Global Oleochemicals Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Product (Fatty Acids, Emulsifiers And Solubilizers, Fatty Alcohol, Others), By Application (Cosmetics And Personal Care, Food And Beverage, Paper, Others), And By Geography - Forecasts From 2021 To 2026

The global oleochemicals market is valued at US$22.650 billion in 2019 and is projected to grow at a CAGR of 5.98% to reach US$34.022 billion in 2026. Oleochemicals are derived from natural raw materials based on plant sources or animal fat. These chemicals are biodegradable and exhibit low toxicity, which is why they are considered to be environmentally friendly. These products are natural, green, organic, safe, renewable, and biodegradable which are increasing their demand among consumers, worldwide. The growing environmental sustainability concern is pressurizing firms across different industries such as cosmetics, plastics, and food and beverage to use biodegradable ingredients. This, in turn, is driving the demand for Oleochemicals for various applications. Also, the increasing consumption of renewable, sustainable, and bio-based chemicals in industries such as personal care & cosmetics, food & beverages, pharmaceuticals, and other industries will fuel the market growth.

 In addition, the shifting preferences of consumers for eco-friendly products due to the increasing awareness regarding environmental concerns will boost the product demand during the forecast period. Moreover, Oleochemicals are largely being used in the form of fatty acids, for the production of products like soaps, detergents, surfactants, lubricants, and pharmaceuticals which further strengthen the market growth. Further, favorable government policies and programs to promote the use of bio-based chemicals such as bio-based products are being developed to capitalize on the use of renewable biomass feedstock’s to replace reliance on fossil fuels, which will also spur the growth of the global Oleochemicals market. The rising crude oil prices have resulted in a shift toward the utilization of vegetable oils, such as palm and palm kernel oil, as a primary feedstock for Oleochemicals production, which in turn will propel the market growth. Furthermore, the key market players, especially in the cosmetics and personal care industry are actively including green ingredients in their products to meet the increasing consumer demand for green cosmetics which will further strengthen the market growth for Oleochemicals during the forecast period. For instance, the French beauty giant L’Oreal has committed that by 2030, 95% of its ingredients will be derived from renewable plant sources, abundant minerals, or circular processes; and all formulas will be respectful of the aquatic environment.

global oleochemicals Market, US$ billion, 2019 to 2026

(SAMPLE FIGURE)

Source: Knowledge Sourcing Intelligence Analysis

By product, fatty acids are the leading segment owing to the rising applications in cosmetics and personal care products.  By application, the cosmetics and personal care segment are anticipated to hold a significant market due to the increasing popularity of biodegradable cosmetics. Geographically, Europe will witness significant market growth on account of stringent environmental regulations and rising demand for biodiesel in the region. 

global oleochemicals Market share, by geography

SAMPLE FIGURE

                                2019                                                                 2026

Source: Knowledge Sourcing Intelligence Analysis

Growth Factors.

• Increasing demand for organic cosmetics.

The constant surge in the demand for organic cosmetics such as organic haircare, skincare, and other cosmetics, globally will drive the market growth during the forecast period. Consumers across the globe are increasingly becoming aware of the environmental damage which is shifting their focus towards organic cosmetics. The surge in consumer demand is prompting the market giants to largely include organic cosmetics in their product range which will further bolster the demand for Oleochemicals during the forecast period.

Impact of COVID-19 on the Oleochemicals Market

The Covid-19 pandemic negatively impacted the Global Oleochemicals market as due to the nationwide lockdown and the temporary suspension of manufacturing facilities, declined the demand for Oleochemicals in the market. Many industries such as cosmetics and personal care, food and beverage, paper, etc. suffered huge losses which further hampered the market growth of Oleochemicals in 2020. However, with the ease of restrictions, the market is expected to rebound during the forecast period. 

Competitive Insights.

The market leaders for the Global Oleochemicals market consist of BASF SE, Evonik Industries AG, Evyap, Godrej industries (chemicals), Emery oleochemicals, Ecogreen Oleochemicals, Univar Solutions Inc, and Scott chemicals. The key players in the market implement growth strategies such as product launches, mergers, and acquisitions, etc. to gain a competitive advantage over their competitors.

Global Oleochemicals Market  Scope:

Segmentation:

• By Product
  • Fatty Acids
  • Emulsifiers and Solubilizes
  • Fatty Alcohol
  • Others
• By Application
  •  Cosmetics and Personal Care
  • Food and Beverage
  • Paper
  • Others
• By Geography
  • North America
    • USA
    • Canadá
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • Indonesia
    • Taiwan
    • Thailand
    • Others

Frequently Asked Questions (FAQs)

Q1. What will be the oleochemicals market size by 2026?
A1. The global oleochemicals market is projected to reach a total market size of US$34.022 billion in 2026. 

Q2. What are the growth prospects for the oleochemicals market?
A2. The oleochemicals market is projected to grow at a CAGR of 5.98% during the forecast period.

Q3. What is the size of global oleochemicals market?
A3. Oleochemicals Market was valued at US$22.650 billion in 2019.

Q4. Which region holds the largest market share in the oleochemicals market?
A4. Geographically, Europe will witness significant growth in the oleochemicals market on account of stringent environmental regulations and rising demand for biodiesel in the region. 

Q5. What factors are anticipated to drive the oleochemicals market growth?
A5. The constant surge in the demand for organic cosmetics such as organic haircare, skincare, and other cosmetics, globally will drive the oleochemicals market growth.