Sustainability In The Oleochemicals Market: Eco-Friendly Alternatives

The global oleochemicals market size was estimated at USD 24.42 billion in 2023 and is projected to grow at a CAGR of 7.0% in terms of revenue from 2024 to 2030. The market outlook is considered positive due to the increasing demand for biodegradable products and restrictions on petrochemical-based products.

Oleochemicals are the products derived from fats and oils. They can be produced from natural sources such as plant oils and animal fats as well as fossil fuel sources such as petrochemicals. Oleochemicals can be produced using various chemical or enzymatic reactions by the manufacturers. Fluctuating crude oil prices have resulted in a major shift toward the utilization of vegetable oils such as palm and palm kernel oil as a key feedstock for oleochemical production. The global oleochemicals market has an advantageous edge owing to the constantly increasing raw material availability, minor toxicity, and green image of the products.

The demand for oleochemicals derivatives is growing at a steady pace owing to an increase in the consumption of personal care, pharmaceutical, and food products. The demand for personal care products is witnessing growth due to an increase in disposable income, product innovation, and high market penetration. Oleochemicals are widely used in FMCG products such as soaps, toothpaste, and moisturizing lotions. The demand for these products is increasing as companies in the personal care industry are focusing on maximizing the visibility of the products to potential customers through online promotional activities, sweepstakes, and other initiatives in the developed regions.

A major opportunity for the global oleochemicals industry lies in the increasing demand for sustainable and renewable products across various industries. Oleochemicals, derived from natural fats and oils, offer a viable alternative to petroleum-based chemicals. As consumers become more environmentally conscious, there is a rising preference for products with a reduced carbon footprint. For instance, in the personal care industry, there is a growing demand for natural and organic ingredients. Oleochemicals such as coconut oil and palm oil derivatives are used in the production of soaps, shampoos, and skin care products due to their gentle and eco-friendly properties.

On the other hand, determining reliable sources of raw material suppliers and optimizing supply chain efficiency is one of the crucial challenges faced by the market on a global scale. However, the manufacturers have majorly adopted vertical integration to overcome the challenges mentioned above. For instance, IOI Corp Bhd and Kuala Lumpur Kepong Bhd (KLK) are some of the players that have established downstream integration into refineries and production of oleochemicals in Europe and China and upstream integration with the help of their plantations in Indonesia and Malaysia.

Key Oleochemicals Company Insights

• Vantage Specialty Chemicals, Inc. is a specialty chemicals company that manufactures and distributes specialty derivatives, fatty acids, naturally derived specialty chemicals, and intermediates. The company is a vertically integrated provider and caters to four diverse markets, including personal care and beauty, food, life science and consumer care, and industrial specialties.

• Evonik Industries AG is a key player in the oleochemical sector, and it manufactures and distributes specialty chemicals globally. The company operates through five business units, which include Specialty Additives, Nutrition & Care, Smart Materials, Performance Materials, And Technology & Infrastructure.

• JNJ Oleochemicals, Incorporated. is engaged in the manufacturing and distribution of biodiesel and oleo chemical products worldwide. The products are mainly derived from coconut oil. The company’s product portfolio includes methyl ester derivatives and glycerin, and it is vertically integrated along its value chain. The company has its manufacturing plant in Lucena City, Philippines.

• Stepan Company manufactures and distributes intermediate chemicals including specialty products, surfactants, germicidal & fabric softening quaternaries, phthalic anhydride (P.A.), polyurethane polyols, and special ingredients for supplements, food, and pharmaceutical industries. The company provides a wide range of oleo chemical-based surfactants for the formulation of both home and industrial laundry detergents. It has 18 manufacturing units located in 11 countries in North America, South America, Europe, and Asia.

Order a free sample PDF of the Oleochemicals Market Intelligence Study, published by Grand View Research.

Recent Developments

• In May 2024, Corbion signed a partnership agreement with IMCD, a key distribution partner and formulating company of specialty chemicals and ingredients, to include hereby Corbion’s various products for the food & beverage sector in Thailand.

• In April 2024, Vantage Specialty Chemicals expands METAUPON* NMT (N-Methyl Taurine) capacity at its Leuna site. This expansion aims to meet consumer demand in the personal care, industrial, and household sectors.

• In January 2024, Godrej Industries signed an MoU with the Gujarat government to invest USD 71.8 million over the coming four years to increase the production capacity of oleochemicals. This expansion is to cater the surging product demand in the personal care, pharmaceuticals, and food industries