in producing surfactants.
- The output from the Chinese chemical industry is essential in various products, which include soaps, detergents, cosmetics, etc. The presence of over 60 washing, care, and cleaning agent manufacturers underscores this sector's competitive nature. Furthermore, with approximately 98.7 washing machines per one hundred households in China, there is a growing consumer base for cleaning products. The rise of Chinese household appliance producers and their focus on affordable products have increased access to washing machines, resulting in a higher demand for detergents.
- Moreover, India is one of the largest producers of soaps in the world. The per capita consumption of toilet/bathing soaps in the country is around 800 grams. The per capita consumption of toilet/bathing soaps, averaging around 800 grams, further indicates the country's steady demand for soap products. Additionally, the household and personal care segment accounts for around 50% share of the FMCG market in India. The consistent increase in the production of synthetic detergent intermediates, from 714.68 thousand metric tons in 2019 to over 780 thousand metric tons in FY 2022, indicates the rising demand for detergent products. Consequently, the demand for fatty acids as raw materials in surfactant production experiences growth alongside the expansion of the detergent market in India.
- These factors are expected to enhance the demand for fatty alcohol over the coming years.
Asia-Pacific Region to Dominate the Market
- The high demand from various industries, like surfactants, personal care and cosmetics, pharmaceuticals, and others, in major economies, such as China, India, and Japan, is estimated to boost the market studied during the forecast period.
- China is the second-largest consumer of cosmetic products across the world. According to a report by L'Oréal, the country generated a total of USD 55.3 billion in the beauty and personal care market in 2022. The country's beauty market witnessed a strong rebound in 2022 after facing a slowdown due to economic uncertainties, numerous lockdowns, and other pandemic policy changes.
- In China, the production of synthetic detergents is mainly concentrated in Guangdong, Zhejiang, and Sichuan, with an annual production capacity of 3.25 million tons, 1.14 million tons, and 1.09 million tons, respectively.
- The pharmaceutical industry in China is one of the largest in the world. The country is involved in the production of generics, therapeutic medicines, active pharmaceutical ingredients, and traditional Chinese medicine. More than 90% of the drugs registered in the country are generic. As of 2022, the country has a large and diverse domestic drug industry comprising around 5,000 manufacturers, many of which are small or medium-sized companies.
- According to the National Investment Promotion and Facilitation Agency (Invest India), India stands 8th in the beauty and personal care (BPC) market. Factors such as growing awareness, easier access, and changing lifestyles are driving the market. The personal hygiene market in India is expected to reach a value of USD 15 billion by the end of this year.
- The fatty acid methyl esters used in shampoos effectively remove soils, such as sebum and solid particulates, from the hair. According to the National Investment Promotion and Facilitation Agency (Invest India), the Indian hair care market is expected to reach a value of USD 4.89 billion with a CAGR of 6.6% in the next two years.
- To facilitate the growth of the Japanese cosmetic industry, the Japan Cosmetic Industry Association (JCIA) was established in April 2023 by integrating the Tokyo Cosmetic Industry Association, the Japan Cosmetic Industry Federation, the West Japan Cosmetic Industry Association, and the Chubu Cosmetic Industry Association. According to a report published by Kao Corporation, one of the key players in the Japanese cosmetic industry, the overall market in Japan grew by over 3% last year, with further growth anticipated in the upcoming years.
- With the rapidly growing end-user industries in the region, the demand for fatty alcohol is also expected to increase over the forecast period.
Fatty Alcohol Industry Overview
The global fatty alcohol market is fragmented in nature, with the presence of several large-scale and medium-scale companies in the market. Some of the major companies in the market (not in any particular order) include PT. Ecogreen Oledochemicals, Shell PLC, Kao Corporation, Wilmar International Ltd, and Sinarmad Cepsa Pte. Ltd, among others.
Fatty Alcohol Market Leaders
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PT. Ecogreen Oledochemicals
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Shell PLC
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Kao Corporation
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Wilmar International Ltd
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Sinarmad Cepsa Pte. Ltd.
*Disclaimer: Major Players sorted in no particular order
Fatty Alcohol Market News
- March 2023: KLK K Emmerich GmbH (KLK OLEO's wholly-owned subsidiary) announced the acquisition of 90% equity interest in TemixOleo SpA. Through the acquisition, the company has strengthened its product portfolio for fatty alcohols.
- November 2022: Sinarmas Cepsa Pte. Ltd signed a memorandum of understanding (MoU) with Singaporean palm oil producer Golden Agri-Resources (a subsidiary of SinarMass) to expand bio-based chemicals production. Through the expansion, the company has increased fatty alcohol output at its site in Lubuk Gaung, Indonesia.
Fatty Alcohol Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Market Drivers
- 4.1.1 Growing Demand from Pharmaceutical Industry
- 4.1.2 Increasing Usage of Fatty Alcohol in Personal Care and Cosmetics Products
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4.2 Market Restraints
- 4.2.1 High Volatility in Raw Material Prices
- 4.2.2 Other Restraints
- 4.3 Industry Value Chain Analysis
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4.4 Industry Attractiveness - Porter's Five Forces Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Volume)
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5.1 By Type
- 5.1.1 Natural Sources
- 5.1.2 Petrochemical Sources
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5.2 By Application
- 5.2.1 Surfactants
- 5.2.2 Pharmaceuticals
- 5.2.3 Lubricants
- 5.2.4 Personal Care
- 5.2.5 Foods
- 5.2.6 Other Applications
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5.3 By Geography
- 5.3.1 Asia-Pacific
- 5.3.1.1 China
- 5.3.1.2 India
- 5.3.1.3 Japan
- 5.3.1.4 South Korea
- 5.3.1.5 Rest of Asia-Pacific
- 5.3.2 North America
- 5.3.2.1 United States
- 5.3.2.2 Canada
- 5.3.2.3 Mexico
- 5.3.3 Europe
- 5.3.3.1 Germany
- 5.3.3.2 United Kingdom
- 5.3.3.3 France
- 5.3.3.4 Italy
- 5.3.3.5 Rest of Europe
- 5.3.4 South America
- 5.3.4.1 Brazil
- 5.3.4.2 Argentina
- 5.3.4.3 Rest of South America
- 5.3.5 Middle East and Africa
- 5.3.5.1 Saudi Arabia
- 5.3.5.2 South Africa
- 5.3.5.3 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share (%)**/Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
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6.4 Company Profiles
- 6.4.1 Arkema
- 6.4.2 Croda International PLC
- 6.4.3 Godrej Industries Limited
- 6.4.4 Kao Corporation
- 6.4.5 KLK OLEO
- 6.4.6 Musim Mas
- 6.4.7 Procter & Gamble
- 6.4.8 PT. Ecogreen Oledochemicals
- 6.4.9 SABIC
- 6.4.10 Sasol
- 6.4.11 Shell PLC
- 6.4.12 Sinarmad Cepsa Pte. Ltd
- 6.4.13 VVF LLC
- 6.4.14 Wilmar International Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Growing Demand for Bio-Based Fatty Alcohol Products
- 7.2 Other Opportunities
Fatty Alcohol Industry Segmentation
Fatty alcohols are typically high-molecular-weight, straight-chain primary alcohols with as few as 4-6 carbons or as many as 22-26 carbons generated from natural fats and oils. The traditional sources of fatty alcohols have largely been various vegetable oils, which remain a large-scale feedstock. Fatty alcohols are also prepared from petrochemical sources. In the Ziegler process, ethylene is oligomerized using triethylaluminium followed by air oxidation.
The fatty alcohol market is segmented by type, application, and geography. By type, the market is segmented into natural sources and petrochemical sources. By application, the market is segmented into surfactants, pharmaceuticals, lubricants, personal care, foods, and other applications. The report also covers the market size and forecasts for the fatty alcohol market in 15 countries across major regions. For each segment, market sizing and forecasts are done in volume (tons).
| By Type | Natural Sources | |
| Petrochemical Sources | ||
| By Application | Surfactants | |
| Pharmaceuticals | ||
| Lubricants | ||
| Personal Care | ||
| Foods | ||
| Other Applications | ||
| By Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| By Geography | North America | United States |
| Canada | ||
| Mexico | ||
| By Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Italy | ||
| Rest of Europe | ||
| By Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| By Geography | Middle East and Africa | Saudi Arabia |
| South Africa | ||
| Rest of Middle East and Africa |
Fatty Alcohol Market Research FAQs
How big is the Fatty Alcohol Market?
The Fatty Alcohol Market size is expected to reach 3.96 million tons in 2024 and grow at a CAGR of 4.06% to reach 4.84 million tons by 2029.
What is the current Fatty Alcohol Market size?
In 2024, the Fatty Alcohol Market size is expected to reach 3.96 million tons.
Who are the key players in Fatty Alcohol Market?
PT. Ecogreen Oledochemicals, Shell PLC, Kao Corporation, Wilmar International Ltd and Sinarmad Cepsa Pte. Ltd. are the major companies operating in the Fatty Alcohol Market.
Which is the fastest growing region in Fatty Alcohol Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Fatty Alcohol Market?
In 2024, the Asia Pacific accounts for the largest market share in Fatty Alcohol Market.
What years does this Fatty Alcohol Market cover, and what was the market size in 2023?
In 2023, the Fatty Alcohol Market size was estimated at 3.81 million tons. The report covers the Fatty Alcohol Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Fatty Alcohol Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Fatty Alcohol Industry Report
Statistics for the 2024 Fatty Alcohol market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Fatty Alcohol analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
