The global oleochemicals market is projected to reach USD 28.6 billion by 2025, according to a new report by Grand View Research, Inc. The global market is anticipated to be driven by growing biochemical product demand in various consumer applications such as personal care, detergents, and food & beverages.
Escalating supply-demand gap along with overcapacity issues especially in the Southeast Asian countries such as Indonesia and Malaysia are expected to hinder oleochemicals market growth over the forecast period. Technological innovations and significant developments in the downstream sectors are expected to create lucrative opportunities for industry participants.
Fatty acids were the leading oleochemical product consumed and accounted for over 55% of total market volume in 2016. Increasing penetration of fatty acids in personal care products is expected to drive this segment over the forecast period. Glycerol is expected to witness the highest growth of 5.7% over the forecast period owing to its increasing preference in personal care and food & beverage applications.
Asia Pacific was the leading consumer of oleochemicals with demand share exceeding 41% in 2018. The region is also expected to witness the fastest growth over the next eight years owing to abundant raw material supply and significant developments in the application markets such as personal care, food & beverage, and bio-chemical manufacture.
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Further key findings from the report suggest:
The global oleochemicals market is anticipated to grow at a CAGR of 5.8% from 2019 to 2025
Asia Pacific emerged as the largest regional segment covering around 41% revenue share in 2018
The soaps & detergents application segment of fatty acid in Mexico and is anticipated to reach 31% of volume share by 2025
The food & beverages segment of glycerol in Spain is anticipated to grow at a CAGR of 5.5%
Middle East and Africa produced approximately 305.8 kilo tons of fatty acids and happens to be the largest product segment in the regional market
Personal care & pharmaceuticals dominated the global glycerol demand and is projected to grow at a CAGR of 5.9% from 2019 to 2025
Major companies currently operating in the industry include TerraVia, KLK Oleo, Evyap, Kao Chemicals, Godrej Industries, IOI Corporation and Wilmar, etc.