The global market for fatty alcohol is projected to grow at a compound annual growth rate of 18.83% over the forecast period, this market is estimated to increase at a rapid pace and is anticipated to reach US$ 24.821 billion in 2027 from US$7.417 billion in 2020.
Fatty alcohols sometimes referred to as long-chain alcohols, are usually straight-chain and high-molecular-weight primary alcohols which are produced from natural oils and fats. They are often available in the form of waxy solids or greasy, colourless liquids. Fatty alcohols are primarily used in the production of detergents and surfactants. Additionally, they are used as ingredients in cosmetics, meals, and industrial solvents. In the food and cosmetics industries, they are used as thickeners, co-emulsifiers, emollients and other applications. The global market for fatty alcohols is categorised into various segments which include- the type of fatty alcohol, the application and the geographical region.
The demand and application of fatty alcohols across various end-user industries will foster growth for the global fatty alcohols market during the analysis period.
Fatty alcohols have applications in a wide variety of industries. They are primarily used in detergents and surfactants and have applications in cosmetics and personal care products, emulsifiers, additives in industrial solvents etc. They also have applications in the manufacturing of plasticizers and antioxidants. Such high application act as one of the primary growth drivers for the fatty alcohol market.
Surfactant formulations often contain fatty alcohol. The non-ionic and amphipathic nature of surfactants makes them effective emollients and thickeners in lipsticks, hair shampoos, body wash gels, stick-on deodorants, hair masks and conditioners. The demand for cosmetics goods has also increased as a result of ongoing product launches and new product discoveries. As a result of the aforementioned considerations, fatty alcohols are projected to predominate in the use of surfactants in skincare, makeup and personal hygiene products throughout the projection period.
The high nutritional value of fatty alcohol has led to its growing applications in the food and beverage industry. It has been shown that fatty alcohols derived from plant wax and beeswax reduce plasma cholesterol in people.
According to the research and analysis, the personal care sector is expected to grow remarkably, during the anticipated period.
The fatty alcohol market on the basis of application is categorised into various segments such as personal care, industrial and domestic cleaning products, lubricants, food and nutrition and other products. Out of all these the application of fatty alcohol in personal care products such as shampoos, and lipsticks will witness rapid growth.
There has been an increase in the use of natural fatty alcohols in surfactant-based sectors, such as personal care. The COVID-19 epidemic has increased consumer demand for personal care, skin care and home care goods. The market is anticipated to be positively impacted by the personal care industry’s rapid growth. The greater use of natural, plant-based acids and related compounds like fatty alcohol in cosmetic products will fuel market demand during the projection period. The United States beauty and personal care market are one of the most profitable industries worldwide, according to the MPOC.
The total retail sales of cosmetic and beauty goods in Europe for the year 2021 were estimated by Cosmetics Europe to reach EURO 80 billion. The rise in demand and sales of beauty and personal care products will therefore lead to increasing demand for fatty alcohols in personal care and beauty products.
During the analysis period, the unstable prices of raw materials are anticipated to obstruct the growth of the global fatty alcohol market.
The materials that are used in the production of fatty alcohol include palm oil, primary coconut oil, lard, tallow, palm kernel and other natural oil and fat sources. These compounds and materials are subject to price volatility. This makes it difficult for consumers to control the cost of the production of their products. The unstable prices of raw materials pose a major challenge for the players in this space.
The palm oil board of Malaysia issued a warning predicting a challenging 2023 for the palm oil industry due to the continued global weather, economic and geopolitical uncertainty. The market for palm oils has struggled with volatility brought on by recessionary concerns. The benchmark price for crude palm oil hit a record high of USD 1586 per tonne in march of 2022, but since then, prices have fallen by approximately 40 per cent. Such high wobbling in the price of materials used to manufacture fatty alcohols has forced end-user consumers to look for other alternatives which will restrict the expansion of the global industry.
During the analysis period, out of all the geographical regions the market is segmented into the Asia Pacific region is likely to account for a rapid growth rate in the global Fatty alcohol market.
The global fatty alcohol market has been divided into five regions: North America, South America, Europe, the Middle East and Africa, and Asia Pacific. During the projected period, the Asia Pacific fatty alcohol market is expected to grow significantly during the aforementioned period It is anticipated that the market under study during the projection period would grow as a result of rising demand for surfactants used in the production of personal care products in important economies of this region. The market for cosmetics items in the Asia-Pacific area is primarily driven by a growing awareness of the need of preserving one’s look and a significant rise in disposable incomes, which in turn drives up demand for fatty alcohol in this region. The demand for oil-based chemicals in the region has increased, particularly over the past some time, due to rising consumer spending on eco-friendly products and growing awareness of the negative impacts of chemicals used in cosmetic items. Asia-Pacific comes second in terms of producing fat and oil globally and serves as the primary source of raw materials for fatty alcohol compounds. As a result, Asia-Pacific as a consumer has stronger control over oleochemical manufacturing and distribution. The market for fatty alcohol in the area is anticipated to expand considerably throughout the research period as a result of the aforementioned causes. Prime markets in this region include India, China, Japan, Indonesia, Thailand, Taiwan and South Korea.