Rapid increase in natural fatty acid derivatives usage as additive material in several industries driving growth of oleochemicals

Date: 1 March 2020

According to a research report published by Azoth Analytics in February 2020, the Global Oleochemicals Market was valued at USD 24850 Million in the year 2019 and in terms of volume, the global Oleochemicals market was 16640 thousand tonnes in year 2019. Primarily, the growth in market can be attributed to rapid increase in natural fatty acid derivatives usage as additive material in several industries by replacing potentially harmful petrochemicals. With rising demand for environment-friendly products, Oleochemicals products are being readily accepted in the market boosted by rising population and rapid economic growth.

Global Oleochemicals market has gained importance as developed countries such as U.S and France and developing countries like China, Indonesia has been witnessing growth in economy that results in increased purchasing power of Oleochemicals based products by consumer which will further support the growth of Oleochemicals market.

Favorable government policies regarding tax benefits and financial incentives for bio-based chemical producers are impacting the industry growth positively. The application development coupled with product innovation will yield potential opportunities for companies operating in the industry over the forecast period.

The Azoth Analytics Research Report Global Oleochemicals  Market has been analysed By Raw Material (Palm Oil and Palm Kernel Oil, Soybean Oil, Rapeseed Oil, Coconut Oil, Animal Fat, Others), By Type (Fatty Acids, Fatty Alcohols and Glycerine) and By End-Use Sector (Pharmaceutical, Food & Beverages, Detergents & Soaps, Personal Care & Cosmetics and Others). The global oleochemicals market has been analyzed By Region (Americas, Europe, APAC) and By Country (United States, Brazil, Germany, France, India, Indonesia, China, Malaysia).

The Asia Pacific market is estimated to be the leading market for Oleochemicals during the forecast period. In Asia-Pacific, the Oleochemicals market is driven by various factors such as easy availability of raw material, rising demand for bio-based products. Also, the manufacturing cost of these chemicals is low in the region due to availability of feedstock abundance in the region. For instance, Malaysia is benefitted by Palm Oil production and is focusing on Oleochemicals.

Based on End-Use Sector (Pharmaceutical, Food & Beverages, Detergents & Soaps, Personal Care & Cosmetics and Others), Detergents and Soaps dominates the market share in year 2019 and is also expected to show dominance during the forecast period. The reason for the growth could be that due to changing lifestyle and growth in education regarding health and hygiene, there is an increased demand for soaps and detergents which in turn will drive global oleochemicals market by soaps and detergents segment. Introduction of innovative new product in the soap and detergent is the major factor contributing toward the global soap and detergent growth. Growth of the Detergents and Soaps segment drives the Oleochemicals market.

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