PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1627711
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1627711
The fatty alcohol market is expected to grow at a CAGR of 4.50%, reaching a market size of US$8.704 billion in 2030 from US$6.986 billion in 2025.
Fatty alcohols are straight-chain primary alcohols of high molecular weight. They are used as solids (waxy) or oily liquids of natural or petrochemical origin. These fatty alcohols are widely used in personal care because hygiene and sanitation are so important amid the coronavirus pandemic. The market is further anticipated to benefit in growth from rising interest in green and biodegradable cosmetics. In addition, increased expenditure on cosmetics and higher per capita income would further drive market growth. However, factors like crude raw material pricing instability and disruption in the supply chain would hinder market growth.
As people get worried about the adverse effects of petroleum-based products, the global demand for sustainable products increases dramatically. Hence, consumers started preferring bio-based products, causing manufacturers to turn to eco-friendly components. Compared with their conventional counterparts, these eco-friendly alcohols made from bio-based oleochemicals are recyclable and less harmful. As they have fewer adverse effects, these alcohols have a big demand in the pharmaceutical and personal care sectors. For instance, KLK OLEO, a subsidiary of Wilmar International, markets numerous fatty alcohols derived from vegetables under the brand name PALMEROL. Moreover, the industry is likely to thrive because of international regulations such as REACH that restrict the environmental effects of petroleum-derived products.
Significantly, Asia Pacific will see growth because of major demand from the surfactant, personal care, cosmetic, and pharmaceutical industries in some of the leading economies: China, India, and Japan. This increase will be fueled further by the rise in application sectors such as cleaners and detergents. The increasing population in emerging countries in Asia Pacific has contributed to the rapid increase in demand for cleaning goods. For over two decades, the Chinese economy has made rapid strides with these multiple indicators - industrial output, import and export, consumer demand, and capital investment.
Moreover, the JCIA, or Japan Cosmetic Industry Association, was established in April 2023 to promote the development of cosmetics in Japan through the merger of the Tokyo Cosmetic Industry Association, the Japan Cosmetic Industry Federation, the West Japan Cosmetic Industry Association, and the Chubu Cosmetic Industry Association. As reported by the popular giant in the Japanese cosmetic industry, namely the Kao Corporation, the overall market in Japan grew by more than 3% last year, with further development expected in the years to come.
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