Tall Oil Fatty Acid Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 4.00 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Tall Oil Fatty Acid Market Analysis
The Global Tall Oil Fatty Acid Market is projected to register a CAGR of over 4% during the forecast period (2022-2027).
The COVID-19 pandemic affected the tall oil fatty acid market negatively as it affected the manufacturing activity and disrupted the supply chain. However, a post-pandemic increase in demand for soaps and detergents is expected to boost the market for tall oil fatty acids.
- Over the short term, rising demand for bio-based lubricants in several industries, are some of the driving factors which are stimulating the market demand.
- Restrictions on the cutting of trees by various governments across the globe are hindering the market's growth.
- Rising carbon-neutrality initiatives across the globe and shifting trends toward non-food crop-based alternatives to reduce competition within the food chain, and others are likely to create opportunities for the market in the coming years.
- The Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.
Tall Oil Fatty Acid Market Trends
This section covers the major market trends shaping the Tall Oil Fatty Acid Market according to our research experts:
Increasing Usage in the Automotive Industry
- Tall oil fatty acid is widely adopted in the automotive industry as it enhances the strength and durability of the vehicles. Increased lubrication, consistent quality, and lower cost are some of the benefits of using tall oil fatty acid in vehicles.
- Increasing investments in electric vehicles coupled with increased demand for specialized greases are expected to drive the automotive industry. Besides, the growing demand for vehicles that lower the carbon footprints of the environment will boost the demand for the industry.
- Superior environment-friendly properties of tall oil fatty acid such as no requirement for genetic modification and change in land use pattern enhance its usage in the automotive sector. The global automotive sales reached 80 million in 2021 as compared to 78 million in 2020, registering a growth of 2.56%, according to the International Organization of Motor Vehicle Manufacturers (OICA).
- The growing demand for passenger cars due to the rise in the middle-class population and disposable income are the factors driving the automotive industry. The global passenger car sales reached 56.39 million units in 2021 as compared to 53.92 million units in 2020, registering a growth of 4.6%, which in turn stimulates the demand for the tall oil fatty acid market.
- Moreover, the inceasing demand for automated vehicles and continued preference for personal vehicles as the preferred mode of transportation is expected to boost the demand for lubricants and corrosion inhibitor products that are manufactured by using tall oil fatty acid.
- Owing to all these factors, the market for tall oil fatty acids is likely to grow globally during the forecast period.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region is expected to dominate the market. In the region, China is the largest economy, in terms of GDP. China and India are among the fastest emerging economies in the world.
- China has the largest vehicle market in Asia-Pacific. Growing demand for recreational vehicles, due to the increase in tourism post-pandemic is expected to drive the automotive industry in China. As per the China Self-Driving, Caravan, and Camping Tourism Development Report 2020-2021, around 77.8% of domestic tourists in China used self-driving cars, with an annual growth rate of 14%.
- Increasing disposable income and friendly government policies in China such as made in China initiative 2025 are the factors boosting demand for passenger cars in China. Automotive passenger car production in China amounted to 21.40 million in 2021 and is expected to grow significantly in 2022.
- The construction industry slowed down in India due to restrictions on construction activities during the initial Covid 19 lockdown. However, the construction industry emerged as a top segment during the financial year 2020-21 owing to increased government spending. Hence, this has resulted in increasing demand for construction chemicals, paints, and coatings sector in which tall oil fatty acids are used as drying agents.
- Increasing policy initiatives by the Indian government such as the smart cities mission, housing for all, and 100% FDI under automatic route across several infrastructure sectors. These initiatives are expected to drive the construction industry in the coming years.
- Furthermore, the detergent and soap industry's ongoing product innovation is a major driver of market growth. Customers with sensitive skin prefer natural anti-allergy soap and detergents. The demand for efficient and anti-allergic cleaning chemicals is growing rapidly in the region, fueling market growth.
- Due to all such factors, the market for tall oil fatty acid in the region is expected to have a steady growth during the forecast period.
Tall Oil Fatty Acid Industry Overview
The tall oil fatty acid market is partially fragmented in nature. Some of the major players in the market include Harima Chemicals Group, Inc., Arizona Chemical Co., Ilim Group, Segezha-Group, and Univar Solutions, among others (not in any particular order).
Tall Oil Fatty Acid Market Leaders
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Harima Chemicals Group, Inc.
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Kraton Corporation
-
Ilim Group
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Segezha-Group
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Univar Solutions
*Disclaimer: Major Players sorted in no particular order
Tall Oil Fatty Acid Market News
Recent developments will be provided in the complete report.
Tall Oil Fatty Acid 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
-
4.1 Drivers
- 4.1.1 Increasing Demand for Bio-based Lubricants in Several Industries
- 4.1.2 Other Drivers
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4.2 Restraints
- 4.2.1 Restrictions on Cutting of Trees by Various Governments Across the Globe
- 4.2.2 Other Restraints
- 4.3 Industry Value-Chain Analysis
-
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
-
5.1 Product Type
- 5.1.1 Oleic Acid
- 5.1.2 Linoleic Acid
- 5.1.3 Linolenic Acid
- 5.1.4 Palmitic Acid
- 5.1.5 Other Product Types
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5.2 Application
- 5.2.1 Alkyd Resins
- 5.2.2 Dimer Acids
- 5.2.3 Fatty Acid Ester
- 5.2.4 Other Applications
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5.3 End-user Industry
- 5.3.1 Soaps and Detergents
- 5.3.2 Paints and Coatings
- 5.3.3 Automotive
- 5.3.4 Metal Working Fluids
- 5.3.5 Oil and Gas
- 5.3.6 Other End-user Industries
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5.4 Geography
- 5.4.1 Asia-Pacific
- 5.4.1.1 China
- 5.4.1.2 India
- 5.4.1.3 Japan
- 5.4.1.4 South Korea
- 5.4.1.5 Rest of Asia-Pacific
- 5.4.2 North America
- 5.4.2.1 United States
- 5.4.2.2 Canada
- 5.4.2.3 Mexico
- 5.4.3 Europe
- 5.4.3.1 Germany
- 5.4.3.2 United Kingdom
- 5.4.3.3 Italy
- 5.4.3.4 France
- 5.4.3.5 Rest of Europe
- 5.4.4 South America
- 5.4.4.1 Brazil
- 5.4.4.2 Argentina
- 5.4.4.3 Rest of South America
- 5.4.5 Middle-East and Africa
- 5.4.5.1 Saudi Arabia
- 5.4.5.2 South Africa
- 5.4.5.3 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 Arizona Chemical Co.
- 6.4.2 Ataman Kimya
- 6.4.3 Eastman Chemical Company
- 6.4.4 Forchem Oyj
- 6.4.5 Foreverest Resources Ltd.
- 6.4.6 G.C. Rutteman & Co. B.V.
- 6.4.7 Harima Chemicals Group, Inc.
- 6.4.8 Ilim Group
- 6.4.9 Imperial Industrial Minerals Company
- 6.4.10 Ingevity
- 6.4.11 KRATON CORPORATION.
- 6.4.12 Lascaray S.A.
- 6.4.13 Pasand Speciality Chemicals
- 6.4.14 Pine Chemical Group
- 6.4.15 Segezha-Group
- 6.4.16 Shaxian Lixin Resin Co. Ltd.
- 6.4.17 UNIVAR SOLUTIONS
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Rising Carbon-neutrality Initiatives across the Globe
- 7.2 Shifting Trend Towards Non-food Crop-based Alternatives
Tall Oil Fatty Acid Industry Segmentation
Tall Oil Fatty Acid (TOFA) is also called tallol or liquid rosin which is obtained from pine and coniferous trees. It is a viscous yellow-black liquid chemical compound, with an odorous smell. Tall oil fatty acid is a by-product of the wood pulp industry, belonging to the product family of Oleic Acid. The tall name is derived from a Swedish word used for pine. The tall oil fatty acid market is segmented by product type, application, end-user industry, and geography. By product type, the market is segmented into oleic acid, linoleic acid, linolenic acid, palmitic acid, and other product types. By Application, the market is segmented into alkyd resins, dimer acids, fatty acid ester, and other applications. By end-user industry, the market is segmented into soaps and detergents, paints, and coatings, automotive, metal working fluids, oil and gas, and other end-user industries. The report also covers the market size and forecasts for the tall oil fatty acid market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of Revenue (USD Million).
| Product Type | Oleic Acid | |
| Linoleic Acid | ||
| Linolenic Acid | ||
| Palmitic Acid | ||
| Other Product Types | ||
| Application | Alkyd Resins | |
| Dimer Acids | ||
| Fatty Acid Ester | ||
| Other Applications | ||
| End-user Industry | Soaps and Detergents | |
| Paints and Coatings | ||
| Automotive | ||
| Metal Working Fluids | ||
| Oil and Gas | ||
| 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 |
Tall Oil Fatty Acid Market Research FAQs
What is the current Tall Oil Fatty Acid Market size?
The Tall Oil Fatty Acid Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)
Who are the key players in Tall Oil Fatty Acid Market?
Harima Chemicals Group, Inc., Kraton Corporation, Ilim Group , Segezha-Group and Univar Solutions are the major companies operating in the Tall Oil Fatty Acid Market.
Which is the fastest growing region in Tall Oil Fatty Acid Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Tall Oil Fatty Acid Market?
In 2024, the Asia-Pacific accounts for the largest market share in Tall Oil Fatty Acid Market.
What years does this Tall Oil Fatty Acid Market cover?
The report covers the Tall Oil Fatty Acid Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Tall Oil Fatty Acid Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Tall Oil Fatty Acid Industry Report
Statistics for the 2024 Tall Oil Fatty Acid market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Tall Oil Fatty Acid analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
