Oleochemicals Market to Reach $30 Million by 2024
Reportlinker Review is a series of posts featuring Innovations, Social and Economic Megatrends to understand the World of Tomorrow. Each post is illustrated with statistics for one industry.
Reportlinker’s Oleochemicals Market Review in a nutshell
- Asia-Pacific holds the largest market share
- University develops canola-based insulation
- Emery Oleochemicals introduces four new products
How is the Oleochemicals market ?
The oleochemicals market is forecasted to reach $30.15 billion globally by 2024, according to Grand View Research. That same year, the number of tons produced is expected to reach 18.82 million.
Fatty acids were the top oleochemical product consumed in 2015, representing 55% of the market. This segment is expected to see continued growth.
Glycerol is the segment forecasted to grow the fastest by 2024 – at a compound annual growth rate of 5.7%.
The majority of oleochemicals are used in pharmaceuticals and personal-care products. Between 2016 and 2024, this market is forecasted to grow at a CAGR of 5.9%.
Oleochemicals are derived from animal or plant oils.
Globally, the largest market is Asia-Pacific. In 2015, it held a 40% market share.
Asia is expected to continue to dominate the industry. The region is known for innovation and has an abundance of raw materials.
In the Philippines, oleochemicals are a top 10 chemical export. Coconut oil is the top product, but palm oil is often used as a less expensive alternative.
Overcapacity could potentially slow growth in Southeast Asia.
Meanwhile, the University of Alberta has developed a canola-based polyol for use as an ingredient in spray-foam insulation.
Polyols are used to produce polyurethane.
The product, BioFoam, will be used by an insulation company to produce rigid foam panels.
University researchers believe BioFoam would create a market for poor quality canola, eliminating waste.
“I imagine that when this gets into production, the companies actually producing these chemicals will want to fix their price of canola, so that might be an advantage for farmers,” Jonathan Curtis, head of the Lipid Chemistry Group at the university, told the Western Producer.
In 2012, bio-based chemicals represented 9% of global chemical sales, according to McKinsey & Co.
By 2020, it is expected to be 11%, and worth $375 billion to $441 billion in value.
A factory to produce BioFoam is in the planning stages.
The university is working on other oleochemical projects: the creation of flexible seat cusions and a bio-based resin.
Emery Oleochemicals has announced the production of four new bio-based products.
The products will be used in adhesives, coatings and elastomer applications. They were developed with customer collaboration, the company said.
In quality, they are similar if not superior to petroleum-based chemicals, the company said.
The company is the largest oleochemicals producer in North America and among the world’s top bio-companies.
- During 2015-2019, the market is forecasted to grow at a CAGR of 5.95%. (source: TechNavio)
- Between 2014 and 2019, the market is forecasted to reach $25.9 billion in value, growing at a CAGR of 4.2%. (source: MarketsandMarkets)
- By 2022, the oleochemicals fatty acids market is forecasted to be valued at $16.4 billion globally. From 2014 and 2022, the oleochemicals market is projected to reach $30.62 billion, growing at a CAGR of 8.1%. (source: Stratistics MRC)