The global fatty alcohol market is expected to grow at a CAGR of 5.19% over the forecast period to reach a total market size of US$8.261 billion by 2025, increasing from US$6.098 billion in 2019. Fatty alcohols are the straight-chain primary alcohols derived from natural fats and oils. They are widely used in a wide range of applications ranging from personal care to lubricants. The growing demand for fatty acid in surfactant-based industries is expected to drive the growth of the market during the forecast period. Surfactants based industries such as soaps and detergents, textiles, and personal care use fatty alcohol as it acts as detergents and cleaning agents. In the textile industry, it is used for the preparation and treatment of textiles such as silk and wool. Surfactants also facilitate the use of very fine-grained dye pigments which makes more economic use of textile colorants and simultaneously reducing residual amounts, thus lowering the impact on the environment. Expanding the textile industry in developing countries like India and China coupled with favorable government policies is expected to drive the growth of the market during the forecast period. For instance, the Government of India, inaugurated the Integrated Wool Development Program (IWDP) to provide support to the wool sector to enhance the quality and increase the production. Also, there have been growing concerns regarding the effect of petrochemicals on the environment, and companies today are aiming to reduce their dependence on petrochemicals and to decrease carbon footprint, by making efforts towards the development of biodegradable products and base chemicals through bio-based raw materials.
The personal care industry is expected to witness substantial growth during the forecast period
In addition, consumers today prefer mildly conserved and user-friendly cosmetic products that are environmentally friendly which is driving the demand for bio-based sustainable chemicals. The growth in the adoption of cosmetic products is mainly attributed to the increasing interest of cosmetics among many young women worldwide. This is because these women love to explore a variety of beauty care products available in the market further leading to high market demand for these products, which in turn is propelling the market growth as well. Additionally, several independent brands are coming up and every new brand has a new idea of remaining or becoming beautiful, hence, contributing to the growth of the cosmetic industry, fueling the market growth. Apart from the younger generation, the craze of cosmetics is being experienced among the older adults giving rise to providing a range of cosmetics to this group of the society as well. Cosmetic solutions such as an instant fix for age-old people who desire for quick improvements in their skin are quite popular. Furthermore, the development and growth of cosmetics, personal care, and other retail businesses are causally related to economic growth and speed of urbanization which is projected to propel the market growth opportunities over the forecast period. According to the UN statistics, there is a growth in the urban population of the world increased from around 751 million to around 4.2 billion from 1950 to 2018. The migration of people from rural areas to urban areas has resulted in an increase in disposable income, which in turn has led to adopting modern living conditions as well. Thus, this has impacted positively on the cosmetic consumption levels, creating a market demand for the cosmetic packaging in the forecast period and the coming years.
Additionally, with rapid urbanization, people can attain a better education and are paid well. This has further led to paying attention to their health, personal hygiene, and grooming their appearance, fueling the growth of the global cosmetic packaging market in the forecast period and the upcoming years.
The Asia Pacific is holding a significant share in the market
By geography, the Fatty Alcohol market is segmented as North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. Asia Pacific region is expected to hold a significant share in the market owing to the presence of major players coupled with the expanding soaps and detergent, industrial cleaning, and food processing industry in the region. Due to the growing population, the demand for soaps and detergents also increases which also increases the demand for fatty acid, also the region is the home of nearly half of the global population which is making profit-making opportunities for many players. Besides, rapid urbanization and growing disposable income have also attracted major market players to invest in new facilities in the region, thus propelling the market growth opportunities over the forecast period. In the developed North American and European regions, the market is expected to increase on account of growing consumer awareness along with the increasing demand for the bio-based product.
Prominent key market players in the Fatty Alcohol market include BASF, Oleon NV, KAO Corporation, Wilmar International Ltd, Sasol, Musim Mas Holdings, Godrej Industries Limited, Emery Oleochemicals, VVF Ltd, and Teck Guan Holdings. The number of players in the fatty alcohol market is large and growing with the opportunity to generate significant revenues because of growing demand in various industries. The players in the global fatty alcohol market are implementing various growth strategies to gain a competitive advantage over their competitors in this market and are shifting their production plants in the Asia Pacific region due to the availability of raw material at lower prices and presence of large consumer base. Key players in this market are focusing on strategic acquisitions, collaborative partnerships, and investment in new geographical boundaries as a part of their growth strategies to provide products to its consumers worldwide. Major market players in the global fatty alcohol market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the global fatty alcohol market.