The global tall oil fatty acid (TOFA) market is expected to grow at a CAGR of 7.45% over the forecast period to reach a total market size of US$1250.342 million by 2027, increasing from US$756.292 million in 2020.
The tall oil fatty acid (TOFA) is considered an ideal raw material for many chemical reactions and intermediates and is also a pure fatty acid with a low level of rosin acids and a low level of unsaponifiable through the distillation process. Some of the most common applications for TOFA are paints and coatings, fuel additives, performance polymers, and bio-lubricants. The growing production of crude oil around the globe is considered one of the key factors that is accelerating the growth of the market during the forecast period.
Expanding oil and gas industry
The oil and gas industry plays a major role in providing energy and fuel to the world for the facilitation of various purposes and caters to various applications. According to the data provided by the International Energy Association (IEA) in 2017, the amount of crude oil and natural gas liquid that was produced was 3,893,589 kt and 422,162 kt respectively. The industries which consumed the most oil included transport, leading the race with 2,588,508 ktoe in 2017. Non-energy use accumulated a total consumption of 633,505 ktoe and residential consumption was 214,757 ktoe. Moreover, some companies are expanding drilling operations to meet the increasing energy demands. For instance, in November 2019, ADNOC Drilling announced that they had expanded their onshore and offshore rigs for accelerating the facilitation of oilfield drilling operations, and similarly, Panoro Energy, announced in February 2020, that they had increased their drilling activities in Tunisia. Thus, these product offerings by the market players and the expansion activities being conducted are also leading to a surge in the demand for tall oil fatty acids and providing a push to the market’s growth.
By application, the market is segmented into dimer acid, and alkyd resins, among others. The alkyd resins application segment is projected to witness significant market growth during the forecast period on account of favourable government policies and measures to boost both automotive production and sales, coupled with stringent environmental regulations to reduce greenhouse gas emissions. For example, according to the new trade agreement USMCA, it is mandatory for automakers to manufacture 40% of their motor vehicles in facilities where assembly workers earn a minimum of US$16 per hour. Furthermore, under the new agreement, automakers are required to use 75 percent of North-American parts in their automobiles to be imported duty-free by 2023, which will incentivize automakers to increase the amount of other region's auto parts in their cars and light trucks. Furthermore, paint and coatings producers have added significant production capacity in recent years globally, and there are currently a number of ongoing expansion activities in the paint and coatings sector by major producers, which are also opening up growth opportunities for TOFA manufacturers and vendors in the coming years.
The Asia Pacific holds a significant share in the market
By geography, the tall oil fatty acid (TOFA) market is segmented as follows: North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The Asia Pacific region is expected to hold a significant share in the market owing to the presence of major players coupled with established paint and coating industries in countries like China and India. The demand for tall oil fatty acid is primarily derived from its applications in coatings and adhesives among others. As a result of the growing demand from the end customers, the region has been witnessing a steady increase in investment to expand the production of resins and coatings. The region is also the home of countries like China, Vietnam, and India which are also characterized by expanding manufacturing facilities and which are expected to drive the growth of the market during the forecast period. In addition, rising construction spending, by both public and private players, is expected to boost demand for polyamide resins in construction materials, thereby boosting TOFA market growth. Favorable government policies in the oil and gas industry are also attracting major market players; for example, the government of India recently allowed 100% FDI in many segments of the oil and gas industry, including petroleum products and refineries, among others.
Prominent key market players in the tall oil fatty acid (TOFA) market include Kraton Corporation, Harima Chemicals Group, Inc., Forchem, Chemical Associates Inc., Eastman Chemical Company, Segezha Pulp and Paper Mill, Torgoviy Dom Lesokhimik. The number of players in the tall oil fatty acid (TOFA) market is large and growing, with the opportunity to generate significant revenues as a result of growing demand. Few large market players hold a significant share in the market, and key players in the market are seen to adopt similar strategies and are either looking to expand their market portfolio with investments in the development of the new product line, or some companies are opting for mergers, acquisitions, and strategic partnerships to expand their market presence. Major market players in the global tall oil fatty acid (TOFA) market have been covered along with their relative competitive positions and strategies. The report also mentions recent deals and investments by 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 tall oil fatty acid (TOFA) market.
Product Offerings by the market players in the tall oil fatty acid market
In the competitive landscape of the Tall Oil Fatty Acids Market, major companies are actively offering various offerings by integrating their innovative technology. Some of the products offered are:
COVID-19 had a negative impact on the Tall Oil Fatty acids market. The surge in active cases and mandated lockdown led to the closure of multiple production facilities across the globe, decreasing the productivity of many key players. Furthermore, the restrictions of travel restrictions affected the imports and exports in several countries, creating a gap in the supply and demand chain of the market.
|Market size value in 2020||US$756.292 million|
|Market size value in 2027||US$1250.342 million|
|Growth Rate||CAGR of 7.45% from 2020 to 2027|
|Forecast Unit (Value)||USD Million|
|Segments covered||Product, Application, End-User Industry, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||KRATON CORPORATION, Harima Chemicals Group, Inc., Forchem, Chemical Associates Inc., Eastman Chemical Company, Segezha Pulp and Paper Mill, Torgoviy Dom Lesokhimik, Foreverest Resources Ltd., ChemCeed LLC, Silver Fern Chemicals Inc|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the tall oil fatty acid market size by 2027?
A1. The global tall oil fatty acid (TOFA) market is expected to reach a market size of US$1250.342 million by 2027.
Q2. What factors are anticipated to drive the tall oil fatty acid market growth?
A2. Growing production of crude oil around the globe is considered one of the key factors that are accelerating the growth of the tall oil fatty acid market during the forecast period.
Q3. What are the growth prospects for the tall oil fatty acid market?
A3. The tall oil fatty acid market is expected to grow at a CAGR of 7.45% over the forecast period.
Q4. What is the size of the global tall oil fatty acid market?
A4. Tall Oil Fatty Acid Market was valued at US$756.292 million in 2020.
Q5. Which region holds the largest market share in the tall oil fatty acid market?
A5. The Asia Pacific is expected to hold a significant share in the market owing to the presence of major players coupled with established paint and coating industries in countries like China and India.
Harima Chemicals Group, Inc.
Chemical Associates Inc.
Eastman Chemical Company
Segezha Pulp and Paper Mill
Torgoviy Dom Lesokhimik
Foreverest Resources Ltd.
Silver Fern Chemicals Inc
All our studies come with 2 months of analyst support.
We are in compliance with the global privacy laws.