The global fatty alcohol market is predicted to grow at a compound annual growth rate (CAGR) of 5.14% to attain a market size of US$8.659 billion by the end of the analysis period, 2026. The market was valued at US$6.098 billion in 2019. The primer reason driving the growth in the market is the growing adoption of Oleochemicals in place of petrochemicals across various industry verticals. Fatty alcohols are a distinctive and unique group of Oleochemicals and are derived from natural fats and oils.
These stained-chain primary alcohols have the property of cleansing and learning and are widely used across soaps, detergents, personal care, textiles, and other industries. Most of these alcohols are biodegradable (up to C18) and hence are eco-friendly. Their usage in fine-grained dye pigment reduces the residual amount produce, making them more preferable from an economic and environmental point of view. Furthermore, government and industrial support will significantly boost the market size.
The Cosmetic and Personal Care Industry Provides Great Potential For the Fatty Alcohol Market During the Forecasted Period
Based on industry vertical, the cosmetic and personal care market dominates the demand for fatty alcohol owing to the rising demand for natural and organic products. Chemical-based products provide short-term benefits to the user but turn futile over a longer period. Skincare products, which are chemical-based, harms the skin upon continues usage, making with worse or at time dangerous. One such episode is of Jhonson&Jhonson powder where consumers claimed suffering from ovarian cancer as a consequence of prolong usage of their talc. Though the company was tapped with multi-million-dollar charges and labels, this is just one instance. The consumer today is more aware of the product they use and its impact. Further, chemical-based products are non-biodegradable and pollute the environment. This increases the human carbon footprint on Earth.
Natural Products, on the other hand, are organic and do not contain chemicals. Components, such as fatty alcohol, contain anti-oxidants and prevent cells from radicals. Moreover, fatty alcohol-based products are non-irritating on the skin and kill acne-causing bacteria, keeping the skin acne-free. In skincare products, fatty alcohols are used to make the product thick. They are also used as emollients in the products to keep the applied area soft and smooth. These outstanding properties of natural products are booming their market demand, driving in growth of fatty alcohols as well. Furthermore, increased disposable income has played a crucial role in the growth of the industry. disposable income, along with rapid urbanization, has significantly leveled up the standard of living of consumers today, who now pay more attention to their personal care and grooming. This resulted in the consumption of superior products, such as natural products, for better skin health. The UN published a report about global urbanization which states that growth in urban population has increased from 751 million in the 1950s to 4.2 billion in the year 2018. These changing trends are accompanied by increased expenditure on a wider consumer basket.
Natural cosmetic and skincare products are dominantly used by the female segment of the population. However, the male segment is slowly adapting to male-specific cosmetics and products, with changing social norms and thoughts, providing a new market to be explored. The young population is the prime consumer of the market who demands better, natural, and organic products, providing a humongous market prospect.
Constraints Facing the Fatty Alcohol Market
There are many constraints facing the fatty alcohol market which have the potential of severely depleting the market size. The major hindrance for the market is the huge extraction cost of fatty alcohols. The process involves the recovery of solvent and reducing the alcohol during the distillation method. The extraction process also involves the usage of metallic sodium, which costs a fortune, increasing the cost further. Moreover, the requirement of elaborate and specific equipment, especially for the extraction of solvent and reduced alcohol, constrains the market options. Of all, the alcohol present in cosmetic and skincare products is linked with free-radical damage to the skin of the user. The damage caused by fatty alcohol could get severe, if not suited to the user, and cause damage similar to damage caused by excessive alcohol consumption.
The Online Segment of the Market Has Diverse Market Opportunities for the Fatty Alcohol Industry
Based on the distribution channel, the market is segmented into online and offline channels of sale. The online segment of the market is anticipated to outgrow and generate great revenue for natural-based fatty alcohol products. Rising internet penetration has brought several international brands at one’s fingertip, increasing awareness and sales of the product. Retail offline sales will dominate the market during the forecasted period owing to consumer preferences for the product that they can physically test before purchasing.
Based on type, the market is segmented into C6 to C10 fatty alcohol, C11 to C14 fatty alcohol and C15 to C22 fatty alcohol. Owing to their biodegradable property, fatty alcohol up to C18 has huge market preference and demand.
The Asia Pacific Segment of the Market Will Grow at a Skyrocketing Rate While the North American Market Will Dominate the Industry
Based on geography, the market is segmented into the North American region, the South American region, the Middle East and African region, the European region, and the Asia Pacific region. The North American and European region is expected to dominate the market during the forecasted period owing to the wider preference of consumers for natural skin care products. However, on a country-wise comparison, China is expected to dominate the market demand.
The Asia Pacific region is expected to surge at an exponential rate between 2019 to 2026, being the fastest-growing region in the industry. the prime reason contributing to this market growth is surging disposable income along with increased awareness regarding better and natural products. The surge in internet penetration has increased accessibility to these products, increasing the market opportunities. Further, growing online platforms for purchase have made the market competitive while providing a wide range of products to the customers. Growing internet and social media influence has also contributed to the surging use of these products in the region.
Coronavirus Pandemic Analysis
The analysis report also provides a deep study about the impact of the coronavirus on market for fatty alcohol, stating how the lockdown and employment have severely impacted the fatty alcohol market owing to a fall in market demand for all goods, except those which fall under necessity category. The report also covers the impact of a disturbing supply chain on the industry.