The global fatty alcohol market is expected to grow at a compound annual growth rate of 5.14% over the analyzed period to reach a market size of US$8.659 billion in 2026 from US$6.098 billion in 2019. Global Fatty Alcohol is a distinctive group of Oleochemicals that are derived from natural fats and oils. This strained-chain primary alcohol is widely used in a wide range of applications, starting from personal care to lubricants.
The key reason, driving the growth in the market is its surging use in surfactant-based industries. Owing to its detergent and cleaning ability, fatty alcohol is used in soaps, detergents, personal care, and textile, especially while preparation and treatment of silk and wool. Fatty alcohol, up to C18, is biodegradable while surfactants facilitate the use of fine-grained dye pigment, reducing the residual amount and hence is environment friendly. Moreover, long-chain fatty alcohol, which is extracted from plant waxes and bee wax, has proven to reduce plasma cholesterol in humans. Another factor contributing to market growth is the surging use of fatty alcohol in the cosmetic industry.
Moreover, support from industry and government institutions will considerably impact the market, increasing its size. The government of India, for instance, inaugurated Integrated Wool Development Program, IWDP, intending to support the wool sector, by enhancing quality and production. Moreover, rising environmental concerns due to the usage of petrochemicals and substituting them with natural oleochemicals, such as fatty alcohol will further drive the market.
The personal Care and Cosmetics industry is anticipated to play a dominating role during the forecasted period
The personal care and cosmetic industry are expected to hold a significant share in the market, during the forecasted period, with fatty alcohol usage in the industry growing at an exponential rate. The prime reason behind this surge is the growing demand for natural cosmetics, for better benefits to the skin and reducing the human carbon footprint. Consumers today prefer personal care and cosmetics products that involve negligible synthetic chemical involvement. Chemical-based skincare not just harms the skin, but increases the human carbon footprint.
Moreover, there are several episodes of severe human health damage and hazard due to chemical-based skin care products. Johnson & Johnson, for instance, portraits an example of how harmful chemical products can affect customers. The company’s widely selling talc powder was claimed to caused ovarian cancer to some customers, obligating the company with multi-million-dollar charges and labels, that destroyed its brand name. Hence, the company is now switching towards the inculcation of natural ingredients in its products. Particularly, fatty alcohols are used in skincare products to make them thick and are used as emollients.
This ingredient is non-irritating and is beneficial for those with dry skin as it provides moisture. Alcohol further kills acne-causing bacteria that are present on the skin and keeps human skin oil and acne-free. However, alcohol presence is liked free-radical damage to the skin, which is similar to the damage caused by excessive alcohol consumption.
Moreover, the rising popularity of natural cosmetics, especially among the younger generation and women, will further increase the demand for the fatty alcohol market. Apart from the youth population, preferability towards cosmetics and personal care products is increasing in adults as well. Further, the demand for a natural face skincare product, particularly sun creams and face weighting cream, increases the demand for the fatty alcohol market.
Moreover, increased disposable income as well plays a crucial role in the development of the market. Rapid urbanization along with increased standards of living increases the attention an individual pays to personal care and grooming, and hence the adoption of better products, such as natural chemicals. As per a report published by the United Nations, growth in the urban population increased to 4.2 billion in the year 2018. The urban population was only 751 million in the year 1950. This, in turn, increases the market. Further, emerging distribution and sales channels also contribute to market growth. The sales of natural skincare and cosmetics products have surged with the inculcation of these products in the online channel. Rising internet penetration has bombarded the growth of online channel sales and has significantly impacted the market. The coronavirus pandemic also plays a crucial role in boosting the online sales market.
The main constrain hindering the growth of the market is its high operating cost. The method of extraction involves the recovery of solvent and reduced alcohol using the distillation method, which employs the consumption of metallic sodium, which increases the operational cost of extraction. Moreover, elaborate and specific equipment is required to recover both, solvent and reducing alcohol, which further increases the cost and technical jargon, hence constraining the market of fatty alcohol.
The Asia Pacific region is forecasted to rise at the fastest pace
Based on geography, the market for global fatty alcohol is segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific regions. The Asia Pacific region is predicted to grow at the fastest rate during the forecasted period, owing to rapid industrialization. The region is marked with a booming manufacturing sector, including soaps and detergents, food processing, and industrial cleaning. Moreover, the presence of major players in the region also plays a crucial role. Further, rapid urbanization and surging disposable income also drive the market in the region. Also, the growing craze of cosmetics and skincare products along with cheap and convenient availability encourage the market for fatty alcohols.
|Market size value in 2019||US$6.098 billion|
|Market size value in 2026||US$8.659 billion|
|Growth Rate||CAGR of 5.14% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, Application, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Oleon NV, Wilmar International Ltd., Sasol, Musim Mas, Godrej Industries Ltd., Teck Guan Holdings, Kao Corporations, Emery Oleochemicals, BASF|
|Customization scope||Free report customization with purchase.|
Frequently Asked Questions (FAQs)
Q1. What will be the global fatty alcohol market size by 2026?
A1. The global fatty alcohol market is expected to reach a total market size of US$8.659 billion by 2026.
Q2. What factors are anticipated to drive the fatty alcohol market growth?
A2. The key reason, driving the growth in the fatty alcohol market is its surging use in surfactant-based industries.
Q3. What are the growth prospects for the fatty alcohol market?
A3. The fatty alcohol market is expected to grow at a CAGR of 5.14% over the forecast period.
Q4. What is the size of the global fatty alcohol market?
A4. Fatty Alcohol market was valued at US$6.098 billion in 2019.
Q5. Which region holds the largest market share in the fatty alcohol market?
A5. Asia Pacific region is expected to hold a significant share in the fatty alcohol market owing to rapid industrialization.