PUBLISHER: The Business Research Company | PRODUCT CODE: 1672528
PUBLISHER: The Business Research Company | PRODUCT CODE: 1672528
Oleochemicals are chemical compounds derived from vegetables, plants, and animal oils, serving as raw materials in various industries including lubricants, pharmaceuticals, plastics, rubber, and animal feed. Hydrolysis is the primary method used to convert animal and plant oils and fats into oleochemicals. This process involves subjecting natural triglycerides to water, heat, and pressure, resulting in the separation of crude glycerin and mixed fatty acids.
The main types of oleochemicals encompass specialty esters, fatty acid methyl esters, glycerol esters, alkoxylates, fatty alcohols, fatty acids, fatty amines, and other related products. Fatty acid methyl esters are esters derived from the transesterification of fats with methanol. They find applications in the manufacturing of detergents and biodiesel. Oleochemicals are distributed through direct and indirect sales channels.
The oleochemicals market research report is one of a series of new reports from The Business Research Company that provides oleochemicals market statistics, including oleochemicals industry global market size, regional shares, competitors with an oleochemicals market share, detailed oleochemicals market segments, market trends and opportunities, and any further data you may need to thrive in the oleochemicals industry. This oleochemicals market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The oleochemicals market size has grown strongly in recent years. It will grow from $29.43 billion in 2024 to $32.13 billion in 2025 at a compound annual growth rate (CAGR) of 9.2%. The growth in the historic period can be attributed to strong economic growth in emerging markets, increased demand for sustainable plastics, and a rise in crude oil prices.
The oleochemicals market size is expected to see rapid growth in the next few years. It will grow to $49.69 billion in 2029 at a compound annual growth rate (CAGR) of 11.5%. The growth in the forecast period can be attributed to favorable government initiatives, increasing focus on organic personal care products, and lower cost and sustainability of raw materials will drive the growth. Major trends in the forecast period include a focus on increasing investments, increasing online presence, partnerships and collaborations, introduction of new oleochemical production plants, and mergers and acquisitions.
The growing demand for sustainable plastics is anticipated to drive the growth of the oleochemical market. The widespread use of plastic and other non-biodegradable materials has led to numerous environmental challenges, prompting industries and consumers to shift towards sustainable plastic alternatives. These sustainable plastics aim to minimize inefficiencies that contribute to environmental damage while optimizing business operations. This rising consumer interest in eco-friendly plastics is creating new opportunities, particularly in sectors such as cosmetics, pharmaceuticals, fashion, and food for oleochemicals. For example, a report from the European Bioplastics e.V., a Germany-based organization advocating for the bioplastics sector in Europe, indicated that global bioplastics production capacity is projected to grow significantly, from approximately 2.2 million tonnes in 2022 to around 6.3 million tonnes by 2027. Thus, the increased demand for sustainable plastics is expected to enhance the oleochemicals market during the forecast period.
The growing focus on organic personal care products is poised to contribute to the expansion of the oleochemicals market. Consumer preferences are shifting towards natural ingredients, leading companies to replace synthetic chemicals with organic alternatives in personal care products. In the UK, the organic beauty and wellbeing market witnessed a 15% growth in sales, with consumers spending around £11 million ($13.5 million) monthly on certified organic and natural beauty products, according to the Soil Association Certification's Organic Beauty & Wellbeing Market Report 2022. BASF SE, a German chemical company, also responded to this trend by offering certified sustainable personal care ingredients based on coconut oil, contributing to the growth of the market.
Major players in the oleochemicals market are adopting strategic partnerships and collaborations to enhance their market positions. For instance, DKSH, a Swiss-based distributor of specialty chemicals, partnered with Malaysia-based oleochemical producer IOI Oleo. This collaboration, effective in key Asia-Pacific markets, involves DKSH providing business development, marketing, sales, logistics, and distribution services for IOI Oleo's range of oleochemical specialties. Similarly, IMPAG AG, a Swiss company specializing in life science and material science industries, entered into a distribution partnership with Hobum Oleochemicals, a German company involved in oleochemical production. This collaboration aims to offer innovative bio-based solutions for various industrial applications.
In October 2024, Oleon, a Belgium-based manufacturer of natural-based oleochemicals, acquired A. Azevedo Oleos for an undisclosed amount. This acquisition enables Oleon to strengthen its presence in the rapidly growing South American market, particularly in Brazil, while expanding its product line to include castor oil derivatives. This strategic move aligns with Oleon's long-term sustainability objectives and underscores its commitment to local sourcing of vital raw materials, promoting environmentally responsible agricultural practices. A. Azevedo Oleos is a Brazil-based oleochemical company that specializes in castor oil and its derivatives.
Major companies operating in the oleochemicals market include Wilmar International Limited, Kuala Lumpur Kepong Berhad, Kao Corporation, BASF SE, Evonik Industries AG, IOI Group, Emery Oleochemicals, Godrej Industries, Oleon Nv, Eastman Chemicals Company, Klk Oleo, Ecogreen Oleochemicals (Singapore) Pte Ltd, Pacific Oleochemicals Sdn Bhd, Ptt Global Chemical, Hangzhou Zanyu Oil Technology Co. Ltd, Jiangsu Meiaisi Corp Ltd, Taiko Palm-Oleo (Zhangjiagang) Co. Ltd, Evyap Oleo, Croda Industrial Chemicals, Mirriko, Pcc Group, Glycerine.Ru, Jedwards International Inc, Solvent Systems International, Ravago Chemicals North America, Vantage Oleochemicals, Oxiteno, Materia Hnos, Cremer Oleo Brazil, Gulf Chemicals And Industrial Oils Co, The Saudi Company Of Chemical Trading Ltd, African Chemicals, Refinex, Tristar
Asia-Pacific was the largest region in the oleochemicals market in 2024, and it is also expected to be the fastest-growing region in the forecast period. The regions covered in the oleochemicals market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the oleochemicals market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.
The oleochemicals market consists of sales of alkoxylates and palm oil. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Oleochemicals Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on oleochemicals market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for oleochemicals ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The oleochemicals market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.