Global Oleochemicals Market Demand & Forecast Analysis, 2016-2032

Oleochemicals are chemical compounds derived from natural oils and fats. They are known for their environmentally friendly properties, including biodegradability and low toxicity. Fatty acids, fatty alcohols, glycerin, and methyl esters are among the basic oleochemicals used as raw materials or intermediates in various industries. These fundamental oleochemicals are produced through a range of chemical and enzymatic reactions, including water-based hydrolysis, transesterification, hydrogenation, and alcohol-based alcoholysis.

Oleochemicals find diverse applications in various industries, including Soaps & Detergents, Personal care & cosmetics, Plastics & Polymers, Lubricants, Chemical Intermediates, Pharmaceuticals, Household & Industrial Cleaning, Food & Beverages, and Others such as tobacco, coatings, and textiles. In the Personal care & cosmetics industry, oleochemicals are commonly used as a thickening agent and are considered safe, with minimal or no presence of carcinogens. The largest application of oleochemicals lies in the Soaps & Detergents sector, where they are utilized in the production of sodium lauryl sulfate and other ingredients used in Personal care and Soaps & Detergents.

Global Oleochemicals demand was estimated to be over 17,000 kilo tons which is expected to grow to cross 27,000 kilo tons by 2032, at a CAGR of 5%. Global demand for Oleochemicals is driven by increase in demand of the Soap & Detergents, Personal Care, Plastics & Polymers, Lubricants, Chemical Intermediate, Plastics and Other applications. Of the total Oleo-chemicals consumed in 2022, over 40% were used in the soaps & detergents segment. It is expected to remain the largest application for Oleo-chemicals globally, with a growth forecast at a CAGR of 4.2% in the long-term forecast till 2032. Oleochemicals demand for Personal Care applications is likely to grow at rate of 5.4% to cross 4,100 kilo tons by 2032. Plastics and Polymers is estimated to be fastest growing application of Oleochemicals and witness a CAGR of 7% during long term forecast due to high demand in major markets like China.

Fatty acids account for more than 50% of the global oleochemicals demand and are projected to grow at a rate of 5% during the period 2023-2032. They play a crucial role in driving the demand for eco-friendly compounds. Fatty acids are vital components of oleochemicals and are formed through the splitting of triglyceride molecules into fatty acids and glycerin. These basic oleochemicals can be produced from any oil or fat through reactions with water at high pressure and temperature conditions or through enzymatic reactions. Fatty acids serve as key raw materials and intermediates in the production of a wide range of products, including soaps, detergents, pharmaceuticals, personal care products, plastics and polymers, food and beverages, and lubricants. Their versatile applications make them essential ingredients in the manufacturing of various industrial and consumer goods. In recent years, the personal care and cosmetics industry has witnessed a significant shift towards sustainable and natural ingredients. Fatty acids, with their skin-friendly properties and diverse functionalities, have become integral in formulating various personal care and cosmetics products such as moisturizers, creams, shampoos, lotions, and cosmetics. The growing demand for eco-friendly and skin-friendly ingredients in this industry is expected to drive the growth of fatty acids in the oleochemicals market.