Oleochemicals Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 6.97 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Oleochemicals Market Analysis
The oleochemicals market is estimated to reach 12.40 million tons by the end of this year and is projected to reach 17.36 million tons in the next five years, registering a CAGR of 6.97% during the forecast period.
COVID-19 led to a shift in the demand for oleochemicals from industries such as automotive, and polymer to the pharmaceutical and personal care industries. A significant rise in demand for personal care and hygiene products, such as cleaning products, disinfectants, and sanitizers, led to a surge in demand for oleochemicals in 2020.
- The increasing demand for surfactants in the Asia-Pacific region is a significant factor driving the market studied. Additionally, demand from the cosmetic industry is likely to favor the growth of the studied market.
- On the flip side, the high volatility in raw material prices holds a negative impact on the growth of the oleochemicals market during the forecast period.
- The microbial production of fatty alcohols is expected to be a more direct and conservationist strategy. The rising awareness of environmental conservation will likely provide new growth opportunities for the market.
- Asia-Pacific is expected to dominate the market during the forecast period. This growth is attributed to the rising demand for cosmetics and surfactants.
Oleochemicals Market Trends
Soap and Detergents to Dominate the Market
- The United States is the world's largest soap producer and consumer. Other leading soap producers include Germany, Malaysia, China, and the United Kingdom. China is the largest exporter of soaps globally, value reaching USD 740.99 million.
- In Asia, Malaysia is one of the largest producers and exporters of soaps. According to Statistics Malaysia, soap production in the country amounted to approximately 15.47 thousand metric tons in 2022, a decrease from 16.92 thousand metric tons in 2021. Whereas in 2019, the country produced 45.5 thousand metric tons of soap. The rise in prices of palm stearin due to the weakening of the Malaysia ringgit and supply shortages caused oleochemical manufacturers, who use the ingredient as a feedstock to make soap, to face tightening margins and slower demand for their products.
- Moreover, in 2022, bar soap production in Mexico amounted to approximately 22.87 million units. The country produced 22.67 million units of soap in 2021, and 21.71 million units in 2020. Mexico is benefiting from private investment fueled by nearshoring, the trend of moving production to North America and away from Asia. Moreover, the country is also witnessing an increase in foreign investment for the manufacturing industries.
- The European market for soap peaked after the outbreak of the COVID-19 pandemic in 2020 and represented around 40% of the global soap market. European consumers are increasingly turning to at-home spa and yoga practices to boost their wellness. According to a 2021 global Young Living survey, 48% of respondents report that they are making wellness and self-care a top priority. 53% have developed new wellness habits during the pandemic, including at-home spa experiences. As the spa experience is connected to relaxation and healing, soaps and related items for this segment often come in muted, natural colors and branding. The consumer base for wellness is becoming more and more broad, thus driving the growth of soap and detergent market.
- The detergents industry is an important sub-sector of the European chemicals industry, with presence of large number of detergent manufacturer, especially in Germany, thus offering a customer base for oleochemical industry. According to the A.I.S.E. Activity & Sustainability Report 2022, Europe's detergents and maintenance products industry had an estimated market value of EUR 39.8 billion (~USD 44.67 billion). The Gross value-added contribution to the EU economy through the value chain was EUR 24.6 billion (~USD 27.61 billion).
- The detergent manufacturing industry, for both, consumer and professional products, involves around 700 separate facilities throughout Europe, of which 85% are operated by SMEs. Therefore, the presence of such large number of facilities engaged in the production of detergents also offers a huge customer base for oleochemicals market in the region.
- All such trends and factors have been driving the usage and demand of soap and detergents, and in turn is expected to influence the demand for oleochemical positively during the forecast period.
Asia-Pacific to Dominate the Market
- Asia-Pacific region is expected to account for the largest oleochemicals market during the forecast period due to the increased production capacity and expansion of personal care, pharmaceuticals, and soap industries in countries like China, India, and Japan.
- According to the National Bureau of Statistics of China, in April 2023, cosmetics retail sales in China amounted to around CNY 27.51 billion (~USD 3.85 billion), higher than the same period of the previous year, which was CNY 21.38 billion (~USD 3 billion). Over the last decade, the cosmetics market in China has developed rapidly. In 2022, the retail sales value of cosmetic products reached CNY 393.6 billion (~USD 55.14 billion).
- Consumers in China are becoming conscious of their external beauty and making greater use of cosmetics. They are increasingly incorporating cosmetics products in their daily routine, attributed to the rising concern for beauty and changing lifestyles, which is fueling the market demand for cosmetics products in the country.
- According to Invest India, the personal care and hygiene market reached USD 13.74 billion in FY2022 and is expected to reach USD 15.7 billion by FY2026. India's biggest export destinations in this sector are the United States, United Arab Emirates, China, and Bangladesh. India's imports amounted to USD 1.7 billion for FY2022, while exports value were recorded to be USD 2.9 billion.
- In July 2022, Hindustan Unilever Limited (HUL) announced its plan to invest INR 700 crore (~USD 85.19 million) by 2025 in its new facility in Uttar Pradesh's Sumerpur, which has a spray-dried detergent powder plant and a distribution center. Moreover, in May 2022, Proctor & Gamble (P&G) set up its first liquid detergent manufacturing facility in the outskirts of Hyderabad in India, which will attract an investment of INR 200 crore (~USD 24.34 million).
- South Korea is one of the fastest-changing beauty markets, introducing industry-leading innovations and globally setting trends. The current trend is the rise of do-it-yourself (DIY) beauty care. As a result, DIY hair coloring, nail care, and care in other K-beauty categories are fetching new customers within the country. The skincare segment has grown significantly in the South Korean beauty and personal care market.
- All the above-mentioned factors will likely fuel the growth of Asia-Pacific's oleochemicals market over the forecast time frame.
Oleochemicals Industry Overview
The oleochemicals market is partially consolidated. Some of the major companies (in no particular order) are Oleon NV, Berg + Schmidt GmbH & Co. KG, Kao Corporation, Croda International Plc, and IOI Oleochemical.
Oleochemicals Market Leaders
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Oleon NV
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Berg + Schmidt GmbH & Co. KG
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Kao Corporation
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Croda International Plc
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IOI Oleochemical
*Disclaimer: Major Players sorted in no particular order
Oleochemicals Market News
- In June 2023, Oleon NV opened an oleochemicals production plant that can operate purely based on proteins of all-natural origin (enzymes). A total of EUR 17.4 million (~USD 19.56 million) has been invested in the INCITE project, including EUR 13.3 million (~USD 14.95 million) in European subsidies.
- November 2022: Sinarmas Cepsa Pte. Ltd., a 50:50 joint venture between Spanish Cepsa and Indonesian conglomerate Sinar Mas, signed a Memorandum of Understanding (MoU) with Singaporean palm oil producer Golden Agri-Resources, a subsidiary of Sinar Mas to expand its bio-based chemicals production. The company is enhancing its global presence, growing the global demand for fatty acids and natural alcohols in home and personal care products, and increasing demand for sustainable, bio-based solutions across various industries it serves.
Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Drivers
- 4.1.1 Growing Surfactants Industry in the Asia-Pacific Region
- 4.1.2 Growing Cosmetics Industry
- 4.1.3 Other Drivers
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4.2 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 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Volume)
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5.1 Product Type
- 5.1.1 Fatty Acids
- 5.1.2 Fatty Alcohols
- 5.1.3 Methyl Esters
- 5.1.4 Glycerine
- 5.1.5 Other Product Types
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5.2 End-user Industry
- 5.2.1 Cosmetics and Personal Care
- 5.2.2 Soap and Detergents
- 5.2.3 Pharmaceuticals
- 5.2.4 Food and Beverages
- 5.2.5 Polymers
- 5.2.6 Other End-user Industries
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5.3 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 Italy
- 5.3.3.4 France
- 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 Baerlocher GmbH
- 6.4.2 Berg + Schmidt GmbH & Co. KG
- 6.4.3 Croda International Plc
- 6.4.4 IOI Oleochemical
- 6.4.5 Kao Corporation
- 6.4.6 KLK OLEO
- 6.4.7 KRATON CORPORATION
- 6.4.8 Oleon NV
- 6.4.9 PT. Ecogreen Oleochemicals
- 6.4.10 Vance Group Ltd.
- 6.4.11 VVF Limited
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Preference for Bio-based Raw Materials in Polymer Manufacturing
- 7.2 Increasing Focus Towards the Production of Fatty Alcohol by Microbial Fermentation
Oleochemicals Industry Segmentation
Oleochemicals are chemical compounds derived from natural oils and fats, typically obtained from vegetable sources such as palm, soybean, and coconut, or animal sources like tallow and lard. These chemicals undergo various processes such as hydrolysis, transesterification, or hydrogenation to produce a wide range of products, including fatty acids, glycerin, fatty alcohols, esters, and other derivatives.
The oleochemicals market is segmented by product type, end-user industry, and geography. By product type, the market is segmented into fatty acids, fatty alcohols, methyl esters, glycerine, and other product types. By end-user industry, the market is segmented into cosmetics and personal care, soap and detergents, pharmaceuticals, food and beverages, polymers, and other end-user industries. The report also covers the market size and forecasts for the oleochemicals market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done based on volume (Million Tons).
| Product Type | Fatty Acids | |
| Fatty Alcohols | ||
| Methyl Esters | ||
| Glycerine | ||
| Other Product Types | ||
| End-user Industry | Cosmetics and Personal Care | |
| Soap and Detergents | ||
| Pharmaceuticals | ||
| Food and Beverages | ||
| Polymers | ||
| Other End-user Industries | ||
| Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| Italy | ||
| France | ||
| Rest of Europe | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle-East and Africa | Saudi Arabia |
| South Africa | ||
| Rest of Middle-East and Africa |
Frequently Asked Questions
What is the current Oleochemicals Market size?
The Oleochemicals Market is projected to register a CAGR of 6.97% during the forecast period (2024-2029)
Who are the key players in Oleochemicals Market?
Oleon NV , Berg + Schmidt GmbH & Co. KG, Kao Corporation, Croda International Plc and IOI Oleochemical are the major companies operating in the Oleochemicals Market.
Which is the fastest growing region in Oleochemicals Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Oleochemicals Market?
In 2024, the Asia Pacific accounts for the largest market share in Oleochemicals Market.
What years does this Oleochemicals Market cover?
The report covers the Oleochemicals Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Oleochemicals Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Oleochemicals Industry Report
Statistics for the 2024 Oleochemicals market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Oleochemicals 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.
