Global oleochemicals market to touch $ 30 bn by 2020

Driven by rapid growth in various end-user industries including personal care, food additives, surfactants, and pharmaceuticals,the global market of oleochemicalsis expected to reach $ 30.03 billion by 2020, according to a new study by Grand View Research Inc.
 
Increasing demand for bio-based products from various end-use industries such as soaps & detergents, pharmaceuticals and personal care is expected to remain a key driving factor for the global oleochemicals market. According to Grand View Research study, industry has shifted its focus towards developing bio-based products on account of volatility in petrochemicals prices due to supply demand imbalances which is also expected to have a positive influence on oleochemicals demand over the forecast period.
 
Initiatives from different environmental associations regarding toxic emissions from petrochemicals are expected to further help oleochemicals penetrate the market on account of its biodegradable and renewable raw materials.
 
Polyamide and polyols are manufactured using oleochemical advanced routes which are used in producing polyurethane, a major raw material for fabric industry. Growth of these end-use industries particularly in emerging economies of India, China and Brazil is also expected to drive the demand for oleochemicals. Availability of key feedstock on account of overlapping with other applications is expected to remain a key challenge for market participants over the next six years.
 
Asia Pacific was the largest regional oleochemicals market and accounted for 41.9 per cent of total market volume in 2013. Rapidly expanding end-use industries such as food & beverages, personal care and pharmaceuticals in the region is expected to drive the regional oleochemicals demand. Availability of key raw material in abundance particularly in Malaysia, China, Indonesia and Thailand is also expected to have a positive influence on the market growth. Asia Pacific is also expected to be the most lucrative regional market for oleochemicals over the foreseeable future. Asia Pacific along with largest consumer is also the largest producer of oleochemicals. European oleochemicals demand is expected to grow at an estimated CAGR of 4.1 per cent from 2014 to 2020.
 
Global oleochemicals market is moderately concentrated with top four companies accounted for over 55 percent of the total market. Oleochemicals market witnessed a large number of mergers and acquisitions and there are significant opportunities for the market occupants to introduce diversified products to sustain market growth. Top oleochemicals market players include ADM, Akzo Nobel, BASF Cognis, Cargill, Emery Oleochemicals, Evonik, Oleon, KLK Malaysia, and Wilmar International.
 
Fatty acids were the leading oleochemical product and accounted for 57 per cent of total demand in 2013. Growing demand for fatty acid as raw material in end-use industries such as detergent and personal care is expected drive its demand over the forecast period. Glycerol is expected to witness significant growth rate over the next six years. Global demand for fatty acids is expected to grow at an estimated CAGR of 6.4 per cent from 2014 to 2020. Increasing glycerol applications in food & beverages industry is expected to drive its demand over the next several years. Growing awareness for green chemistry among consumers is also expected to have positive impact on glycerol demand.