Global Fatty Alcohol Market Demand & Forecast Analysis, 2016-2032

Executive Summary : - 

Fatty alcohols are high-molecular-weight, straight-chain primary alcohols, but can also range from as few as 4-6 carbons to 22-26 carbons, derived from natural fats and oils, petrochemicals and coal. The precise chain length varies with the raw material used for production. Some commercially important fatty alcohols are stearyl, lauryl and oleyl alcohols. They are colourless or waxy solids, usually having an even number of carbon atoms and a single alcohol group (-OH) at the end. As with fatty acids, they are often referred to generically by the number of carbon atoms in the molecule. According to number of carbon atoms, fatty alcohols are divided into three main types, Short Chain (C6-C10), Mid cut (C11-C14) and Long Chain (C15-C22)

Fatty Alcohols are also segmented according to raw materials used for production:

• Natural Oils & Fat based
• Petro-based
• Coal Based

Fatty alcohols are majorly used in Soaps & Detergents application followed by Personal Care. Fatty alcohols demand is majorly driven by Soaps & Detergent industry for many years. Other applications for fatty alcohol include Amines, Lubricants, Chemical Intermediate and Plastics. The industrial importance of fatty alcohols is based on number of reactions the -OH group may undergo. Under normal conditions, fatty alcohols are resistant to oxidation but they can be converted into aldehydes or carboxylic acids using strong oxidants. This reaction is important for the production of C6-C10 Aldehydes which is only possible using synthetic fatty alcohol. Therefore, it is important to differentiate between natural and synthetic fatty alcohols for the detailed understanding of the market. Synthetic fatty alcohols are manufactured using trans-esterification of methanol and natural fatty acids are produced using splitting of fatty acids and oils.

Indonesia is the second largest producer of fatty alcohols in Asia-Pacific. Ecogreen Oleochemicals, Wilmar Oleo, Musim Mas, PT Bakrie and Sinarmas Cepsa (Golden Agri) are the key manufacturers of fatty alcohol in Indonesia. Ecogreen Oleochemicals and Musim Mas are the major Fatty Alcohol producer in Indonesia together accounting for more than 75% of the country s installed capacity. Indonesia exports more than 70% of fatty alcohol produced in the country. The country is a net exporter of fatty alcohol with average exports over 400 kilo tons in last five years. The major export destinations were China, European Union, and the USA.

Malaysia is the second largest fatty alcohol manufacturer in South East Asia and third largest manufacturer of fatty alcohol in the Asia-Pacific region. There are four fatty alcohol manufacturers in Malaysia with total installed capacity of over 600 kilo tons. KLK Oleo is the largest manufacturer of fatty alcohol with production capacity of around 280 kilo tons.  In 2007, KLK oleo commissioned its new 100 kilo tons in Malaysia. Kao Chemicals is the second largest manufacturer of fatty alcohols in Malaysia with installed capacity of around 200 kilo tons. P&G/FPG and PTT Chem/ Emery Oleo, both the companies operate fatty alcohol plant of 80 kilo tons each. Malaysia is a net exporter of fatty alcohol, the country exports around 70% of the total fatty alcohol produced in the country with exports directed towards India, China, European Union, and Japan. 

The global fatty alcohol demand in 2022 was estimated to be over 3850 Kilo tons. It is forecast to grow at a CAGR of 3.5% between 2023 and 2032 to cross 5700 Kilo tons in 2032. North America is estimated to account around 25% fatty alcohol consumption at a global level while Europe share is estimated to be around 20%. The other regions like Central & South America and Middle East & Africa together account for less than 10% of the global fatty alcohol demand. In our long-term forecast, we anticipate Asia-Pacific fatty alcohol demand to at an annual average of 5% between 2023-2032. Asia Pacific Fatty alcohols demand is driven in large part by the development of the Soap & Detergents, Personal Care, Amines, Lubricants, Chemical Intermediate, Plastics and Other applications. Soaps & Detergents segment is the largest consume of fatty alcohol accounting for more than 50% of fatty alcohol demand. It is expected to remain the largest application for Fatty alcohols globally, with a growth rate of around 3.2% in the long-term forecast till 2032.