Fatty Alcohol Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (C6 To C10 Fatty Alcohol, C11 To C14 Fatty Alcohol, C15 To C22 Fatty Alcohol), By Application (Industrial & Domestic Cleaning, Personal Care, Lubricants, Food & Nutrition, Others), And By Geography - Forecasts From 2022 To 2027

The fatty alcohol market is projected to grow at CAGR of 18.83% during the forecast period to reach a market size of US$24.821 billion by 2027, increasing from US$7.417 billion in 2020. Growing consumer desire for environmentally friendly and sustainable goods as a result of less reliance on petrochemicals is anticipated to continue to be a major driving force for the global fatty alcohol market. The entire chemical industry is concerned about the unstable price of petrochemical-derived goods due to supply-demand imbalances, which has led to this transition towards bio-based chemical businesses. The usage of bio-based, sustainable chemicals has been driven by growing environmental concerns regarding the impact of petrochemicals. The industry has switched its emphasis toward creating biodegradable goods and base chemicals through bio-based raw materials to reduce dependence on petrochemicals and lessen the carbon footprint. The tendency is anticipated to be supported by regulations from organizations like REACH on the environmental risks connected to items derived from petrochemicals. Furthermore, fatty alcohols have the same uses as petrochemicals and are naturally biodegradable. They are also a more affordable option than petrochemicals. The manufacture of fatty alcohols is anticipated to benefit from an increase in the supply of environmentally friendly raw materials in the form of oilseed. This should then open up new opportunities for applications further down the line, increasing market penetration.

Based on application, the fatty alcohol market is divided into industrial & domestic cleaning, personal care, lubricants, food & nutrition, and others. The personal care segment is valued at US$XX billion in 2020 and is projected to reach a market value of US$XX billion by 2027. The rising growth of the personal care market and increased adoption of natural, plant-based acids and similar chemicals like fatty alcohol are projected to drive the market on a positive scale. According to the Malaysian Palm Oil Council (MPOC), the US beauty and personal care market which is one of the most lucrative personal care markets globally. Also, according to Cosmetics Europe, the total retail sales of cosmetic and beauty products in Europe amounted to EUR 80 billion for the year 2021. Further, the source stated that research and development spending by the cosmetics and personal care industry amounted to EUR 2.35 billion in 2017. Growing personal care product sales and research and developments are anticipated to increase the demand for fatty alcohol in personal care products.

Moreover, rising health awareness and environmental concerns are further anticipated to replace harmful petrochemicals used in personal care products by sustainable alternatives like fatty alcohols. As per the Malaysian Palm Oil Council (MPOC), palm-based oleochemical products exported to the United States in 2021 totaled 235,529 MT or 47.8% of the total palm oil products. The increasing beauty and personal care industry along with the increased adoption of plant-based chemicals like fatty acids are projected to increase the size of the global fatty alcohol market during the forecasted period.

Increasing demand in home & personal care sector is driving the demand for fatty alcohol. Natural fatty alcohols are becoming more widely used in surfactant-based industries, including personal care, and cosmetics & soaps, and detergents. The COVID-19 outbreak has raised awareness of the use of personal care and home care products. Detergents and washing soaps are two examples of goods based on surfactants that have seen a considerable increase in demand. Leading industry participants are also making efforts to strengthen the market. For instance, Evonik began building the first industrial-scale rhamnolipid (biosurfactant) production facility in the world in January 2022. Shower gels & detergents use these biosurfactants as active components. Additionally, in March 2021, BASF SE, Allied Carbon Solutions Co. Ltd, with Holiferm Ltd agreed to a joint agreement for strengthening their respective market positions in the active and bio-based surfactants sector. With this development, BASF will be able to produce and explore the market for home care, personal care, and industrial formulators.

As a preventative strategy against the transmission of the coronavirus, there is a huge requirement for soaps, hand sanitizers, as well as other personal care items. Due to consumers' increasing disposable income, increased awareness of natural and organic products, and the ability to purchase upscale personal care products, the market for personal care products is anticipated to experience significant growth over the coming years. The market for multifunctional & cosmeceutical goods has also increased as a result of ongoing product improvements and advancements. Additionally, they serve as a solvent, emulsifier, antibacterial, buffer, and penetration enhancer in skincare products as it improves the penetration of an ingredient into the skin. Surfactants are made from fatty alcohol ethoxylates with sulfates, which are the basic precursors for the creation of fatty alcohols. Non-ionic surfactants called fatty alcohol ethoxylates are frequently employed in detergents for both residential and commercial use. During the projection period, the aforementioned elements are anticipated to fuel demand

COVID-19 Impact on the Fatty Alcohol Market

The COVID-19 pandemic had a positive impact on the global fatty alcohol market.  The robust outbreak of the virus and its exponential spread resulted in a surge in the sanitization process. Fatty alcohol is one of the common ingredients used in cleaning agents. The demand for cleaning agents skyrocketed with the onset of the virus, which drove with it the demand for fatty alcohol. Furthermore, personal care products also witnessed an increase in demand which supported the market as well.

The outbreak of the virus resulted in a short-run CAGR surge of 24.20% compared to the short-run, non-COVID-19 CAGR of 12.54%.  However, in long run, the non-COVID-19 CAGR is projected to be greater than the COVID-19 CAGR due to the gradual growth projected in the non-COVID scenario and growth falling back to normal in the COVID-19 scenario.

Fatty Alcohol Market Scope:

Segmentation

• By Type
  • C6 to C10 Fatty Alcohol
  • C11 to C14 Fatty alcohol
  • C15 to C22 Fatty Alcohol
• By Application
  • Industrial & Domestic Cleaning
  • Personal Care
  • Lubricants
  • Food & Nutrition
  • Others
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • South Africa
    • Others
  • Asia Pacific
    • China
    • India
    • South Korea
    • Japan
    • Others