According to the Market Statsville Group (MSG), the global oleochemicals market size is expected to grow from USD 22363.12 million in 2022 to USD 48047.97 million by 2033, at a CAGR of 7.2% from 2023 to 2033. The product demand is expected to be driven by the rising use of renewable cosmetics and sustainable and bio-based chemicals in personal care, food and drinks, pharmaceuticals, and other sectors throughout the projected period. In addition, the rising demand for oleochemical in the pharmaceutical and cosmetic industry is a significant factor contributing to the global economic growth economy the oleochemical market during the forecast period. On the other hand, the rise in palm oil prices is poised to inflate costs for every sector, from producing oleochemicals, restaurants to confectionery and cosmetic manufacturers, and can change consumption patterns. This will resist the market growth for the forecasting period.
Moreover, the market players operating in the market have steadily adopted groundbreaking marketing strategies to gain a competitive advantage. Companies often regularly take the initiative to offer efficient and better solutions and services. And this will create a massive opportunity in this market for the forecasting period.
Oleochemicals are natural fat and oil-derived chemical substances that may be utilized as raw materials or supplements in a wide range of industries. Petrochemicals, which are petroleum-based products, can be replaced with oleochemicals. Oleochemicals are created by chemical processes such as water-based hydrolysis, alcohol-based alcoholics, and hydrogenation, to mention a few. Because oleochemicals contain few, if any, carcinogens, they are safer than synthetic chemical counterparts. Soy oil, palm oil, and coconut oil are examples of oleochemicals that are often used in today's market.
Oleochemicals are found in personal care products such as hair care and skincare basics. They've grown in popularity since they're typically devoid of allergies and contain few carcinogens. Glycerine (also known as glycerol) is a moisturizing fat generated from vegetable lipids. Oleochemical coatings and adhesives have several applications in architecture, building, and industry.
During the COVID-19 pandemic, the global demand for oleochemical is significantly reduced due to the slowdown in consumer spending leading to production cutbacks. As such, the recent outbreak of the novel COVID-19 diseases has severely affected the global oleochemical market. The COVID-19 pandemic, oleochemical has seen a decrease across manufacturing sectors as it had a visible impact on operations in factories as oleochemical is widely used in production of detergents, soaps, used in food & beverages, pharmaceutical, personal care and others. The lockdown has had a limited impact on a few well-established oleochemical manufacturers. This is because some manufacturer caters its product and services to vital sectors such as pharma and agrochemicals, and more. Despite facing some workforce and demand issues, optimum utilization levels had restored in May 2020. This has led to a significant growth in the demand and supply of oleochemical as a basic solvent for industrial application. More often, the end-user of oleochemical around the world are also preparing for a post-pandemic workplace and keep their production output stable, and thus oleochemical is likely to gain significant traction in the upcoming years, and that’s having a profound impact on the market expansion during the forecast period.
The rising demand for oleochemical in the pharmaceutical and cosmetic industry is one of the major factors that surge the growth of the oleochemical market during the forecast period. The increase in the government investment in pharmaceutical sector has increased the demand for the oleochemical market. For instance, The Indian government is planning a USD 640 million funds for boosting drug discovery and pharmaceutical infrastructure. The initiative ‘Pharma Vision 2020’ of the Indian Government has a goal for making India a major hub for drug discovery, as per India Brand Equity Foundation, 2018.
Furthermore, in cosmetics, oleochemical is widely used as an ingredient in lubricants, resins, perfumes and cosmetics. The rising disposable income along with growing consciousness for better appearance and rise in demand for colour cosmetics to reduce age-related skin imperfection creates a lucrative demand for oleochemical ingredients in the cosmetic industry. Moreover, the escalating demand for natural and organic cosmetics across the region propels the cosmetics manufacturers to use natural raw materials in production. These natural materials include derivatives from plant sources which include palm oil as it is derived from palm oil fruit. As 21% of the US adults demonstrated exclusiveness towards purchasing organic cosmetics as of May 2017. Moreover, other cosmetics products also use oleochemicals due to their smoothness and stable chemical composition. Hence the expanding cosmetics industry develops an extensive requirement for oleochemicals.
The price volatility of raw materials and the related ingredient is among the most discussed topic amongst the industry participants. Amongst the market participant, the price of oleochemicals and price of its raw material is being considered as a major topic. Oleochemical is derived from oil & fats including soybean, palm, sunflower, coconut, rapeseed, jatropha, castor bean oils and fatty acids, fatty alcohols and amines, methyl esters, and glycerol.
The rise in palm oil prices is poised to inflate costs for every sector from the production of oleochemicals, restaurants to confectionery and cosmetic manufacturers, and can potentially change consumption patterns. Additionally, in India, the prices of edible oil such as soybean, groundnut, sunflower and palm oil have risen by 20-30% in 2020 as compared to 2019. Thus, the versatility of prices will significantly impact the various industries including food & beverage, cosmetics, pharmaceuticals, and others which results in hampering the growth of the oleochemicals market over the forecast period. Additionally, the economies are facing many uncertainties such as recession and rising inflation that emerged as the main risk affecting the macroeconomic outlook of developing countries. An increase in oil price may lead to an increase in the cost of end products, which significantly impacts the production cost of oleochemicals.
The market players operating in the market have steadily adopted groundbreaking marketing strategies to gain a competitive advantage. Companies often regularly involved themselves in taking initiative for offering efficient and better solutions and services. These help market players to enhance the business operations with a sustainable ecosystem to create a better brand image.
Moreover, companies are taking innovative marketing & positioning strategies that are likely to increase in the future to create diversity. Some of the strategies undertaken by the key players are listed below, for instance In May 2021, KLK OLEO has expanded its business to the Americas with a new sales office in Woodbury, New York, U.S.A. The company will oversee sales and marketing in the United States, Canada and South America. This expansion will maintain and build customer relationships for the KLK OLEO group product portfolio.
The study categorizes the oleochemicals market based on product, application, and sales channel area at the regional and global levels.
Based on the product, the market is split into fatty acid methyl ester, fatty amines, glycerol esters, fatty acids, fatty alcohols, glycerin, triacetin, specialty esters and others. their widespread use in the manufacture of rubber and cosmetics, as well as a lubricant in medicinal applications. The highest demand for fatty alcohols is in the manufacturing of detergents and surfactants, which inherits various potential opportunities. Pharmaceutics and cosmetics are also use fatty alcohols due to their specific properties, such as emollients. Cetyl (C16) alcohol, the most often used substance, is essential in shaving creams, lipsticks, and hair lotions. Cetyl and stearyl (C18) alcohol have comparable qualities and are commonly employed in dermatologic bases, bath preparations (bath oils, lotions, salts), antihistamine creams, and other products.
Based on the regions, the global poke foods industry market has been segmented across Asia-Pacific, Europe, North America, Middle East & Africa and South America. Asia Pacific is expected to account the highest market share in 2022. This is due to rising demand for sustainable plastics in a variety of end-user sectors, which has in turn raised demand for raw materials such as bio-based polymers and fatty acids. The biggest manufacturers of oleochemical are Indonesia and Malaysia. Asia Pacific, in addition to being the greatest consumer, and is also the largest producer of oleochemicals, accounting for more than half of world output. This substantial percentage can be attributable to the fast development of end-use industries and the ease of access to feedstock.
The oleochemicals market is extremely cutthroat, and significant competitors in the sector are using strategies including product launches, partnerships, collaboration, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.
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